February 19, 2025
Diversified and Moxie Lighting Swiftly Resolve Legal Dispute
Dispute dismissed in less than two months, resolving ex-employee contract violation claims
The legal dispute between Diversified and Moxie Lighting, two lighting agents whose territories overlap in the New York City metro area, has been dismissed, ending a conflict that lasted less than two months.
The case, which centered on allegations of contract violations and unfair competition involving a former salesperson for Diversified, was officially dismissed January 21 in the U.S. District Court for the Eastern District of Pennsylvania. The Inside Lighting I-Team has been properly admonished for not reporting this news earlier.
Dismissal Suggests Settlement
Court records indicate that the case was dismissed pursuant to Rule 41.1(b) of the Local Rules of Civil Procedure, which applies when disputes have been settled. However, the filings do not explicitly state that there was a settlement. Each party agreed to bear its own legal costs, and no further legal actions on the matter appear to be pending.
Diversified originally filed the lawsuit in December, alleging that a former outside sales employee—who previously worked for Diversified—had breached a written agreement by competing with the company and misusing confidential information. The complaint also named Moxie Lighting as a defendant, asserting that the agency knowingly benefited from these alleged violations.
Rapid Resolution After Initial Allegations
Diversified had sought a temporary restraining order and damages for breach of contract, tortious interference, and unjust enrichment, among other claims. The case appeared poised for a protracted legal battle, but the dismissal with prejudice indicates that the matter has been resolved conclusively, preventing it from being refiled.
The lawsuit was filed following an email error from an electrical contractor in Atlantic Highlands, New Jersey (Exit 117) that inadvertently copied a Diversified email address on a message meant for Moxie Lighting. This email allegedly revealed competitive activities that Diversified claimed violated its employment agreements. The situation intensified as the company accused its former employee of leveraging prior business relationships for Moxie’s benefit.
Noncompetes: Common Industry Obstacles
Noncompete clauses and exclusivity agreements remain contentious topics in the lighting industry, especially as regulatory scrutiny over such contracts continues. The Federal Trade Commission has proposed limiting noncompete agreements, and legal challenges to such restrictions are ongoing.
With this chapter now closed, both Diversified and Moxie Lighting can refocus on their respective operations. However, the dispute highlights the risks and complexities surrounding employee transitions in commercial lighting markets.
