Moxie Pest Control (Utah) v. Nielsen

CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 21, 2026
Docket24-4076
StatusPublished

This text of Moxie Pest Control (Utah) v. Nielsen (Moxie Pest Control (Utah) v. Nielsen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moxie Pest Control (Utah) v. Nielsen, (10th Cir. 2026).

Opinion

Appellate Case: 24-4076 Document: 53-1 Date Filed: 01/21/2026 Page: 1 FILED United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS January 21, 2026

Christopher M. Wolpert FOR THE TENTH CIRCUIT Clerk of Court _________________________________

MOXIE PEST CONTROL (UTAH), LLC, a Utah limited liability company; MOXIE PEST CONTROL (MARYLAND), LLC, a Maryland limited liability company; MOXIE PEST CONTROL (COLUMBUS) LLC, an Ohio limited liability company; MOXIE PEST SERVICES - DALLAS, LLC, a Texas limited liability company; MOXIE PEST CONTROL (VIRGINIA), No. 24-4076 LLC, a Virginia limited liability company; MOXIE PEST CONTROL - DENVER, LLC, a Colorado limited liability company; MOXIE PEST CONTROL (LAS VEGAS), LLC, a Nevada limited liability company; MOXIE PEST CONTROL (ATLANTA), LLC, a Georgia limited liability company; MOXIE SERVICE LLC, a Kansas limited liability company; MOXIE SERVICES (CHICAGO), LLC, an Illinois limited liability company; MOXIE SERVICES MINNESOTA, LLC, Minnesota limited liability company; MOXIE PEST CONTROL (ARIZONA), LLC, an Arizona limited liability company; MOXIE PEST CONTROL (PHILADELPHIA), LLC, a Pennsylvania limited liability company; MOXIE PEST CONTROL (TENNESSEE), LLC, a Tennessee limited liability company; MOXIE PEST CONTROL (RALEIGH), LLC, a North Carolina limited liability company; MOXIE PEST CONTROL (ORANGE COUNTY), L.P., a California limited partnership; MOXIE PEST CONTROL (OKLAHOMA), LLC, an Oklahoma limited liability company; MISSION PEST Appellate Case: 24-4076 Document: 53-1 Date Filed: 01/21/2026 Page: 2

CONTROL, L.P., a California limited partnership; MOXIE PEST CONTROL (TUSCON), LLC, an Arizona limited liability company; JOSHUA'S PEST CONTROL, L.P., a California limited partnership; MOXIE PEST CONTROL (CINCINNATI), LLC, an Ohio limited liability company; MOXIE SERVICES ST LOUIS LLC, a Missouri limited liability company,

Plaintiffs - Appellants,

v.

KYLE NIELSEN, an individual; CONNER RUGGIO, an individual; RYAN SMITH, an individual; DONALD MOSER, II, an individual; APTIVE ENVIRONMENTAL, LLC, a Utah limited liability company; DOES 1-10,

Defendants - Appellees. _________________________________

Appeal from the United States District Court for the District of Utah (D.C. No. 2:21-CV-00240-DAK) _________________________________

Brent O. Hatch (Adam M. Pace with him on the briefs), of Hatch Law Group PC, Salt Lake City, Utah, for Plaintiffs-Appellants.

Matthew A. Steward, of Clyde Snow & Sessions, P.C., Salt Lake City, Utah, (Nathaniel E. Broadhurst of Clyde Snow & Sessions, P.C., Salt Lake City, Utah; Freyja Johnson, Rachel Phillips Ainscough of The Appellate Group, Bountiful, Utah, with him on the brief), for Defendants-Appellees. _________________________________

Before HARTZ, MORITZ, and ROSSMAN, Circuit Judges. _________________________________

MORITZ, Circuit Judge.

2 Appellate Case: 24-4076 Document: 53-1 Date Filed: 01/21/2026 Page: 3

_________________________________

In 2019 and 2020, employees of Aptive Environmental, LLC, bribed members

of a rival pest-control outfit—Moxie Pest Control (UTAH), LLC, and over a dozen

other affiliates (collectively, Moxie)—to turn over Moxie’s confidential sales data.

That data allegedly became the secret venom in the race to recruit sales

representatives for the lucrative summer sales season.

When Moxie discovered the breach, it sued Aptive and several of its

employees (collectively, Aptive) for this misuse of its data. It brought claims under

the Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030, the Racketeer

Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1961–1968, the

federal Defend Trade Secrets Act (DTSA), 18 U.S.C. §§ 1831–33, 1835–36, 1838–

39, 1961, and Utah’s Uniform Trade Secrets Act (UTSA), Utah Code Ann.

§§ 13-24-1 to -9. The district court found each of those claims wanting. It

(1) dismissed the CFAA claim as inadequately pleaded, (2) denied Moxie’s motions

to compel broad discovery into damages, and (3) granted Aptive summary judgment

on Moxie’s RICO, DTSA, and UTSA claims on causation grounds.

We take up each of these issues in Moxie’s appeal. First, we reverse the

dismissal of Moxie’s CFAA claim. Contrary to the district court’s conclusion, the

CFAA does not require plaintiffs to plead loss from a technological harm, so Moxie’s

failure to do so was not fatal under Federal Rule of Civil Procedure 12(b)(6).

Second, we affirm the denial of Moxie’s motions to compel. Moxie’s

discovery requests were very broad. And limiting the scope of Aptive’s initial

3 Appellate Case: 24-4076 Document: 53-1 Date Filed: 01/21/2026 Page: 4

disclosures was not an abuse of discretion because the district court left the door

open for Moxie to seek further discovery as to damages.

Third, we affirm in part and reverse in part the district court’s summary-

judgment decision in favor of Aptive. We agree that Moxie’s lack of evidence of

causation is fatal to Moxie’s RICO claim. The same cannot be said for Moxie’s

DTSA and UTSA claims, however. Although the lack of causation evidence

precludes Moxie from recovering unjust-enrichment damages under those statutes,

Moxie also pursued other remedies: reasonable royalties and injunctive relief.

Consequently, the district court should have examined the viability of Moxie’s DTSA

and UTSA claims in light of those remedies before granting Aptive summary

judgment.

We thus remand for further proceedings on Moxie’s CFAA, DTSA, and UTSA

claims.

Background 1

Moxie and Aptive are competitors in the pest-control business. They hawk

their services each summer using door-to-door sales representatives, typically college

students, who work on commission. Each sales representative brings in tens of

thousands of dollars in annual revenue. This is a volume business, so Moxie and

Aptive compete to hire the most representatives for each summer sales season.

1 We draw these facts from the complaint and summary-judgment record, viewing both in the light most favorable to Moxie. See KT & G Corp. v. Att’y Gen. of Okla., 535 F.3d 1114, 1136 (10th Cir. 2008) (motion to dismiss); Birch v. Polaris Indus., Inc., 812 F.3d 1238, 1251 (10th Cir. 2015) (summary judgment). 4 Appellate Case: 24-4076 Document: 53-1 Date Filed: 01/21/2026 Page: 5

Because both companies pay commission, sales data is an important

recruitment tool for predicting a representative’s potential earnings. As part of its

business strategy, Moxie closely guards its sales data. It uses password-protected

software, called SalesRoutes, to track individual sales and maintain “leaderboards” of

top sellers. And all Moxie employees who have access to SalesRoutes—including all

sales representatives—must sign confidentiality agreements covering the company’s

“business records and data.” 2 App. vol. 11, 2960.

Aptive has gone to great lengths to pilfer that information. In 2019, Senior

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Moxie Pest Control (Utah) v. Nielsen, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moxie-pest-control-utah-v-nielsen-ca10-2026.