Problem scenario

Fine Diamond Jewellery entered into a standard service agreement with Transglobal Alarm Monitoring Pty Ltd to provide security and alarm monitoring services for 3 years. From April 2018 until April 2019, the alarm and monitoring system was working fine and there was no incident of any security nature. On May 2019, the owner of Fine Diamond Jewellery went as usual to open his business and noticed that the alarm and monitoring system was not working properly. He later found that many pieces of diamond Jewellery were missing and stolen from the shop. Unfortunately, Fine Diamond Jewellery had an insurance policy to cover stolen items, but it was recently expired at the time of robbery. The owner immediately contacted Transglobal Alarm Monitoring Pty Ltd and wrote formally to the business demanding compensation for the failure of the alarming and monitoring system that resulted in the robbery. The manager replied back and advised that Transglobal Alarm Monitoring Pty Ltd is not prepared to pay any compensation relying on the standard alarm agreement signed between the parties and particularly clause 10 that states the following:

10. Transglobal Alarm Monitoring Pty Ltd and its employees will not under any circumstances be liable or responsible for any damage or loss that may be caused as a result of using the alarming and monitoring security system