Pure's Food Specialties, LLC v. Fox Vending, Inc

2023 IL App (1st) 220908-U
Appellate Court of Illinois·Decided July 17, 2023·No. 1-22-0908·Unpublished

Opinion

2023 IL App (1st) 220908-U FIRST DISTRICT, FIRST DIVISION July 17, 2023

No. 1-22-0908

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in limited circumstances allowed under Rule 23(e)(1). _____________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT _____________________________________________________________________________

) ) PURE’S FOOD SPECIALTIES, LLC, Appeal from the ) Circuit Court of ) Plaintiff-Appellee, Cook County, Illinois. ) v. ) No. 2020 M5 1470 ) FOX VENDING, INC., ) Honorable ) Defendant-Appellant. Kathleen M. Burke, ) Judge Presiding. )

_____________________________________________________________________________

JUSTICE COGHLAN delivered the judgment of the court. Presiding Justice Lavin and Justice Pucinski concurred in the judgment.

ORDER

¶1 Held: The judgment of the trial court denying defendant’s motion to dismiss is reversed where plaintiff’s complaint for declaratory judgment is moot. The subsequent orders granting judgment on the pleadings and attorney fees in favor of plaintiff are vacated.

¶2 On March 1, 2017, plaintiff Pure’s Food Specialties, LLC (Pure’s) and defendant Fox

Vending, Inc. (Fox) entered into an agreement for defendant to provide vending machine

equipment and services in plaintiff’s employee cafeteria for an initial term of 36 months. The No. 1-22-0908

agreement would automatically renew for an additional 36 months at the end of the initial term,

absent notice of intent to non-renew or terminate the agreement by either party. On November

26, 2019, plaintiff sent a termination letter to defendant via email. Defendant refused to accept

plaintiff’s notice of termination because it was not sent via certified mail (as required by the

agreement) and considered the agreement to have renewed.

¶3 On February 26, 2020, plaintiff filed a complaint for declaratory judgment, seeking a

declaration that the agreement “expired on March 1, 2020, as a result of [defendant’s] actual

receipt of written notice of termination ***,” the removal of defendant’s vending equipment, and

attorney fees. Defendant removed its vending equipment two days after the complaint was filed.

Defendant moved to dismiss the complaint pursuant to section 2-619 of the Code of Civil

Procedure (Code) (735 ILCS 2-619(a)(9) (West 2020)), arguing that the action is moot because

defendant removed its vending equipment, allowing the agreement to terminate. The trial court

denied defendant’s motion to dismiss.

¶4 The parties filed cross-motions for judgment on the pleadings. The trial court granted

plaintiff’s motion, denied defendant’s motion, and granted plaintiff’s petition for attorney fees.

On appeal, defendant argues that the trial court erred in denying its motion to dismiss because

the removal of its vending equipment rendered plaintiff’s complaint moot. For the following

reasons, we reverse in part and vacate in part.

¶5 BACKGROUND

¶6 The record on appeal does not contain a report of proceedings. The following background

is adduced from our review of the common law record. Plaintiff is a cookie and baked snacks

manufacturer. Defendant supplies and services vending machine equipment. On March 1, 2017,

the parties entered into a “Service Location Agreement” (agreement), providing that defendant

-2- No. 1-22-0908

would install and service vending equipment in plaintiff’s employee cafeteria. Plaintiff granted

defendant the “exclusive right to maintain all automatic vending machines in the premises.”

¶7 Section 7 of the agreement provides that the agreement’s initial term is 36 months and

“shall renew itself automatically for like periods, and the same terms and conditions, unless

either party first gives the other written notice, sent by Certified Mail, of its intention to ‘non-

renew’ said AGREEMENT, prior to sixty (60) days of the expiration” of the agreement. Section

8 gives “[e]ither party *** the right to terminate this Agreement immediately upon written notice

to the other party,” under certain circumstances. One of those circumstances being: “At the

conclusion of the initial term of 36 months and in absence of a new agreement, the LOCATION

shall have the right to terminate this agreement for any reason upon 90 days prior written

notice.” The agreement further provides that “[t]he prevailing party in any action filed related to

this AGREEMENT shall be entitled to recover its costs and expenses from the other party,

including, without limitation, reasonable attorney fees.”

¶8 As plaintiff’s workforce grew, it became “dissatisfied” with defendant’s inventory,

stocking, maintenance, and customer service. On November 26, 2019, plaintiff sent defendant a

“termination letter” via email, stating, “[P]lease allow this letter to serve as a termination of the

contract ending on March 1, 2020.” Plaintiff also requested that defendant “finalize the details

regarding vending removal.”

¶9 In response, defendant’s President, Jennifer Fox, requested a meeting to discuss the issue.

Plaintiff responded that “the decision has been made to move forward with another vendor,” and

asked defendant to coordinate the pickup of the vending machines. On December 9, 2019,

representatives of both parties met to discuss the matter.

-3- No. 1-22-0908

¶ 10 On February 12, 2020, plaintiff asked defendant for a “target date for the removal of [its]

equipment.” On February 13, 2020, defendant sent a letter via email to plaintiff, indicating that

“[b]ecause Fox Vending never received the required notice of cancellation[,] the machines will

remain in place.” Quoting section 7 of the agreement, defendant maintained that plaintiff needed

to “give written notice via Certified Mail, prior to sixty days of the expiration of said

agreement,” and that because it did not receive adequate notice of non-renewal, it considered the

agreement to be renewed “through February 2023.”

¶ 11 On February 26, 2020, plaintiff filed a complaint for declaratory judgment, seeking a

declaration that the agreement “expired on March 1, 2020, as a result of [defendant’s] actual

receipt of written notice of termination on November 26, 2019 ***.” Plaintiff also requested that

the court direct defendant to remove its vending equipment because plaintiff “executed a vending

services contract with a new vending provider” and “[defendant] has refused to confirm it will

remove its Vending Equipment.” Plaintiff alleged that the parties had “adverse, legal tangible

interest in the current state of the Agreement” and that requiring it “to be bound by the

Agreement for an additional three (3) year term would cause Pure’s to suffer an undue hardship,

by subjecting [it] to *** continued substandard servicing and other performance deficiencies

***.” 1

¶ 12 On August 26, 2020,2 defendant filed a motion to dismiss plaintiff’s complaint pursuant

to section 2-619(a)(9) of the Code (735 ILCS 5/2-619(a)(9) (West 2020)), arguing that plaintiff’s

1 Plaintiff attached various email correspondence between the parties to its complaint, including: the November 26, 2019 termination letter; emails between Ms.

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