DAVID C. NORTON, District Judge.
This matter is before the court on a motion for summary judgment brought by defendant ADT Security Services, Inc. ("ADT"). For the reasons that follow, the court grants in part and denies in part ADT's motion.
On April 26, 2012, plaintiff Thomas Bahringer filed a civil complaint against ADT in the Court of Common Pleas for Charleston County. ADT removed the action to this court on June 4, 2012, on the basis of diversity jurisdiction. ADT moved to dismiss Bahringer's complaint on June 11, 2012, and Bahringer amended his complaint shortly thereafter. Bahringer's amended complaint alleges four causes of action against ADT: negligence, breach of contract, unfair trade practices under the South Carolina Unfair Trade Practices Act ("SCUTPA"), and intentional infliction of emotional distress. Am. Compl. ¶¶ 14-31. All of Bahringer's claims relate to a house fire that went undetected by ADT, his alarm services provider. Id. ¶¶ 6-8.
Bahringer is significantly handicapped and is confined to a wheelchair. Id. ¶ 4. On or around April 2, 2010, Bahringer purchased a security system and monitoring services from ADT. Id. At the time of purchase, Bahringer signed an alarm services contract with ADT's authorized dealer, Securewatch. Id.; Def.'s Mot. for J. on the Pleadings Ex. A. On July 9, 2011, Bahringer's home was partially destroyed by a fire. Am. Compl. ¶ 6. Bahringer was rescued by neighbors, but suffered smoke inhalation injuries that required "two weeks of hospitalization and treatment." Id. ¶ 7. Bahringer alleges that his ADT-monitored smoke detectors failed to alert either him or ADT to the fire; indeed, ADT was unaware of the fire until Bahringer notified them after the fact. Id. ¶¶ 6-8. ADT did not receive any signals from the smoke detectors in Bahringer's house on the night of the fire. Def.'s Reply in Support of Mot. for Summ. J. Exs. B, C, D.
ADT timely answered the amended complaint. On October 26, 2012, ADT moved for motion for judgment on the pleadings.
Summary judgment shall be granted "if the movant shows that there is no genuine dispute as to any material fact and that the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). "Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). "[S]ummary judgment will not lie if the dispute about a material fact is `genuine,' that is, if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Id. "[A]t the summary judgment stage the judge's function is not himself to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial." Id. at 249, 106 S.Ct. 2505. The court should view the evidence in the light most favorable to the non-moving party and draw all justifiable inferences in its favor. Id. at 255, 106 S.Ct. 2505.
ADT contends that judgment must be granted in its favor on all four causes of action included in the amended complaint.
ADT argues that Bahringer's negligence claim must fail because ADT did not owe Bahringer any duty independent of the duties owed under the alarm services contract. Bahringer counters that a special relationship existed between the parties — and therefore an extra-contractual duty was owed — because he is a wheelchair-bound double amputee. At the very least, Bahringer argues, whether such a special relationship exists is a factual question that must be resolved at trial.
As an initial matter, the court notes that the question of whether a special relationship existed between Bahringer and ADT is not a factual one. The parties agree that Bahringer is paraplegic, and that he contracted with ADT for its alarm services. What must be determined is whether ADT's obligations to Bahringer constitute a "special relationship" under South Carolina law. That is a legal question reserved for the court.
Generally, under South Carolina law,
Tommy L. Griffin Plumbing & Heating Co. v. Jordan, Jones & Goulding, Inc., 320 S.C. 49, 463 S.E.2d 85, 88 (1995). Examples of such special relationships include those between design professionals and general contractors who work under their supervision, id. at 89 (contractors could maintain negligence action against engineer who supervised them), between lawyers and their clients, Lloyd v. Walters, 276 S.C. 223, 277 S.E.2d 888, 889 (1981) (corporation could maintain negligence action against lawyer who had a professional duty to protect its interests), and between corporate consultants and a state agency that is the subject of a report prepared by
In the examples above, the South Carolina Supreme Court has found a special relationship where the parties' relationship was one marked by professional duty, as in Lloyd or Booz-Allen & Hamilton, or by supervisor-supervisee relations, as in Tommy L. Griffin Plumbing. Bahringer's relationship with ADT does not fit into either of these categories. Moreover, other courts that have considered the issue have determined that a tort claim does not lie where an alarm services provider owes a contractual duty to monitor a plaintiff's premises. See, e.g., Spengler v. ADT Sec. Servs., Inc., 505 F.3d 456, 458 (6th Cir. 2007) (negligence claim for failure to properly dispatch an ambulance failed where the parties' relationship was governed by contract); Vigilant Ins. Co. v. ADT Sec. Servs., Inc., No. 10-cv-3066, 2011 WL 855874, at *2-3 (S.D.N.Y. Mar. 9, 2011) (negligence claim for alarm system's failure to detect a fire failed because parties' relationship was governed by a contract).
The amended complaint alleges that ADT acted negligently by installing an alarm system that did not function properly, improperly installing and monitoring the alarm system, and failing to take proper action at the first sign that a fire had started in Mr. Bahringer's home. These allegations are all thinly veiled breach of contract claims which cannot stand as a separate negligence claim. See Seebaldt v. First Fed. Sav. & Loan Ass'n, 269 S.C. 691, 239 S.E.2d 726, 727 (1977) ("Bare allegations of negligence cannot convert a breach of contract action into an action in tort."); Koontz v. Thomas, 333 S.C. 702, 511 S.E.2d 407, 412 (S.C.Ct.App.1999) ("[Plaintiff's] tort allegations are merely veiled breach of contract claims and ... cannot be maintained as a separate cause of action.").
Bahringer has not explained how or why ADT's duties to him may be any different than they would be to an able-bodied customer. Because the court finds that no special relationship existed between the parties, Bahringer's negligence claim fails.
ADT contends that it did not breach its alarm services contract with Bahringer and that any relief offered to Bahringer must be capped by the liability limitations included in the contract.
The parties have not offered explanations as to how and why Bahringer's alarm system malfunctioned. As a result, questions of material fact persist as to whether ADT breached the alarm services contract with Bahringer and summary judgment is inappropriate. However, the contract clearly limits ADT's liability for any breach that it may have committed, and the court holds that ADT's liability is limited to $500, the amount identified in the alarm services contract.
South Carolina courts have generally upheld exculpatory contracts. However, contracts that seek to exculpate a party from liability for its own negligence are strictly construed against the party relying thereon. McCune v. Myrtle Beach Indoor Shooting Range, Inc., 364 S.C. 242, 612 S.E.2d 462, 465 (S.C.Ct.App.2005) (citing
The ADT alarm services contract that Bahringer signed includes an exculpatory clause that states:
Def.'s Mot. for Summ. J. Ex. A, ¶ 6 (capitalization in original, font size not to scale). A paragraph entitled EXCLUSIVE DAMAGES REMEDY immediately follows. It states: "YOUR EXCLUSIVE DAMAGE AND LIABILITY REMEDIES ARE SET FORTH IN PARAGRAPH 6 ABOVE. WE ARE NOT LIABLE TO YOU OR ANY OTHER PERSON FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES." Id. ¶ 7 (capitalization in original, font size not to scale).
The exculpatory clause is clearly worded and appears in all capital letters. The court finds that the exculpatory clause clearly limits ADT's liability and demonstrates that such limitation was the intent of the parties. To hold otherwise would be to ignore the teachings of South Carolina courts. See, e.g., Gladden v. Boykin, 402 S.C. 140, 739 S.E.2d 882, 885 (2013) (noting that "the proper test is whether an important clause was particularly inconspicuous, as if the drafter intended to obscure the term," and determining that a clause whose heading was printed in capital letters was not inconspicuous); Wachovia Bank v. Blackburn, 394 S.C. 579, 716 S.E.2d 454,
The alarm services contract plainly limits ADT's liability to the greater of $500 or 10% of its annual service charges,
Pride, 138 S.E.2d at 157.
Nothing in the record supports Bahringer's contention that the parties bargained on unequal footing. Bahringer was under no obligation to obtain fire and theft monitoring. Once he chose to obtain alarm services, he could have done so through any security services company that serves the Charleston area. ADT was not his only choice. Finally, Bahringer has never suggested that his cognitive abilities are limited in any way that would have made it difficult for him to read and understand the contract. For these reasons, the court finds that the parties in this case were on roughly equal footing. See Gladden, 739 S.E.2d at 885 (finding that a home inspector and a home buyer had roughly equal bargaining power, where there was no allegation that the home buyer lacked the education to understand the terms of a contract, and where the record did not support a finding that home inspection contracts without exculpatory clauses are unavailable in the market).
For the foregoing reasons, summary judgment is inappropriate with respect to Bahringer's breach of contract claim. However, the court finds that ADT's liability is limited by the express terms of the alarm services contract to $500.
ADT also contends that Bahringer's SCUPTA claim must fail because ADT has done nothing more than honor the terms of its agreement. Bahringer responds that ADT employs deceptive advertising that states that the company notifies the fire department "[a]s soon as an ADT fire or smoke detector signals an alarm." Am. Compl. ¶ 5. He contends that the discrepancy between ADT's advertising and the terms of ADT's agreement constitutes a deceptive practice.
A plaintiff seeking to maintain an unfair trade practices claim under SCUTPA must establish:
Bessinger v. Food Lion, Inc., 305 F.Supp.2d 574, 579 (D.S.C.2003), aff'd, 115 Fed.Appx. 636 (4th Cir.2004). Unlawful trade practices are "[u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade." S.C.Code Ann. § 39-5-20(a) (2012). Unfair trade practices are practices which are "offensive to public policy or which are immoral, unethical, or oppressive ... while a deceptive practice is one which has a tendency to deceive." Smith v. Chase Bank & Mortg., No. 10-cv-0882, 2011 WL
The ADT marketing materials that Bahringer identifies are not, in fact, misleading. They neither promise to insure customers against all damages nor suggest that ADT accepts unlimited liability for customers' losses. The guarantees listed on ADT's website do not relate to fire protection services, and the company's Home Security Systems web page does not suggest that its fire alarm systems are infallible. The language on that page focuses on what happens once a fire or smoke alarm has been triggered, not how reliably the alarms are triggered.
Furthermore, Bahringer's SCUTPA claim fails because he has not demonstrated that ADT has engaged in an unlawful trade practice. Even assuming that ADT regularly limits its liability to $500 in its alarm services contracts, such a limitation of liability is not an unfair or deceptive act. The alarm services contract clearly limits its liability and states that ADT is not an insurer of its customer's property. The contract also repeatedly states that no fire alarm system is 100% effective and that the alarm system may fail during a fire. Neither the alarm services contract nor ADT's advertisements guarantee that ADT's fire alarm systems will always work and will always prevent loss.
For these reasons, the court grants summary judgment in favor of ADT on Bahringer's SCUTPA claim.
Finally, ADT seeks judgment in its favor on the intentional infliction of emotional distress cause of action, arguing that Bahringer has failed to show that ADT acted in any way that would support such a claim. The amended complaint alleges that Bahringer suffered severe emotional distress during the time that he was trapped in his burning home. Am. Compl. ¶ 31. Bahringer also contends that he suffered emotional distress when ADT repeatedly attempted "to force Plaintiff to make his contracted-for payments" after the fire occurred. Pl.'s Opp'n to Mot. for Summ. J. 8.
In order to recover for intentional infliction of emotional distress, Bahringer must establish that:
Hansson v. Scalise Builders of S.C., 374 S.C. 352, 650 S.E.2d 68, 70-71 (2007) (quoting Ford v. Hutson, 276 S.C. 157, 276 S.E.2d 776, 778 (1981)).
Bahringer surely suffered severe emotional distress while trapped inside his burning home. However, even when all facts are construed in Bahringer's favor, he has not demonstrated the first three elements of an intentional infliction of emotional distress claim. He has not alleged facts that demonstrate that ADT caused the fire or that ADT intentionally and recklessly ignored distress signals from his house. Insofar as Bahringer alleges that ADT inflicted emotional distress on him through their attempts to obtain monthly payments after the fire, the repeated phone calls of which Bahringer complains do not rise to the level of "extreme and outrageous conduct" contemplated by an intentional infliction of emotional distress claim. Furthermore, the parties agree that ADT stopped contacting Bahringer after he terminated his service agreement in writing, per the terms of the contract. As a result, Bahringer has also failed to show that ADT's actions caused his severe emotional distress.
In short, Bahringer's intentional infliction of emotional distress claim cannot survive summary judgment.
For the foregoing reasons, the court
Def.'s Mot. Ex. A (capitalization in original, font size not to scale).