CSAA Signals: "Friend of the Court" Legal Brief in a New Jersey Appellate Court Case

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Security Industry Associations Plan to File a "Friend of the Court" Legal Brief in a New Jersey Appellate Court Case
Court Ruling Could Remove the Protections of the Limitation of Liability and
Non-Subrogation Contract Provisions

The Central Station Alarm Association (CSAA), the National Burglar & Fire Alarm Association (NBFAA) and the New Jersey Burglar & Fire Alarm Association (NJBFAA) are launching a grassroots campaign to alert the industry and solicit financial support for a legal filing, known as an amicus brief, in a case that is now pending with the New Jersey Appellate Division.

In a recent Camden County, New Jersey trial, on a subrogation claim, the court ruled against the alarm dealer in favor of awarding the plaintiff $4 million in connection with a burglary of computer equipment from a warehouse. The court incorrectly held that exculpatory clauses in alarm contracts, including limitation of liability were unenforceable under New Jersey law. The court also refused to enforce the anti-subrogation provisions of the contract.

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 greater liability exposure and significantly increased insurance rates.

“Our membership should financially support our industry’s collaborative effort to overturn the court’s ruling which has adverse consequences to our entire industry, not merely to companies in New Jersey," said John A. Murphy, president of CSAA. "The filing of an amicus brief by CSAA is vitally important to that effort. If the court will accept our application, we will attempt to set out the reasons why a court should reconsider the adverse conclusions related to limitation of liability and certain other public policy matters it has included in its judgment.”

Each of the security associations involved has formed a "legal defense fund" for financial contributions from the industry to finance this initiative. A contribution form can be downloaded by clicking here or by visiting www.csaaul.org and clicking in the appropriate link.

The Appellate Court is currently set to review the case in November or December, so time is of the essence. Please contribute NOW!