Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. (citing Twombly, 550 U.S. at 555). Hackers accessed and in a growing number of cases"have used the information to conduct fraudulent transactions,according to the lawsuit. Total Quality Logistics, LLC, located in Cincinnati, Ohio, offers truckload freight brokerage services. 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. (Id. I highly recommend this fair service. Mgmt., LLC v. Cutter, 257 F. Supp. 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. They hold payment and try to use a small claim to hold dozens of loads over the carriers head. ). A Cincinnati freight brokerage company is facing a $5m lawsuit over a data breach that occurred last month. 1:21-cv-164 (S.D. In the meantime, Defendants filed a 12(b)(6) motion to dismiss. The Court also DENIES TQL's Motion for a Preliminary Injunction (Doc. 2:20-cv-1952, 2020 WL 1932896, at *4 (S.D. Hr'g, Ex. In fairness to TQL, this may be in part because TQL anticipated that Daniels would be present for the preliminary injunction hearing. (Id. googletag.cmd.push(function() { 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()); 1-1 at PageID 6). We always thought people should be able to practice their trade; all we ask is that they dont call on our customers for a year, Bob Klare, president of MegaCorp, told FreightWaves in a previous article. He even accepted a lower-earning position to reduce his workload, becoming a senior enterprise account manager to continue to work at the freight brokerage giant, second in size only to C.H. 12, "W. Va. Sec'y of State Bus. 2002) (citing United Food & Com. 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()); 204 talking about this. But the Complaint discusses EDA's activities in more detail than Defendants' motion to dismiss would suggest. 1. 1995)). The motion to dismiss, like the motion for a preliminary injunction, is fully briefed and ripe for review. In late 2015, Ryan Daniels, "a seasoned sales professional," was on the job hunt. googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); (rrs) Download PDF. Athletic Ass'n, 119 F.3d 453, 459 (6th Cir. It alleges many thousands of carriers and customers have been impacted. to Dismiss, Doc. 3, #80-81). Total Quality Logistics (TQL) Phoenix, AZ. window.googletag = window.googletag || {cmd: []}; On 05/14/2021 Total Quality Logistics, LLC filed an Other - Sister State Judgment lawsuit against YB Global, Inc.This case was filed in San Bernardino County Superior Courts, Not Classified By Court located in San Bernardino, California. Cary Corp. v. Linder, No. Shortly thereafter, on March 8, 2021, EDA and Daniels removed the case to this Court on diversity grounds. Ohio Mar. Connect with Bricker online via Twitter, Facebook and LinkedIn . Hr'g, Ex. The parties finished briefing that motion on April 20, 2021, and the Court held a hearing on the matter on April 29, 2021. 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.. 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." This means you're the single point of contact to get the job done right the first time, every time. }); googletag.cmd.push(function() { (quoting Scheuer v. Rhodes, 416 U.S. 232, 236 (1974), overruled on other grounds by Davis v. Scherer, 468 U.S. 183, 191 (1984)). 2, 28, #49). As part of the plaintiff's obligation to provide notice of the "grounds" for relief, the complaint must include "[f]actual allegations" that are "enough to raise a right to relief above the speculative level." Hr'g, Ex. Meizlish said he expects the Illinois class-action case over former TQL employees overtime complaint to go to trial before his. (Mot. On the first day of his new job, Daniels signed a non-compete and non-solicitation agreement. 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. Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. But the Court is in no position to resolve that issue today. What is the vacation policy like at Total Quality Logistics (TQL)? at 9(b)(vi)). IMO, their reps are not properly trained and harassing and DO NOT listen when you politely ask them NOT to call again. (Id. 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()); In order to do business with TQL, trucking companies are required to provide certain financial information, the lawsuit says. Mot., Apr. }); 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. Nov. 27, 2002). On November 16, 2019, DeSantis removed the case to this Court based on . Inj. googletag.enableServices(); 1:2019cv01052 - Document 15 (S.D. 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. googletag.pubads().collapseEmptyDivs(); Defendants' argument directed at damages similarly falls flat. 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. That same day, TQL also filed a motion for a preliminary injunction and temporary restraining order. 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. to Dismiss, Doc. Find company research, competitor information, contact details & financial data for Total Quality Logistics, LLC of Cincinnati, OH. 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. 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. 16630 Southfield Ltd. P'ship v. Flagstar Bank F.S.B., 727 F.3d 502, 504 (6th Cir. (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). Gov't, 305 F.3d 566, 573 (6th Cir. gptAdSlots.push(gptSlot); 2. J. Feldkamp Design Build. Access the headquarters listing for Total Quality Logistics, LLC. Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. RIFFE, et al, Defendants. My brother left TQL and did not want to do anything improper, so he didnt go to work for a broker. googletag.cmd.push(function() { 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. Capital Corp., 258 F. App'x. 3d 1007, 1022 (M.D. googletag.pubads().enableSingleRequest(); (NCA at 9(b)). The same month he accepted the vice president of operations role at PBJ Express, Jacob Patterson was hit with a lawsuit from TQL. Use RevDex to write a review Reviews Trucking Transportation Brokers, Motor Freight Trucking, Logistics, Freight Forwarding Total Quality Logistics Total Quality Logistics Reviews ( 17) (Doc. 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. [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. for Prelim. Dont miss the hottest freight event of the summer! The Court considers the plausibility of each of TQL's claims under Ohio law pursuant to the choice-of-law provision in paragraph 10 of the non-compete agreement. P. 8. Ohio 2020) case opinion from the Southern District of Ohio US Federal District Court }); 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. See id. The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. All rights reserved. at 570. 1977)). 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 . 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. One source claims that leadership requested the companys Sales Quality Assurance department monitor employees Skype messages. Signed by Judge Timothy S. Black on 8/5/2021. Call Us 24/7/365 800.580.3101. burger menu open. 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. 80589, 2002 WL 31667316, at *6 (Ohio Ct. App. 9, "Sunland Revenue Chart"). 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. 2d 767, 801 (E.D. View All Competitors. Answered Apr 1, 2023. googletag.pubads().enableSingleRequest(); Ohio 2017) (citing Garofalo v. Chicago Title Ins. Therefore, Defendants' argument falls flat. Total Quality Logistics faces a class-action lawsuit in federal . We are still gathering details, but it appears it was initially an information/data phishing attempt, according to Byrnes email to carriers. 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. The first factor is whether TQL has demonstrated "a strong likelihood of success on the merits." Resources and Tools. Id. The Court, therefore, DENIES Defendants' motion to dismiss TQL's breach of contract claim. Given the nature of the hearing, the Court considers both the information from the Complaint and the evidence from that hearing to be preliminary in nature. RTS Financial. Therefore, on balance, the Court concludes that TQL is not entitled to a preliminary injunction at this time. }); President Joe Biden signed an executive order in July 2021 encouraging the Federal Trade Commission (FTC) to ban or limit noncompete agreements. (NCA at 10). (TQL's Exs. According to court documents, Austin was told that hiring Patterson would hurt [USIs] business relationship as TQL is a 20-year client of USI. At-a-glance. Speaks volumes about the revolving door there. Read more. IT will be adding more servers to our network to improve the speed and quality for our work-from-home users. Notably, nowhere in either email chain does Daniels respond to, or reach out to, Sunland. See Expert Janitorial, LLC v. Williams, No. of Med. at 556. 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. 1998)). Inj. The Complaint provides sufficient facts to plausibly allege that Daniels breached the non-compete agreement. (Bostwick Test., Hr'g on Prelim. Products & Services Logistics Services, Full Truckload, Intermodal, Less Than Truckload. Horter Inv. 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." I had a stressful situations going on and they were so patient with me and did help me through this. Many rival logistics firms now use nonsolicitation agreements in lieu of noncompetes. Total Quality Logistics (TQL) is the largest privately held freight brokerage firm in the nation. 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. (Doc. (TQL's Exs. to Dismiss, Doc. Specifically, Defendants alleged that TQL is particularly litigious, and the Court should not encourage TQL to continue to sue its former employees. This is not enough to state a claim, Defendants contend, because, TQL "failed to allege that EDA actually engages in freight brokerage." 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). 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()); 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. 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. googletag.enableServices(); The full scope of the harm has yet to be realized, the lawsuit says. }); 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.. (Compl., Doc. (Id.). window.googletag = window.googletag || {cmd: []}; literally needed to contact (spynerdy @ gmail) to get some of my funds back from them. 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 Complaint Plausibly Alleges That Daniels And EDA Logistics Misappropriated Trade Secrets. googletag.pubads().enableSingleRequest(); 8) and DISMISSES TQL's tortious interference with a business relationship claim WITHOUT PREJUDICE. googletag.pubads().collapseEmptyDivs(); 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. (Compl., Doc. 2008)). Gonzales v. Nat'l Bd. googletag.pubads().collapseEmptyDivs(); Twombly, 550 U.S. at 555. When combined, these two pieces of evidence demonstrate that EDA exists and that it is authorized to compete with TQL. The bench trial was scheduled to start on July 13. Importantly, all of TQL's claims require proof that Daniels is (or, at least, has been) actually competing against TQL. 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. Desperate for work during the pandemic, some terminated TQL employees asked the freight brokerage to release them from its restrictive noncompete, but it refused. But, as "[p]reparing to compete is not equivalent to competing," this evidence alone is insufficient to support a preliminary injunction. Id. For the reasons below, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss and DENIES TQL's Motion for a Preliminary Injunction. (Doc. Six Clinics Holding Corp., 119 F.3d at 400 (quoting Gaston Drugs, Inc. v. Metro. On June 29, 2020, Daniels voluntarily resigned from TQL. Inj. How many vacation days do you get per year? (TQL's Exs. 860, 861 (6th Cir. googletag.enableServices(); Id. Asked Oct 11, 2017. 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. Def. These facts, then, raise a plausible inference that EDA is interfering with the NCA between Daniels and TQL. Secondly, TQL provided evidence that the Federal Motor Carrier Safety Administration granted the newly formed EDA Logistics "broker" motor carrier authority. Inj. MATTHEW W. MCFARLAND, JUDGE. 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. lets get these guys. 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. Austin also worked at TQL for seven years, according to his bio on LinkedIn. A TQL spokesman said the company doesn't comment on pending litigation. 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()); Moreover, substantial time may pass between now and final resolution in this case, especially since discovery has yet to even begin. Defendants argue that TQL's Complaint fails to plausibly allege the third element: that EDA/Daniels used TQL's trade secrets. at 9(b)). 1:18-cv-00796, see flags on bad law, and search Casetext's comprehensive legal database . If you are ever in need of such service, you can contact them via: [emailprotected], [emailprotected] or WhatsApp: +1 (863) 254-2842. 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." These factual allegations must support a claim that is "plausible on its face." The Complaint continues on to note that "EDA holds authority to operate a freight brokerage under the Federal Motor Carriers Safety Administration." 8, #99). 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. 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.. Accordingly, TQL's claim for tortious interference with a business relationship does not rise to the level of plausibility. googletag.pubads().enableSingleRequest(); Inj. 6, "Sunland Customer Timeline"). Resume Builder; Salary Estimator; TQL simply has not made a "clear" showing that Daniels is actually competing against TQL. 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. Therefore, the Court DENIES Defendants' motion to dismiss TQL's misappropriation of trade secrets claim. at 557; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). googletag.cmd.push(function() { Have something to share about Total Quality Logistics? Most of the reps I dealt with were quite arrogant. Id. Inj. Notable Alumni. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. 2, 16, #47; TQL's Exs. Total Quality Logistics' Competitors. She is an award-winning journalist known for her investigative and business reporting. 8, #97-98). Ohio 2021) Court Description: ORDER granting 8 Motion to Remand to State Court. (Mot. Get the latest business insights from Dun & Bradstreet. The lawsuit, filed Monday in federal court in Cincinnati, seeks to hold Total Quality Logistics responsible for the theft last month of financial information, including bank account and Social. Robinson, headquartered in Eden Prairie, Minnesota. And courts have held that it is overbroad and cant be enforced as written. googletag.enableServices(); $4B not paying on the agreement (ratecon) rate. Co., 661 N.E.2d 218, 226 (Ohio Ct. App. at 30, #49). 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. googletag.cmd.push(function() { to Prelim. Aaron Beeman Business Development Manager. However, after five months in the new role, his work-life balance was substantially worse, according to court documents. On behalf of my brother, we have now sued TQL, alleging that it has interfered with his efforts to get a job outside of the trucking industry, said Pete Patterson, Jacob Pattersons brother and a partner at Washington-based boutique litigation firm Cooper & Kirk. 3d 892, 901 (S.D. Then, when Michael Henshall left TQL in June 2018, he passed the Sunland account over to Daniels. And, equally as problematic for TQL, nowhere in the email chain does Daniels ever respond to 721 Logistics or Sunland. 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. A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. Total Quality Logistics. A TQL representative confirmed at oral argument that the business from the potato starch shipment, in fact, eventually went to TQL. The amount in damages exceeds $5 million, according to the lawsuit. 2015) (citations omitted). 17, 2021). googletag.cmd.push(function() { 29, 2021). 2000). 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. }); 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. Its fast-paced, energetic s TQL Total Quality Logistics 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). 1992). Finally, the Court considers the effect of a preliminary injunction on the public interest. 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. 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." 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.") Carriers and Trucks are the backbone of this industry. 13, 14, "FMCSA Licensing History"). 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 . Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. Id. (Id. 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.

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