Comment on Ring Camera lawsuit HOA v homeowner August 1, 2024


KEN KIRSCHENBAUM, ESQ

ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE

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Comment on Ring Camera lawsuit HOA v homeowner

August 1, 2024

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Comment on Ring Camera lawsuit HOA v homeowner from article on July 19, 2024

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Ken,

Your post about the Ring Camera lawsuit vs. a Homeowners’ Association reminded me of an important topic that many business owners aren’t aware of. First a bit of background.

In the 90’s I served on a City Council in a suburban down that had at least 30 HOAs. Some of the HOA boards were extremely overbearing and homeowners would complain to the City about being deprived of their rights. I had to explain to them that, while there are certain constitutional rights, other rights, such as the ability to plant whatever you want in your lawn, can be contracted away, and this is what many residents do when they sign the HOA Agreement.

Your readers should keep in mind that many business owners give up certain rights when they sign Agreements. This may come up when a vendor doesn’t perform according to your expectations and you find that you signed away your right to do anything about it. Many business owners sign agreements limiting their rights to jury trial, or agree to arbitration and have no right to a trial at all.

When I moved into my home in the suburb my attorney made at least 30 changes to the HOA Agreement. The HOA didn’t object so I had fewer rules to follow. I surprised me that someone would make a purchase of a home and not have an attorney review all of the documents well in advance of the close.

Many business owners sign vendor agreements, or worse, sign their customer’s monitoring agreements without reviewing them. Some agree to customer changes without consulting an attorney. One of the best uses of Ken’s Concierge service is to have him review major agreements, especially a customer’s proposed installation or monitoring agreement; otherwise you could get stuck in a situation in which you have given away reasonable defenses.

Mitch Reitman

817 698 9999 XT 101

Reitman Consulting Group

https://www.reitman.us

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Response

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The interesting thing is that it doesn’t take a “major agreement” for you to end up feeling stuck. Sometimes it’s the little things that cause plenty of aggravation. Advice to Concierge Clients is not limited to “major agreements”; I am presented with contract issues and negotiations daily, ranging from “quick questions” to drawn out negotiations with lawyers and sometimes security directors for municipalities, large institutions, corporations and occasionally homeowners. Just about every sentence in the alarm contract has been the topic of discussion.

What changes to the Standard Form Agreement can be made depends on the alarm company’s tolerance for risk, the importance of the customer and the particular job and of course the nature of the challenge. Fortunately almost all challenges are successfully met and negotiated without compromising the alarm company’s risk factor.

Keep in mind that when I talk about risk factor it’s not just the potential for being held for damages. The other risk is the risk to devaluing the value of the contract. A contract’s value could go from 35 times the RMR to zero if the buyer will not consider modified contracts increasing the risk significantly, which most contract modifications do.

Routinely agreeing to customer contract challenges, or refusing to discuss contract modification requests, is not the best answer. Rather, each customer with each challenge needs to be addressed giving it the attention the circumstances warrant. A free installation and $16 RMR for a customer doesn’t warrant much if any time; better to pass on the sale. Other times the customer is well worth saving and the investment in attorney time to save or seal the deal worth it.

The Concierge Program will encourage you to seek proper counsel to assist with your negotiations. Join the Concierge Program today and begin experiencing superior legal services and professional advice.

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STANDARD FORMS Alarm / Security / Fire and related Agreements

click here: www.alarmcontracts.com

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CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.

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