PRESS RELEASE

Appellate Court Sides with Alarm Industry,
Strikes Down $4M Ruling
Victory for ADT and the Alarm Industry

Irving, Texas, July 13, 2007 – A significant legal victory for ADT and the alarm industry was recently announced by the appeals court in New Jersey, thanks in part to the active involvement and support of the members of the National Burglar & Fire Alarm Association (NBFAA), the New Jersey Burglar & Fire Alarm Association, and the Central Station Alarm Association.

In its decision, the court stated that the primary question presented in this case was whether an exculpatory clause in a contract for the sale of a burglar alarm system, which requires the buyer to rely solely on its own insurance for any loss from theft, is contrary to public policy and therefore unenforceable in light of a statute that subjects sellers of alarm systems to licensing and regulatory controls. The court concluded that such an exculpatory clause is not contrary to public policy, because it simply allocates responsibility to the buyer of an alarm system to maintain insurance coverage, and the buyer is in the best position to know the value of its property and to insure against any loss.

The court reversed a $4M judgment in favor of the plaintiff, Synnex, and dismissed the case which involved a burglary of computer equipment from a warehouse. The Appellate Court Division concluded that ADT’s performance of the contract with their customer by delivery and installation of the burglar alarm system constituted acceptance of the contract, thus binding both parties to terms of the contract, including the exculpatory clause.

“Although NBFAA was not directly involved in the appeal, we are confident that our request to file an amicus brief, at a minimum, gave the court a better understanding of the industry's view. We are grateful to all of our members who made generous contributions to support this effort making the amicus brief possible,” said NBFAA President George Gunning.

About NBFAA

NBFAA, a non-profit 501(c) 6 trade association, is the nation's oldest and largest organization dedicated to representing, promoting, and supporting the electronic life safety, security, and systems industry. Member companies specialize in a wide spectrum of services to commercial and residential consumers, including security and fire alarms, video surveillance, access control and monitoring. In cooperation with a federation of state associations, NBFAA provides government advocacy and delivers timely information, professional development tools, products and services that members use to grow and prosper their businesses. The NBFAA may be reached at (888) 447-1689 or on the Web at www.alarm.org.

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