Jewels by Iroff, Inc. v. Securitas Technology Corporation

CourtDistrict Court, N.D. Georgia
DecidedSeptember 26, 2023
Docket1:23-cv-00556
StatusUnknown

This text of Jewels by Iroff, Inc. v. Securitas Technology Corporation (Jewels by Iroff, Inc. v. Securitas Technology Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jewels by Iroff, Inc. v. Securitas Technology Corporation, (N.D. Ga. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION JEWELS BY IROFF, INC., d/b/a Iroff & Son Diamond Importers, et al., Plaintiffs, v. CIVIL ACTION FILE NO. 1:23-CV-556-TWT SECURITAS TECHNOLOGY CORPORATION, f/k/a Stanley Convergent Security Solutions, Inc., Defendant. OPINION AND ORDER This is a breach of contract and tort action. It is before the Court on the Defendant Securitas Technology Corporation’s Motion to Dismiss [Doc. 4]. For the reasons set forth below, the Defendant’s Motion to Dismiss [Doc. 4] is GRANTED. I. Background The Court accepts the facts as alleged in the Complaint as true for purposes of the present motion to dismiss. , 941 F.3d 1116, 1122 (11th Cir. 2019). Plaintiff Jewels by Iroff, Inc. (“Iroff”) is a high-end jewelry store located in Alpharetta, Georgia. (Compl. ¶¶ 1,3). Plaintiff Jewelers Mutual Insurance Company (“Jewelers Mutual”) issued a policy to Iroff insuring the store, “including but not limited to the real and

business personal property, and/or extra expenses incurred as [a] result of any losses.” ( ¶ 5). Defendant Securitas Technology Corporation (“Securitas”) is engaged in the business of providing security and alarm monitoring services. ( ¶ 6). Iroff contracted with the Securitas to provide security and alarm

monitoring services at its store beginning with a contract dated January 14, 2008 (“Contract”).1 ( ¶¶ 10-12). As relevant to the present motion, the Plaintiffs allege that the Contract required Securitas to remotely monitor Iroff’s store 24/7, as defined by Underwriting Laboratories (“UL”) certification requirements. ( ¶ 12). “The monitoring of alarm and supervisory signals and events include[d], inter alia, power outages, disruptions, fires and/or burglaries

at the subject property.” ( ¶ 12). On the night of February 22, 2022, Iroff’s store was closed for business and the security alarm system was activated. ( ¶ 13). Sometime later that night, thieves entered the store. ( ¶ 14). The thieves were able to locate the alarm system’s controls, cut the communication lines, and disable the alarm system. ( ¶ 15). The thieves then broke into displays and two safes, stealing fine jewelry and damaging store property. ( ¶ 16). The Defendant did not

notify Iroff of an alarm, a false alarm, or any situation at the store. ( ¶ 17). Additionally, the alarm system’s communication method, which included

1 The Contract is between Iroff and a company known as “HSM”, and the Contract Rider is between Iroff and another company known as Stanley Convergent Security Solutions, Inc. The parties do not dispute that both of these companies were predecessors of the Defendant Securitas, so for clarity, the Court will refer to Securitas as a party to the Contract. (Compl. ¶ 6); (Def.’s Br. in Supp. of Mot. to Dismiss, at 2). 2 “cellular communication along with ethernet and hard wired telco” did not alert to the communication line interruption that occurred when the thieves cut the wiring. ( ¶ 18). As a result, neither Iroff nor the police were notified

of the February 2022 break in. ( ¶ 19). Further, the Plaintiffs allege, “[t]he UL certifications for this alarm system indicated that [Iroff] was promised and understood to have UL Certificated line security, but it was not installed and/or operational at the time of this loss.” ( ¶ 20). In its Complaint, the Plaintiffs brought claims for negligence (Count I), breach of contract and warranty (Count II), gross negligence (Count III), and

fraudulent misrepresentation (Count IV). ( ¶¶ 21-43). In Count I, the Plaintiffs allege that the Defendant breached its duty of care in at least 15 ways, mostly with regard to failing to notify Iroff and the police of an alarm signal and with the alarm system’s lack of compliance with UL certifications. ( ¶¶ 21-35). In Count II, the Plaintiffs argue that the Defendant breached its contractual obligation to provide an alarm system and monitoring services that were to be “performed in a good, safe and workmanlike manner, and in

accordance with all Underwriting Laboratories certification requirements, industry standards and applicable codes.” ( ¶ 27). In Count III, the Plaintiffs allege that the Defendant was grossly negligent because it knew or should have known that its alarm system could be easily rendered ineffective by burglars without any notification sent, but the Defendant never informed Iroff of this deficiency and never undertook corrective action to make sure the alarm 3 system complied with both the Contract and UL certification requirements. ( ¶¶ 30-37). And in Count IV, the Plaintiffs allege that the Defendant made deceptive, untrue, and misleading representations that the alarm system and

monitoring services were UL compliant. ( ¶¶ 38-43). The Plaintiffs attached to their Complaint a document titled “Contract Rider” dated May 1, 2008. (Compl., Ex. 1 (“Contract Rider”)). The Contract Rider appears to concern the installation of two “indicating pushbuttons” to the system, which are unrelated to the Plaintiffs’ claims. ( ). Although unclear, near the top of the document, the Contract Rider appears to state that

it “amends the Contract Agreement between the parties dated May [] 2008 (the “Agreement”) covering the furnishing of service and equipment to the Customer’s premises[.]” ). The Contract itself, which is titled “Installation and Services Agreement,” is dated January 14, 2008, and was provided by the Defendant with its Motion to Dismiss. (Mot. to Dismiss, Ex. 2 at 2 (“Contract”)). The Contract contains several clauses relevant to the Defendant’s Motion to Dismiss:

It is understood and agreed by the parties hereto that [Securitas] is providing a system and/or service designed to reduce the risk of loss only . . . that [Securitas] is not liable for losses which may occur in cases of malfunction or nonfunction of any system provided by, or serviced by, [Securitas;] that [Securitas] is not liable for losses which may occur in the monitoring, repairing, signal handling or dispatching aspects of the service, even if due to [Securitas’s] negligence or failure of performance . . . that [Securitas] is not an insurer; and that insurance covering personal injury, property loss, damage to and on Customer’s premises must be obtained and/or maintained by Customer. 4 (Contract ¶ 4.A.). It is agreed that it is impractical and extremely difficult to fix actual damages which may arise in situations where there may be a failure of the system and/or services provided, due to the uncertain value of customer’s property or the property of others kept on the protected premises which may be lost, stolen, destroyed, damaged or otherwise affected by occurrences which the system or service is designed to detect or avert, inability of [Securitas] to guarantee police, fire department and medical alert response time, and establishing a causal connection between the system or service problems and Customer’s possible loss. Therefore, if Article 4A is judicially determined to be invalid or unenforceable and any liability is judicially imposed on [Securitas] . . . such liability shall be limited to an amount equal to the annual service charge or $10,000, whichever is less . . . The payment of this amount shall be [Securitas’s] sole and exclusive liability regardless of whether loss or damage is caused by the performance or nonperformance of obligations under this Contract or by negligence, active or otherwise, of [Securitas.]

(Contract ¶ 4.B.). Customer understands that, if the system installed under this Agreement is monitored, due to the nature of the method used for communicating alarm signals to the Customer Service Center, there may be times when that communication method is not able to transmit signals and [Securitas] will not receive alarm signals.

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Bluebook (online)
Jewels by Iroff, Inc. v. Securitas Technology Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jewels-by-iroff-inc-v-securitas-technology-corporation-gand-2023.