Originally Published May 14, 2021 Updated May 17, 2021

C.E.D. Files Lawsuit Over $167K Lighting Project

2021 05 CED lighting project lawsuit.jpg

Most small lighting manufacturers deliver on their promises. According to C.E.D., this one took the money and ran.

On Tuesday, May 11, Consolidated Electrical Distributors (C.E.D.) filed a lawsuit in U.S. District Court against a lighting manufacturer and its parent company over a dispute for a $167K lighting project for a Charlotte, NC nursing home, WillowBrooke Court Skilled Care Center at Plantation Estates.

UPDATE: THIS CASE WAS VOLUNTARILY DISMISSED BY C.E.D. ON MAY 14.

THE STAKEHOLDERS:

Distributor: Consolidated Electrical Distributors (C.E.D.)

Contractor: Watson Electrical Construction

Electrical Engineer: DeVita & Associates

Manufacturer: Hallmark Lighting, Los Angeles, CA; Resilience Capital Partners was the parent company to Hallmark Lighting.

ACCORDING TO C.E.D.'s COMPLAINT:

During the bidding process, C.E.D. furnished submittal drawings that were reviewed by DeVita.

DeVita rejected the submission with instructions to utilize custom light fixtures by Hallmark Lighting and to place an imminent purchase order with Hallmark in order to lock-in pricing. C.E.D. sent Hallmark the P.O.

Hallmark advised CED that a $77,318 deposit was necessary for production. C.E.D. paid it. Subsequently, Watson, the electrical contractor, paid C.E.D.

C.E.D. issued another payment to Hallmark – this time for $89,296. They were given a ship date of March 15, 2020.

Multiple delays ensued and C.E.D. paid an additional $14,754 for expedited shipping.

A partial shipment eventually arrived, but C.E.D. claims that the fixtures were incomplete and mislabeled.

Soon after, Hallmark terminated all of their employees as Hallmark’s parent company, Resilience, was in the process of selling the assets of Hallmark.

C.E.D. made multiple requests to have the remaining required light fixtures shipped. They were given assurances by the parent company, Resilience, but they never received the shipments.

Soon after, Resilience sells Hallmark Lighting’s assets to a third party and the remaining fixtures were never shipped.

C.E.D. is suing Hallmark Lighting and Resilience for multiple counts. The company alleges that Hallmark and Resilience received the economic benefit of C.E.D.’s $181K but failed to fulfill the contract.

Our request to Hallmark Lighting seeking comment was not immediately returned.