Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. TQL commenced an internal investigation where it learned the facts alluded to abovethat Daniels had both started EDA Logistics and obtained "broker" authority. at 9(b)(iii)). 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 . Inj. Asked Oct 11, 2017. gptAdSlots.push(gptSlot); 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. googletag.cmd.push(function() { The existence, and extent, of TQL's injury, however, again depends on whether TQL can demonstrate that Daniels is currently violating his non-compete. (Compl., Doc. 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. However, former TQL employees told FreightWaves they estimate that only around 5% actually make it once they transition to a commission-only pay system. googletag.enableServices(); (Doc. 's, Inc. v. Int'l Bus. 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. googletag.pubads().collapseEmptyDivs(); PNC. The investigation also turned up two email chains between TQL, 721 Logistics (another broker company), and Sunland, which showed that Daniels had some contact with Sunland after his departure. to Dismiss, Doc. Those sending messages critical of the companys leadership or complaints to managers about not being able to work remotely were added to a list of those to be fired, despite their title or value to TQL, one employee told FreightWaves. The first factor is whether TQL has demonstrated "a strong likelihood of success on the merits." 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()); In other words, the Court's denial of this motion is not an indication that the Court has concluded that injunctive relief is never available for harm of the type alleged here, but rather that TQL has not carried its burden of showing that such relief should be awarded now. googletag.pubads().enableSingleRequest(); Neither piece of evidence, considered alone or in conjunction, shows a "strong likelihood" that Daniels is actually competing with TQL. 204 talking about this. Answered Apr 1, 2023. at 556. googletag.pubads().collapseEmptyDivs(); 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. 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. googletag.pubads().enableSingleRequest(); Tenn. Mar. Basicomputer Corp. v. Scott, 973 F.2d 507, 512 (6th Cir. Aaron Aanderud Commercial HVAC Technician. Find company research, competitor information, contact details & financial data for Total Quality Logistics, LLC of Cincinnati, OH. ). Current and former employees say that in March 2020 in the early days of the COVID-19 pandemic, TQL terminated as many as 700 employees over a three-day period because the company didnt have the technological bandwidth to support all of its employees working remotely. googletag.pubads().enableSingleRequest(); Bricker & Eckler is a leading law firm in and beyond Ohio. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. 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." 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. If it turns out that Daniels, in fact, did not violate his non-compete, then he is entitled to compete after that date, and any preliminary injunction then in place would improperly interfere with the public's interest in free competition. TQL then concludes that "[u]pon information and belief Daniels is currently performing freight brokerage services in violation of his NCA." It alleges many thousands of carriers and customers have been impacted. This is the same type of authority that TQL uses to conduct its transportation-brokering services. Hr'g, Ex. (Id.). Hr'g, Ex. 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." lets get these guys. 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. (TQL's Exs. Ass'n v. Knebel, 563 F.2d 256, 261 n. 4 (6th Cir. 1998)). 1977)). 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()); 3. 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. googletag.pubads().collapseEmptyDivs(); Total Quality Logistics' Competitors. Ripping off carriers. Inj. 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." (Doc. 1968)) (noting that plaintiff has the burden of proof, by clear and convincing evidence, to warrant a preliminary injunction). at 9(f)). Shortly thereafter, on March 8, 2021, EDA and Daniels removed the case to this Court on diversity grounds. - 2021-Ohio-4242 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. Hr'g, Exs. window.googletag = window.googletag || {cmd: []}; TQL Total Quality Logistics #1 most crooked Brokers in the nation. to Prelim. Defendants' argument directed at damages similarly falls flat. 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. }); Wednesday is Jacob Pattersons last day at PBJ Express, a small trucking firm in Joplin, Missouri, where he has worked for the past 15 months. Specifically, Defendants alleged that TQL is particularly litigious, and the Court should not encourage TQL to continue to sue its former employees. His company has filed litigation related to a nonsolicitation agreement only once in its 13-year-history. The Complaint Plausibly Alleges That Daniels Breached His Non-Compete. (citing Twombly, 550 U.S. at 556). The lawsuit, filed Monday in federal court in Cincinnati, seeks to hold Total Quality Logistics responsible for the theft last month of financial information, includingbank account and Social Security numbers andtax ID numbers from companies with whom it does business. 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. 8, #97-98). 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. 1). However, employment talks with Patterson ended two weeks later after Austin spoke with Chris Brown, TQLs general counsel. The Court finds that TQL has met this burden here. (Compl., Doc. Read related stories by FreightWaves Clarissa Hawes: TQL delays start date of nearly 200 near hires because of COVID-19. There is no clearly defined line. TQL is a shady and unfair company to do business with how do you think they have had expedential growth. Corp., 952 F.2d 802, 811 (4th Cir. Many rival logistics firms now use nonsolicitation agreements in lieu of noncompetes. (Bostwick Test., Hr'g on Prelim. Tenn. 2016). But the Complaint discusses EDA's activities in more detail than Defendants' motion to dismiss would suggest. And, equally as problematic for TQL, nowhere in the email chain does Daniels ever respond to 721 Logistics or Sunland. On June 29, 2020, Daniels voluntarily resigned from TQL. For the reasons discussed above, the Court GRANTS IN PART AND DENIES IN PART Defendants' Motion to Dismiss TQL's Complaint (Doc. 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. 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. The Complaint Plausibly Alleges That EDA Logistics Tortiously Interfered With TQL's Contracts. Legg later formed MegaCorp Logistics, which has a nonsolicitation agreement. window.googletag = window.googletag || {cmd: []}; Then, when Michael Henshall left TQL in June 2018, he passed the Sunland account over to Daniels. McNeilly v. Land, 684 F.3d 611, 615 (6th Cir. Schs., 160 F. Supp. Org. Therefore, Defendants' argument falls flat. 2. The amount in damages exceeds $5 million, according to the lawsuit. She is an award-winning journalist known for her investigative and business reporting. 2002) (citing United Food & Com. Total Quality Logistics (TQL) Phoenix, AZ. (TQL's Exs. Resources and Tools. But at this point in the process, federal pleading standards require TQL only to plausibly allege that Daniels is misappropriating trade secrets. 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. (citing Twombly, 550 U.S. at 555). See Expert Janitorial, LLC v. Williams, No. TQL Has Not Provided Enough Evidence At This Stage For The Court To Conclude That It Has A Strong Likelihood Of Success On The Merits. And courts have held that it is overbroad and cant be enforced as written. The Judge overseeing this case is Michael R. Barrett. close alert. TQL is WORST Broker Pirates in industry . For over 15 years, we've specialized in arranging the transportation of full truckload shipments for thousands of companies across the country and various industry segments. How many vacation days do you get per year? Org. Finally, the Court considers the effect of a preliminary injunction on the public interest. 3). to Prelim. Speaks volumes about the revolving door there. at 9(b)(i)). 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." Most of the reps I dealt with were quite arrogant. Detail"). Tomaydo-Tomahhdo, LLC v. Vozary, 82 N.E.3d 1180, 1184 (Ohio Ct. App. 8). (Compl., Doc. window.googletag = window.googletag || {cmd: []}; However, after five months in the new role, his work-life balance was substantially worse, according to court documents. According to court filings, Patterson started looking for employment outside the transportation industry in early August and entered employment discussions with Justin Austin, who was recently promoted to Midwest regional select practice leader/partner for USI Insurance Services. (Id. Importantly, Twombly, and later Iqbal, require plaintiffs to do more than simply state the elements of the claim in fact-form. The Court, therefore, DENIES Defendants' motion to dismiss TQL's breach of contract claim. Rather, both parties focus their arguments on the harm that might occur if the Court were to grant the requested preliminary injunction. Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. Do you have a story to share? She is an award-winning journalist known for her investigative and business reporting. Inj. Use RevDex to write a review Reviews Trucking Transportation Brokers, Motor Freight Trucking, Logistics, Freight Forwarding Total Quality Logistics Total Quality Logistics Reviews ( 17) Rather, the Court treats them more in the nature of allegations. Make your practice more effective and efficient with Casetexts legal research suite. 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()); Skip to Content. 1, "Daniels Resume"). He is married with five preteen children and struggled with work-life balance at TQL. The regulating bodies in charge of controlling these establishments really need to do better! 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()); Rule 30 (b) (6) Deposition. IMO, their reps are not properly trained and harassing and DO NOT listen when you politely ask them NOT to call again. 2, 16, #47; TQL's Exs. (Id.). Send me an email here. Inj. 1. 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. 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." TQL's claim for damages requires a showing of monetary injury, while TQL's claim for injunctive relief requires it to demonstrate "irreparable harm." TQL has provided several pieces of evidence in this regard. 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()); 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());
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