Summary
holding limitation of liability clause was not enforceable where alarm company was grossly negligent when it gave burglars keys to store and security codes to disengage alarm and failed to respond promptly when crime was discovered
Summary of this case from Baidu, Inc. v. Register.com, Inc.Opinion
June 27, 1995
Appeal from the Supreme Court, New York County (Beverly Cohen, J.).
The conduct alleged against defendant burglar alarm company in allowing robbers who gave an incorrect name access to plaintiffs' store at 4 A.M., by divulging over the phone at that hour the security codes that disengaged the alarm after having earlier given out the store keys, clearly meets the standard of reckless disregard for the rights of others or intentional wrongdoing, i.e., gross negligence, that would justify avoidance of the contract clauses absolving defendant of liability for its own negligence ( see, Colnaghi, U.S.A. v. Jewelers Protection Servs., 81 N.Y.2d 821, 823; see also, Hanover Ins. Co. v. D W Cent. Sta. Alarm Co., 164 A.D.2d 112; Williamsburg Food Specialties v. Kerman Protection Sys., 204 A.D.2d 718).
Concur — Murphy, P.J., Ellerin, Wallach and Rubin, JJ.