total quality logistics lawsuit

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." Hr'g, Exs. Total Quality Logistics, LLC v. Alliance Shippers, Inc. et al, No. TQL faces lawsuit over data breach. googletag.pubads().enableSingleRequest(); 12, "W. Va. Sec'y of State Bus. window.googletag = window.googletag || {cmd: []}; TQL, which is the second-largest company of its kind in North America, says it has a network of more than 85,000 carriers. Ripping off carriers. The Complaint provides sufficient facts to plausibly allege that Daniels breached the non-compete agreement. That same day, TQL also filed a motion for a preliminary injunction and temporary restraining order. 10, 11, "Potato Shipment Emails"). Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. }); Tom Millikin, corporate communications manager of TQL, told FreightWaves at the time that he wasnt sure of the exact number of carriers who may have been affected by the security breach in its IT systems but was working with law enforcement and a cybersecurity firm to identify which carriers and customers may be impacted.. This is all that is needed to plausibly allege damages for a breach of contract claim. Co., 661 N.E.2d 218, 226 (Ohio Ct. App. Your name will not be used without your permission in a follow-up article. Horter Inv. Resume Builder; Salary Estimator; 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. TQL simply has not made a "clear" showing that Daniels is actually competing against TQL. The company is also dealing with backlash from layoffs due to lost business during the pandemic. We looked at the docket of Clermont County Court of Common Pleas for the last five years and there are between 400 and 500 cases with TQL as the plaintiff, Pete Patterson told FreightWaves. at 26, #49). }); 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. Even so, Defendants' arguments are unpersuasive. His company has filed litigation related to a nonsolicitation agreement only once in its 13-year-history. The "facts" in this section are taken from the Complaint and certain evidence introduced at the preliminary injunction hearing. 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()); }); 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.. 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. googletag.pubads().collapseEmptyDivs(); 8, #98). (Bostwick Test., Hr'g on Prelim. Therefore, on balance, the Court concludes that TQL is not entitled to a preliminary injunction at this time. Access the headquarters listing for Total Quality Logistics, LLC. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. Two days after Patterson filed suit against TQL, the freight brokerage filed a motion seeking to add PBJ Express, a 43-truck carrier, to the suit, despite Patterson tendering his resignation. Ohio 2020) case opinion from the Southern District of Ohio US Federal District Court 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. (Id. 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. 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.. 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. at 556. (Id.). Just Askin': What are the Seven Hills of Cincinnati, exactly? 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. The staff members seemed legit, not just classifying the problem and charging not without good response. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. RIFFE, et al, Defendants. The same month he accepted the vice president of operations role at PBJ Express, Jacob Patterson was hit with a lawsuit from TQL. 2d 431, 433 (N.D. Ohio 1998) (citing Garlock, Inc. v. United Seal, Inc., 404 F.2d 256, 257 (6th Cir. Nov. 27, 2002). 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. One source claims that leadership requested the companys Sales Quality Assurance department monitor employees Skype messages. Without any additional context, the Court is hesitant to read these emails as evidence that Daniels is competing with TQL. 7, "TQL Separation Email"). Mach. 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()); (Doc. TQL is a shady and unfair company to do business with how do you think they have had expedential growth. googletag.pubads().enableSingleRequest(); A lawsuit charges that Total Quality Logistics, LLC BB #:203922 Cincinnati, had a massive data breach that has allegedly harmed thousands of people. Total Quality Logistics (TQL) Phoenix, AZ. Total Quality Logistics (TQL) is the largest privately held freight brokerage firm in the nation. googletag.cmd.push(function() { View All Competitors. 2, 25, #49). googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); But, as "[p]reparing to compete is not equivalent to competing," this evidence alone is insufficient to support a preliminary injunction. At-a-glance. In fact, the records that TQL provided at the evidentiary hearing showed that TQL's logistics accounts executives began calling on Sunland as early as 2016. 2000). 21, 2020) (collecting cases). 2, "Daniels Hiring Email"). 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"). 8, #99). Tenn. 2016). 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. (Mot. Org. 1. (TQL's Exs. Most of the reps I dealt with were quite arrogant. Connect with Bricker online via Twitter, Facebook and LinkedIn . googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); }); 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. 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. Skip to Content. Overstreet v. Lexington-Fayette Urban Cnty. 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. Bostwick testified that Daniels' primary responsibility in those various roles was to manage customer accounts. 3d 1007, 1022 (M.D. Specifically, TQL points to evidence that (1) Sunland, one of Daniels' customer accounts at TQL, has significantly decreased its book of business with TQL after Daniels' departure; and (2) 721 Logistics copied Daniels on two emails concerning a shipment from Sunland. Hr'g, Ex. The Court thus DISMISSES TQL's claim for tortious interference with a business relationship. Request A Quote WORK WITH US LOGISTICS SERVICES She is an award-winning journalist known for her investigative and business reporting. See Hartman v. Acton, No. close alert. This happened to me in 2015. (NCA at 10). Org. A TQL representative confirmed at oral argument that the business from the potato starch shipment, in fact, eventually went to TQL. Importantly, Twombly, and later Iqbal, require plaintiffs to do more than simply state the elements of the claim in fact-form. at 557; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Shortly thereafter, on March 8, 2021, EDA and Daniels removed the case to this Court on diversity grounds. Wizard James Recovery Service did a fantastic job at recovering my life savings which got stolen. Inj. The motion to dismiss, like the motion for a preliminary injunction, is fully briefed and ripe for review. Basicomputer Corp. v. Scott, 973 F.2d 507, 512 (6th Cir. Univ. 1, "Daniels Resume"). 3. Asked Oct 11, 2017. Accordingly, whether a preliminary injunction serves these public interests is also too speculative to justify such extraordinary relief. Get the latest business insights from Dun & Bradstreet. Rather, the Court treats them more in the nature of allegations. literally needed to contact (spynerdy @ gmail) to get some of my funds back from them. Hr'g, Ex. TQL are extornists! 2, 28, #49). In the meantime, Defendants filed a 12(b)(6) motion to dismiss. It appears, though, that within a few months after leaving TQL, Daniels may have decided that he was not entirely done with the freight-brokering industry. MATTHEW W. MCFARLAND, JUDGE. googletag.cmd.push(function() { Inj. Company Profile. Have something to share about Total Quality Logistics? 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. Accordingly, the Court will exclude $2,112.64 in billings that the Court deems useable in related litigation. Answered Apr 1, 2023. 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. Resources and Tools. googletag.enableServices(); (Id. 6, "Sunland Customer Timeline"). 1-1 at PageID 6). USI, headquartered in Valhalla, New York, is one of the largest insurance brokerage and consulting firms in the world, according to its website. 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." The company refers to the new trainees as Logistics Account Executive Trainees (LAET). TQL and their kind are the herniated disc in the industry. (Mot. Therefore, the Court DENIES Defendants' motion to dismiss TQL's misappropriation of trade secrets claim. to Prelim. googletag.cmd.push(function() { Products & Services Logistics Services, Full Truckload, Intermodal, Less Than Truckload. at 9(b)(i)). 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. 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. Cary Corp. v. Linder, No. [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. 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. (Doc. at 9(f)). 2. Accepting these facts as true, EDA's purpose and authority both at least suggest that it is competing in the freight-brokering business. to Dismiss, Doc. The "irreparable injury" prong, then, also weighs against a preliminary injunction. When evaluating the sufficiency of a complaint in the face of a motion to dismiss, the Court must accept all non-conclusory factual allegations as true. googletag.enableServices(); (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (per curiam)). The bench trial was scheduled to start on July 13. 1991)) (brackets and internal quotation omitted). Therefore, Defendants continue, TQL's Complaint "does not sufficiently allege that Daniels's employment violates the NCA." 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. (Id.). Timothy Denton, vice president of corporate communications and media relations at USI, and TQLs Brown did not respond to FreightWaves requests for comment. That said, a plaintiff need not provide "detailed" factual allegations. 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. We are going to argue these motions on July 13, and at that time, the judge indicated he was going to establish a new trial date in the case, Meizlish told FreightWaves. Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. googletag.enableServices(); (Mot. 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 . This is the same type of authority that TQL uses to conduct its transportation-brokering services. TQL is WORST Broker Pirates in industry . And, equally as problematic for TQL, nowhere in the email chain does Daniels ever respond to 721 Logistics or Sunland. TQL presses two counts based on this alleged breach, one seeking damages and the other injunctive relief, but the underlying conduct (breach of contract) is the same. googletag.pubads().collapseEmptyDivs(); Total Quality Logistics' Competitors. 29, 2021). Both arguments assume that Daniels is, in fact, violating his non-compete and that the preliminary injunction will prevent him from doing so. Facts and Procedural History { 2} TQL is a freight broker and third-party logistics company headquartered in Clermont County, Ohio. 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. 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. Id. (Id.). The Judge overseeing this case is Michael R. Barrett. They threaten with a Carrier411 write up that could bankrupt a company. window.googletag = window.googletag || {cmd: []}; googletag.pubads().collapseEmptyDivs(); TQL's website notes that on Feb. 23 the company confirmed a data breach of its IT systems. 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. 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()); Hr'g, Exs. Id. 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. googletag.cmd.push(function() { 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. IMO, their reps are not properly trained and harassing and DO NOT listen when you politely ask them NOT to call again. Rule 30 (b) (6) Deposition. If so, damages would naturally arise. 2, Ex. The Court finds that TQL has met this burden here. Defendants' argument directed at damages similarly falls flat. Deck v. City of Toledo, 29 F. Supp. window.googletag = window.googletag || {cmd: []}; (Id. Ohio 2017) (citing Garofalo v. Chicago Title Ins. At the time of the data breach, TQL President Kerry Byrne stated that hackers may have gained access to carriers tax ID numbers, bank account numbers and invoice information, including amounts and dates.. Try Casetext free Opinion CA2020-09-056 12-06-2021 TOTAL QUALITY LOGISTICS, LLC, Appellant, v. INTEGRITY EXPRESS LOGISTICS, LLC, Appellee. TQL Total Quality Logistics #1 most crooked Brokers in the nation. The parties finished briefing that motion on April 20, 2021, and the Court held a hearing on the matter on April 29, 2021. Six Clinics Holding Corp. v. Cafcomp Sys., Inc., 119 F.3d 393, 399, 402 (6th Cir. googletag.cmd.push(function() { 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. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. Bell Atl. Gonzales v. Nat'l Bd. $4B not paying on the agreement (ratecon) rate. 3. On March 1, 2021, a Clermont County judge denied TQL's request for a temporary restraining order. 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. Find company research, competitor information, contact details & financial data for Total Quality Logistics, LLC of Cincinnati, OH. TQL, of course, contends that this interest is irrelevant here because Daniels' competition is unlawful and in violation of his non-compete. googletag.cmd.push(function() { The parties will have ample opportunity to access specific damage information through the discovery process."). The Court also DENIES TQL's Motion for a Preliminary Injunction (Doc. Had TQL taken the well-known risk of cyber-intrusion seriously and adequately tested, auditedand invested in its IT systems, and adequately trained its staff," the lawsuit says, the data breach would never have occurred.. 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 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.'") Inj. 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." 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. 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. 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. In short, the reason behind the drop off in Sunland's business is unclear. 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()); 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. googletag.pubads().enableSingleRequest(); Send your complaint to this team now, you can find them on google. If you have a news tip or story idea, send her an email to, Copyright 2023, All Rights Reserved, FreightWaves, Inc, Judge delays trial date in TQL overtime class-action lawsuit, Loaded & Rolling (Enterprise Fleet News/Analysis), joined a class-action complaint against TQL f, that were let go over a three-day period in mid-March amid the coronavirus pandemic, Trial dates rescheduled because of COVID-19. gptAdSlots.push(gptSlot); 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.. My brother left TQL and did not want to do anything improper, so he didnt go to work for a broker. Ex-employees claim they did not receive severance packages and that their health benefits were canceled within hours after they were terminated. Plaintiff Total Quality Logistics, LLC ("TQL") is an Ohio limited liability company with its principal place of business in Clermont County, Ohio. They hold payment and try to use a small claim to hold dozens of loads over the carriers head. Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. Ken Oaks and Ryan Legg co-founded TQL in 1997, but the two parted ways 16 years ago. }); President Joe Biden signed an executive order in July 2021 encouraging the Federal Trade Commission (FTC) to ban or limit noncompete agreements. (Mot. 1:2019cv01052 - Document 15 (S.D. U.S. District Judge Michael Barrett in Cincinnati on Tuesday let several, but not all, claims proceed in the case against Total Quality Logistics LLC, in one of at least two lawsuits against the . Lucero v. Detroit Pub. (Bostwick Test., Hr'g on Prelim. The amount in damages exceeds $5 million, according to the lawsuit. for Prelim. 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. (quoting Scheuer v. Rhodes, 416 U.S. 232, 236 (1974), overruled on other grounds by Davis v. Scherer, 468 U.S. 183, 191 (1984)).
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