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Comments on sub’s termination right if moving / Can subscriber assign contract to new owner / Record storage July 13, 2018

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE

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Comments on sub’s termination right if moving / Can subscriber assign contract to new owner / Record storage
July 13, 2018
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Comments on sub’s termination right if moving from July 3, 2018
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Ken,
            What if the person moving from TN was military with orders for a PCS (permanent change of station) ? Would that change anything? I seem to remember that a PCS would allow some military to get out of various contracts, especially if service could no longer be provided.   This is for cell phones, not alarms. But is there another provision which would apply to alarm monitoring if the military persons house was being sold due to a PCS?
Gary D
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Ken
            I believe this is the statue that Peggy was asking you about.  To my understanding, it was mean to release homeowners who have to move to a hospital or nursing home, only.  First question would be "where are you moving to?" unless it is to assisted living facility, then they are responsible for the balance. 
Anna
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Response
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            In Tennessee there is no statute that permits cancelation of the alarm contract just because the subscriber is moving, unless moving to nursing home type facility.  Here is the statute:
            Tenn. Code Ann. § 62-32-325  (2015)
62-32-325.  Automatic renewal clauses -- Cancellation during automatic renewal period. 
  (a) A contract having an automatic renewal clause between an alarm systems contractor and any homeowner or renter for the provision of alarm services may automatically be renewed for a period not to exceed one (1) year at a time. Any waiver of the renewal limitation period included in the contract shall be void as contrary to public policy.
(b) At any time during an automatic renewal period provided by contract in accordance with subsection (a), a party to the contract who is being relocated to a hospital, nursing home or assisted living facility may cancel the contract by giving thirty (30) days' written notice to the alarms system contractor

            I am not aware of any statute that permits someone in the armed services the right to cancel is on active duty.  You cannot sue that subscriber however until they are no longer on active duty.
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Can subscriber assign contract to new owner
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Ken,
            Quick question on the Commercial All in One agreement… I don’t see a “Survivability” clause, in case of a property being sold to another entity?  Am I missing it?  Is it transferable to a new owner of a property the camera system is on?
Burke

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Response
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            None of the Standard Form Agreements are assignable by the subscriber without the alarm company’s consent.  An assignment would require not only the consent of the alarm company, but that consent would be conditioned on the new owner’s [the assignee] assumption of the agreement.            The alarm company could impose any other conditions it wanted to permit the assignment. As a practical matter the alarm company is happy to retain a customer, but the original subscriber remains liable unless permitted to assign without further liability
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Record storage
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Ken,
            From a legal standpoint how long should we be keeping customer files, after projects are completed, or they are no longer existing customers? 
Thank you,
Roman
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Response
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            You can be sued during the statute of limitations, and even after if brought in as a third party.  Six years would be safe.  If you know of a loss or reason to preserve the records for longer time, then save them.  You can always through them out; you can’t retrieve them once you do.
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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
516 747 6700
www.KirschenbaumEsq.com