A recent decision in New Jersey dealt with a liquidated damage clause and a limitation of liability provision in the subscriber contract. The plaintiff was the owner of a retail store and purchased an alarm system from the defendant alarm company. The agreement said that if a burglar or fire alarm signal registered at the alarm company’s monitoring station, the company, at its discretion, would contact the customer’s premises to verify that the alarm is not false. If it could not reach the customer, the alarm company agreed to notify the appropriate police or fire department.
In addition to the paragraphs limiting liability and the exculpatory clause, the contract stated the provisions shall apply no matter how the loss, damage or injury occurs, even if due to alarm company’s performance or nonperformance of its obligations under the contract or from negligence, strict liability, violation of any applicable consumer protection law or any other alleged fault on the part of the alarm company, its agents or employees.