DocketNumber: No. CV98 035 71 49
Citation Numbers: 1999 Conn. Super. Ct. 5285
Judges: NADEAU, JUDGE.
Filed Date: 4/22/1999
Status: Non-Precedential
Modified Date: 4/18/2021
In count one, the insurer alleges that the damage was proximately caused by the negligence and carelessness of the defendant in failing to monitor air temperature. In count two, it is alleged that the defendant breached the contract by failing to CT Page 5286 notify a representative of the plaintiff or the appropriate police or fire departments of the alarm signals.
Defendant ADT seeks summary judgment on the ground that there is a valid and enforceable limitation of liability clause that limits the defendant's liability for damages to $1000.1 The plaintiff contends that the $1000 cap applies only to injuries based on the defendant's improper maintenance and repair of the alarm system, not to the plaintiff's injury caused by the defendant's negligent advice, consultation, and improper installation.
"It is settled law that a contract provision which imposes a penalty for a breach of the contract is contrary to public policy and is invalid, but a contractual provision which fixes liquidated damages for a breach of the contract is enforceable if it satisfies certain conditions." Norwalk Door Closer Co. v.Eagle Lock Screw Co.,
In Mattegat v. Klopfenstein, supra,
"A number of Connecticut Superior Court cases have addressed the issue of liquidated damage provisions in fire and theft alarm installation, testing and monitoring agreements. The provisions have been upheld." U.S. Fidelity and Guaranty Co. v. SonitrolServices. Corp., Superior Court, judicial district of Stamford/Norwalk at Stamford, Docket No. 134267 (July 29, 1996,Arnold, J.); see also cases cited therein.
"[I]n those cases where liquidated damages provisions have been held to be unenforceable, it has generally been because, notwithstanding the validity of the contract provisions, there still exist genuine issues of material fact requiring trial."Benjamin v. Detect, supra, Superior Court, Docket No. 319789. For example, in Wehbe v. Comsec Naragansett Security. Inc., Superior Court, judicial district of Waterbury, Docket No. 129603 (April 25, 1996, Fasano, J.), the court denied the defendant's motion for summary judgment since it held that "a material issue of fact exists as to whether the amount stipulated in the liquidated damages clause is reasonable in terms of the presumable loss2
which would be sustained in the event of a breach of contract." Id. Liquidated damages provisions have also been held to be unenforceable in cases where the defendants act fraudulently or in bad faith. See New England Variety Distributors, Inc. v. AlarmSecurity Protection Co., Inc., Superior Court, judicial district of Hartford at Hartford, Docket No. 545381 (September 25, 1998, Peck, J.) (
Here, paragraph E of the parties contract provides that "[i]t is impractical and extremely difficult to fix the actual damages, if any, which may proximately result from failure on the part of ADT to perform any of its obligations hereunder." The parties intent to liquidate damages is established by the language of paragraph E which actually gives the plaintiff an opportunity to amend the contract prior to signing it; the provision states that "[i]f the customer desires ADT to assume a greater liability, ADT CT Page 5288 shall amend this agreement. . . ." The amount stipulated, either 10 percent of the annual service charge or $1000, whichever is greater, is best deemed reasonable, especially since the plaintiff was given the opportunity to negotiate a larger amount of liquidated damages pursuant to the agreement.3
The defendant has satisfied the three requirements enforcing the validity of a liquidated damages clause and therefore the defendant's liability, if any, is limited to $1000. Without determining the other issues raised, the court feels obliged to advise the parties of this in the spirit of judicial economy. The parties should advise the court within forty-five days if it is necessary for the other issues to be reached.
NADEAU. J.