googletag.enableServices(); 2000). googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); Access the headquarters listing for Total Quality Logistics, LLC. window.googletag = window.googletag || {cmd: []}; (Compl., Doc. Aaron Grant TQL are extornists! Total Quality Logistics. Thus, the Court cannot draw any inferences about the testimony that he would have provided had he appeared. The Complaint Plausibly Alleges That EDA Logistics Tortiously Interfered With TQL's Contracts. Hr'g, Exs. }); President Joe Biden signed an executive order in July 2021 encouraging the Federal Trade Commission (FTC) to ban or limit noncompete agreements. TQL has provided several pieces of evidence in this regard. 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 (Compl., Doc. We are still gathering details, but it appears it was initially an information/data phishing attempt, according to Byrnes email to carriers. Start with TQL's claim that Daniels breached his non-compete. That is a heavy burden to bear. }); 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. for Prelim. }); 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. 12, "W. Va. Sec'y of State Bus. 16630 Southfield Ltd. P'ship v. Flagstar Bank F.S.B., 727 F.3d 502, 504 (6th Cir. window.googletag = window.googletag || {cmd: []}; In late 2015, Ryan Daniels, "a seasoned sales professional," was on the job hunt. Id. googletag.pubads().collapseEmptyDivs(); 4. This is all that is needed to plausibly allege damages for a breach of contract claim. Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. Rather, the facts in the complaint need only "raise a reasonable expectation that discovery will reveal evidence" that supports the plaintiff's claims. 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()); 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." Therefore, on balance, the Court concludes that TQL is not entitled to a preliminary injunction at this time. 12, "W. Va. Sec'y of State Bus. That same day, TQL also filed a motion for a preliminary injunction and temporary restraining order. Lucero v. Detroit Pub. 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. (TQL's Exs. Mich. 2001). googletag.cmd.push(function() { close alert. (rrs) Download PDF. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. In the meantime, Defendants filed a 12(b)(6) motion to dismiss. Inj. Both arguments assume that Daniels is, in fact, violating his non-compete and that the preliminary injunction will prevent him from doing so. 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 . (Compl., Doc. My first morning in the new job my employer gets a fax from my former employer attorney. Inj., Doc. Capital Corp., 258 F. App'x. Not only is this allegation vague and underdeveloped, but it is also unpersuasive. USI, headquartered in Valhalla, New York, is one of the largest insurance brokerage and consulting firms in the world, according to its website. A Cincinnati freight brokerage company is facing a $5m lawsuit over a data breach that occurred last month. 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. Rather, the Complaint need only raise a "'plausible' inference" that Daniels has conducted freight-brokering services through EDA. The amount in damages exceeds $5 million, according to the lawsuit. 21, 2020) (collecting cases). Id. To demonstrate "irreparable harm," TQL would need to show that there is an "imminent" risk of a "certain, great, and actual" harm that creates a "clear and present' need for equitable relief." 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." Mach. (Mot. 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. But I suspect that the majority, if not the vast majority, of them are.. Company Profile. The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. googletag.pubads().collapseEmptyDivs(); Plaintiff Total Quality Logistics, LLC ("TQL") is an Ohio limited liability company with its principal place of business in Clermont County, Ohio. 2, 49, #52). To establish a misappropriation of trade secrets claim, TQL must plausibly allege (1) the existence of a trade secret; (2) that EDA/Daniels acquired the trade secret as a result of a confidential relationship; and (3) that EDA/Daniels engaged in unauthorized use of that trade secret. 462 S 4th St. . TQL is WORST Broker Pirates in industry . 2 at 2). 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. Read more. The Judges overseeing this case are Schneider, Wilfred J, Jr. and Wilfred J Schneider, Jr.. Sources familiar with the matter allege the mass firings were related to issues with setting up remote access using Citrix, the companys virtual network, and were not the result of employee underperformance issues, as Oaks and Tom Millikin, corporate communications manager of TQL, told FreightWaves at the time. As the Court discussed in the breach-of-contract analysis above, TQL's Complaint also included allegations that "Daniels formed EDA for the purpose of conducting freight arrangement services" and that "EDA holds freight brokerage authority granted by the Federal Motor Carriers Safety Administration." Notable Alumni. Because Daniels founded EDA, TQL reasons, he "inevitably will use [trade secret] information for his and EDA's benefit." 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 30, #49). Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch. Mot., Apr. "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.'" TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. RIFFE, et al, Defendants. at 9(b)). TQL are extortionists. 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()); Moreover, neither of the two emails 721 Logistics sent Daniels and Sunland concerning one of Sunland's potato starch shipments provide much additional insight. 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." 1-1). On June 29, 2020, Daniels voluntarily resigned from TQL. 3, #80-81). Basicomputer Corp. v. Scott, 973 F.2d 507, 512 (6th Cir. Clarissa has covered all aspects of the trucking industry for 14 years. googletag.enableServices(); This matter is before the Court on cross motions for summary judgment. (NCA at 9(b)). 11K Followers, 189 Following, 1,740 Posts - See Instagram photos and videos from Total Quality Logistics (TQL) (@lifeattql) Neither piece of evidence, considered alone or in conjunction, shows a "strong likelihood" that Daniels is actually competing with TQL. (citing Twombly, 550 U.S. at 555). at #94). 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.. 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. 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()); Skip to Content. More specifically, Bostwick explained that Daniels would have cold-called potential customers, as well as coordinated services and provided pricing estimates for existing customers. Facts and Procedural History { 2} TQL is a freight broker and third-party logistics company headquartered in Clermont County, Ohio. Customer and carrier information was exposed after threat actors breached the company's online web portal. Illegally run business Milford Ohio Trucking Companies: TQL Milford, Ohio Author: Columbus, Ohio 9, Report #1299392 Apr 12 2016 03:37 PM TQL Total Quality Logistics TQL is stealing from owner operators.They are doing a fraud Cincinnati Ohio Unusual Rip-Off: TQL Cincinnati, Ohio 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. 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). Iqbal, 556 U.S. at 678. Inj. There is no indication regarding the contents (if any) of the communication between Daniels and Sunland. 8, #96). First, TQL alleges that, after Daniels left TQL, he "formed EDA [Logistics] for the purpose of conducting 'transportation and freight arrangement services.'" They were out for blood! 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. 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. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. (Compl., Doc. 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()); 3d 1007, 1022 (M.D. googletag.cmd.push(function() { Org. ). If you are ever in need of such service, you can contact them via: [emailprotected], [emailprotected] or WhatsApp: +1 (863) 254-2842. 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. To survive a motion to dismiss, TQL need not show that, in fact, EDA Logistics is actually brokering freight. But the "mere possibility of success" is not enough to justify a preliminary injunction. On November 16, 2019, DeSantis removed the case to this Court based on . 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. googletag.cmd.push(function() { 1977)). And TQL had not subpoenaed him. Hr'g, Ex. }); googletag.cmd.push(function() { Six Clinics Holding Corp., 119 F.3d at 400 (quoting Gaston Drugs, Inc. v. Metro. TQL commenced an internal investigation where it learned the facts alluded to abovethat Daniels had both started EDA Logistics and obtained "broker" authority. Mgmt., LLC v. Cutter, 257 F. Supp. 2002) (citing United Food & Com. The two emails show that 721 Logistics copied Daniels on an early correspondence concerning this shipment from Sunland. Read related stories by FreightWaves Clarissa Hawes: TQL delays start date of nearly 200 near hires because of COVID-19. Total Quality Logistics (TQL) is the nation's 2nd largest freight brokerage firm. The percentage of those that actually make it onto commission with this company is very low.. Speaks volumes about the revolving door there. of Med. 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." Id. The freight brokerages overbroad language in the noncompete is so expansive that it would prohibit him from even driving for DoorDash, the lawsuit states. This statement is purely conclusory. Bricker & Eckler is a leading law firm in and beyond Ohio. at 557; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Just Askin': What are the Seven Hills of Cincinnati, exactly? I had a stressful situations going on and they were so patient with me and did help me through this. How many vacation days do you get per year? (Id.). Aaron Beeman Business Development Manager. P. 8. 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. Gonzales v. Nat'l Bd. googletag.pubads().collapseEmptyDivs(); According to court documents, Austin was told that hiring Patterson would hurt [USIs] business relationship as TQL is a 20-year client of USI. Detail"). Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. EDA LOGISTICS, et al., Defendants. But Ohio has a doctrine that authorizes courts to reform overbroad noncompetes.. (Mot. Corp., 172 F. Supp. 6, "Sunland Customer Timeline"). Both in their briefs and at the preliminary injunction hearing, Defendants argued that a preliminary injunction would harm all current and former TQL employees. 2013) (citing Iqbal, 556 U.S. at 678). Rather, both parties focus their arguments on the harm that might occur if the Court were to grant the requested preliminary injunction. to Dismiss, Doc. The motion to dismiss, like the motion for a preliminary injunction, is fully briefed and ripe for review. at 26, #49). googletag.pubads().enableSingleRequest(); 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." googletag.enableServices(); Rather TQL's claim is the type of "unadorned, the defendant-unlawfully-harmed-me accusation" that fails to make the cut under Iqbal and Twombly. 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. Although these facts suffice to create a plausible inference that Daniels is actually competing against TQL, the only solid conclusion that the Court can draw from the evidence provided at this stage is that Daniels is at least preparing to compete with TQL. window.googletag = window.googletag || {cmd: []}; TQL filed its lawsuit in the Court of Common Pleas of Clermont County, Ohio on October 29, 2018. Nowhere in the email chain does 721 Logistics (or Sunland) explain why it reached out to Daniels. The Court finds that TQL has met this burden here. gptAdSlots.push(gptSlot); window.googletag = window.googletag || {cmd: []}; (Doc. No one seems to agree. However, employment talks with Patterson ended two weeks later after Austin spoke with Chris Brown, TQLs general counsel. to Prelim. Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. googletag.enableServices(); 3. 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. 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. (TQL's Exs. at 9(f)). googletag.enableServices(); 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. Connect with Bricker online via Twitter, Facebook and LinkedIn . 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. See id. 2. 7, "TQL Separation Email"). - 2021-Ohio-4242 In short, the reason behind the drop off in Sunland's business is unclear. (Doc. (Bostwick Test., Hr'g on Prelim. But, as "[p]reparing to compete is not equivalent to competing," this evidence alone is insufficient to support a preliminary injunction. Notably, nowhere in either email chain does Daniels respond to, or reach out to, Sunland. googletag.pubads().enableSingleRequest(); 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.. 1991)) (brackets and internal quotation omitted). The injuries TQL alleges, including the loss of customer goodwill and the loss of fair competition due to the violation of a non-compete, usually constitute an irreparable injury. The data breach was announced by TQL at the end of February. Certainly, there is no requirement under federal law to plead any particular or specific amount of damages. (TQL's Exs. Hr'g, Ex. And courts have held that it is overbroad and cant be enforced as written. Total Quality Logistics, LLC v. EDA Logistics, Case No. googletag.pubads().enableSingleRequest(); googletag.enableServices(); Robinson, headquartered in Eden Prairie, Minnesota. Total Quality Logistics, LLC, located in Cincinnati, Ohio, offers truckload freight brokerage services. 1:17-CV-150, 2018 WL 1891354, at *7 (S.D. There is no clearly defined line. Like its breach of contract claim, TQL's misappropriation of trade secrets claim rests on Daniels's alleged involvement with EDA logistics, a (potentially) competing freight-brokerage company. 29, 2021). (Doc. The next day, March 9, 2021, TQL re-filed its motion for a preliminary injunction in this Court. She is an award-winning journalist known for her investigative and business reporting. (TQL's Exs. 8) and DISMISSES TQL's tortious interference with a business relationship claim WITHOUT PREJUDICE. The Irreparable Harm And Public Interest Factors Do Not Require A Preliminary Injunction. Dont miss the hottest freight event of the summer! And, equally as problematic for TQL, nowhere in the email chain does Daniels ever respond to 721 Logistics or Sunland. On March 1, 2021, a Clermont County judge denied TQL's request for a temporary restraining order. (Id.). at 570. 1. 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. However, former TQL employees told FreightWaves they estimate that only around 5% actually make it once they transition to a commission-only pay system. Asked Oct 11, 2017. 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());
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