A recent case decided by the United States District Court for the Eastern District of Tennessee discussed many of the issues important to an alarm dealer including insurance.
The plaintiff in this action contracted with the alarm company to install a security system at its convenience store. Under the alarm contract, the alarm company agreed to provide cameras, alarm detectors and other security equipment. The contract contained an exculpatory clause under which the plaintiff agreed to allocate any risk of property damage or loss to his insurance company. Approximately two years after the security system was installed, plaintiff’s store was burglarized. The plaintiff filed a lawsuit against the alarm company in state court in Tennessee. The case was subsequently removed to a federal court. The complaint included claims for intentional misrepresentation, fraudulent concealment, fraudulent inducement, negligent misrepresentation, negligence, breach of contract and violating the Tennessee Consumer Protection Act. The defendant alarm company filed a motion for summary judgment.