A high-stakes legal battle has erupted between two major corporations over unpaid commissions and unauthorized operations. On June 7, 2024, 7-Eleven, Inc. filed a complaint in the United States District Court for the Northern District of Illinois against Redbox Automated Retail, LLC. The lawsuit centers on allegations that Redbox has failed to honor its contractual obligations to pay commissions and remove its kiosks from 7-Eleven properties following the termination of their agreement.
According to the complaint, 7-Eleven entered into a Kiosk Operating Agreement with Redbox on January 1, 2015. This agreement allowed Redbox to place its video rental kiosks at various 7-Eleven locations across the United States in exchange for commission payments to 7-Eleven. Despite terminating the agreement due to Redbox's failure to make these payments, Redbox continues to operate its kiosks on 7-Eleven property without permission. As per the terms of their contract, upon termination, Redbox was required to remove its kiosks within thirty days and continue paying commissions until removal was complete.
In June 2023, 7-Eleven sent a written demand for all past-due commissions as of March 2023. When Redbox failed to comply, 7-Eleven terminated the agreement in August 2023. As of November 2023, Redbox owed approximately $270,000 in unpaid commissions with additional amounts continuing to accrue. Despite acknowledging this debt, Redbox has neither paid the outstanding amounts nor removed its kiosks from 7-Eleven properties.
The complaint further details how Redbox's continued operation of these kiosks is solely for its financial benefit and in direct violation of their agreement. The sensitive nature of the kiosk equipment and data contained therein necessitates that only trained personnel handle their removal—a task that Redbox has refused to undertake despite multiple demands from 7-Eleven.
In response to these breaches, 7-Eleven is seeking specific performance by Redbox to fulfill its contractual obligations by removing all kiosks at its own expense and restoring the premises to good condition. Additionally, they are demanding compensation for unpaid commissions since March 2023 until the removal or authorized disposal of the kiosks is completed. They also seek monetary damages for losses incurred due to these breaches, reasonable attorneys' fees, court costs, pre-judgment and post-judgment interest at maximum rates allowed by law, and any other relief deemed just by the court.
The case will be presided over by Judge [Name] under Case No.:24-cv-4741 with representation for plaintiff provided by Ashleigh A. Stochel and Victoria Mpistolarides from Kilpatrick Townsend & Stockton LLP’s Chicago office along with Cole Ramey and Zoe Stendara from their Dallas office.