Dear Industry Colleague:

Recent decisions in a New Jersey trial court have the potential to impact all of us in the industry. NBFAA is bringing this to your attention so that we can band together to underwrite a legal brief in support of the pending Appellate Division appeal. Following is a summary of the facts:

• In a recent Camden County, New Jersey trial, on a subrogation claim, the court ruled against the industry in favor of awarding the plaintiff $4.5 million in connection with a burglary of computer equipment from a warehouse. The court held that exculpatory clauses in alarm contracts, including limitation of liability and indemnification clauses, are unenforceable under New Jersey law.
• If this judgment is upheld by the Appellate Division in New Jersey, it will have serious implications for the industry. Among other things, alarm companies could face increased liability exposure and significantly increased insurance rates.
• This case not only has negative implications for all companies doing business in New Jersey, but has the potential to set a precedent that may be used in lawsuits in other states.

We believe that it is critical that the NBFAA take the lead, together with the New Jersey Burglar & Fire Alarm Association (NJBFAA), and file an ‘amicus brief’ with the court. An amicus brief is a document that is filed by a “friend of the court” or a party that has some interest in the outcome of the case. Amicus briefs are often filed on important issues facing appellate courts. This is important not only for our New Jersey chapter but for the entire industry.

We need your immediate assistance in the form of a financial contribution to our “legal defense fund” to pay for the amicus brief. These types of briefs can be extremely involved, complicated and expensive.

Please note that, time is of the essence.

If you have questions, please feel free to contact me at (800) 318-3911 or via e-mail at nbfaapresident@alarm.org.

Sincerely,

George P. Gunning
NBFAA President