Get the latest business insights from Dun & Bradstreet. 3). Inj. Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. TQL requested damages and injunctive relief on all counts. TQL has also come under fire for as many as 700 employees that were let go over a three-day period in mid-March amid the coronavirus pandemic. googletag.enableServices(); 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. 17, 2021). If you are ever in need of such service, you can contact them via: [emailprotected], [emailprotected] or WhatsApp: +1 (863) 254-2842. 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()); Finally, the Court considers the effect of a preliminary injunction on the public interest. However, multiple current and former TQL employees said they do not consider the company one of the best places to work and told FreightWaves they fear retaliation by TQLs aggressive legal team if they are named. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. RIFFE, et al, Defendants. During 2020 and continuing into this year, Sunland's book of business with TQL steadily shrunk. Defendants' argument directed at damages similarly falls flat. This is the same type of authority that TQL uses to conduct its transportation-brokering services. 2d 431, 433 (N.D. Ohio 1998) (citing Garlock, Inc. v. United Seal, Inc., 404 F.2d 256, 257 (6th Cir. Access the headquarters listing for Total Quality Logistics, LLC. McNeilly v. Land, 684 F.3d 611, 615 (6th Cir. (Compl., Doc. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. TQL argues that a preliminary injunction would serve the public interest for two reasons. 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. 2000). The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. }); 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. Moreover, neither of the two emails 721 Logistics sent Daniels and Sunland concerning one of Sunland's potato starch shipments provide much additional insight. 1, "Daniels Resume"). Martin v. Jones, 41 N.E.3d 123, 141 (Ohio Ct. App. When combined, these two pieces of evidence demonstrate that EDA exists and that it is authorized to compete with TQL. Clarissa has covered all aspects of the trucking industry for 14 years. While we were really focused on the Ohio employees in our case because its an Ohio-based company, TQL has expanded outside of Ohio and has set up offices in 50+ other cities around the country in recent years, so the Illinois case, which focuses on employees outside of Ohio, really has a chance to be rescheduled and likely go before ours, he said. Do you have a story to share? window.googletag = window.googletag || {cmd: []}; Total Quality Logistics, LLC v. Johnson et al, No. window.googletag = window.googletag || {cmd: []}; 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. Org. 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. Cincinnati Firm Faces $5m Data Breach Lawsuit Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. 204 talking about this. MATTHEW W. MCFARLAND, JUDGE. 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. (rrs) Download PDF. The bench trial was scheduled to start on July 13. (Id. Res. googletag.pubads().collapseEmptyDivs(); (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). Exactly our experience. Total Quality Logistics, LLC v. Riffe - Casetext 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. 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. Nov. 27, 2002). She is an award-winning journalist known for her investigative and business reporting. to Prelim. TQL Total Quality Logistics - Facebook 2008)). to Prelim. 1991)) (brackets and internal quotation omitted). In hindsight, it was very telling, in that about every 2-3 months for a while I was getting a call from a new rep. googletag.cmd.push(function() { Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. 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. This means you're the single point of contact to get the job done right the first time, every time. 8, #99). (Id.). She is an award-winning journalist known for her investigative and business reporting. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. EDA LOGISTICS, et al., Defendants. Mich. 2001). Customer and carrier information was exposed after threat actors breached the company's online web portal. (TQL's Exs. Rather, the Court treats them more in the nature of allegations. 3:09-cv-283, 2010 WL 908740, at *9 (E.D. 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. 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()); Not only is this allegation vague and underdeveloped, but it is also unpersuasive. window.googletag = window.googletag || {cmd: []}; lets get these guys. 4. }); googletag.cmd.push(function() { }); TQL states it has more than 5,000 employees in 57 offices across 26 states. 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. That is a heavy burden to bear. However, after five months in the new role, his work-life balance was substantially worse, according to court documents. 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. This means you're the single point of contact to get the job done right the first time, every time. Total Quality Logistics Company Profile - Supply Chain 24/7 (Compl., Doc. I lost my traction in the industry and have never really recovered. (Mot. to Dismiss, Doc. To be sure, it is also possible, as Defendants seem to suggest, that Daniels is just preparing to compete, and has yet to actually engage in any competitive activity. 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. TQL then concludes that "[u]pon information and belief Daniels is currently performing freight brokerage services in violation of his NCA." Until that process is complete later this week, were holding on sending any additional employees home for testing or work-from-home moves.. TQL faces lawsuit over data breach. Twombly, 550 U.S. at 555. Total Quality Logistics LLC v. Logistic Dynamics, LLC - Casetext Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch. Austin also worked at TQL for seven years, according to his bio on LinkedIn. 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.'") As discussed above, TQL's evidence on that front creates a plausible inference that Daniels may have violated, and may be violating, his non-compete, but it falls short of providing "clear and convincing evidence" that he is doing so. 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. Representing a wide variety of clients, the firm has particular strength and focus representing business in a variety of areas including transportation, health care, public sector, financial services, and energy industries. Defendants argue that TQL's Complaint fails to plausibly allege the third element: that EDA/Daniels used TQL's trade secrets. 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. 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()); Johnson is a former employee of TQL who worked for TQL as a logistics account executive for approximately five months between April 23, 2018 through September 26, 2018. 7, "TQL Separation Email"). 2000) (quoting Direx Israel, Ltd. v. Breakthrough Med. 8) and DISMISSES TQL's tortious interference with a business relationship claim WITHOUT PREJUDICE. 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." 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. Basicomputer Corp. v. Scott, 973 F.2d 507, 512 (6th Cir. Plaintiff has alleged [that it] was damaged as a result [of the breach] and has suffered 'actual and consequential damages as may be proven at trial.' Such allegations are sufficient to state a claim for damages. at 9(f)). P. 8. As of 2016, Oaks was listed as Cincinnatis wealthiest person, with a net worth estimated at $980 million, according to Forbes. In fact, the Supreme Court expressly rejected the "possibility" standard as "too lenient," and instead required a higher showing on the grounds that a preliminary injunction is an "extraordinary remedy" with the dangerous potential to unjustly restrain the subject's liberty. 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.") 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. What is the vacation policy like at Total Quality Logistics (TQL)? Total Quality Logistics, LLC v. OTC Logistics LLC - casetext.com 2000). Therefore, on balance, the Court concludes that TQL is not entitled to a preliminary injunction at this time. Tenn. 2016). googletag.enableServices(); to Dismiss, Doc. Ass'n v. Knebel, 563 F.2d 256, 261 n. 4 (6th Cir. Mot., Apr. A day before the terminations began, Oaks sent out two company-wide emails addressing TQLs work-from-home bandwidth progress as federal and state health agencies were urging companies to allow employees to work remotely in an effort to curb the spread of the highly contagious coronavirus. at 9(b)(vi)). googletag.pubads().collapseEmptyDivs(); 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. 2d 767, 801 (E.D. 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. 3d 1007, 1022 (M.D. 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." Without any factual content, the Court cannot "draw the reasonable inference that the defendant is liable for the misconduct alleged." The bench trial was scheduled to start on July 13. 2. Hr'g, Ex. googletag.pubads().enableSingleRequest(); 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()); As the plaintiff, TQL bears the burden of establishing that it is entitled to such relief. View All Competitors. 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. Most of the reps I dealt with were quite arrogant. In the non-compete portion of that agreement, Daniels agreed that he would not "own, operate, maintain [or] engage in any Competing Business." Secondly, TQL provided evidence that the Federal Motor Carrier Safety Administration granted the newly formed EDA Logistics "broker" motor carrier authority. 2002) (citing United Food & Com. 2013) (citing Iqbal, 556 U.S. at 678). to Prelim. googletag.cmd.push(function() { 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. OPINION AND ORDER MATTHEW W. MCFARLAND, JUDGE. Of course, the nature of the requisite "injury" varies somewhat for the two forms of relief TQL seeks. Horter Inv. Robinson, headquartered in Eden Prairie, Minnesota. He is married with five preteen children and struggled with work-life balance at 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. 1997) (citing Mason Cnty. ). A TQL representative confirmed at oral argument that the business from the potato starch shipment, in fact, eventually went to TQL. Follow Total Quality Logistics on social media. Find company research, competitor information, contact details & financial data for Total Quality Logistics, LLC of Cincinnati, OH. A TQL spokesman said the company doesn't comment on pending litigation. Id. Now, I dont know if all of those are over noncompetes; I havent looked at the complaints in those cases. Notable Alumni. Total Quality Logistics. TQL, however, has not made such a showing here. (Id.). And TQL had not subpoenaed him. 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. Evidence suggests that, on August 20, 2020, Daniels organized EDA Logistics, a limited liability company designed to conduct "freight arrangement services." To survive a motion to dismiss, TQL need not show that, in fact, EDA Logistics is actually brokering freight. 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. 1992). On the first day of his new job, Daniels signed a non-compete and non-solicitation agreement. 3. The Complaint Plausibly Alleges That EDA Logistics Tortiously Interfered With TQL's Contracts. Supreme Court of Ohio rules in favor of Bricker client, Total Quality But at this point in the process, federal pleading standards require TQL only to plausibly allege that Daniels is misappropriating trade secrets. A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. googletag.pubads().enableSingleRequest(); Managers also reminded them of the noncompete agreements they signed on their first day of employment with the logistics firm and that it would be enforced if they sought work with another brokerage firm within one year of leaving TQL. Then, when Michael Henshall left TQL in June 2018, he passed the Sunland account over to Daniels. 2, 16, #47). 1-1). to Prelim. (Doc. 11K Followers, 189 Following, 1,740 Posts - See Instagram photos and videos from Total Quality Logistics (TQL) (@lifeattql) 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. But that misunderstands a plaintiff's obligation at the pleadings stage. But the Court is in no position to resolve that issue today. Total Quality Logistics facing $5 million lawsuit over 'massive' data Mgmt., LLC v. Cutter, 257 F. Supp. TQL are extornists! 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. (Id.). (Bostwick Test., Hr'g on Prelim. No one factor is determinative, rather, the Court should "balance[] [the factors] against each other." 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. Aero Fulfillment Servs., Inc. v. Tartar, No. Inj. Freight brokerage must face some claims over 2020 data breach (Compl., Doc. 's, Inc. v. Int'l Bus. Importantly, all of TQL's claims require proof that Daniels is (or, at least, has been) actually competing against TQL. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. 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. Iqbal, 556 U.S. at 678. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION. Facts and Procedural History { 2} TQL is a freight broker and third-party logistics company headquartered in Clermont County, Ohio. Gov't, 305 F.3d 566, 573 (6th Cir. For the reasons discussed above, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss TQL's Complaint (Doc. 29, 2021). I highly recommend this fair service. (TQL's Exs. 10 days. Deck v. City of Toledo, 29 F. Supp. window.googletag = window.googletag || {cmd: []}; TQL's noncompete hurts ex-employee's job prospects, lawsuit claims See Expert Janitorial, LLC v. Williams, No. Meizlish said he expects the Illinois class-action case over former TQL employees overtime complaint to go to trial before his. No one seems to agree. The data breach was announced by TQL at the end of February. Total Quality Logistics, LLC v. EDA Logistics, Case No. But the Complaint discusses EDA's activities in more detail than Defendants' motion to dismiss would suggest. Your California Privacy Rights / Privacy Policy. Neither piece of evidence, considered alone or in conjunction, shows a "strong likelihood" that Daniels is actually competing with TQL. 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. 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. at 9(b)(i)). TQL, of course, contends that this interest is irrelevant here because Daniels' competition is unlawful and in violation of his non-compete. 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." 12, 2010) ("There is no requirement that contract damages be pled with detailed specificity. }); Some told FreightWaves that workers were fired because the company simply didnt have the technological bandwidth to support all of its employees working remotely. On March 1, 2021, a Clermont County judge denied TQL's request for a temporary restraining order. Answered Apr 1, 2023. 2, 28, #49). Ohio May. literally needed to contact (spynerdy @ gmail) to get some of my funds back from them. 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. Clarissa has covered all aspects of the trucking industry for 14 years. 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.. Timothy Denton, vice president of corporate communications and media relations at USI, and TQLs Brown did not respond to FreightWaves requests for comment.
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