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Contracts Keyed to Dawson
Samson Sales, Inc. v. Honeywell, Inc.
Citation:
12 Ohio St.3d 27, 465 N.E.2d 392.Facts
Samson owned a pawn shop and contracted with Morse Signal to install a burglar alarm system. Samson paid Morse Signal $1,500 for installation and $150/month for another five years ($10,500 total). Subsequently, Honeywell acquired Morse Signal and assumed the contract with Samson. The contract included an exculpatory clause that stated in relevant part: “In the event of loss or damage to [Samson] resulting by reason of failure of the performance of such service or the failure of the system to properly operate, [Honeywell’s] liability, if any, shall be limited to the sum of Fifty Dollars ($50.00) as liquidated damages and not as a penalty and this liability shall be exclusive.” A burglary occurred at Samson’s shop and Samson suffered a loss of $68,303 in merchandise allegedly because of Honeywell’s failure to transmit the alarm signal to the police.
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