This matter is before the Court on cross motions for summary judgment. Resources and Tools. MATTHEW W. MCFARLAND, JUDGE. 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. at 9(f)). Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. (Mot. Notably, nowhere in either email chain does Daniels respond to, or reach out to, Sunland. (Doc. Accepting these facts as true, EDA's purpose and authority both at least suggest that it is competing in the freight-brokering business. 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()); Rule 30 (b) (6) Deposition. But Ohio has a doctrine that authorizes courts to reform overbroad noncompetes.. googletag.pubads().enableSingleRequest(); To start, neither party has identified how the failure to enter a preliminary injunction would harm third parties. }); googletag.cmd.push(function() { 1997) (en banc)). That said, a plaintiff need not provide "detailed" factual allegations. (Bostwick Test., Hr'g on Prelim. Bell Atl. Corp., 952 F.2d 802, 811 (4th Cir. Total Quality Logistics, LLC v. Johnson et al, No. Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. The parties in this case conducted two corporate representative depositions on the same day at the same placeone for this case and one for TQL v. 8, #96). 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. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. Basicomputer Corp. v. Scott, 973 F.2d 507, 512 (6th Cir. As for the first piece of evidence, there are myriad reasons why Sunland might have decreased its book of business with TQL. 1). Neither piece of evidence, considered alone or in conjunction, shows a "strong likelihood" that Daniels is actually competing with TQL. Even so, Defendants' arguments are unpersuasive. Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. Hr'g, Exs. BBB asks third parties who publish complaints, reviews . 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. Id. Total Quality Logistics, LLC, located in Cincinnati, Ohio, offers truckload freight brokerage services. 10 but good luck getting them approved . A, #58-64, "NCA"). They hold payment and try to use a small claim to hold dozens of loads over the carriers head. 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()); 13, 14, "FMCSA Licensing History"). The two emails show that 721 Logistics copied Daniels on an early correspondence concerning this shipment from Sunland. Most of the reps I dealt with were quite arrogant. Total Quality Logistics 462 S 4th St, Louisville, Kentucky, United States, 40202-3466 Sharing is caring! to Prelim. Athletic Ass'n, 119 F.3d 453, 459 (6th Cir. Ohio 2020) case opinion from the Southern District of Ohio US Federal District Court 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." But Daniels was not there. Hr'g, Ex. Bricker & Eckler is a leading law firm in and beyond Ohio. 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. (NCA at 9(b)). Use RevDex to write a review Reviews Trucking Transportation Brokers, Motor Freight Trucking, Logistics, Freight Forwarding Total Quality Logistics Total Quality Logistics Reviews ( 17) 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()); 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 . window.googletag = window.googletag || {cmd: []}; window.googletag = window.googletag || {cmd: []}; No one seems to agree. Life Ins. googletag.pubads().collapseEmptyDivs(); (Bostwick Test., Hr'g on Prelim. 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. 3, #80-81). 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. 1-1). Capital Corp., 258 F. App'x. The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. 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." gptAdSlots.push(gptSlot); The company refers to the new trainees as Logistics Account Executive Trainees (LAET). There is no clearly defined line. Try Casetext free Opinion CA2020-09-056 12-06-2021 TOTAL QUALITY LOGISTICS, LLC, Appellant, v. INTEGRITY EXPRESS LOGISTICS, LLC, Appellee. googletag.cmd.push(function() { Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. 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. }); Some told FreightWaves that workers were fired because the company simply didnt have the technological bandwidth to support all of its employees working remotely. 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." 1, "Daniels Resume"). The staff members seemed legit, not just classifying the problem and charging not without good response. TQL recommended carriers take extra security measures and contact their bank or financial institution and notify them that their information specifically bank account, routing and tax ID numbers may have been compromised, and suggested carriers place a fraud alert on their credit files. 2:20-cv-1952, 2020 WL 1932896, at *4 (S.D. 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. Twombly, 550 U.S. at 555. The Court next examines whether a preliminary injunction (or lack thereof) would create a risk of substantial harm to others. 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. Happened to me in 2012!!!!! I had a stressful situations going on and they were so patient with me and did help me through this. Six Clinics Holding Corp. v. Cafcomp Sys., Inc., 119 F.3d 393, 399, 402 (6th Cir. 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 Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. TQL filed its lawsuit in the Court of Common Pleas of Clermont County, Ohio on October 29, 2018. Id. 1968)) (noting that plaintiff has the burden of proof, by clear and convincing evidence, to warrant a preliminary injunction). However, former TQL employees told FreightWaves they estimate that only around 5% actually make it once they transition to a commission-only pay system. A lawsuit charges that Total Quality Logistics, LLC BB #:203922 Cincinnati, had a massive data breach that has allegedly harmed thousands of people. My first morning in the new job my employer gets a fax from my former employer attorney. (TQL's Exs. Total Quality Logistics v. Integrity Express Logistics, L.L.C. The Court GRANTS the motion with respect to TQL's tortious interference with a business relationship claim, but does so WITHOUT PREJUDICE. 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. As noted above, that evidence falls short. But at this point in the process, federal pleading standards require TQL only to plausibly allege that Daniels is misappropriating trade secrets. 2, 49, #52). 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. I refuse to do any business with this company. I highly recommend this fair service. Cary Corp. v. Linder, No. Hr'g, Ex. (Compl., Doc. Just Askin': What are the Seven Hills of Cincinnati, exactly? Total Quality Logistics, LLC v. Cornelius Leasing Sys ., Inc ., No. Inj. 2, 16, #47; TQL's Exs. 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. IMO, their reps are not properly trained and harassing and DO NOT listen when you politely ask them NOT to call again. The data breach was announced by TQL at the end of February. View All Competitors. In fairness to TQL, this may be in part because TQL anticipated that Daniels would be present for the preliminary injunction hearing. googletag.enableServices(); But it is at least as likely that Daniels has already conducted fright brokering services under the authority granted to his newly formed LLC. googletag.cmd.push(function() { Aaron Cox VP - Software Manager. [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. TQL, however, has not made such a showing here. 29, 2021). 4. Schs., 160 F. Supp. His company has filed litigation related to a nonsolicitation agreement only once in its 13-year-history. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION. to Prelim. In order to do business with TQL, trucking companies are required to provide certain financial information, the lawsuit says. These trainees are expected to spend at least six months conducting sales calls for freight brokers, earning between $36,000 to $38,000, before they are even considered to make the move from salary to a commission-based pay system. During his time at TQL, Daniels worked his way up from Logistics Account Executive Assistant, to Logistics Account Executive, to Saturday Group Leader, to Sales Team Leader. 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. 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. Def. 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. window.googletag = window.googletag || {cmd: []}; (Compl., Doc. 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. These factual allegations must support a claim that is "plausible on its face." }); 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. But, despite repeated calls, TQL had no success until March 2, 2018, when Michael Henshall, one of TQL's account executives, successfully bid for a piece of Sunland's business. Facts and Procedural History { 2} TQL is a freight broker and third-party logistics company headquartered in Clermont County, Ohio. Total Quality Logistics. Clarissa has covered all aspects of the trucking industry for 14 years. Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. Thus, the Court cannot draw any inferences about the testimony that he would have provided had he appeared. 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. Bridgestone Am. 1:2019cv01052 - Document 15 (S.D. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). Call Us 24/7/365 800.580.3101. Both arguments assume that Daniels is, in fact, violating his non-compete and that the preliminary injunction will prevent him from doing so. 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. (TQL's Exs. googletag.enableServices(); Winter v. Nat. (Doc. Mot., Apr. How many vacation days do you get per year? Accordingly, whether a preliminary injunction serves these public interests is also too speculative to justify such extraordinary relief. at 9(b)(i)). J. Feldkamp Design Build. (Doc. 3). First, TQL submits that Daniels founded EDA Logistics, an LLC organized for conducting freight arrangement services. But that misunderstands a plaintiff's obligation at the pleadings stage. 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. All that is there is the subject-line header, which indicates that the emails concerned a potato starch shipment. 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 During 2020 and continuing into this year, Sunland's book of business with TQL steadily shrunk. 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." window.googletag = window.googletag || {cmd: []}; Carriers and Trucks are the backbone of this industry. 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. The motion to dismiss, like the motion for a preliminary injunction, is fully briefed and ripe for review. Hr'g, Ex. 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. googletag.pubads().collapseEmptyDivs(); For the reasons discussed above, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss TQL's Complaint (Doc. Rather, the facts in the complaint need only "raise a reasonable expectation that discovery will reveal evidence" that supports the plaintiff's claims. at 556. Total Quality Logistics' Competitors. 8) and DISMISSES TQL's tortious interference with a business relationship claim WITHOUT PREJUDICE.