KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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customer cancels during installation / Group and private meetings at ISC
March 6, 2026
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schedule FREE Private or attend Group meeting at ISC
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Time slots are booking up for the ISC West 2026 meetings. There will be Group meetings hosted by Ken Kirschenbaum to be announced. Mitch Reitman and Shawn Iverson will each host a Group Meeting- topic to be announced. Schedule private meeting with Ken Kirschenbaum, Rory Russell, MItch Reitman and Shawn Iverson Ken, Mitch and Rory will meet at the Prestige Lounge; Shawn will meet at the Insurance Center booth on the ISC floor.
v To book time for free consult or inquire about attending a Group Meeting or scheduling with Mitch, Rory or Shawn, contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com. Concierge Client can also contact the Concierge Program Coordinator, Stacy Spector,Esq at 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com.
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customer cancels during installation
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Ken
We were working on a customers house, had a disagreement and ended up not finishing the job. This was the customer’s decision, not ours. Customer is refusing to pay the remainder of the pre-wire of about $17k.
We also monitor the fire alarm at his other building. He paid for the year and is still in contract. Obviously he’s not going to pay or continue to honor his contract. When can I cancel his account?
Thanks,
Mike
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Response
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You've left out too much information for me to give you advice. For example,
* I don't know nature of the dispute; I may think the customer is more right than you
* I don't know what written communication passed between you and customer regarding
* I don't know if the customer is under contract for the new installation
* I don't know if the customer is under contract for the fire alarm monitoring
Terminating a contractual obligation mid-way can be tricky. You want to end the relationship with finality and not end up in litigation, which will only prolong and be worse than finishing the job under adverse circumstances [by that I mean capitulating to the customer's demands, even if unreasonable]. While a formal release is probably not necessary in most situations, it might be. More likely a parting of the ways confirmed in writing will suffice.
For the job in midst of installation the question will be can the customer get the job completed by another for price customer still owes you. If so then the customer has no damages. On your end, have you been paid for the work you did and if not what are you owed for work completed and, if you are entirely in the right, what profit have you lost by not completing the job; that would be measured by balance to be paid less your cost of completion.
The fire alarm monitoring is different. You've been paid and you would clearly be in breach if you terminated now, especially if the customer hasn't terminated the fire alarm monitoring or done something definitive to let you know that your services are no longer wanted, starting now, not after the paid year has lapsed.
Your relationship with the customer depends entirely on the contract. If you have a Fire All in One for the fire alarm monitoring, then I know your rights. If the new installation is under a K&K contract, the contract, then I know your rights. If you have K&K contracts then K&K will support the contract and pursue the customer, if that's what we think is appropriate. Keep in mind that we may decide to pursue the customer if we think the customer is about to sue you. It's better to be the plaintiff than the defendant in most cases.
It's also a good idea to get legal advice before you get into this situation; cooler heads often prevail and an outside objective point of view can be helpful. Join the Concierge Program and get on the phone in the heat of the argument, not after you pulled the plug, or trigger, as the case may be.
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STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com
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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
www.KirschenbaumEsq.com