KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** comment on Gross negligence claim in cyber-security context relies on alarm cases June 12, 2025 ******************* Gross negligence claim in cyber-security context relies on alarm cases from article on May 22, 2025 ******************** Ken Thanks again for your very informative legal insight to the industry. I served as an alarm expert on behalf of the plaintiff in a case filed on May 31, 2017 as “Camille Hojnacki, Camille'S Original Jewelry Design Vs. Alarm-Security & Contracting, Inc.” that included several references to the phrase “gross negligence” among the litigators after discovery and the submission of my report. If gross negligence was the fulcrum of the case, I’m not able to definitively say, but it did go to trial and the jury did find in favor of my client for the loss amount which did exceed the limitations of liability as defined in their alarm contract. Perhaps it meets the criteria you mentioned about a gross negligence case going to trial. While my vocation as an expert witness in the alarm industry is one I have become mostly comfortable with, I don’t have the same level of confidence discussing the legal aspects of the cases I have served on in a public forum such as this. I’m not confident that I can disclose details about a case and my work within it, even after it is adjudicated. It is still in the courts for other reasons. Maybe you can give me some guidance on that. I have seen in several cases what you referenced in your recent email blog where the alarm tech didn’t just not do his job, but went beyond incompetence and treaded heavily into the area of intentional disregard in the areas of safety and security. And they did so in a manner that a reasonable person would understand that the action did place the end user at significant risk. In one fire case that resulted in multiple fatalities, the fire alarm technician was proven to have ignored obvious failures in the fire alarm he was inspecting, and he also lied under oath in his deposition about fully doing the inspection which occurred just weeks before the fatal fire. Even still, the alarm company (defendant) stayed with the case for several years, up until one of their former employees gave a sworn statement saying that their supervisor told him to never red- or yellow- tag a system no matter what. Then they settled. I believe that action does take it over the line from negligence to gross negligence. And as you stated, that’s when the settlement happens. Lloyd Young, LPI, APS Licensed Professional Investigator Alarm Planning Superintendent SECURAC, Incorporated C-10783 ACR-2313 APS-2034079 www.securac.com 855-SECURAC LloydYoung@securac.com ******************* Response ****************** I can't opine on whether the case you were involved in amounted to gross negligence or why a jury awarded in excess of the limitation of liability provision. First of all, that case did not have a Kirschenbaum Contract TM, for sure, because jury trials are waived in the Kirschenbaum Contracts TM, and for very good reason [unpredictability and competence of juries]. I also can't opine on what you call a limitation of liability provision, because calling an apple an orange doesn't make it so. There are many cases where gross negligence is alleged against the alarm company. There are also plenty of cases where courts have denied summary judgment because the gross negligence was sufficiently pleaded or the facts plausibly supported that cause of action. But a finding of gross negligence against an alarm company?? I am not aware of one. I am aware and have at least one article discussing employee wrongdoing, and that certainly constitutes willful misconduct, though employers are not usually liable for criminal acts of employees, especially acting outside of their employment. ******************* STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
