NY State Senate Bill 2009-S2074

Senate Bill S2074

2009-2010 Legislative Session

Declares void and unenforceable contract terms indemnifying or exempting manufacturers or sellers of burglary protection systems from liability for negligence

download bill text pdf

Archive: Last Bill Status - On Floor Calendar

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 14, 2010	starred on calendar
Apr 13, 2010	advanced to third reading
Apr 12, 2010	2nd report cal.
Apr 08, 2010	1st report cal.341
Jan 06, 2010	referred to judiciary
Feb 11, 2009	referred to judiciary

Votes

- Apr 8, 2010 - Judiciary Committee Vote
  S2074
  
  11
  
  Aye
  
  9
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Judiciary Committee Vote: Apr 8, 2010
      
      aye (11)
      
      Breslin
      
      Diaz
      
      Dilan
      
      Espada
      
      Hassell-Thompson
      
      Klein
      
      Onorato
      
      Perkins
      
      Sampson
      
      Savino
      
      Schneiderman
      
      nay (9)
      
      LaValle
      
      Lanza
      
      Leibell
      
      Maziarz
      
      Nozzolio
      
      Ranzenhofer
      
      Saland
      
      Volker
      
      Winner
      
      aye wr (3)
      
      Adams
      
      Bonacic
      
      DeFrancisco

2009-S2074 (ACTIVE) - Details

Law Section:: General Obligations Law
Laws Affected:: Add §5-326.1, Gen Ob L

2009-S2074 (ACTIVE) - Summary

Declares void and unenforceable certain contract terms indemnifying or exempting manufacturers, sellers and/or monitors of burglary protection systems from liability for negligence; such terms must provide for recovery of no less than the cost associated with the installation, service and maintenance provided by the manufacturer, seller and/or monitor; applies only to agreements entered into after the effective date of this act.

2009-S2074 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2074

 TITLE OF BILL :

An act to amend the general obligations law, in relation to declaring
agreements indemnifying or exempting manufacturers, sellers, and/or
monitors of burglary protection systems from liability for negligence
void and unenforceable


 PURPOSE OR GENERAL IDEA OF BILL :

Renders unenforceable contract provisions which indemnify or exempt
from liability manufacturers, sellers and/or monitors of burglary
protection systems.

 SUMMARY OF SPECIFIC PROVISIONS :

Adds a new Section 5-326.1 to the General Obligations Law, to render
void and unenforceable contract provisions which indemnify or exempt
manufacturers, sellers and/or monitors of burglary protection systems
from liability for bodily injury and/or property damage caused by
their negligence.

 JUSTIFICATION :

Currently, manufacturers, sellers and/or monitors of residential
burglary protection systems include in their contracts disclaimers
and/or indemnification clauses which limit their liability, exempt
them from liability, or require the purchaser to indemnify them in the
case of a judgement against them. By removing accountability such
clauses deny the victims of bodily injury and/or property damage from
seeking fair damages arising out of negligence. Because these clauses
often appear in "form contracts" the purchaser is often either unaware
of the clause, or unable to negotiate or modify any changes and
modifications to the contract. Therefore, the consumer must accept the
contract as written in order to purchase the system. This measure
would afford protections to those consumers who become the victim of a
crime as the result of negligence of the manufacturer, seller and/or
monitor of a burglary protection system.

 PRIOR LEGISLATIVE HISTORY :
2000 - A.6464A - Referred to Judiciary
2002 - A.2260  - Referred to Judiciary
2004 - A.3323 - Referred to Judiciary
2006 - S.4596 - Referred to Judiciary
2008 - S.2235 - Referred to Judiciary

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the thirtieth day next succeeding the
date on which it shall have become law.

2009-S2074 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2074

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 11, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the general obligations law, in  relation  to  declaring
  agreements  indemnifying  or  exempting manufacturers, sellers, and/or
  monitors of burglary protection systems from liability for  negligence
  void and unenforceable

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general obligations law is  amended  by  adding  a  new
section 5-326.1 to read as follows:
  S  5-326.1.  AGREEMENTS INDEMNIFYING OR EXEMPTING MANUFACTURERS, SELL-
ERS, AND/OR MONITORS OF BURGLARY PROTECTION SYSTEMS FROM  LIABILITY  FOR
NEGLIGENCE  VOID  AND  UNENFORCEABLE.  1.  EVERY  COVENANT, AGREEMENT OR
UNDERSTANDING IN OR IN CONNECTION WITH OR  COLLATERAL  TO  ANY  CONTRACT
ENTERED  INTO WITH THE MANUFACTURER, SELLER AND/OR MONITOR OF A BURGLARY
PROTECTION SYSTEM RELATIVE TO THE SALE, INSTALLATION, MAINTENANCE AND/OR
MONITORING OF A BURGLARY PROTECTION SYSTEM EXEMPTING FROM  LIABILITY  OR
LIMITING  THE  LIABILITY  OF SUCH MANUFACTURER, SELLER AND/OR MONITOR OR
PURPORTING TO INDEMNIFY  OR  HOLD  HARMLESS  SUCH  MANUFACTURER,  SELLER
AND/OR MONITOR AGAINST LIABILITY FOR DAMAGE ARISING OUT OF BODILY INJURY
TO  PERSONS  OR  DAMAGE TO PROPERTY CAUSED BY OR RESULTING FROM THE SOLE
NEGLIGENCE OF SUCH MANUFACTURER, SELLER AND/OR MONITOR,  HIS  AGENTS  OR
EMPLOYEES,  TO AN AMOUNT WHICH IS LESS THAN THE COST ASSOCIATED WITH THE
INSTALLATION, SERVICE AND  MAINTENANCE  PROVIDED  BY  THE  MANUFACTURER,
SELLER  AND/OR  MONITOR  IS  AGAINST PUBLIC POLICY AND IS VOID AND UNEN-
FORCEABLE.
  2. FOR PURPOSES OF THIS SECTION, A "MONITOR" OF A BURGLARY  PROTECTION
SYSTEM  IS  ANY  PERSON,  FIRM,  ORGANIZATION, CORPORATION, PARTNERSHIP,
ASSOCIATION OR OTHER ENTITY WHICH, FOR  COMPENSATION,  RECEIVES  SIGNALS
FROM  A  BURGLARY  PROTECTION  SYSTEM  AND TRANSMITS NOTIFICATION TO THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02655-01-9

S. 2074                             2

POLICE, OR OTHER AUTHORITIES AND/OR SUCH OTHER PERSONS AS ARE SET  FORTH
IN THE CONTRACT BETWEEN THE MONITOR AND THE CONSUMER.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law and the provisions of section 5-326.1 of  the  general
obligations  law,  as added by section one of this act, shall apply only
to contracts entered into on or after such date.

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