Timothy Denton, vice president of corporate communications and media relations at USI, and TQLs Brown did not respond to FreightWaves requests for comment. And then to make matters worse, theres a one-way fee-shifting provision in the contract that says if TQL sues under the contract and prevails, the employee is liable for TQLs attorneys fees, Patterson said. If it turns out that Daniels, in fact, did not violate his non-compete, then he is entitled to compete after that date, and any preliminary injunction then in place would improperly interfere with the public's interest in free competition. Evidence suggests that, on August 20, 2020, Daniels organized EDA Logistics, a limited liability company designed to conduct "freight arrangement services." ). Inj. TQL Total Quality Logistics #1 most crooked Brokers in the nation. Jobseeker Tools. 21, 2020) (collecting cases). Those sending messages critical of the companys leadership or complaints to managers about not being able to work remotely were added to a list of those to be fired, despite their title or value to TQL, one employee told FreightWaves. at 9(b)(iii)). Mach. It is plausible that Daniels, who allegedly had no knowledge of the freight-brokerage business when he joined TQL, and who allegedly received and had access to trade secret information while at TQL, used those trade secrets to establish and (potentially) operate what appears to be a competing freight-brokerage business, EDA Logistics. Aaron Aanderud Commercial HVAC Technician. TQL has provided several pieces of evidence in this regard. window.googletag = window.googletag || {cmd: []}; Cary Corp. v. Linder, No. The Complaint Plausibly Alleges That Daniels And EDA Logistics Misappropriated Trade Secrets. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); 13, 14, "FMCSA Licensing History"). Total Quality Logistics, LLC v. OTC Logistics LLC - casetext.com That same day, TQL also filed a motion for a preliminary injunction and temporary restraining order. Defendants have not submitted any evidence to suggest that this is the case. As noted above, that evidence falls short. (citing Twombly, 550 U.S. at 555). window.googletag = window.googletag || {cmd: []}; RTS Financial. For over 15 years, we've specialized in arranging the transportation of full truckload shipments for thousands of companies across the country and various industry segments. Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. However, the plaintiffs claim in the class-action suit they werent paid for the additional hours they worked and that TQL violated the Fair Labor Standards Act (FLSA) by not paying them overtime. Deck v. City of Toledo, 29 F. Supp. Rather, the Court must rely on the evidence that TQL did present. Rather, both parties focus their arguments on the harm that might occur if the Court were to grant the requested preliminary injunction. (Mot. The contract at issue here is Daniels' non-compete agreement. See Iqbal, 556 U.S. at 663 ("A claim has facial plausibility when the pleaded factual content allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.") A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. The Court thus DISMISSES TQL's claim for tortious interference with a business relationship. Gonzales v. Nat'l Bd. window.googletag = window.googletag || {cmd: []}; (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). 2, 25-26, #49). Hr'g, Ex. The parties finished briefing that motion on April 20, 2021, and the Court held a hearing on the matter on April 29, 2021. Although these facts suffice to create a plausible inference that Daniels is actually competing against TQL, the only solid conclusion that the Court can draw from the evidence provided at this stage is that Daniels is at least preparing to compete with TQL. (Bostwick Test., Hr'g on Prelim. Res. The full scope of the harm has yet to be realized, the lawsuit says. According to court filings, Patterson started looking for employment outside the transportation industry in early August and entered employment discussions with Justin Austin, who was recently promoted to Midwest regional select practice leader/partner for USI Insurance Services. Then, when Michael Henshall left TQL in June 2018, he passed the Sunland account over to Daniels. 1:2021cv00467 - Document 11 (S.D. googletag.cmd.push(function() { Customer and carrier information was exposed after threat actors breached the company's online web portal. In fairness to TQL, this may be in part because TQL anticipated that Daniels would be present for the preliminary injunction hearing. Former employees claim they were allowed to work from home in test waves, but the companys virtual network, Citrix, kept crashing in the days leading up to the mass firings. These factual allegations must support a claim that is "plausible on its face." Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. googletag.pubads().enableSingleRequest(); 12, 2010) ("There is no requirement that contract damages be pled with detailed specificity. JUDGE DOUGLAS R. COLE OPINION AND ORDER This cause is before the Court on two pending motions: (1) Total Quality Logistics' ("TQL") Motion for a Preliminary Injunction (Doc. googletag.enableServices(); TQL then concludes that "[u]pon information and belief Daniels is currently performing freight brokerage services in violation of his NCA." Signed by Judge Timothy S. Black on 8/5/2021. (Doc. Aero Fulfillment Servs., Inc. v. Tartar, No. On June 29, 2020, Daniels voluntarily resigned from TQL. Managers also reminded them of the noncompete agreements they had signed on their first day of employment with the freight brokerage and that it would be enforced if they went to work at another brokerage within one year of leaving TQL. (Doc. Because Daniels founded EDA, TQL reasons, he "inevitably will use [trade secret] information for his and EDA's benefit." Until that process is complete later this week, were holding on sending any additional employees home for testing or work-from-home moves.. This happened to me in 2015. Even so, Defendants' arguments are unpersuasive. Maybe Sunland does not like the new TQL logistics account executive who now manages its account; perhaps COVID-19 hit Sunland hard and it decreased shipments across the board; or maybe Sunland just transferred its business to a new logistics company (other than EDA Logistics). Try Casetext free Opinion CA2020-09-056 12-06-2021 TOTAL QUALITY LOGISTICS, LLC, Appellant, v. INTEGRITY EXPRESS LOGISTICS, LLC, Appellee. If you need a reliable and experienced fund retrieval expert. Mot., Apr. It alleges many thousands of carriers and customers have been impacted. window.googletag = window.googletag || {cmd: []}; But it is at least as likely that Daniels has already conducted fright brokering services under the authority granted to his newly formed LLC. The bench trial was scheduled to start on July 13. 3. Legg later formed MegaCorp Logistics, which has a nonsolicitation agreement. Jan. 19, 2007) (explaining that, while the violation of a covenant could constitute "irreparable harm," "[e]ach case presents a different factual scenario that must be independently reviewed to determine whether a breach will result, or has resulted, in irreparable harm"); see also Procter & Gamble Co. v. Stoneham, 747 N.E.2d 268, 280 (Ohio Ct. App. (TQL's Exs. And, equally as problematic for TQL, nowhere in the email chain does Daniels ever respond to 721 Logistics or Sunland. McNeilly v. Land, 684 F.3d 611, 615 (6th Cir. Inj. Newman v. Total Quality Logistics, LLC These facts, then, raise a plausible inference that EDA is interfering with the NCA between Daniels and TQL. 8) and DISMISSES TQL's tortious interference with a business relationship claim WITHOUT PREJUDICE. That is a heavy burden to bear. This is all that is needed to plausibly allege damages for a breach of contract claim. 8). As discussed above, TQL's evidence on that front creates a plausible inference that Daniels may have violated, and may be violating, his non-compete, but it falls short of providing "clear and convincing evidence" that he is doing so. Send me an email here. I lost my traction in the industry and have never really recovered. Med. Your California Privacy Rights / Privacy Policy. Hr'g, Ex. This means you're the single point of contact to get the job done right the first time, every time. See Hartman v. Acton, No. The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot6', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767872042-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Inj., Doc. This matter is before the Court on cross motions for summary judgment. April 30, 2023 Full-Time About the role: As a Sales Representative for TQL Phoenix, you will build your own book of business while handling your customer's transportation needs 24/7/365. googletag.cmd.push(function() { Matthew Wiles, a transportation and noncompete litigator representing TQL in the action, confirmed that his firm, Wiles Law of Upper Arlington, Ohio, had filed a motion requesting to add another party to the lawsuit.. (Doc. (TQL's Exs. Tenn. 2016). for Prelim. Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. (Bostwick Test., Hr'g on Prelim. 1, "Daniels Resume"). If you have a news tip or story idea, send her an email to, Copyright 2023, All Rights Reserved, FreightWaves, Inc, Judge delays trial date in TQL overtime class-action lawsuit, Loaded & Rolling (Enterprise Fleet News/Analysis), joined a class-action complaint against TQL f, that were let go over a three-day period in mid-March amid the coronavirus pandemic, Trial dates rescheduled because of COVID-19. Desperate for work during the pandemic, some terminated TQL employees asked the freight brokerage to release them from its restrictive noncompete, but it refused. Therefore, the Court DENIES Defendants' motion to dismiss TQL's misappropriation of trade secrets claim. to Prelim. googletag.pubads().collapseEmptyDivs(); at 557; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Council, Inc., 555 U.S. 7, 22 (2008). Account Executive Job in Phoenix, AZ at Total Quality Logistics (TQL) The elements of a tortious interference with a contract claim are nearly identical to the elements of a tortious interference with a business relationship claim, the obvious difference being that the former involves intentional interference with a contract, not a business relationship. 5,500 employees. window.googletag = window.googletag || {cmd: []}; Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch. Inj. Total Quality Logistics. Johnson is a former employee of TQL who worked for TQL as a logistics account executive for approximately five months between April 23, 2018 through September 26, 2018. window.googletag = window.googletag || {cmd: []}; (Id. 12, "W. Va. Sec'y of State Bus. (citing Twombly, 550 U.S. at 556). We are going to argue these motions on July 13, and at that time, the judge indicated he was going to establish a new trial date in the case, Meizlish told FreightWaves. (Id.). to Prelim. to Dismiss, Doc. googletag.pubads().enableSingleRequest(); The lawsuit also accuses TQL of being aware of the risk of cyber attacks, but not havingthe necessary data security procedures in place to protect the confidential information from hackers. Company Profile. TQL filed its lawsuit in the Court of Common Pleas of Clermont County, Ohio on October 29, 2018. Thus, the fact that TQL has pled a plausible breach of contract claim does not require the Court to find a plausible tortious interference with a business relationship claim. Connect with Bricker online via Twitter, Facebook and LinkedIn . googletag.enableServices(); Total Quality Logistics Reviews, Complaints, Customer Service This cause is before the Court on two pending motions: (1) Total Quality Logistics' ("TQL") Motion for a Preliminary Injunction (Doc. Of course, the nature of the requisite "injury" varies somewhat for the two forms of relief TQL seeks. Total Quality Logistics facing $5 million lawsuit over 'massive' data Nowhere in the email chain does 721 Logistics (or Sunland) explain why it reached out to Daniels. 3). Then, on September 14, 2020, it appears that the Federal Motor Carrier Safety Administration granted the newly formed EDA Logistics a form of motor carrier authority called "broker" authority. }); Pete Patterson has been involved in his brothers legal battle since May 2021 over TQLs claims that Jacob Patterson had violated his noncompete when he went to work for asset-based carrier PBJ Express. At the time of the data breach, TQL President Kerry Byrne stated that hackers may have gained access to carriers tax ID numbers, bank account numbers and invoice information, including amounts and dates.. Answered Apr 1, 2023. However, former TQL employees told FreightWaves they estimate that only around 5% actually make it once they transition to a commission-only pay system. Call Us 24/7/365 800.580.3101. burger menu open. First, TQL submits that Daniels founded EDA Logistics, an LLC organized for conducting freight arrangement services. For the reasons below, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss and DENIES TQL's Motion for a Preliminary Injunction. 2013) (citing Iqbal, 556 U.S. at 678). The long-awaited trial in the overtime compensation class-action lawsuit brought by former Total Quality Logistics (TQL) employees has been pushed back because of the COVID-19 pandemic. 1992). of Med. TQL's records show a 41% drop in revenues from Sunland from quarter one of 2020 to quarter two of that same year, while Daniels was still with TQL. We help you find the right solution for your local, national and North American truckload freight and shipping needs. Although it is "plausible," based on the facts alleged, that EDA is operating and soliciting customers, it does not necessarily follow that EDA is soliciting TQL's customers. It appears, though, that within a few months after leaving TQL, Daniels may have decided that he was not entirely done with the freight-brokering industry. Former employees told FreightWaves they were expected to work more than 60 hours per week to meet sales goals and were expected to be available 24 hours per day, seven days a week to increase TQLs customer base and were expected to respond to customer problems or questions at all times. TQL: 'Bully On The block'? - Yahoo Finance to Prelim. I highly recommend this fair service. This trend continued into the third quarter, which is the quarter right after Daniels left TQL. The next day, March 9, 2021, TQL re-filed its motion for a preliminary injunction in this Court. On behalf of my brother, we have now sued TQL, alleging that it has interfered with his efforts to get a job outside of the trucking industry, said Pete Patterson, Jacob Pattersons brother and a partner at Washington-based boutique litigation firm Cooper & Kirk. The parties will have ample opportunity to access specific damage information through the discovery process."). 10 days. This is the same type of authority that TQL uses to conduct its transportation-brokering services. Univ. From that point forward, Daniels handled Sunland's business until he left TQL, in June 2020. Hackers, the company said, gained access to information in some of our carrier accounts.. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); But that misunderstands a plaintiff's obligation at the pleadings stage. Hr'g, Exs. Ohio May. Inj. Should TQL provide the missing pieces at trial, that could well result in the Court imposing final injunctive relief on TQL's behalf based on the non-compete and non-solicitation provisions. Hackers accessed and in a growing number of cases"have used the information to conduct fraudulent transactions,according to the lawsuit. Have something to share about Total Quality Logistics? Total Quality Logistics, LLC v. Integrity Express Logistics, LLC Download PDF Check Treatment Legal research that outperforms Westlaw and Lexis, starting at $100/month. Ohio 2017) (citing Garofalo v. Chicago Title Ins. That said, a plaintiff need not provide "detailed" factual allegations. Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. (NCA at 10). at 556. They threaten with a Carrier411 write up that could bankrupt a company. Neither piece of evidence, considered alone or in conjunction, shows a "strong likelihood" that Daniels is actually competing with TQL. 6, "Sunland Customer Timeline"). literally needed to contact (spynerdy @ gmail) to get some of my funds back from them. 1:17-CV-150, 2018 WL 1891354, at *7 (S.D. Total Quality Logistics, LLC v. Cornelius Leasing Sys ., Inc ., No. googletag.pubads().collapseEmptyDivs(); Happened to me in 2012!!!!! There is no clearly defined line. Call Us 24/7/365 800.580.3101. (Id. at 9(f)). However, multiple current and former TQL employees said they do not consider the company one of the best places to work and told FreightWaves they fear retaliation by TQLs aggressive legal team if they are named. More specifically, Bostwick explained that Daniels would have cold-called potential customers, as well as coordinated services and provided pricing estimates for existing customers. A, #58-64, "NCA"). Total Quality Logistics, LLC v. DeSantis - Casetext Accordingly, whether a preliminary injunction serves these public interests is also too speculative to justify such extraordinary relief. The investigation also turned up two email chains between TQL, 721 Logistics (another broker company), and Sunland, which showed that Daniels had some contact with Sunland after his departure.