*************
Question
*************
Ken,
I’ve signed up this particular customer last year using your contracts. She paid for the system
This past Thursday I got a check from Executor/Administrator of estate of this Customer.
I’m assuming she passed away, am I correct? She was 80+ years old (I knew the days are numbered but did not expect it so soon). She signed 5 year agreement but checking my contract now she’s been with me only one year. What should be done in these situations?
Software Value is $500.00 Monitoring @ $34.99/mo. Should I file UCC-1 form for monitoring + software or leave it the way it is and just collect checks and cancel when the executor stops paying?
She owned her home.
Thanks
HSS
************
Answer
************
Unless the contract provides for termination on death contracts survive the death of one or all parties to the contract. Laws can also relieve a party from contract performance upon death, and we see that in PERS laws in some jurisdictions. The Standard PERS contract terminates upon the subscriber's death. But the other Standard Form Contracts are silent on that issue and therefore the subscriber remains liable.
Of course enforcing a contract against a dead subscriber adds additional issues, expense and frustration [especially for the subscriber]. When a subscriber dies there are a few alternative scenarios. The subscriber can die with or without a will. With or without property (personalty, such as money in the bank, or real property, like the house you had the alarm in). The best case for you and other creditors is when there is a will and property. That appears to be the case raised in your question.
Although not all jurisdictions are the same regarding procedure, because its state law that governs, the general rule would be that a named Executor [sometimes called Representative] will present the Will for probate to the Surrogates Court [a specialized court that deals with deceaseds' estates] seeking Letters Testamentary. If there is no Will a distributee of the deceased's estate will seek Letters of Administration. Once the Letters Testamentary or Administration are issued by the Surrogate Judge the Executor or Representative has the power to act and administer the estate which is the property of the deceased that will pass through the probate [Surrogate] court. Lot's of information you may not need at the moment. But here is the information you do need.
Executors and estate representatives cannot disburse money or property to beneficiaries without paying all debts of the decedent. What debts need to get paid, and how those debts or claims are presented for consideration may differ state by state so you should check the law in your state. I would venture a guess that the most prudent way for you to protect your interest, which means enforce your contract rights in this case, would be to file a claim with the Executor and the Clerk of the Surrogate's Court. You can check with the court to see if it accepts claims. Once the claim is presented and filed the Executor will have to deal with it, either object to it or pay it. If objecting there will be some proceedings to determine the claim's validity, most likely in the Surrogate's Court.
So in your case, you should tally up the total claim by determining the balance of the contract. You've got 48 months at 34.99, which is $1679.52, less 20% because there is a liquidated damage clause in the contract, leaving a balance of $1343.62, plus tax. You can also deem the software sold to the subscriber for 80 percent of the $500 agreed value, which is $400, plus tax, so your claim is $1743.62 plus tax. You can indicate in your claim that you are entitled to legal fees if legal proceedings are necessary. You should file this claim and be sure to deduct from the claim any money you receive from the Executor who will probably pay you until the house is sold. Presenting the entire claim now will alert the Executor that you are entitled to the full contract amount.
If a subscriber dies and no estate proceedings are started and you are not aware of any property, move on. Technically anyone, even a creditor, can ask the Surrogate Court to appoint an Administrator, but if there is no property to administer and pay claims it will be a waste of time.
And, since we're on the topic of death, I'll take the opportunity to remind you that you may want to know what you'll have and you can start with finding out What's My Alarm Company Worth by going to http://www.kirschenbaumesq.com/newalarm2.htm
***********
Question re back page of contract
**************
Ken,
Thank you for your interest in our industry and thank you for your emails. Regarding copies of contracts, how can the rear of the contracts be faxed (or scanned) in any manner that makes them a integral part of the contract? It seems in a court case that an attorney would argue that their client never was presented much less read the rear of the contract. It seems to me that the rear would also need a signature if it was not on the physical back of a paper copy.
John Lindberg
Dial One Security, Inc
******************
Answer
******************
It is not necessary for every page of a contract to be signed or initialed. Authenticating an original or true copy of a contract always becomes an issue of fact if the document is challenged. Whether it's the signature that challenged, changes in the original or changes in pages that do not have a signature, once challenged the proponent of the document is going to have to offer testimony that the document is in fact the complete and true original or copy of the original. How is this accomplished?
Keep in mind that in the contect of this question we are addressing first the admissibility of the document into evidence and then the test of perponderance of the testimony. A few suggestions to prevail. If contract terms follow the signature page, which they do in most of the Standard Form Contracts, the face of the contract should specify that there are additional pages and terms which should be read and are part of the contract. Paragraphs should be consecutively numbered so that the back page is a continuation of the paragraph numbers and does not start with number one. When making copies or scanning the document always copy every page, even if the back page is a form that seems to never change. It doesn't harm getting a signature or initial on the multiple pages, and in very sensitive documents, such as a Last Will and Testament, it would be common practice, though again not required.
*****************
follow up re messy CCTV question
*****************
Ken
We are a custom integration company that is licensed to install alarm and video surveillance systems in Illinois. We use your contract for alarms. Our business has grown simply because we provide excellent service and complete satisfaction for all of our customers no matter how large or small their system is. We are not finished until our customer is completely satisfied. Period. We can do this because we are confident in our design skills. The issues you mentioned (power, IP addressing & router setup, camera application) can all be solved by addressing each technical problem and solving it. Seek technical support from your manufacturers and training from professional organizations when and where you need it. My experience has shown me that the technical Achilles Heel of many security and integration companies is IP Networking. Here are some links to courses I will be teaching as a CEDIA volunteer instructor at EXH this year that will help with your IP Networking issues.
http://www.ehxweb.com/classes/esd341
http://www.ehxweb.com/classes/est233
Ben Komar
Home Control Works