June 17, 2024
Elite Appeals $453,929 Judgment in REPCO II Commission Case
Appeal aims to overturn judgment, and may focus mainly on procedural issues rather than agent’s claims of unpaid commissions
PITTSBURGH, Pa. — Elite Lighting, a California-based lighting manufacturer, has filed an appeal against a default judgment entered by the United States District Court for the Western District of Pennsylvania. The judgment, amounting to $453,929, was issued in favor of REPCO II, Inc., a Pittsburgh lighting agent, on May 7, 2024.
The appeal, filed on June 12, 2024, seeks to overturn the default judgment entered by Judge William S. Stickman IV. The judgment came after Elite Lighting repeatedly failed to meet discovery obligations, which the court described as "willful and egregious misconduct."
The legal dispute began when REPCO II alleged that Elite Lighting owed over $280,000 in unpaid agent commissions. The court noted Elite Lighting's persistent neglect of court orders regarding the discovery process, failing to produce critical business documents such as purchase orders and emails pertinent to REPCO's claims.
Despite multiple court reminders and imposed sanctions, initially set at $1,000 per day, Elite Lighting's cooperation remained absent. This continual defiance led to escalated judicial measures, with Judge Stickman expressing significant frustration over the company's disregard for legal processes and the integrity of court mandates.
In contrast to the case documents, Hamid Rashidi, a corporate officer of Elite Lighting, stated to Inside Lighting on May 16 that an accounting error linked to an ownership change at the agency is the cause of the dispute. He also characterized the relationship between REPCO II and Elite Lighting as very positive.
Above: Excerpt from Elite Lighting’s June 12 filing
The appeal process will involve the transmission of the record from the district court to the appellate court, including all relevant documents, evidence, and transcripts. Elite Lighting must submit a detailed brief outlining the legal arguments and bases for the appeal, arguing why the default judgment was incorrect. REPCO II will then have the opportunity to respond with their own brief, and Elite Lighting may submit a reply brief to address new points raised by REPCO II.
The United States Court of Appeals for the Third Circuit will review the case, primarily based on the proceedings and evidence presented at the trial court level. The appellate court's decision will determine whether the default judgment will be upheld, modified, or reversed.
