New York Court of Appeals
Melodee Lane Lingerie Co. v. American District Telegraph Company
June 9, 196618 N.Y.2d 57
Summary
The New York Court of Appeals held that the limitation-of-liability clause in ADT's contract was void under section 5-323 of the General Obligations Law and could not shield ADT from liability for its negligent maintenance of the alarm system. The court remanded the case to Special Term to determine the portion of the plaintiff's loss caused by ADT's failure and the appropriate indemnification to the building owners. Chief Judge Desmond dissented, arguing that the limitation clause should be enforceable.