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. Org. On November 16, 2019, DeSantis removed the case to this Court based on . 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. Hr'g, Exs. (Mot. Have something to share about Total Quality Logistics? googletag.pubads().collapseEmptyDivs(); Robinson, headquartered in Eden Prairie, Minnesota. Call Us 24/7/365 800.580.3101. Hr'g, Ex. Signed by Judge Timothy S. Black on 8/5/2021. 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. USI, headquartered in Valhalla, New York, is one of the largest insurance brokerage and consulting firms in the world, according to its website. googletag.cmd.push(function() { 6, "Sunland Customer Timeline"). window.googletag = window.googletag || {cmd: []}; Total Quality Logistics, LLC v. Cornelius Leasing Sys ., Inc ., No. The motion to dismiss, like the motion for a preliminary injunction, is fully briefed and ripe for review. Just Askin': What are the Seven Hills of Cincinnati, exactly? 10 but good luck getting them approved . If it turns out that Daniels, in fact, did not violate his non-compete, then he is entitled to compete after that date, and any preliminary injunction then in place would improperly interfere with the public's interest in free competition. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. The contract at issue here is Daniels' non-compete agreement. Id. Inj. Ohio 2021) Court Description: ORDER granting 8 Motion to Remand to State Court. He said the problem for people in his brothers position is that they cant read the contract to know what they can or cant do. Finally, the Court considers the effect of a preliminary injunction on the public interest. A TQL representative confirmed at oral argument that the business from the potato starch shipment, in fact, eventually went to TQL. Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch. Aaron Cox VP - Software Manager. 1998)). Tomaydo-Tomahhdo, LLC v. Vozary, 82 N.E.3d 1180, 1184 (Ohio Ct. App. googletag.pubads().collapseEmptyDivs(); 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. 3. 16630 Southfield Ltd. P'ship v. Flagstar Bank F.S.B., 727 F.3d 502, 504 (6th Cir. 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()); The Court GRANTS the motion with respect to TQL's tortious interference with a business relationship claim, but does so WITHOUT PREJUDICE. Rule 30 (b) (6) Deposition. Moreover, substantial time may pass between now and final resolution in this case, especially since discovery has yet to even begin. She is an award-winning journalist known for her investigative and business reporting. Total Quality Logistics, LLC v. Johnson et al, No. Had TQL taken the well-known risk of cyber-intrusion seriously and adequately tested, auditedand invested in its IT systems, and adequately trained its staff," the lawsuit says, the data breach would never have occurred.. 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. See Hartman v. Acton, No. 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. Desperate for work during the pandemic, some terminated TQL employees asked the freight brokerage to release them from its restrictive noncompete, but it refused. 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()); It does not provide the name of the customer at issue or any other factual context for TQL's claim. googletag.enableServices(); 1:17-CV-150, 2018 WL 1891354, at *7 (S.D. window.googletag = window.googletag || {cmd: []}; 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 . We are still gathering details, but it appears it was initially an information/data phishing attempt, according to Byrnes email to carriers. 3. His company has filed litigation related to a nonsolicitation agreement only once in its 13-year-history. Defendants' argument directed at damages similarly falls flat. (Doc. Inj. I refuse to do any business with this company. Dont miss the hottest freight event of the summer! 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). 1997) (en banc)). 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. The same month he accepted the vice president of operations role at PBJ Express, Jacob Patterson was hit with a lawsuit from TQL. They threaten with a Carrier411 write up that could bankrupt a company. Neither piece of evidence, considered alone or in conjunction, shows a "strong likelihood" that Daniels is actually competing with TQL. Both in their briefs and at the preliminary injunction hearing, Defendants argued that a preliminary injunction would harm all current and former TQL employees. This is not enough to state a claim, Defendants contend, because, TQL "failed to allege that EDA actually engages in freight brokerage." 2d 431, 433 (N.D. Ohio 1998) (citing Garlock, Inc. v. United Seal, Inc., 404 F.2d 256, 257 (6th Cir. (Compl., Doc. }); President Joe Biden signed an executive order in July 2021 encouraging the Federal Trade Commission (FTC) to ban or limit noncompete agreements. The amount in damages exceeds $5 million, according to the lawsuit. Rather, the facts in the complaint need only "raise a reasonable expectation that discovery will reveal evidence" that supports the plaintiff's claims. Wizard James Recovery Service did a fantastic job at recovering my life savings which got stolen. Mich. 2001). The first factor is whether TQL has demonstrated "a strong likelihood of success on the merits." However, employment talks with Patterson ended two weeks later after Austin spoke with Chris Brown, TQLs general counsel. (Id. It alleges many thousands of carriers and customers have been impacted. }); 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. 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. at 9(f)). Inj. Res. RTS Financial. Start with TQL's claim that Daniels breached his non-compete. For the reasons discussed above, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss TQL's Complaint (Doc. The bench trial was scheduled to start on July 13. Clarissa has covered all aspects of the trucking industry for 14 years. See Expert Janitorial, LLC v. Williams, No. 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()); 2:20-cv-1952, 2020 WL 1932896, at *4 (S.D. 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()); (Compl., Doc. TQL, of course, contends that this interest is irrelevant here because Daniels' competition is unlawful and in violation of his non-compete. googletag.pubads().collapseEmptyDivs(); Id. googletag.cmd.push(function() { If Daniels is not violating his non-compete, the public has an interest in allowing him to form his own company and participate in the freight-brokerage market. 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 brokerage in April 2021. (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. 1997) (citing Mason Cnty. Products & Services Logistics Services, Full Truckload, Intermodal, Less Than Truckload. 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()); According to court documents, Austin was told that hiring Patterson would hurt [USIs] business relationship as TQL is a 20-year client of USI. (Doc. Your name will not be used without your permission in a follow-up article. 13, 14, "FMCSA Licensing History"). TQL Total Quality Logistics #1 most crooked Brokers in the nation. 3d 1007, 1022 (M.D. 1:21-cv-164 (S.D. The full scope of the harm has yet to be realized, the lawsuit says. 2019). Co., 823 F.2d 984, 988 n. 2 (6th Cir.1987)). 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.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION. 1:2019cv01052 - Document 15 (S.D. Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. OPINION AND ORDER MATTHEW W. MCFARLAND, JUDGE. Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. 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()); Winter v. Nat. 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. The Complaint Plausibly Alleges That Daniels And EDA Logistics Misappropriated Trade Secrets. Do you have a story to share? TQL then concludes that "[u]pon information and belief Daniels is currently performing freight brokerage services in violation of his NCA." 8). (Doc. Hr'g, Ex. 204 talking about this. 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.. The data breach was announced by TQL at the end of February. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. IMO, their reps are not properly trained and harassing and DO NOT listen when you politely ask them NOT to call again. As the plaintiff, TQL bears the burden of establishing that it is entitled to such relief. 1977)). googletag.enableServices(); To start, neither party has identified how the failure to enter a preliminary injunction would harm third parties. 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. Thus, the Court cannot draw any inferences about the testimony that he would have provided had he appeared. at 556. Clarissa has covered all aspects of the trucking industry for 14 years. 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. The bench trial was scheduled to start on July 13. Schs., 160 F. Supp. googletag.cmd.push(function() { Although a finding that there is no likelihood of success on the merits is "usually fatal" to the request for a preliminary injunction, Gonzales, 225 F.3d at 625, the Court could still exercise "its discretion to issue a preliminary injunction if the movant has, at minimum, 'show[n] serious questions going to the merits and irreparable harm which decidedly outweighs any potential harm to the defendant if the injunction is issued.'" There is no indication regarding the contents (if any) of the communication between Daniels and Sunland. Tenn. 2016). 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. googletag.pubads().enableSingleRequest(); 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. (citing Twombly, 550 U.S. at 556). Inj. 10 days. This means you're the single point of contact to get the job done right the first time, every time. On the other hand, the public has an interest in free and fair competition. Hr'g, Ex. (Id. And courts have held that it is overbroad and cant be enforced as written. Ken Oaks and Ryan Legg co-founded TQL in 1997, but the two parted ways 16 years ago. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. 29, 2021). (Doc. 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. On March 1, 2021, a Clermont County judge denied TQL's request for a temporary restraining order. (Mot. 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 . He is married with five preteen children and struggled with work-life balance at TQL. Council, Inc., 555 U.S. 7, 22 (2008). Inj. TQL has provided several pieces of evidence in this regard. The Irreparable Harm And Public Interest Factors Do Not Require A Preliminary Injunction. 5,500 employees. 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. Life Ins. (Id. (NCA at 10). googletag.enableServices(); Ohio May. During 2020 and continuing into this year, Sunland's book of business with TQL steadily shrunk. TQL are extortionists. Then, when Michael Henshall left TQL in June 2018, he passed the Sunland account over to Daniels. This matter is before the Court on cross motions for summary judgment. 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. Gonzales v. Nat'l Bd. Access the headquarters listing for Total Quality Logistics, LLC. to Prelim. The Judge overseeing this case is Michael R. Barrett. (Bostwick Test., Hr'g on Prelim. In order to do business with TQL, trucking companies are required to provide certain financial information, the lawsuit says. window.googletag = window.googletag || {cmd: []}; 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. 2, Ex. The staff members seemed legit, not just classifying the problem and charging not without good response. 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." 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. Accordingly, whether a preliminary injunction serves these public interests is also too speculative to justify such extraordinary relief. 1:2021cv00467 - Document 11 (S.D. 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. TQL's claim for damages requires a showing of monetary injury, while TQL's claim for injunctive relief requires it to demonstrate "irreparable harm." The Court finds that TQL has met this burden here. (Id. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. 29, 2021). TQL undoubtedly intended to ask him, under oath, about his past and current business activities. 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. 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. Answered Apr 10, 2023. 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." Send me an email here. Total Quality Logistics faces a class-action lawsuit in federal . Id. 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. 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." Truckload carrier U.S. Xpress announces 2nd round of corporate layoffsApex Capital blames malware attack for unplanned system outageSlync.io fires CEO Chris Kirchner, strips board chairmanship, This firm TQL stole my money but I had to hire ( REMOTESPYTECH ) to help me recover them. 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. As of 2016, Oaks was listed as Cincinnatis wealthiest person, with a net worth estimated at $980 million, according to Forbes. TQL are extornists! googletag.cmd.push(function() { A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. 1). This statement is purely conclusory. The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. 3). Total Quality Logistics, LLC v. EDA Logistics, Case No. of Med. 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 . TQL, which is the second-largest company of its kind in North America, says it has a network of more than 85,000 carriers. Hr'g, Ex. So its like holding a gun to the head of people to expose them to potentially ruinous liability if they guess wrong about how the noncompete will be enforced.. 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. Twombly, 550 U.S. at 555. That is a heavy burden to bear. (NCA at 9(b)). 12, "W. Va. Sec'y of State Bus. 2015) (citations omitted). 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. at 30, #49). 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 (TQL) Phoenix, AZ. Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. googletag.pubads().collapseEmptyDivs(); TQL posted revenues of around $3.6 billion in 2019. googletag.enableServices(); The next day, March 9, 2021, TQL re-filed its motion for a preliminary injunction in this Court. And TQL had not subpoenaed him. (TQL's Exs. Not only is this allegation vague and underdeveloped, but it is also unpersuasive. This cause is before the Court on two pending motions: (1) Total Quality Logistics' ("TQL") Motion for a Preliminary Injunction (Doc. No one factor is determinative, rather, the Court should "balance[] [the factors] against each other." }); 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. window.googletag = window.googletag || {cmd: []}; (TQL's Exs. 2, 16, #47). At first glance, such facts, assuming they are true, as the Court must at this stage, seem sufficient to give rise to a plausible inference of a breach. To survive a motion to dismiss, TQL need not show that, in fact, EDA Logistics is actually brokering freight. to Prelim. I highly recommend this fair service. 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). 8) and DISMISSES TQL's tortious interference with a business relationship claim WITHOUT PREJUDICE. 80589, 2002 WL 31667316, at *6 (Ohio Ct. App. 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. googletag.pubads().enableSingleRequest(); The non-solicitation half of the agreement, meanwhile, prohibits Daniels from "solicit[ing] any customer or tak[ing] any action to divert business from TQL." That said, a plaintiff need not provide "detailed" factual allegations. 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. Inj. BBB asks third parties who publish complaints, reviews . - 2021-Ohio-4242 (Mot. lets get these guys. Without any additional context, the Court is hesitant to read these emails as evidence that Daniels is competing with TQL. (Bostwick Test., Hr'g on Prelim. 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.. (Doc. Inj., Doc. Even so, Defendants' arguments are unpersuasive. The agreement defines "Competing Business" to include "any entity that is engaged in shipping, third-party logistics, freight brokerage, truck brokerage, or supply-chain management services anywhere in the Continental United States." $4B not paying on the agreement (ratecon) rate. 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. Request A Quote WORK WITH US LOGISTICS SERVICES Your California Privacy Rights / Privacy Policy. The "irreparable injury" prong, then, also weighs against a preliminary injunction. 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. I must commend them for recovering my money from the people who stole from me. at 570. to Dismiss, Doc. This means you're the single point of contact to get the job done right the first time, every time. Inj. Defendants have not submitted any evidence to suggest that this is the case. 1. }); 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. }); TQL states it has more than 5,000 employees in 57 offices across 26 states. Martin v. Jones, 41 N.E.3d 123, 141 (Ohio Ct. App. First, TQL alleges that, after Daniels left TQL, he "formed EDA [Logistics] for the purpose of conducting 'transportation and freight arrangement services.'"
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