total quality logistics lawsuit

3d 892, 901 (S.D. Total Quality Logistics - Transportation/trucking/railroad - Overview Here, the allegations in the Complaint are that Daniels is competing with TQL for business, which creates a plausible inference that he is experiencing at least some success in that regard. Hr'g, Exs. Ass'n v. Knebel, 563 F.2d 256, 261 n. 4 (6th Cir. 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. 1. The Court notes that in the First Consolidated Amended Class Action Complaint, Plaintiffs state that "the amount in controversy exceeds $5,000,000, exclusive of interest and costs." 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. 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 . Aaron Grant The parties will have ample opportunity to access specific damage information through the discovery process."). Total Quality Logistics LLC v. Logistic Dynamics, LLC - Casetext googletag.enableServices(); TQL then concludes that "[u]pon information and belief Daniels is currently performing freight brokerage services in violation of his NCA." 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. Call Us 24/7/365 800.580.3101. window.googletag = window.googletag || {cmd: []}; TQL is WORST Broker Pirates in industry . Timothy Denton, vice president of corporate communications and media relations at USI, and TQLs Brown did not respond to FreightWaves requests for comment. OPINION AND ORDER MATTHEW W. MCFARLAND, JUDGE. (Id.). And TQL had not subpoenaed him. 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). Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. Clarissa has covered all aspects of the trucking industry for 14 years. (Mot. The Complaint provides sufficient facts to plausibly allege that Daniels breached the non-compete agreement. 1-1 at PageID 6). 1992). 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. She is an award-winning journalist known for her investigative and business reporting. 3). Austin also worked at TQL for seven years, according to his bio on LinkedIn. At-a-glance. Total Quality Logistics, LLC v. Cornelius Leasing Sys ., Inc ., No. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION. Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. 5,500 employees. Inj. And courts have held that it is overbroad and cant be enforced as written. 13, 2018). 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. Total Quality Logistics. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. Iqbal, 556 U.S. at 678. 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.'") And, equally as problematic for TQL, nowhere in the email chain does Daniels ever respond to 721 Logistics or Sunland. TQL are extornists! The Complaint continues on to note that "EDA holds authority to operate a freight brokerage under the Federal Motor Carriers Safety Administration." 2013) (citing Iqbal, 556 U.S. at 678). 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. 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()); Neither piece of evidence, considered alone or in conjunction, shows a "strong likelihood" that Daniels is actually competing with TQL. See Hartman v. Acton, No. to Dismiss, Doc. 8). 's, Inc. v. Int'l Bus. 8, #96). Defendants are correct that this inference alone might not be enough to prove that Daniels is misappropriating trade secrets. TQL became suspicious that this drop in business occurred because Daniels may have used connections he developed at TQL to solicit Sunland's business after his departure. Secondarily, Defendants argue that the Court should dismiss TQL's claim for damages because the Complaint did not plausibly allege the "damages [TQL] has suffered as a result of Daniels's alleged breach." gptAdSlots.push(gptSlot); }); 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. googletag.pubads().collapseEmptyDivs(); 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. window.googletag = window.googletag || {cmd: []}; Id. Ohio 2017) (citing Garofalo v. Chicago Title Ins. 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." googletag.enableServices(); Gonzales v. Nat'l Bd. 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. But that misunderstands a plaintiff's obligation at the pleadings stage. Secondly, TQL provided evidence that the Federal Motor Carrier Safety Administration granted the newly formed EDA Logistics "broker" motor carrier authority. googletag.enableServices(); Id. 12, "W. Va. Sec'y of State Bus. gptAdSlots.push(gptSlot); Specifically, Defendants alleged that TQL is particularly litigious, and the Court should not encourage TQL to continue to sue its former employees. 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()); But, as "[p]reparing to compete is not equivalent to competing," this evidence alone is insufficient to support a preliminary injunction. 21, 2020) (collecting cases). TQL, however, has not made such a showing here. 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. }); googletag.cmd.push(function() { 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. 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. 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. googletag.enableServices(); 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. 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. 8, #97-98). 2012). googletag.cmd.push(function() { Meizlish said he expects the Illinois class-action case over former TQL employees overtime complaint to go to trial before his. 2. 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()); They were out for blood! 3d 1007, 1022 (M.D. window.googletag = window.googletag || {cmd: []}; Because Daniels founded EDA, TQL reasons, he "inevitably will use [trade secret] information for his and EDA's benefit." Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch. TQL is a multi-billion dollar leader in the 3rd party logistics industry. Iqbal, 556 U.S. at 678. 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. 2, 49, #52). Total Quality Logistics, LLC v. OTC Logistics LLC - casetext.com 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. 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." to Prelim. Hr'g, Ex. to Dismiss, Doc. 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. 13, 14, "FMCSA Licensing History"). googletag.pubads().enableSingleRequest(); 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 contract at issue here is Daniels' non-compete agreement. In the emails, obtained by FreightWaves, Oaks states: Currently, we have 2,200 employees working from home, testing systems. I must commend them for recovering my money from the people who stole from me. googletag.cmd.push(function() { See id. Ohio Mar. The company refers to the new trainees as Logistics Account Executive Trainees (LAET). (Compl., Doc. Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. 1 In short, the reason behind the drop off in Sunland's business is unclear. Total Quality Logistics, LLC | Better Business Bureau Profile 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. Inj. In fairness to TQL, this may be in part because TQL anticipated that Daniels would be present for the preliminary injunction hearing. This means you're the single point of contact to get the job done right the first time, every time. googletag.enableServices(); I refuse to do any business with this company. to Prelim. Read related stories by FreightWaves Clarissa Hawes: TQL delays start date of nearly 200 near hires because of COVID-19. Org. 8). 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. Ohio May. 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. 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." 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. 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. Total Quality Logistics, LLC v. Traffic Tech, Inc. et al | L }); googletag.cmd.push(function() { (Compl., Doc. Contact Information. (Id.). Mich. 2001). googletag.pubads().enableSingleRequest(); Start with TQL's claim that Daniels breached his non-compete. Hr'g, Ex. googletag.cmd.push(function() { From that point forward, Daniels handled Sunland's business until he left TQL, in June 2020. Cary Corp. v. Linder, No. We are still gathering details, but it appears it was initially an information/data phishing attempt, according to Byrnes email to carriers. TQL's noncompete hurts ex-employee's job prospects, lawsuit claims Inj. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. Follow Total Quality Logistics on social media. 7, "TQL Separation Email"). Six Clinics Holding Corp., 119 F.3d at 400 (quoting Gaston Drugs, Inc. v. Metro. The "irreparable injury" prong, then, also weighs against a preliminary injunction. (Compl., Doc. 2, "Daniels Hiring Email"). 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.") "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.'" 1968)) (noting that plaintiff has the burden of proof, by clear and convincing evidence, to warrant a preliminary injunction).

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