Recent Litigation

From Security Law Newsletter: Homeowner files lawsuit after security company fails to report break-in to police. Travis v. ADT Sec. Servs. Inc., No. 12-11822 (U.S. District Court for the Eastern District of Michigan Aug. 16, 2012). Summary: A federal trial court held that a residential security company is only liable for $500 dollars in damages to a customer who was the victim of a residential burglary and suffered a loss in excess of $45,000.

The Homeowner entered into an agreement with the security company to install and monitor a residential alarm system. The agreement stated that the security company would be responsible for no more than $500 if there was a loss or injury to the homeowner, even if that loss or injury was caused by the gross negligence, failure to perform or any other fault of the security company. The alarm was activated by an intruder. The security company told the homeowner that law enforcement was being dispatched to the home. They were not, and the homeowner sustained a loss of savings, property, and jewelry in excess of $45,000. The court ruled in favor of the security company because of the liability limitation in the contract. Buyers are NOT mandated to agree to a liability limitation. If the company refuses to waive that limit, FIND ANOTHER COMPANY.