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Contracts Keyed to Summers
Abacus Federal Savings Bank v. ADT Security Services, Inc.
Citation:
18 N.Y.3d 675, 967 N.E.2d 666, 944 N.Y.S.2d 443Facts
The Abacus Federal Savings Bank (“the bank”) (plaintiff) in Lower Manhattan contracted with ADT Security Services, Inc. (“ADT”) and Diebold Incorporated (“Diebold”) (defendants) for the latter to supply security services, including a 24-hour security system to protect the bank premises and its vault. Also, ADT and Diebold were to install detectors to identify intruder movement inside the vault, as well as a back-up alarm system. Following the close of business on a Saturday, burglars broke into the bank. Once inside the vault, the burglars gained access to a safe storing the bank’s overnight cash and various safe deposit boxes belonging to bank customers. The burglars stole $589,749.55 in cash and $926,512 from the safe deposit boxes. The police were not notified during the course of the burglary. Instead, an Abacus employee discovered the missing cash when the bank opened for business on Monday morning. In addition to the losses incurred during the burglary, Abacus sued ADT and Diebold for money damages for lost business as a result of the burglary, for loss of reputation in the community, for the costs to repair the vault, and for added security costs.
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