total quality logistics lawsuit

To demonstrate "irreparable harm," TQL would need to show that there is an "imminent" risk of a "certain, great, and actual" harm that creates a "clear and present' need for equitable relief." googletag.pubads().collapseEmptyDivs(); googletag.pubads().collapseEmptyDivs(); (TQL's Exs. We help you find the right solution for your local, national and North American truckload freight and shipping needs. In short, the reason behind the drop off in Sunland's business is unclear. 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()); Inj. 6, "Sunland Customer Timeline"). Carriers and Trucks are the backbone of this industry. Request A Quote WORK WITH US LOGISTICS SERVICES 2000). 2, 16, #47; TQL's Exs. at 26, #49). But the agreement further provides that the one-year period would be tolled for any period of time during which Daniels was in violation of his obligations under those terms. 462 S 4th St. . 2012). 2, 49, #52). 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). 2, "Daniels Hiring Email"). While Oaks declined multiple interview requests from FreightWaves to address some of the issues raised by sources, Millikin provided limited responses on some of those issues, including denying the suggestion that employee safety during the pandemic took a back seat to other priorities. 8). 2, 28, #49). The Court considers four factors in deciding whether to issue a preliminary injunction: (1) whether the movant has a strong likelihood of success on the merits; (2) whether the movant would suffer irreparable injury without the injunction; (3) whether issuance of the injunction would cause substantial harm to others; and (4) whether the public interest would be served by the issuance of the injunction. I had a stressful situations going on and they were so patient with me and did help me through this. 3, #80-81). googletag.pubads().enableSingleRequest(); Shortly thereafter, on March 8, 2021, EDA and Daniels removed the case to this Court on diversity grounds. TQL and their kind are the herniated disc in the industry. 1:2021cv00467 - Document 11 (S.D. Follow Total Quality Logistics on social media. 2000) (quoting Direx Israel, Ltd. v. Breakthrough Med. Without any factual content, the Court cannot "draw the reasonable inference that the defendant is liable for the misconduct alleged." (Compl., Doc. What is the vacation policy like at Total Quality Logistics (TQL)? See Hartman v. Acton, No. Exam'rs, 225 F.3d 620, 625 (6th Cir. }); googletag.cmd.push(function() { 1995)). (Id.). This is not enough to state a claim, Defendants contend, because, TQL "failed to allege that EDA actually engages in freight brokerage." TQL argues that a preliminary injunction would serve the public interest for two reasons. 3:09-cv-283, 2010 WL 908740, at *9 (E.D. Mot., Apr. Total Quality Logistics 462 S 4th St, Louisville, Kentucky, United States, 40202-3466 Sharing is caring! 3). }); The new salespeople TQL hires are on a very short leash and they are expected to make hundreds of cold calls all of the time and its very hard to find new customers, Meizlish said. 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.. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. (quoting Scheuer v. Rhodes, 416 U.S. 232, 236 (1974), overruled on other grounds by Davis v. Scherer, 468 U.S. 183, 191 (1984)). Inj. Capital Corp., 258 F. App'x. A lawsuit charges that Total Quality Logistics, LLC BB #:203922 Cincinnati, had a massive data breach that has allegedly harmed thousands of people. And TQL had not subpoenaed him. Athletic Ass'n, 119 F.3d 453, 459 (6th Cir. That same day, TQL also filed a motion for a preliminary injunction and temporary restraining order. A TQL spokesman said the company doesn't comment on pending litigation. to Prelim. 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. However, former TQL employees told FreightWaves they estimate that only around 5% actually make it once they transition to a commission-only pay system. Mich. 2001). But what is a lonely small trucking company to do but to sacrifice >$1000 claim to receive $25-32k worth of freight pulled months ago. Then, when Michael Henshall left TQL in June 2018, he passed the Sunland account over to Daniels. 4. 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." Desperate for work during the pandemic, some terminated TQL employees asked the freight brokerage to release them from its restrictive noncompete, but it refused. Aaron Aanderud Commercial HVAC Technician. Total Quality Logistics' Competitors. 12, "W. Va. Sec'y of State Bus. Defendants move to dismiss both counts on the ground that TQL's Complaint fails to plausibly allege that Daniels "failed to perform"i.e., that Daniels breached his non-compete agreement. The Court first addresses Defendants' Motion to Dismiss, and then turns to TQL's Motion for a Preliminary Injunction. 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. googletag.pubads().enableSingleRequest(); This "plausible inference" satisfies post-Twombly and Iqbal pleading standards and is thus sufficient to carry TQL's tortious interference with a contract claim over the line. It does not provide the name of the customer at issue or any other factual context for TQL's claim. That is a heavy burden to bear. 2017) (citing Heartland Home Fin., Inc. v. Allied Home Mortg. googletag.pubads().enableSingleRequest(); Skip to Content. to Prelim. Total Quality Logistics (TQL) Phoenix, AZ. That motion argues that the Court should dismiss TQL's Complaint because it consists of "conclusory allegations and rote recitations of elements of [each] claim[]," and, as such, fails to satisfy Iqbal and Twombly pleading standards. U.S. District Judge Michael Barrett in Cincinnati on Tuesday let several, but not all, claims proceed in the case against Total Quality Logistics LLC, in one of at least two lawsuits against the . On March 1, 2021, a Clermont County judge denied TQL's request for a temporary restraining order. (Doc. Daniels' resume from that period highlighted his ten years of "sales and management experience," which included time working as an Assistant Manager at Footlocker, a seven-year stint as a Universal Sales Consultant with Verizon Telecom, and his rather recent tenure as a Financial Representative with Northwestern Mutual. 204 talking about this. Robinson, headquartered in Eden Prairie, Minnesota. at 555-56 ("[A] well-pleaded complaint may proceed even if it strikes a savvy judge that actual proof of those facts is improbable, and 'that a recovery is very remote and unlikely.'") On January 4, 2016, Daniels landed a job as a Logistics Account Executive Trainee with TQL, a company that provides freight transportation and logistics services. See id. Finally, the Court considers the effect of a preliminary injunction on the public interest. Total Quality Logistics, LLC v. Cornelius Leasing Sys ., Inc ., No. 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. window.googletag = window.googletag || {cmd: []}; TQL, however, has not made such a showing here. 2, Ex. TQL has also come under fire for as many as 700 employees that were let go over a three-day period in mid-March amid the coronavirus pandemic. TQL requested damages and injunctive relief on all counts. 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. Aaron Grant to Prelim. (Mot. Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. The "facts" in this section are taken from the Complaint and certain evidence introduced at the preliminary injunction hearing. googletag.pubads().collapseEmptyDivs(); He is married with five preteen children and struggled with work-life balance at TQL. The amount in damages exceeds $5 million, according to the lawsuit. Get the latest business insights from Dun & Bradstreet. 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. 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." 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. 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. Plaintiff Total Quality Logistics, LLC ("TQL") is an Ohio limited liability company with its principal place of business in Clermont County, Ohio. While we were really focused on the Ohio employees in our case because its an Ohio-based company, TQL has expanded outside of Ohio and has set up offices in 50+ other cities around the country in recent years, so the Illinois case, which focuses on employees outside of Ohio, really has a chance to be rescheduled and likely go before ours, he said. USI, headquartered in Valhalla, New York, is one of the largest insurance brokerage and consulting firms in the world, according to its website. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. The bench trial was scheduled to start on July 13. This means you're the single point of contact to get the job done right the first time, every time. 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()); 2d 431, 433 (N.D. Ohio 1998) (citing Garlock, Inc. v. United Seal, Inc., 404 F.2d 256, 257 (6th Cir. And courts have held that it is overbroad and cant be enforced as written. Bridgestone Am. PNC. Mach. (Doc. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. 11K Followers, 189 Following, 1,740 Posts - See Instagram photos and videos from Total Quality Logistics (TQL) (@lifeattql) Inj. At-a-glance. On February 22, 2021, TQL filed a complaint in the Clermont County Court of Common Pleas, alleging (1) a breach of contract claim against Daniels; (2) a misappropriation of trade secrets claim against EDA Logistics and Daniels; (3) a tortious interference with a contract claim against EDA Logistics; and (4) a tortious interference with a business relationship against EDA Logistics. Inj. Id. 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. 2, 25, #49). The Court finds that TQL has met this burden here. Moreover, neither of the two emails 721 Logistics sent Daniels and Sunland concerning one of Sunland's potato starch shipments provide much additional insight. From that point forward, Daniels handled Sunland's business until he left TQL, in June 2020. Timothy Denton, vice president of corporate communications and media relations at USI, and TQLs Brown did not respond to FreightWaves requests for comment. 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. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. Total Quality Logistics (TQL) is the nation's 2nd largest freight brokerage firm. Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. Need some recourse against brokers. (Id. 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. 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. Detail"). 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. Mot., Apr. 1998)). to Prelim. But that misunderstands a plaintiff's obligation at the pleadings stage. (Id. googletag.enableServices(); 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. A tortious interference with a business relationship claim requires the plaintiff to show: (1) a business relationship; (2) that the defendant knew of that business relationship; (3) that the defendant intentionally obstructed that relationship; and (4) that the plaintiff sustained damages as a result. (Id. (Doc. 2d 767, 801 (E.D. Our IT security teams identified the issue quickly and countered immediately to secure all online information.. 80589, 2002 WL 31667316, at *6 (Ohio Ct. App. (TQL's Exs. On 03/22/2019 Total Quality Logistics, LLC filed a Contract - Other Contract lawsuit against PBD, Inc.This case was filed in U.S. District Courts, Ohio Southern District Court. However, this isnt the only class-action lawsuit TQLs legal team is fighting regarding the overtime issue and claims by former employees that the brokerage violated the FLSA. His company has filed litigation related to a nonsolicitation agreement only once in its 13-year-history. 2. 2019). (Compl., Doc. 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. Not only is this allegation vague and underdeveloped, but it is also unpersuasive. 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()); The motion to dismiss, like the motion for a preliminary injunction, is fully briefed and ripe for review. to Prelim. Therefore, the Court DENIES Defendants' motion to dismiss TQL's misappropriation of trade secrets claim. googletag.enableServices(); 1:18-cv-00796, see flags on bad law, and search Casetext's comprehensive legal database . Use RevDex to write a review Reviews Trucking Transportation Brokers, Motor Freight Trucking, Logistics, Freight Forwarding Total Quality Logistics Total Quality Logistics Reviews ( 17) I refuse to do any business with this company. at 557; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 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." A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. But, here, the facts in the Complaint, and particularly the allegation that EDA sought and received exactly the same kind of freight-brokering licensure that TQL uses to offer its services, give rise to the common sense, reasonable inference that Daniels is conducting freight-brokering services through EDA. Inj. More specifically, Bostwick explained that Daniels would have cold-called potential customers, as well as coordinated services and provided pricing estimates for existing customers. 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. Read Total Quality Logistics LLC v. Logistic Dynamics, LLC, 1:20-cv-00669, see flags on bad law, and search Casetext's comprehensive legal database . The Judges overseeing this case are Schneider, Wilfred J, Jr. and Wilfred J Schneider, Jr.. Six Clinics Holding Corp., 119 F.3d at 400 (quoting Gaston Drugs, Inc. v. Metro. Total Quality Logistics faces a class-action lawsuit in federal . This trend continued into the third quarter, which is the quarter right after Daniels left TQL. If you have a news tip or story idea, send her an email to, Copyright 2023, All Rights Reserved, FreightWaves, Inc, TQLs noncompete hurts ex-employees job prospects, lawsuit claims, Loaded & Rolling (Enterprise Fleet News/Analysis), freight brokerage as the bully on the block, Truckload carrier U.S. Xpress announces 2nd round of corporate layoffs, Apex Capital blames malware attack for unplanned system outage, Slync.io fires CEO Chris Kirchner, strips board chairmanship. One source claims that leadership requested the companys Sales Quality Assurance department monitor employees Skype messages. (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). Rather, the Court must rely on the evidence that TQL did present. Org. Austin also worked at TQL for seven years, according to his bio on LinkedIn. Consistent with that understanding, the Court can issue a preliminary injunction only "upon a clear showing that the plaintiff is entitled to such relief." googletag.pubads().collapseEmptyDivs(); Nowhere in the email chain does 721 Logistics (or Sunland) explain why it reached out to Daniels. The parties in this case conducted two corporate representative depositions on the same day at the same placeone for this case and one for TQL v. (Id. Total Quality Logistics, LLC, located in Cincinnati, Ohio, offers truckload freight brokerage services. As for the first piece of evidence, there are myriad reasons why Sunland might have decreased its book of business with TQL. All said, TQL's evidence certainly shows that it is possible that Daniels is soliciting Sunland's business and that he is operating EDA Logistics as a direct competitor to TQL. 1). My brother left TQL and did not want to do anything improper, so he didnt go to work for a broker. Read Total Quality Logistics, LLC v. DeSantis, Case No. Defendants argue that TQL's Complaint fails to plausibly allege the third element: that EDA/Daniels used TQL's trade secrets. TQL Total Quality Logistics #1 most crooked Brokers in the nation. Without any additional context, the Court is hesitant to read these emails as evidence that Daniels is competing with TQL. (TQL's Exs. These facts, then, raise a plausible inference that EDA is interfering with the NCA between Daniels and TQL. window.googletag = window.googletag || {cmd: []}; Inj. Hr'g, Exs. We have blocked their phone numbers from ringing in our phone system. 1997) (citing Mason Cnty. Its fast-paced, energetic s TQL Total Quality Logistics 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()); (Compl., Doc. (Id. On the first day of his new job, Daniels signed a non-compete and non-solicitation agreement. 3. (Doc. 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. This is the same type of authority that TQL uses to conduct its transportation-brokering services. googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); Detail"). And, although it is certainly possible that Sunland transferred its business to EDA Logistics, the Court has yet to see evidence suggesting a "strong likelihood" that is the case. Lucero v. Detroit Pub. Ohio 2017) (citing Garofalo v. Chicago Title Ins. Council, Inc., 555 U.S. 7, 22 (2008). But the "mere possibility of success" is not enough to justify a preliminary injunction. 13, 14, "FMCSA Licensing History"). 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. window.googletag = window.googletag || {cmd: []}; OPINION AND ORDER MATTHEW W. MCFARLAND, JUDGE. TQL's website notes that on Feb. 23 the company confirmed a data breach of its IT systems. Managers also reminded them of the noncompete agreements they signed on their first day of employment with the logistics firm and that it would be enforced if they sought work with another brokerage firm within one year of leaving TQL. $4B not paying on the agreement (ratecon) rate. googletag.cmd.push(function() { For the reasons discussed above, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss TQL's Complaint (Doc. 8, #99). Total Quality Logistics (TQL) insights Based on 1,294 survey responses What people like Feeling of personal appreciation Supportive environment Ability to learn new things Areas for improvement Overall satisfaction Fair pay for job Time and location flexibility Lots of "fun" things for the company events but lacks good managers and directions. Speaks volumes about the revolving door there. The first factor is whether TQL has demonstrated "a strong likelihood of success on the merits." In order for these counts to move forward, then, TQL must plausibly allege the four traditional elements of a breach of contract claim: (1) the existence of a valid agreement; (2) that the plaintiff (TQL) performed; (3) that the defendant (Daniels) failed to perform; and (4) that TQL sustained injury. 8, #96). The company refers to the new trainees as Logistics Account Executive Trainees (LAET). Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch. window.googletag = window.googletag || {cmd: []}; Wizard James Recovery Service did a fantastic job at recovering my life savings which got stolen. Rather, the facts in the complaint need only "raise a reasonable expectation that discovery will reveal evidence" that supports the plaintiff's claims. (Mot. TQL is a shady and unfair company to do business with how do you think they have had expedential growth. Gov't, 305 F.3d 566, 573 (6th Cir. Hr'g, Ex. In fact, allegations in the complaint need not even be particularly convincing. (TQL's Exs. 5,500 employees. If you are ever in need of such service, you can contact them via: [emailprotected], [emailprotected] or WhatsApp: +1 (863) 254-2842. (Id. Both arguments assume that Daniels is, in fact, violating his non-compete and that the preliminary injunction will prevent him from doing so. (Bostwick Test., Hr'g on Prelim. Read related stories by FreightWaves Clarissa Hawes: TQL delays start date of nearly 200 near hires because of COVID-19. Your California Privacy Rights / Privacy Policy. 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()); 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. The big problem with TQLs noncompete is that its drafted so broadly, everyone knows its overbroad and wont be enforced as written, said Pete Patterson. 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. googletag.cmd.push(function() { googletag.enableServices(); Org. Co., 823 F.2d 984, 988 n. 2 (6th Cir.1987)). Ohio 2020) case opinion from the Southern District of Ohio US Federal District Court Jobseeker Tools. googletag.pubads().collapseEmptyDivs(); Both in their briefs and at the preliminary injunction hearing, Defendants argued that a preliminary injunction would harm all current and former TQL employees. googletag.cmd.push(function() { Rule 30 (b) (6) Deposition. Certainly, there is no requirement under federal law to plead any particular or specific amount of damages. Any such search, review, and production performed at the direction of this Court in connection with the above-captioned lawsuit shall not be a violation of the Stored Communications Act, 18 U . Rather, both parties focus their arguments on the harm that might occur if the Court were to grant the requested preliminary injunction. They threaten with a Carrier411 write up that could bankrupt a company. Tomaydo-Tomahhdo, LLC v. Vozary, 82 N.E.3d 1180, 1184 (Ohio Ct. App. The same month he accepted the vice president of operations role at PBJ Express, Jacob Patterson was hit with a lawsuit from TQL. 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). Click for more articles by Clarissa Hawes. But it is at least as likely that Daniels has already conducted fright brokering services under the authority granted to his newly formed LLC. ). Univ. TQL claims that EDA "intentionally interfered with [that contract] by entering into an employment relationship with Daniels prior to the expiration of his restrictive covenants in the NCA." 3). TQL provides freight brokerage and third-party logistics services to customers across the continental United States. 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. 16630 Southfield Ltd. P'ship v. Flagstar Bank F.S.B., 727 F.3d 502, 504 (6th Cir. IMO, their reps are not properly trained and harassing and DO NOT listen when you politely ask them NOT to call again.

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