Two issues came to the forefront of a case in New York: the definition of gross negligence and contract interpretation. An insurance company filed suit against an alarm company to recover insurance payments made to the insured following a fire at the insured’s premises, a restaurant. The alarm company filed a motion to dismiss.
The alarm company agreed to sell to the insured a fire alarm system and install it at the restaurant. The alarm company agreed to “make every reasonable effort” to notify the police and fire department upon receiving a signal. The alarm company allegedly made inspections and repairs to the alarm system after the installation.