Security and the law: Limitation of Liability Upheld in State Supreme Court
The Supreme Court of the State of Alabama recently upheld the limitation of liability provision in a contract between a plaintiff owner and a security company.
The security company agreed to provide alarm equipment and monitoring service to the plaintiff's nightclub. The owner agreed to purchase the system and to pay a monthly fee. Shortly after it was installed, the system began displaying an error message. The company instructed the owner to use the bypass button. Several days later, the club was burglarized and set on fire, and the security company never received the signal.