total quality logistics lawsuit

To survive a motion to dismiss, TQL need not show that, in fact, EDA Logistics is actually brokering freight. His company has filed litigation related to a nonsolicitation agreement only once in its 13-year-history. }); googletag.cmd.push(function() { 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 . Of course, the nature of the requisite "injury" varies somewhat for the two forms of relief TQL seeks. A Cincinnati freight brokerage company is facing a $5m lawsuit over a data breach that occurred last month. 1:17-CV-150, 2018 WL 1891354, at *7 (S.D. A month after leaving TQL in December 2020, Austin started working at USI as vice president of transportation and logistics in its property and casualty division. The email chains revealed that on October 28, 2020, and then again on January 18, 2021, Daniels received an email from 721 Logistics about a potato starch shipment from Sunland. P. 8. Hr'g, Ex. The full scope of the harm has yet to be realized, the lawsuit says. There is no clearly defined line. 6, "Sunland Customer Timeline"). (Mot. Some say they expressed interest to their managers in working remotely amid the coronavirus outbreak which would soon become a pandemic via Skype, which the company uses for instant messaging. 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. to Prelim. 9, "Sunland Revenue Chart"). When combined, these two pieces of evidence demonstrate that EDA exists and that it is authorized to compete with TQL. Total Quality Logistics, LLC v. OTC Logistics LLC - casetext.com BBB asks third parties who publish complaints, reviews . Mgmt., LLC v. Cutter, 257 F. Supp. We looked at the docket of Clermont County Court of Common Pleas for the last five years and there are between 400 and 500 cases with TQL as the plaintiff, Pete Patterson told FreightWaves. The bench trial was scheduled to start on July 13. Start with TQL's claim that Daniels breached his non-compete. Mot., Apr. Call Us 24/7/365 800.580.3101 Logistics Services Carriers Jobs Moves That Matter About Us Contact Us Get a Quote Track Shipment Request a Login LOGIN WORK WITH THE BEST Our mission is to be the leading service provider in the transportation industry and continue to build a company to be proud of. 2, 28, #49). No one factor is determinative, rather, the Court should "balance[] [the factors] against each other." Importantly, all of TQL's claims require proof that Daniels is (or, at least, has been) actually competing against TQL. }); While hes been an attorney for more than 43 years, Meizlish said hes ready to retire soon, but that he must see the TQL case, which he filed 10 years ago, through. Total Quality Logistics, LLC v. Johnson et al, No. 1:2021cv00467 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. Total Quality Logistics, LLC v. DeSantis - Casetext Total Quality Logistics, LLC v. EDA Logistics, Case No. Ass'n v. Knebel, 563 F.2d 256, 261 n. 4 (6th Cir. 2, 25-26, #49). Total Quality Logistics, LLC v. Cornelius Leasing Sys ., Inc ., No. googletag.pubads().collapseEmptyDivs(); 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. These restrictions last only "for a period of one (1) year after termination or cessation of [Daniels'] employment." A day before the terminations began, Oaks sent out two company-wide emails addressing TQLs work-from-home bandwidth progress as federal and state health agencies were urging companies to allow employees to work remotely in an effort to curb the spread of the highly contagious coronavirus. 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." Schs., 160 F. Supp. Org. That same day, TQL also filed a motion for a preliminary injunction and temporary restraining order. Total Quality Logistics, LLC | Better Business Bureau Profile That is, the Court's reporting of the "facts" here should not be understood as a finding that those are the actual facts of this case. The freight brokerages overbroad language in the noncompete is so expansive that it would prohibit him from even driving for DoorDash, the lawsuit states. The Court first addresses Defendants' Motion to Dismiss, and then turns to TQL's Motion for a Preliminary Injunction. The Court noted earlier that TQL's Complaint had alleged sufficient facts to raise a plausible inference that Daniels was competing against TQL as part of his new position with EDA logistics. UPDATED: Freight broker TQL faces lawsuit, backlash after data breach In the non-compete portion of that agreement, Daniels agreed that he would not "own, operate, maintain [or] engage in any Competing Business." Jobseeker Tools. 3, #80-81). 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. 1968)) (noting that plaintiff has the burden of proof, by clear and convincing evidence, to warrant a preliminary injunction). to Prelim. 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()); Cincinnati Firm Faces $5m Data Breach Lawsuit Access the headquarters listing for Total Quality Logistics, LLC. Answered Apr 1, 2023. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. 2002) (citing United Food & Com. At-a-glance. (Bostwick Test., Hr'g on Prelim. Def. googletag.pubads().enableSingleRequest(); 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. googletag.cmd.push(function() { In sum, the Court DENIES Defendants' Motion to Dismiss with respect to TQL's breach of contract, misappropriation of trade secrets, and tortious interference with a contract claims. (Bostwick Test., Hr'g on Prelim. 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. Request A Quote WORK WITH US LOGISTICS SERVICES Co., 823 F.2d 984, 988 n. 2 (6th Cir.1987)). Total Quality Logistics v. Integrity Express Logistics, L.L.C. (Compl., Doc. And courts have held that it is overbroad and cant be enforced as written. Council, Inc., 555 U.S. 7, 22 (2008). Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. Therefore, on balance, the Court concludes that TQL is not entitled to a preliminary injunction at this time. (Id.). (Id. 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. Tenn. Mar. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. Bridgestone Am. 4. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. Working at Total Quality Logistics | Glassdoor 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 data breach was announced by TQL at the end of February. Total Quality Logistics (TQL) (@lifeattql) - Instagram googletag.pubads().collapseEmptyDivs(); Horter Inv. TQL provides freight brokerage and third-party logistics services to customers across the continental United States. The Complaint Plausibly Alleges That Daniels And EDA Logistics Misappropriated Trade Secrets. 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. 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 . 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. to Prelim. Use RevDex to write a review Reviews Trucking Transportation Brokers, Motor Freight Trucking, Logistics, Freight Forwarding Total Quality Logistics Total Quality Logistics Reviews ( 17) Aaron Beeman Business Development Manager. (Id.). (Compl., Doc. 1-1 at PageID 6). 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. Ohio Apr. On the first day of his new job, Daniels signed a non-compete and non-solicitation agreement. TQL faces lawsuit over data breach - Cincinnati Business Courier Send me an email here. Allegations that the defendant committed an element of the claime.g., "defendants colluded"are mere "conclusory" statements that do not suffice to state a claim under Fed R. Civ. 10 but good luck getting them approved . 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 Complaint's only support for this claim is that "upon information and belief, [Daniels is] doing business with at least one TQL customer with whom he worked while employed at TQL." See Vozary, 82 N.E.3d at 1186 (holding that an ex-employee opening a successful competitor does not, without additional evidence, support a misappropriation of trade secrets claim). Bostwick testified that Daniels' primary responsibility in those various roles was to manage customer accounts. Rather, the Complaint need only raise a "'plausible' inference" that Daniels has conducted freight-brokering services through EDA. Consistent with that understanding, the Court can issue a preliminary injunction only "upon a clear showing that the plaintiff is entitled to such relief." At that time, TQL experienced an additional 61% drop in Sunland's business. Total Quality Logistics v. Logistic Dynamics, Inc. - Casetext googletag.pubads().enableSingleRequest(); 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. In late 2015, Ryan Daniels, "a seasoned sales professional," was on the job hunt. As discussed above, however, TQL might have plausibly alleged that Daniels is violating his non-compete, but it has not submitted enough evidence to establish a "substantial likelihood" that is the case. 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." 12, 2010) ("There is no requirement that contract damages be pled with detailed specificity. Read more. That said, a plaintiff need not provide "detailed" factual allegations. 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. Total Quality Logistics (TQL) is the largest privately held freight brokerage firm in the nation. TQL: 'Bully On The block'? - Yahoo Finance Facts and Procedural History { 2} TQL is a freight broker and third-party logistics company headquartered in Clermont County, Ohio. literally needed to contact (spynerdy @ gmail) to get some of my funds back from them. The company refers to the new trainees as Logistics Account Executive Trainees (LAET). window.googletag = window.googletag || {cmd: []}; googletag.enableServices(); Your name will not be used without your permission in a follow-up article. IMO, their reps are not properly trained and harassing and DO NOT listen when you politely ask them NOT to call again. 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. for Prelim. TQL recruits college graduatesRecruiters for TQL admit they seek college graduates to join their freight brokerage team as sales trainees, who are expected to make up to 100 cold calls per day. Specifically, Defendants alleged that TQL is particularly litigious, and the Court should not encourage TQL to continue to sue its former employees. }); 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. (Mot. of Med. Ken Oaks and Ryan Legg co-founded TQL in 1997, but the two parted ways 16 years ago. I refuse to do any business with this company. Lucero v. Detroit Pub. 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." Total Quality Logistics, LLC v. Integrity Express Logistics, LLC Download PDF Check Treatment Legal research that outperforms Westlaw and Lexis, starting at $100/month. 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. 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. googletag.enableServices(); Hackers accessed and in a growing number of cases"have used the information to conduct fraudulent transactions,according to the lawsuit. Customer and carrier information was exposed after threat actors breached the company's online web portal. 1. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. Those arguments are not particularly relevant here, as the Court has already held that there is no "substantial likelihood of success on the merits" that can justify a preliminary injunction. The Complaint Fails To Plausibly Allege That EDA Logistics Tortiously Interfered With TQL's Business Relationships. gptAdSlots.push(gptSlot); [B]eyond that, without speaking to TQL, Im not authorized to say anything, other than to direct you to the publicly available docket, Wiles told FreightWaves. (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). 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 570. Rule 30 (b) (6) Deposition. window.googletag = window.googletag || {cmd: []}; TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. RIFFE, et al, Defendants. OPINION AND ORDER MATTHEW W. MCFARLAND, JUDGE. 204 talking about this. 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.. 1992). googletag.pubads().collapseEmptyDivs(); googletag.pubads().collapseEmptyDivs(); The Judges overseeing this case are Schneider, Wilfred J, Jr. and Wilfred J Schneider, Jr.. Company Profile. at 9(b)(i)). 1997) (en banc)). 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. Clarissa has covered all aspects of the trucking industry for 14 years. Winter v. Nat. 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. 29, 2021). Click for more articles by Clarissa Hawes. Ripping off carriers. to Prelim. 29, 2021). Send your complaint to this team now, you can find them on google. Id. 3d 1007, 1022 (M.D. }); TQL uniformly does not make exceptions to the agreement, including the one-year non-compete and non-solicitation terms, a TQL attorney told a former employee via email. A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. 10 days. 8, #96). While Daniels apparently was taking these steps to form his new LLC, TQL was busy trying to figure out why it had experienced a significant drop in business with respect to one of its repeat customers, Sunland Trading, Inc. TQL had long undertaken efforts to attract Sunland's business. googletag.pubads().enableSingleRequest(); (TQL's Exs. Accepting these facts as true, EDA's purpose and authority both at least suggest that it is competing in the freight-brokering business. On its website, TQL states it works with a network of more than 85,000-plus carriers and moves more than 1.8 million loads of freight each year. 8). Total Quality Logistics Company Profile - Supply Chain 24/7 googletag.enableServices(); Inj. 1998)). Computer systems at Total Quality Logistics ( TQL) were compromised in a cyber-attack that took place on February 23. Without any factual content, the Court cannot "draw the reasonable inference that the defendant is liable for the misconduct alleged." googletag.cmd.push(function() { 1. These factual allegations must support a claim that is "plausible on its face." Nov. 27, 2002). We help you find the right solution for your local, national and North American truckload freight and shipping needs. TQL | Truckload, LTL, Intermodal, Drayage, Air, Ocean, Specialized Services (Id. Notable Alumni. Hr'g, Ex. (TQL's Exs. Carriers and Trucks are the backbone of this industry. McNeilly v. Land, 684 F.3d 611, 615 (6th Cir. "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.'" Cary Corp. v. Linder, No. In fact, allegations in the complaint need not even be particularly convincing. 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. 3:09-cv-283, 2010 WL 908740, at *9 (E.D. 1:21-cv-164 (S.D. Make your practice more effective and efficient with Casetexts legal research suite. Specifically, TQL asserts that a preliminary injunction would further (1) the public interest in upholding contracts and preventing unfair competition; and (2) the public interest in the fair, predictable administration of the freight-brokering industry. That said, the Court's holding today is simply that TQL has not provided sufficient evidence at this time to substantiate an entitlement to preliminary injunctive relief. Accordingly, the Court will exclude $2,112.64 in billings that the Court deems useable in related litigation. There is no indication regarding the contents (if any) of the communication between Daniels and Sunland. Six Clinics Holding Corp. v. Cafcomp Sys., Inc., 119 F.3d 393, 399, 402 (6th Cir. 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()); J. Feldkamp Design Build. Thus, the Court cannot draw any inferences about the testimony that he would have provided had he appeared. TQL presses two counts based on this alleged breach, one seeking damages and the other injunctive relief, but the underlying conduct (breach of contract) is the same. Rather, the Court must rely on the evidence that TQL did present. Deck v. City of Toledo, 29 F. Supp. Importantly, Twombly, and later Iqbal, require plaintiffs to do more than simply state the elements of the claim in fact-form. 2017) (citing Heartland Home Fin., Inc. v. Allied Home Mortg. 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. This is not enough to state a claim, Defendants contend, because, TQL "failed to allege that EDA actually engages in freight brokerage." Therefore, the Court DENIES Defendants' motion to dismiss TQL's misappropriation of trade secrets claim. 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.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()); Hr'g, Exs. Inj. Exactly our experience. Finally, the Court considers the effect of a preliminary injunction on the public interest. TQL | Locations 3. 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. The Court GRANTS the motion with respect to TQL's tortious interference with a business relationship claim, but does so WITHOUT PREJUDICE. Judge delays trial date in TQL overtime class-action lawsuit 3). TQL requested damages and injunctive relief on all counts. However, former TQL employees told FreightWaves they estimate that only around 5% actually make it once they transition to a commission-only pay system. Total Quality Logistics, LLC v. EDA Logistics (Id.). (Doc. However, employment talks with Patterson ended two weeks later after Austin spoke with Chris Brown, TQLs general counsel. On November 16, 2019, DeSantis removed the case to this Court based on . Moreover, substantial time may pass between now and final resolution in this case, especially since discovery has yet to even begin. 2, Ex. 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. 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. Tomaydo-Tomahhdo, LLC v. Vozary, 82 N.E.3d 1180, 1184 (Ohio Ct. App. Those are some of the words current and former employees of Total Quality Logistics (TQL) used recently to describe the work culture at the United States' second-largest logistics company . googletag.enableServices(); See Expert Janitorial, LLC v. Williams, No. She is an award-winning journalist known for her investigative and business reporting. Total Quality Logistics 462 S 4th St, Louisville, Kentucky, United States, 40202-3466 Sharing is caring! Hr'g, Ex. TQL are extortionists. Accordingly, TQL's claim for tortious interference with a business relationship does not rise to the level of plausibility. Ohio Mar. (Mot. 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." TQL then concludes that "[u]pon information and belief Daniels is currently performing freight brokerage services in violation of his NCA." Co., 661 N.E.2d 218, 226 (Ohio Ct. App. The first factor is whether TQL has demonstrated "a strong likelihood of success on the merits." 8, #98). 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. As there is little evidence that Daniels is violating his non-compete, any resulting injury to TQL is necessarily speculative, as well. Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch.
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