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MADISON - ST. CLAIR RECORD

Thursday, April 25, 2024

Video gaming company sues Worden bar claiming it broke exclusivity clause

A Worden bar is accused of breaking an exclusivity contract by allowing a video gaming company to set up machines on its property.

Midwest Electronics Gaming LLC and AAA Gaming LLC filed a lawsuit April 5 in Madison County Circuit Court against Leo and Jan's Idle Hour Inc.

According to the complaint, the Idle Hour bar signed an exclusive location and device agreement in July 2009 with JT's Vending Inc. That contract allegedly had an initial term of three years and would renew for another three unless otherwise canceled in writing. Midwest Electronics contends Idle Hour did not cancel the contract, so the agreement was allegedly extended to July 2015.

In May 2010 the rights to Idle Hour's gaming contract were sold by JT's Vending to AAA Gaming and again, in July 2012, transferred from AAA Gaming to Midwest Electronics. According to the transfer, Midwest agreed to pay AAA Gaming $15,000 for the exclusive video gaming rights.

According to Midwest and AAA Gaming, Idle Hour has since allowed another gaming company, Midwest Amusements & Gaming Inc., to place video gaming machines in its bar. The companies say that is a direct violation of the exclusivity contract with Midwest Electronics.

Leon & Jan's Idle Hour is accused of breach of contract. Midwest Electronics and AAA Gaming are asking to be awarded more than $50,000 in damages, interest and court costs.

Attorney Thomas J. Arkell of Bloomington represents them.

Madison County Circuit Court Case No. 13-L-567

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