Nov. 27, 2002). (Compl., Doc. As the plaintiff, TQL bears the burden of establishing that it is entitled to such relief. Accordingly, the Court will exclude $2,112.64 in billings that the Court deems useable in related litigation. Resources and Tools. We help you find the right solution for your local, national and North American truckload freight and shipping needs. Specifically, TQL points to evidence that (1) Sunland, one of Daniels' customer accounts at TQL, has significantly decreased its book of business with TQL after Daniels' departure; and (2) 721 Logistics copied Daniels on two emails concerning a shipment from Sunland. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. We are still gathering details, but it appears it was initially an information/data phishing attempt, according to Byrnes email to carriers. In fact, allegations in the complaint need not even be particularly convincing. Rather TQL's claim is the type of "unadorned, the defendant-unlawfully-harmed-me accusation" that fails to make the cut under Iqbal and Twombly. 1:18-cv-00796, see flags on bad law, and search Casetext's comprehensive legal database . window.googletag = window.googletag || {cmd: []}; Total Quality Logistics 462 S 4th St, Louisville, Kentucky, United States, 40202-3466 Sharing is caring! His suit, filed in Clermont County, Ohio, alleges the case demonstrates the extraordinary measures TQL will take to harm the career prospects of an employee who has the temerity to leave the company.. for Prelim. 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. Aero Fulfillment Servs., Inc. v. Tartar, No. Need some recourse against brokers. Total Quality Logistics faces a class-action lawsuit in federal . Again, discovery, not a motion to dismiss, is the proper avenue to address any missing specifics about the existence, and amount, of any such damages. This cause is before the Court on two pending motions: (1) Total Quality Logistics' ("TQL") Motion for a Preliminary Injunction (Doc. at 557; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). googletag.cmd.push(function() { UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION. When combined, these two pieces of evidence demonstrate that EDA exists and that it is authorized to compete with TQL. If the Court were to preliminarily enjoin Daniels and EDA today, that injunction will likely remain in effect for some time after June 2021, which is the date when Daniels' non-compete expires (at least absent tolling of the covered period). Co., 661 N.E.2d 218, 226 (Ohio Ct. App. PDF Total Quality Logistics, L.L.C. v. Johnson 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. TQL, of course, contends that this interest is irrelevant here because Daniels' competition is unlawful and in violation of his non-compete. Defendants are correct that this inference alone might not be enough to prove that Daniels is misappropriating trade secrets. Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. 1 (quoting Scheuer v. Rhodes, 416 U.S. 232, 236 (1974), overruled on other grounds by Davis v. Scherer, 468 U.S. 183, 191 (1984)). The data breach was announced by TQL at the end of February. According to the lawsuit, the company is working with the FBI to identify the hackers. Hr'g, Ex. This statement is purely conclusory. Judge delays trial date in TQL overtime class-action lawsuit They threaten with a Carrier411 write up that could bankrupt a company. "This is because the preliminary injunction is an 'extraordinary remedy involving the exercise of a very far-reaching power, which is to be applied only in the limited circumstances which clearly demand it.'" Many rival logistics firms now use nonsolicitation agreements in lieu of noncompetes. Detail"). Schs., 160 F. Supp. 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. }); 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. (Id. Def. There is no clearly defined line. Cary Corp. v. Linder, No. Account Executive Job in Phoenix, AZ at Total Quality Logistics (TQL) To survive Defendants' 12(b)(6) motion, then, TQL's Complaint must provide non-conclusory facts that, if true, plausibly support claims that (1) Daniels breached his non-compete; (2) Daniels and EDA misappropriated trade secrets; (3) EDA interfered with TQL's business relationships; and (4) EDA interfered with TQL's contracts. Clarissa has covered all aspects of the trucking industry for 14 years. TQL and their kind are the herniated disc in the industry. Our IT security teams identified the issue quickly and countered immediately to secure all online information.. C-060071, 2007 WL 120695, at *2, 4 (Ohio Ct. App. Accordingly, TQL's claim for tortious interference with a business relationship does not rise to the level of plausibility. 12, 2010) ("There is no requirement that contract damages be pled with detailed specificity. Thus, the Court cannot draw any inferences about the testimony that he would have provided had he appeared. Dont miss the hottest freight event of the summer! 1. One source claims that leadership requested the companys Sales Quality Assurance department monitor employees Skype messages. gptAdSlots.push(gptSlot); 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. The parties will have ample opportunity to access specific damage information through the discovery process."). 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. 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. 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. The freight brokerages overbroad language in the noncompete is so expansive that it would prohibit him from even driving for DoorDash, the lawsuit states. Company Profile. Inj. The next day, March 9, 2021, TQL re-filed its motion for a preliminary injunction in this Court. The staff members seemed legit, not just classifying the problem and charging not without good response. Total Quality Logistics Reviews: What Is It Like to Work At Total (Compl., Doc. }); googletag.cmd.push(function() { Rather, the Potato Shipment Emails merely show, at the bottom (and thus the start) of a long chain, that Sunland sent an email to Daniels. Total Quality Logistics, LLC -v- YB Global, Inc - UniCourt Finally, the Court considers the effect of a preliminary injunction on the public interest. The "irreparable injury" prong, then, also weighs against a preliminary injunction. 29, 2021). As the Court discussed in the breach-of-contract analysis above, TQL's Complaint also included allegations that "Daniels formed EDA for the purpose of conducting freight arrangement services" and that "EDA holds freight brokerage authority granted by the Federal Motor Carriers Safety Administration." A lawsuit charges that Total Quality Logistics, LLC BB #:203922 Cincinnati, had a massive data breach that has allegedly harmed thousands of people. Total Quality Logistics v. Integrity Express Logistics, L.L.C. Mot., Apr. 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. googletag.pubads().enableSingleRequest(); However, after five months in the new role, his work-life balance was substantially worse, according to court documents. That said, a finding that there is no likelihood of success on the merits tips that balance in such a way that is "usually fatal" to the request for a preliminary injunction. The COVID-19 pandemic intervened once again as a case filed in July 2016 in the U.S. District Court for the Northern District of Illinois, which was slated for a jury trial on March 30, was delayed. When evaluating the sufficiency of a complaint in the face of a motion to dismiss, the Court must accept all non-conclusory factual allegations as true. (Mot. 8, #97-98). 9, "Sunland Revenue Chart"). The Complaint continues on to note that "EDA holds authority to operate a freight brokerage under the Federal Motor Carriers Safety Administration." Total Quality Logistics LLC v. Logistic Dynamics, LLC - Casetext TQL requested damages and injunctive relief on all counts. During his time at TQL, Daniels worked his way up from Logistics Account Executive Assistant, to Logistics Account Executive, to Saturday Group Leader, to Sales Team Leader. Even so, Defendants' arguments are unpersuasive. TQL commenced an internal investigation where it learned the facts alluded to abovethat Daniels had both started EDA Logistics and obtained "broker" authority. Total Quality Logistics, LLC v PBD, Inc et al | 1:19-CV-00212 | Court Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. Defendants' only real argument to the contrary is that these facts do not plausibly allege a violation of the non-compete because "TQL's complaint does not allege any specific facts that Defendant EDA is actually brokering freight." 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.. 8, #99). Desperate for work during the pandemic, some terminated TQL employees asked the freight brokerage to release them from its restrictive noncompete, but it refused. (Compl., Doc. var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[728, 90], [468, 60], [300, 100], [320, 50]], 'div-gpt-ad-b1-i-fw-ad-1').defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads()); Since the COVID-19 threat began, any TQL employee who stated his or her discomfort with working in the office because of health concerns was immediately offered the opportunity to work from home, with no strings attached, Millikin told FreightWaves in April. 12, "W. Va. Sec'y of State Bus. of Med. googletag.pubads().enableSingleRequest(); (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). googletag.enableServices(); The Complaint Plausibly Alleges That Daniels And EDA Logistics Misappropriated Trade Secrets. TQL argues that a preliminary injunction would serve the public interest for two reasons. However, Bruce H. Meizlish, the lead attorney from Cincinnati, representing former TQL employees in the class-action complaint, says a hearing on recently filed motions will be held on that date. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. This happened to me in 2015. Bridgestone Am. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. 2017) (citing Heartland Home Fin., Inc. v. Allied Home Mortg. Id. of Texas v. Camenisch, 451 U.S. 390, 395 (1981) (explaining that "it is generally inappropriate for a federal court at the preliminary-injunction stage to give a final judgment on the merits"). Id. 21, 2020) (collecting cases). On March 1, 2021, a Clermont County judge denied TQL's request for a temporary restraining order. These trainees are expected to spend at least six months conducting sales calls for freight brokers, earning between $36,000 to $38,000, before they are even considered to make the move from salary to a commission-based pay system. Evidence suggests that, on August 20, 2020, Daniels organized EDA Logistics, a limited liability company designed to conduct "freight arrangement services." (citing Twombly, 550 U.S. at 556). Aaron Aanderud Commercial HVAC Technician. to Prelim. However, employment talks with Patterson ended two weeks later after Austin spoke with Chris Brown, TQLs general counsel. (Doc. That said, a plaintiff need not provide "detailed" factual allegations. Res. googletag.enableServices(); }); 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. googletag.cmd.push(function() { Total Quality Logistics, LLC v. EDA Logistics googletag.cmd.push(function() { He even accepted a lower-earning position to reduce his workload, becoming a senior enterprise account manager to continue to work at the freight brokerage giant, second in size only to C.H. This is not enough to state a claim, Defendants contend, because, TQL "failed to allege that EDA actually engages in freight brokerage." First, TQL submits that Daniels founded EDA Logistics, an LLC organized for conducting freight arrangement services. Org. In the meantime, Defendants filed a 12(b)(6) motion to dismiss. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[468, 60], [728, 90], [300, 100], [320, 50]], 'div-gpt-ad-1665767472470-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); 8) and DISMISSES TQL's tortious interference with a business relationship claim WITHOUT PREJUDICE. (TQL's Exs. To be sure, it is also possible, as Defendants seem to suggest, that Daniels is just preparing to compete, and has yet to actually engage in any competitive activity. Inj. Products & Services Logistics Services, Full Truckload, Intermodal, Less Than Truckload. TQL recommended carriers take extra security measures and contact their bank or financial institution and notify them that their information specifically bank account, routing and tax ID numbers may have been compromised, and suggested carriers place a fraud alert on their credit files. 2:20-cv-1952, 2020 WL 1932896, at *4 (S.D. 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. 3). But, because TQL presented evidence at the preliminary injunction hearing suggesting that it may be able to supplement this claim, that dismissal is WITHOUT PREJUDICE. }); Some attorneys who have represented former TQL employees in similar noncompete actions refer to the freight brokerage as the bully on the block. They say the company uses the legal system to keep employees from leaving for fear of being hit with a lawsuit and discourages other companies in the transportation industry from hiring its former employees for fear of being sued as well. 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. 1977)). Given the nature of the hearing, the Court considers both the information from the Complaint and the evidence from that hearing to be preliminary in nature. Ohio May. googletag.pubads().collapseEmptyDivs(); (Bostwick Test., Hr'g on Prelim. googletag.pubads().enableSingleRequest(); On the other hand, the public has an interest in free and fair competition. TQL provides freight brokerage and third-party logistics services to customers across the continental United States. RTS Financial. Click for more articles by Clarissa Hawes. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. RIFFE, et al, Defendants. (Id. Robinson, headquartered in Eden Prairie, Minnesota. Inj. Bricker & Eckler is a leading law firm in and beyond Ohio. Of course, the plausibility of any inference will depend on the Court's "common sense and the strength of competing explanations" for why Daniels apparently started EDA. (Doc. 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.") googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); The Judges overseeing this case are Schneider, Wilfred J, Jr. and Wilfred J Schneider, Jr.. No one factor is determinative, rather, the Court should "balance[] [the factors] against each other." Total Quality Logistics, LLC v. Riffe - Casetext He submitted his resignation two weeks ago after discovering that his former employer, Cincinnati-based Total Quality Logistics, intended to file a motion seeking to add PBJ as a defendant in an ongoing lawsuit against him over allegations he violated the terms of his noncompete agreement after leaving the United States' second-largest freight 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()); In late 2015, Ryan Daniels, "a seasoned sales professional," was on the job hunt. In an attempt to fill this analytical gap, TQL also offers evidence that, it says, not only shows that is Daniels is actually competing, but that he is specifically soliciting one of TQL's current customers. The Court finds that TQL has met this burden here. Hr'g, Exs. (NCA at 10). Life Ins. See id. A massive data breach at a Cincinnati-area freight brokerage firm that does business across the U.S. and Canada has harmed tens of thousands of people, a lawsuit says. 2, 49, #52). Mot., Apr. googletag.enableServices(); Your name will not be used without your permission in a follow-up article. We always thought people should be able to practice their trade; all we ask is that they dont call on our customers for a year, Bob Klare, president of MegaCorp, told FreightWaves in a previous article. Therefore, Defendants continue, TQL's Complaint "does not sufficiently allege that Daniels's employment violates the NCA." For now, though, it is enough to note that the facts alleged in the Complaint comport with Rule 8's pleading standards on the breach-of-contract allegations. Most of the reps I dealt with were quite arrogant. 5,500 employees. But the Court is in no position to resolve that issue today. Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. googletag.cmd.push(function() { The Complaint Plausibly Alleges That EDA Logistics Tortiously Interfered With TQL's Contracts. 3d 892, 901 (S.D. 2. (Mot. }); President Joe Biden signed an executive order in July 2021 encouraging the Federal Trade Commission (FTC) to ban or limit noncompete agreements. They were out for blood! However, former TQL employees told FreightWaves they estimate that only around 5% actually make it once they transition to a commission-only pay system. On 05/14/2021 Total Quality Logistics, LLC filed an Other - Sister State Judgment lawsuit against YB Global, Inc.This case was filed in San Bernardino County Superior Courts, Not Classified By Court located in San Bernardino, California. (citing Twombly, 550 U.S. at 555). TQL undoubtedly intended to ask him, under oath, about his past and current business activities. Send your complaint to this team now, you can find them on google. The suit is filed on behalf of two trucking companies, one in Indiana and the other in Georgia, but it is seeking class-action status on behalf of other motor carriers who contract with TQL to deliver freight. As the Court mentioned at the hearing, TQL's decision to enforce lawful non-compete agreements is appropriate, at least so long as TQL is not hiring and then terminating employees with the goal of reducing the work force available to competitors. googletag.pubads().collapseEmptyDivs(); at 26, #49). Bostwick testified that Daniels' primary responsibility in those various roles was to manage customer accounts. Clarissa has covered all aspects of the trucking industry for 14 years. Total Quality Logistics (TQL) is the nation's 2nd largest freight brokerage firm. Read Total Quality Logistics, LLC v. DeSantis, Case No. (Id. Because Daniels founded EDA, TQL reasons, he "inevitably will use [trade secret] information for his and EDA's benefit." McNeilly v. Land, 684 F.3d 611, 615 (6th Cir. Moreover, neither of the two emails 721 Logistics sent Daniels and Sunland concerning one of Sunland's potato starch shipments provide much additional insight. Similarly, plaintiff's conclusory claims that Carpenter and Boom Trendz began soliciting Plaintiff's, Full title:TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. EDA LOGISTICS, et al., Court:UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION. The Complaint Plausibly Alleges That Daniels Breached His Non-Compete. See Fred Siegel Co. v. Arter & Hadden, 707 N.E.2d 853, 858 (Ohio 1999) (listing the elements of tortious interference with a contract). Rather, the Court treats them more in the nature of allegations. The suit, filed by Dinsmore & Shohl on behalf of Total Quality Logistics, accuses Dugger of misappropriating confidential information and violating his non-competition and non-solicitation agreements. When Daniels left TQL, it triggered his one-year obligation under the non-compete and non-solicitation agreements. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. TQL simply has not made a "clear" showing that Daniels is actually competing against TQL. Rule 30 (b) (6) Deposition. According to the noncompete Jacob Patterson signed, it prohibits him from working for a competing business defined as any person, firm, corporation, or entity that is engaged in shipping, third-party logistics, freight brokerage, truck brokerage or supply chain management services in the Continental United States for one year after leaving TQL. googletag.pubads().enableSingleRequest(); As part of the plaintiff's obligation to provide notice of the "grounds" for relief, the complaint must include "[f]actual allegations" that are "enough to raise a right to relief above the speculative level." The lawsuit, filed Monday in federal court in Cincinnati, seeks to hold Total Quality Logistics responsible for the theft last month of financial information, including bank account and Social. Legg later formed MegaCorp Logistics, which has a nonsolicitation agreement. 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. googletag.pubads().enableSingleRequest(); I had a stressful situations going on and they were so patient with me and did help me through this. 1992). The Complaint provides sufficient facts to plausibly allege that Daniels breached the non-compete agreement. to Prelim. TQL provides a "short and plain" statement of each element of a breach of contracts claim, and then "directly alleges damages as a result of [Daniels'] breach." googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767737710-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); 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. Hr'g, Ex. Total Quality Logistics v. Logistic Dynamics, Inc. - Casetext TQL's noncompete hurts ex-employee's job prospects, lawsuit claims No one seems to agree. I highly recommend this fair service. In fact, the Supreme Court expressly rejected the "possibility" standard as "too lenient," and instead required a higher showing on the grounds that a preliminary injunction is an "extraordinary remedy" with the dangerous potential to unjustly restrain the subject's liberty. at 556. (Compl., Doc. 13, 2018). Speaks volumes about the revolving door there.
