An insurance company (the plaintiff) issued a policy of insurance to the owners (the insured) of the property. A burglary and fire occurred and the plaintiff paid the insured for the damage. The plaintiff then filed suit against the alarm company to recover monies paid to the insured, claiming that the theft and arson occurred because the alarm company failed to notify either the police or tenants of the alarm activity in a timely manner.
The defendant alarm company moved to dismiss the complaint on the grounds that the complaint failed to allege that the defendant owed any duty, as the defendant’s agreement for service was with the tenant and not the owner of the building. The defendant requested the court interpret the terms of its contract and find that the plaintiff cannot assert any claim to recoup the monies it paid in any event. The defendant alleged the plaintiff does not recognize a common-law duty on the part of security companies to provide adequate alarm monitoring services.