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Sterk v. Redbox Automated Retail, LLC

United States Court of Appeals for the Seventh Circuit
770 F.3d 618 (2014)


Facts

Redbox Automated Retail, LLC (defendant) operated self-service kiosks at which customers could rent movies for a fee. Redbox outsourced its customer-service operations to Stream Global Services, which fielded Redbox customer inquiries through a customer-service call center. In order to perform this function, Redbox granted Stream with access to its customer database. Kevin Sterk (plaintiff) brought suit against Redbox, alleging that this disclosure violated the Video Privacy Protection Act (VPPA). During a period of extended discovery, Redbox produced thousands of pages, responded to a number of interrogatories, and produced witnesses for deposition, which, in the end, produced information concerning each vendor to which Redbox disclosed customer information and the information shared to each. Sterk also successfully obtained third-party discovery from Stream. In light of all this information, Redbox moved for summary judgment on the basis that its actions fell within a VPPA exception for disclosures made in the ordinary course of business. Sterk filed a motion under Federal Rule of Civil Procedure (FRCP) 56(d), stating that he needed to perform additional discovery in order to adequately respond to Redbox’s arguments. The district court denied Sterk’s motion and granted Redbox’s motion for summary judgment as to all counts, finding that Redbox’s disclosure of customer information fell within VPPA’s ordinary-course-of-business exception. Sterk appealed.

Rule of Law

Issue

Holding and Reasoning (Flaum, J.)

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