A New York Appellate Division decision addressed the issue of a subscriber who claimed he didn't read, write or understand English, yet signed alarm contracts [the dealer's contract and a central station contract]. (PS- this case was handled by my office- see Reported Cases) There was a burglary loss and the installing alarm dealer and the central station both sought summary judgment dismissing the action based upon the exculpatory clause in the contracts.
One of the most potent provisions in the alarm contract is the exculpatory cause. This provisions permits the alarm company to contract away liability for its negligence or breach of contract. Here is what the court had to say on a few issues important to all alarm companies:
"Contractual provisions in a burglar alarm contract absolving a party from its
own negligence generally will be enforced; however, those provisions which
purport to shield the burglar alarm company from gross negligence will not ...."
"A party who executes a contract is presumed to know its contents and to
assent to them' [and] [a]n inability to understand the English language, without
more, is insufficient to avoid this general rule" citations omitted. Although Guo Hua Lin, the plaintiff's president and sole shareholder (hereinafter its president), signed both [alarm contracts], he averred, in an affidavit, that he was unable to read or speak English, or understand the contracts. However, the plaintiff neither showed that its
president made any reasonable effort to have the contracts read to him, nor
demonstrated that any agent of either [alarm company], or any other person,
misrepresented the contents of the contracts to him. Accordingly, the plaintiff
may not rely on its president's inability to speak English to invalidate the
contracts...."
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Be mindful however that courts will be careful to make sure that the wording of the exculpatory clause is precise. Keep your contracts up to date - get the standard alarm contracts at www.alarmcontracts.com