March 21, 2011
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Question - more on subcontractors
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Ken
I have quick follow up question on this topic.
Does that mean that even if technician/subcontractor signed subcontractor
agreement is he free to go after or solicit customer once the contract
expires?
John
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Answer
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Your contract with a subcontractor can specify that no solitication or service is permitted at any time, but that may be hard to enforce once you have lost an account through no fault of the subcontractor. Mere expiration of the contract may not be enough to get out from under the contractual restrictive covenant because your argument will be that the subscriber left because of the subcontractor. Of course a subcontractor with any hope of continued subcontracting work will stay clear of your subscribers.
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Question on pass codes
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Ken
Pass codes - good subject that deserves the space in your emails. I would like to know how people (even non alarm customers) deal with passcodes. Central
Station passcodes are different than the 4-digit alarm code. They're similar
to computer passwords. I can print out a page or two of various passwords for
online accounts and keep it near the computer, but that defeats the purpose of
having passwords.
Does anyone have good system to "remember" the number of
passwords we use today and be able to find a password under stress when the
alarm sounds and central station calls at the same time?
Dusan
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Answer
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I'll leave this to others to suggest an answer
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Question on doing subcontracting and liability
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Hi Ken, Quick question regarding your contracts...
I've recently taken on doing some work for another alarm company in my area. I do installations and service calls on systems that are above the skill level of their in-house techs. I would like to have a signed agreement with them that limits my liability so that if something goes wrong with a system I worked on tens years down the road, I won't be left holding the bill.
Does one of your contracts cover this situation?
Thanks
T.J.
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Answer
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You should have a subcontracting agreement. Also, you need to make sure that the alarm company hiring you has a proper contract with the subscriber that extends proper protection to that alarm company and its subcontractors, which includes you. If you are looking to limit you liability with the alarm company hiring you, that can be in the subcontracting agreement. But, I think you're more concerned with limiting exposure from the subscriber. For that you need a contract with the subscriber, directly or through the hiring alarm company.
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Question - subscriber switching alarm company
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Ken,
We have long enjoyed your newsletters on the comings and goings of the alarm industry and its legal issues. We have a question for you and I apologize if
this is a topic that you have covered before.
We have a situation where there is a written alarm contract with Alarm Company "A" and everything is going fine. However, the representatives we are dealing with at "A" are now moving over to Alarm Company "B" and obviously want us to come along. These individuals are currently wearing the hats of both
companies and have advised that a letter should be sent to Company "A"
canceling the alarm contract and then in turn "B" will take over the account?
This seems a little fishy at least but since alarm coverage is extremely
important and a necessity for insurance coverage we were wondering what
problems could be encountered, from either a service standpoint and legally,
if this route was taken.
Have you ever heard of such a situation?
Regards,
Kevin A. V
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Answer
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Sounds like you're a subscriber, not an alarm company, and the forum is for the benefit of alarm companies. Employees owe a duty of loyalty to their employer while employed. A subscriber owes no loyalty, only contractual obligations.
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Question - Who you going to sue?
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Dear Mr Kirschenbaum:
We have a customer who signed a five year contract with us.
Three weeks ago another company took over this account with customer having
almost three years left on contract with us. The other alarm company is
ignoring my calls!
The customer was told by the other alarm company that they will pay us the remained of balance, but that did not happen either!
What are my legal options? Should I try to go after the other alarm company for interruption of an existing contract ?
Mark P
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Answer
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You don't need to be concerned with what the other alarm company told the subscriber. You need to sue the subscriber. You can go after the other alarm company for tortious interference with your contract, but that's a far more complicated case than the one against your subscriber for breach of the contract. I'd hold off going against the other alarm company unless the tortious conduct continues unabated.