Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. Contact Information. Total Quality Logistics, LLC v. EDA Logistics, Case No. Gonzales v. Nat'l Bd. Moreover, substantial time may pass between now and final resolution in this case, especially since discovery has yet to even begin. As the plaintiff, TQL bears the burden of establishing that it is entitled to such relief. I highly recommend this fair service. (Id.). One source claims that leadership requested the companys Sales Quality Assurance department monitor employees Skype messages. 8). ). Its fast-paced, energetic s TQL Total Quality Logistics Bostwick testified that Daniels' primary responsibility in those various roles was to manage customer accounts. Med. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); 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.. The Complaint Plausibly Alleges That Daniels Breached His Non-Compete. googletag.cmd.push(function() { Hr'g, Ex. (Id.). 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. Inj. The freight brokerages overbroad language in the noncompete is so expansive that it would prohibit him from even driving for DoorDash, the lawsuit states. That is a heavy burden to bear. Sources familiar with the matter allege the mass firings were related to issues with setting up remote access using Citrix, the companys virtual network, and were not the result of employee underperformance issues, as Oaks and Tom Millikin, corporate communications manager of TQL, told FreightWaves at the time. For the reasons discussed above, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss TQL's Complaint (Doc. 1-1). googletag.pubads().collapseEmptyDivs(); (TQL's Exs. 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. 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. TQL, of course, contends that this interest is irrelevant here because Daniels' competition is unlawful and in violation of his non-compete. 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: []}; Jobseeker Tools. All that is there is the subject-line header, which indicates that the emails concerned a potato starch shipment. My first morning in the new job my employer gets a fax from my former employer attorney. Wizard James Recovery Service did a fantastic job at recovering my life savings which got stolen. 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. Therefore, on balance, the Court concludes that TQL is not entitled to a preliminary injunction at this time. Computer systems at Total Quality Logistics ( TQL) were compromised in a cyber-attack that took place on February 23. 9, "Sunland Revenue Chart"). However, employment talks with Patterson ended two weeks later after Austin spoke with Chris Brown, TQLs general counsel. Several trucking companies have joined a class-action complaint against TQL for failure to implement and maintain security measures after the freight brokerage notified carriers that it had a data breach in late February, several days after the initial security breach had been discovered. In fact, allegations in the complaint need not even be particularly convincing. The two emails show that 721 Logistics copied Daniels on an early correspondence concerning this shipment from Sunland. Capital Corp., 258 F. App'x. Id. Moreover, neither of the two emails 721 Logistics sent Daniels and Sunland concerning one of Sunland's potato starch shipments provide much additional insight. (Id.). The Court's principal understanding of those various roles comes from Marc Bostwick, a TQL employee who held these same positions during part of his 18-year tenure with TQL, and the only witness who either side called at the recent hearing on TQL's motion for a preliminary injunction. Have something to share about Total Quality Logistics? 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. Aaron Grant Plaintiff has alleged [that it] was damaged as a result [of the breach] and has suffered 'actual and consequential damages as may be proven at trial.' Such allegations are sufficient to state a claim for damages. 29, 2021). Total Quality Logistics (TQL) Phoenix, AZ. TQL Has Not Provided Enough Evidence At This Stage For The Court To Conclude That It Has A Strong Likelihood Of Success On The Merits. 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. Your name will not be used without your permission in a follow-up article. In fact, the records that TQL provided at the evidentiary hearing showed that TQL's logistics accounts executives began calling on Sunland as early as 2016. 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. 2, "Daniels Hiring Email"). 8). This trend continued into the third quarter, which is the quarter right after Daniels left TQL. 8, #99). However, after five months in the new role, his work-life balance was substantially worse, according to court documents. Need some recourse against brokers. googletag.cmd.push(function() { 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. Customer and carrier information was exposed after threat actors breached the company's online web portal. 2000). TQL, which is the second-largest company of its kind in North America, says it has a network of more than 85,000 carriers. Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. 1:2021cv00467 - Document 11 (S.D. Inside Sales - Base Salary + Commission Job in Phoenix, AZ at Total Total Quality Logistics Reviews, Complaints, Customer Service 5,500 employees. The next day, March 9, 2021, TQL re-filed its motion for a preliminary injunction in this Court. The same month he accepted the vice president of operations role at PBJ Express, Jacob Patterson was hit with a lawsuit from TQL. If so, damages would naturally arise. googletag.pubads().collapseEmptyDivs(); Both arguments assume that Daniels is, in fact, violating his non-compete and that the preliminary injunction will prevent him from doing so. Winter v. Nat. Many rival logistics firms now use nonsolicitation agreements in lieu of noncompetes. 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.. googletag.cmd.push(function() { Speaks volumes about the revolving door there. 1:17-CV-150, 2018 WL 1891354, at *7 (S.D. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. The existence, and extent, of TQL's injury, however, again depends on whether TQL can demonstrate that Daniels is currently violating his non-compete. Federal Rule of Civil Procedure 8(a)(2) requires TQL to make a "short and plain statement of the claim showing that [it] is entitled to relief." Id. 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. Detail"). (Id. This "short and plain statement" requirement, in part, serves a notice function, alerting the defendant not only to the nature of the claim against it, but also to the "grounds upon which [the claim] rests." The Complaint Plausibly Alleges That Daniels And EDA Logistics Misappropriated Trade Secrets. 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()); googletag.enableServices(); The contract at issue here is Daniels' non-compete agreement. Hr'g, Exs. 7, "TQL Separation Email"). Id. 204 talking about this. Schs., 160 F. Supp. }); Some told FreightWaves that workers were fired because the company simply didnt have the technological bandwidth to support all of its employees working remotely. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. 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. "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.'" googletag.enableServices(); googletag.enableServices(); 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. Tenn. 2016). (Doc. McNeilly v. Land, 684 F.3d 611, 615 (6th Cir. 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. Get the latest business insights from Dun & Bradstreet. Gov't, 305 F.3d 566, 573 (6th Cir. window.googletag = window.googletag || {cmd: []}; 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. The staff members seemed legit, not just classifying the problem and charging not without good response. 1:2019cv01052 - Document 15 (S.D. Co., 823 F.2d 984, 988 n. 2 (6th Cir.1987)). TQL requested damages and injunctive relief on all counts. Aaron Aanderud Commercial HVAC Technician. 12, "W. Va. Sec'y of State Bus. to Prelim. Id. }); 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. Inj. gptAdSlots.push(gptSlot); 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. 2017) (citing Heartland Home Fin., Inc. v. Allied Home Mortg. Because Daniels founded EDA, TQL reasons, he "inevitably will use [trade secret] information for his and EDA's benefit." TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. EDA LOGISTICS, et al., Defendants. Org. }); Wednesday is Jacob Pattersons last day at PBJ Express, a small trucking firm in Joplin, Missouri, where he has worked for the past 15 months. }); googletag.cmd.push(function() { googletag.cmd.push(function() { This cause is before the Court on two pending motions: (1) Total Quality Logistics' ("TQL") Motion for a Preliminary Injunction (Doc. Mot., Apr. But it is at least as likely that Daniels has already conducted fright brokering services under the authority granted to his newly formed LLC. Rule 30 (b) (6) Deposition. Desperate for work during the pandemic, some terminated TQL employees asked the freight brokerage to release them from its restrictive noncompete, but it refused. 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. I refuse to do any business with this company. (Id. In order to do business with TQL, trucking companies are required to provide certain financial information, the lawsuit says. 29, 2021). 2, 25-26, #49). Evidence suggests that, on August 20, 2020, Daniels organized EDA Logistics, a limited liability company designed to conduct "freight arrangement services." 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()); Meizlish said he expects the Illinois class-action case over former TQL employees overtime complaint to go to trial before his. Id. This means you're the single point of contact to get the job done right the first time, every time. 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. Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. The regulating bodies in charge of controlling these establishments really need to do better! 1-1 at PageID 6). Resume Builder; Salary Estimator; Judge delays trial date in TQL overtime class-action lawsuit Happened to me in 2012!!!!! This statement is purely conclusory. The complaint, filed in September 2010 in U.S. District Court for the Southern District of Ohio, claims that more than 4,500 employees working at TQLs headquarters in Cincinnati from September of 2008 to mid-April of 2016 were cheated out of millions of dollars in overtime pay while working at the second-largest freight brokerage in the U.S. Also named in the complaint is Ken Oaks, chief executive and co-founder of Cincinnati-based TQL. (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). googletag.pubads().enableSingleRequest(); to Prelim. The Court finds that TQL has met this burden here. 8, #96). 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()); Total Quality Logistics. They hold payment and try to use a small claim to hold dozens of loads over the carriers head. googletag.pubads().collapseEmptyDivs(); In late 2015, Ryan Daniels, "a seasoned sales professional," was on the job hunt. TQL are extortionists. Your California Privacy Rights / Privacy Policy. window.googletag = window.googletag || {cmd: []}; 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." Follow Total Quality Logistics on social media. googletag.pubads().enableSingleRequest(); 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. 2d 431, 433 (N.D. Ohio 1998) (citing Garlock, Inc. v. United Seal, Inc., 404 F.2d 256, 257 (6th Cir. In the meantime, Defendants filed a 12(b)(6) motion to dismiss. Call Us 24/7/365 800.580.3101. burger menu open. But, as "[p]reparing to compete is not equivalent to competing," this evidence alone is insufficient to support a preliminary injunction. Martin v. Jones, 41 N.E.3d 123, 141 (Ohio Ct. App. Inj. to Prelim. 8). No one seems to agree. The Court next examines whether a preliminary injunction (or lack thereof) would create a risk of substantial harm to others. googletag.cmd.push(function() { 21, 2020) (collecting cases). Products & Services Logistics Services, Full Truckload, Intermodal, Less Than Truckload. Total Quality Logistics, LLC -v- YB Global, Inc - UniCourt 1:18-cv-00796, see flags on bad law, and search Casetext's comprehensive legal database . 2. The "facts" in this section are taken from the Complaint and certain evidence introduced at the preliminary injunction hearing. }); According to court filings, [Jacob] Patterson brings this action to stop TQLs economic bullying so that he can move on with his life and career.. Accordingly, the Court will exclude $2,112.64 in billings that the Court deems useable in related litigation. 2, 28, #49). Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. 1
