Do you operate or are you starting a security company? Aside from the importance of comprehensive insurance, it is important that security companies have solid contracts when performing their trade. The following case is a perfect example of the importance of a carefully worded and strong contract. Had the contract in this case been written differently, the security company may have been on the hook for a retired police officer's death.
Security Company Spared Liability in Ex-Cop's Death
In 2008, a retired police officer (Jason Aiello) was brought to the Bayley Seton Hospital in Staten Island for psychiatric evaluation. Aiello was admitted and given medication. At one point, a hospital employee unlocked a door to allow another patient to be transported. Normally, there was a security guard posted at this door, but the security guard was absent from his post. Aiello escaped the hospital through that door, went home and obtained 2 firearms. Police officers responded to his home and engaged in a gunfight, killing Aiello. Aiello's estate sued the hospital and Burns Int'l, the security company, for wrongful death.
The security company argued that it had no duty to Aiello under its contract with the hospital. The contract with the hospital made clear that the contract (and services performed thereunder) were for the benefit of the hospital only and not for the benefit of third parties. The court agreed and dismissed the case, with the Appellate Division affirming.
The law around security companies is complex. Aside from comprehensive insurance, security companies must have strong contracts of ruse in their business. We specialize in counseling small businesses, including those in the security business. Don't use a form contract or other canned products that you find on the Internet or that friends use. Contact us today to get help.
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