Brinks Home Security Gets Caught Stealing From Its Customers

NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF FILED, DETERMINED

IN THE DISTRICT COURT OF APPEAL OF FLORIDA SECOND DISTRICT CASE NO. 2D99-4190

TRUDY RUIZ and HENRY RUIZ, DAN and BARBARA GROSSI, and RICHARD P. FIGUEREDO, on behalf of themselves and all similarly situated plaintiffs,

Appellants,

v.

BRINK'S HOME SECURITY, INC.

Appellee.

__________________________

Opinion filed January 17, 2001.

Appeal from the Circuit Court for Hillsborough County, Dick Greco, Jr., Judge.

W. Christian Hoyer, Christa L. Collins, John A. Yanchunis, and Kendra C. Mancusi, of James, Hoyer, Newcomer & Smiljanich, Tampa, for Appellants.

Guy W. Spicola, Steven L. Brannock, and G. Calvin Hayes, of Holland & Knight, for Appellee.

DAVIS, Judge.

Trudy and Henry Ruiz, Dan and Barbara Grossi, and Richard P. Figueredo appeal the final judgment dismissing the class action complaint they filed against Brink's Home Security, Inc. The appellants argue that the trial court erred in granting Brink's motion to dismiss and entering a final judgment against them based on Brink's "voluntary payment doctrine" defense. We agree and reverse.

Each of the three appellants' households entered into a contract with Brink's for a home security system. By the terms of the contracts, Brink's continued to own the systems and the homeowners paid a lease fee. Each contract included specific language obligating the homeowner to reimburse Brink's the cost it incurred for the payment of property tax on the homeowner's security system:

You will pay any and all applicable sales, use, service, property, or other taxes in connection with the Service . . . YOU WILL BE BILLED FOR THE AMOUNT REQUIRED TO REIMBURSE BRINK'S FOR PROPERTY TAX ON THE STANDARD PROTECTIVE EQUIPMENT INSTALLED IN YOUR LOCATION. THIS AMOUNT WILL BE BILLED ONCE EACH YEAR, AND GENERALLY RANGES FROM $5.00 TO $15.00 PER YEAR.

(Emphasis in original.)

The appellants filed suit against Brink's alleging that Brink's charged its customers more than it paid as property tax. In its motion to dismiss, Brink's argued that the appellants lacked standing and that the voluntary payment doctrine barred recovery. Although the trial court did not specifically so state in its order, it appears from our reading of the record that the motion to dismiss was granted solely on the basis of the voluntary payment doctrine. Furthermore, Brink's bases its argument before this court on that assumption. Therefore, the only issue before this court is whether the trial court erred in dismissing the appellants' complaint based on the voluntary payment doctrine.

The voluntary payment doctrine provides that "where one makes a payment of any sum under a claim of right with knowledge of the facts, such a payment is voluntary and cannot be recovered." City of Miami v. Keton, 115 So. 2d 547, 551 (Fla. 1959).

We review the trial court's decision granting a motion to dismiss de novo. See W.R. Townsend Contracting, Inc. v. Jensen Civil Constr., Inc., 728 So. 2d 297 (Fla. 1st DCA 1999). In our review, we may look only to the four corners of the complaint. See Wilson v. News-Press Publ'g Co., 738 So. 2d 1000, 1001 (Fla. 2d DCA 1999). If the allegations of the complaint demonstrate the existence of an affirmative defense, such defense may be considered on a motion to dismiss. Otherwise, an affirmative defense may not be considered on a motion to dismiss. See Frank v. Campbell Property Management, Inc., 351 So. 2d 364, 365 (Fla. 4th DCA 1977).

The complaint alleges that the amounts the appellants were billed were in excess of the actual tax imposed on Brink's. Further, it is alleged that the plaintiffs did not know and could not have known that the amounts exceeded the tax actually charged. There is nothing in the complaint that can be read to allege that the plaintiffs voluntarily paid the sums Brink's charged knowing that they were excessive. Because the complaint does not show on its face the applicability of the voluntary payment doctrine, the trial court erred in granting the motion to dismiss on this ground.

We reverse and remand for further proceedings consistent with this ruling.

PATTERSON, C.J., and NORTHCUTT, J., Concur.

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Reply to
Anonymous
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for a home security system. By the terms of the contracts, Brink's continued to own the systems and the homeowners paid a lease fee. Each contract included specific language obligating the homeowner to reimburse Brink's the cost it incurred for the payment of property tax on the homeowner's security system:

That is messed up! The whole point of leasing equipment (from the customer's standpoint) is that they don't have to pay property tax.

Reply to
G. Morgan

for a home security system. By the terms of the contracts, Brink's continued to own the systems and the homeowners paid a lease fee. Each contract included specific language obligating the homeowner to reimburse Brink's the cost it incurred for the payment of property tax on the homeowner's security system:

"Old news". The date of the opinion was in 2001. That's eight years ago!

Reply to
Frank Olson

property tax?

Reply to
Crash Gordon

Weird huh??

Reply to
Frank Olson

I always thought that the point was not having to make a large capital investment up front.

Reply to
alarman

Yah, never heard of that. I think they have to leased systems as inventory or something like that (?).

Reply to
Crash Gordon

If you consider an account base that probably numbers over 150,000 at a modest "tax rate" of $15.00 per... that's a lot of bux... Probably covers Mr. Sableman's legal fees and then some!

Reply to
Frank Olson

That's a good one too. ;-)

Reply to
G. Morgan

I don't get the "property" tax issue at all.

If I were the client I'd charge them a 15.00 a year rental for the space THEIR equipment were taking up in MY house.

Reply to
Crash Gordon

Brinks boasted 1.2 million customers before the financial meltdown. I guess we can safely say they are down to 800K customers about now. But that is my opinion.

Brinks can huff and puff all they like. They can threaten people's credit to no end, but in this economy it really doesn't matter that much anyway. I have heard people with squeeky clean credit all their lives all of the sudden drop to marginal credit through no fault of their own. So you can imagine those individuals that were about 650-700 are now having a tough time getting credit when they need it most.

Brink's collection department is probably doing some major overtime trying to keep the attrition rate from getting out of control.

Jim Rojas

G. Morgan wrote:

Reply to
Jim Rojas

Brinks acts like they are a monopolistic utility company. Utility companies charge a minimum service charge whether you use a dime worth of electricity or not.

When a company like Brinks has to resort to threatening and using scare tactics on national TV to dupe new customers, its time for them to find a better source of RMR.

Brinks armored car division doesn't advertise, but yet they make tons of money...Brinks Home Security advertises way too much and look what it gets them. High pressure sales tactics means big trouble for any business. Brow beating your customers that can no longer afford to pay $30+ a month for obsolete equipment is insanity.

Jim Rojas

Crash Gord> I don't get the "property" tax issue at all.

Reply to
Jim Rojas

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"What is Business Personal Property? The Texas Property Tax Code 1.04 (5) defines tangible personal property as property that can be seen, weighed, measured, felt, or otherwise perceived by the senses, but does not include a document or other perceptible object that constitutes evidence of a valuable interest, claim, or right and has no negligible or intrinsic value. Examples of tangible personal property, or business personal property, include equipment, furniture, computers, and inventory. Business personal property would not include accounts receivable, stocks, bonds, notes, franchise agreements, licenses, permits, certificates of deposit, insurance policies, pensions, contracts and goodwill."

It's my guess that Binky wants it both ways. They want to retain ownership of the equipment (therby leasing the equipment to the end user) -- but -- they want the end user to pay the BPP (Business Personal Property) tax too (the owner pays the tax).

Reply to
G. Morgan

Don't they have to inventory all that leased equipment and pay a inventory tax on it? Afterall it has to count as inventory if the customer never retains ownership. $15+ million a year is a nice chunk of change...I wonder if the Texas Attorney General would consider RICO charges against Brinks. Maybe the IRS can go after them as well for tax evasion or fraud.

Jim Rojas

G. Morgan wrote:

Reply to
Jim Rojas

Yeah, that's what I've been thinking.

Well the customers should get their money back for sure, if they paid taxes on Binky's inventory. Then sure, someone should look into if that constituted fraud in an attempt to evade taxes.

Reply to
G. Morgan

That was my understanding and one reason I never got into leasing stuff.

Wasn't that one of the issues few years back with ADT/Tyco stuff?

Reply to
Crash Gordon

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