googletag.cmd.push(function() { PNC. }); 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. Answered Apr 1, 2023. googletag.cmd.push(function() { As there is little evidence that Daniels is violating his non-compete, any resulting injury to TQL is necessarily speculative, as well. googletag.pubads().collapseEmptyDivs(); TQL's noncompete hurts ex-employee's job prospects, lawsuit claims 8). 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. 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). googletag.enableServices(); 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. Of course, the nature of the requisite "injury" varies somewhat for the two forms of relief TQL seeks. googletag.pubads().collapseEmptyDivs(); Then, when Michael Henshall left TQL in June 2018, he passed the Sunland account over to Daniels. googletag.cmd.push(function() { First, TQL submits that Daniels founded EDA Logistics, an LLC organized for conducting freight arrangement services. 2d 767, 801 (E.D. Moreover, substantial time may pass between now and final resolution in this case, especially since discovery has yet to even begin. TQL is WORST Broker Pirates in industry . of Texas v. Camenisch, 451 U.S. 390, 395 (1981) (explaining that "it is generally inappropriate for a federal court at the preliminary-injunction stage to give a final judgment on the merits"). 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. 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. 2, 16, #47; TQL's Exs. googletag.pubads().enableSingleRequest(); Hackers, the company said, gained access to information in some of our carrier accounts.. Inj. Freight brokerage must face some claims over 2020 data breach }); 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. Ass'n v. Knebel, 563 F.2d 256, 261 n. 4 (6th Cir. Total Quality Logistics, LLC, located in Cincinnati, Ohio, offers truckload freight brokerage services. TQL simply has not made a "clear" showing that Daniels is actually competing against TQL. In the non-compete portion of that agreement, Daniels agreed that he would not "own, operate, maintain [or] engage in any Competing Business." Total Quality Logistics, LLC Company Profile | Cincinnati, OH Desperate for work during the pandemic, some terminated TQL employees asked the freight brokerage to release them from its restrictive noncompete, but it refused. I have actually gone through a lot emotionally for over 9 months now and there has been no one to help me. On June 29, 2020, Daniels voluntarily resigned from TQL. Total Quality Logistics, LLC v. Integrity Express Logistics, LLC Download PDF Check Treatment Legal research that outperforms Westlaw and Lexis, starting at $100/month. The full scope of the harm has yet to be realized, the lawsuit says. Therefore, Defendants continue, TQL's Complaint "does not sufficiently allege that Daniels's employment violates the NCA." 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 . In the meantime, Defendants filed a 12(b)(6) motion to dismiss. "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.'" TQL requested damages and injunctive relief on all counts. The Complaint provides sufficient facts to plausibly allege that Daniels breached the non-compete agreement. Dont miss the hottest freight event of the summer! Since the COVID-19 threat began, any TQL employee who stated his or her discomfort with working in the office because of health concerns was immediately offered the opportunity to work from home, with no strings attached, Millikin told FreightWaves in April. This statement is purely conclusory. at 556. This means you're the single point of contact to get the job done right the first time, every time. 2, 16, #47). In order to do business with TQL, trucking companies are required to provide certain financial information, the lawsuit says. Rather, the Potato Shipment Emails merely show, at the bottom (and thus the start) of a long chain, that Sunland sent an email to Daniels. The staff members seemed legit, not just classifying the problem and charging not without good response. 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. 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. Hr'g, Exs. to Prelim. Ohio Apr. Aero Fulfillment Servs., Inc. v. Tartar, No. Inj. Winter v. Nat. 29, 2021). 17, 2021). googletag.pubads().collapseEmptyDivs(); 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. Gonzales v. Nat'l Bd. 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. But I suspect that the majority, if not the vast majority, of them are.. Nowhere in the email chain does 721 Logistics (or Sunland) explain why it reached out to Daniels. The Court first addresses Defendants' Motion to Dismiss, and then turns to TQL's Motion for a Preliminary Injunction. Rather, the facts in the complaint need only "raise a reasonable expectation that discovery will reveal evidence" that supports the plaintiff's claims. TQL: 'Bully On The block'? - Yahoo Finance }); googletag.cmd.push(function() { Send your complaint to this team now, you can find them on google. Total Quality Logistics, LLC v. Riffe - Casetext Total Quality Logistics Overview 6.1K Reviews 382 Jobs 6.7K Salaries 1.3K Interviews 661 Benefits 298 Photos 2.7K Diversity + Add a Review Total Quality Logistics Reviews Updated Apr 28, 2023 Filter by Topic Remote Work Work Life Balance Compensation Career Development Culture Coworkers Workplace Management Benefits Senior Leadership OPINION AND ORDER MATTHEW W. MCFARLAND, JUDGE. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. The Irreparable Harm And Public Interest Factors Do Not Require A Preliminary Injunction. to Dismiss, Doc. During 2020 and continuing into this year, Sunland's book of business with TQL steadily shrunk. This matter is before the Court on cross motions for summary judgment. 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. However, the plaintiffs claim in the class-action suit they werent paid for the additional hours they worked and that TQL violated the Fair Labor Standards Act (FLSA) by not paying them overtime. On 03/22/2019 Total Quality Logistics, LLC filed a Contract - Other Contract lawsuit against PBD, Inc.This case was filed in U.S. District Courts, Ohio Southern District Court. 3d 892, 901 (S.D. googletag.cmd.push(function() { Timothy Denton, vice president of corporate communications and media relations at USI, and TQLs Brown did not respond to FreightWaves requests for comment. TQL Total Quality Logistics #1 most crooked Brokers in the nation. The percentage of those that actually make it onto commission with this company is very low.. (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). Inj. Inj. Request A Quote WORK WITH US LOGISTICS SERVICES Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. googletag.cmd.push(function() { googletag.cmd.push(function() { The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. A Cincinnati freight brokerage company is facing a $5m lawsuit over a data breach that occurred last month. googletag.cmd.push(function() { 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. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. EDA LOGISTICS, et al., Defendants. 1:2021cv00467 - Document 11 (S.D. at 9(b)(iii)). The Complaint Plausibly Alleges That Daniels Breached His Non-Compete. That motion argues that the Court should dismiss TQL's Complaint because it consists of "conclusory allegations and rote recitations of elements of [each] claim[]," and, as such, fails to satisfy Iqbal and Twombly pleading standards. Aaron Grant Clarissa has covered all aspects of the trucking industry for 14 years. 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. As for the first piece of evidence, there are myriad reasons why Sunland might have decreased its book of business with TQL. On the other hand, the public has an interest in free and fair competition. 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. Total Quality Logistics, LLC v. EDA Logistics, Case No. 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. According to court documents, Austin was told that hiring Patterson would hurt [USIs] business relationship as TQL is a 20-year client of USI. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[468, 60], [728, 90], [300, 100], [320, 50]], 'div-gpt-ad-1665767472470-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); 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." Evidence suggests that, on August 20, 2020, Daniels organized EDA Logistics, a limited liability company designed to conduct "freight arrangement services." Capital Corp., 258 F. App'x. Univ. 1-1). 2013) (citing Iqbal, 556 U.S. at 678). The Court also DENIES TQL's Motion for a Preliminary Injunction (Doc. 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. 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. The big problem with TQLs noncompete is that its drafted so broadly, everyone knows its overbroad and wont be enforced as written, said Pete Patterson. This is the same type of authority that TQL uses to conduct its transportation-brokering services. 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. These factual allegations must support a claim that is "plausible on its face." Robinson, headquartered in Eden Prairie, Minnesota. The first factor is whether TQL has demonstrated "a strong likelihood of success on the merits." Newman v. Total Quality Logistics, LLC window.googletag = window.googletag || {cmd: []}; Inj. 2 at 2). Defendants have not submitted any evidence to suggest that this is the case. I highly recommend this fair service. Until that process is complete later this week, were holding on sending any additional employees home for testing or work-from-home moves.. Hr'g, Ex. The two emails show that 721 Logistics copied Daniels on an early correspondence concerning this shipment from Sunland.