The Complaint Plausibly Alleges That Daniels And EDA Logistics Misappropriated Trade Secrets. Notably, nowhere in either email chain does Daniels respond to, or reach out to, Sunland. The email chains revealed that on October 28, 2020, and then again on January 18, 2021, Daniels received an email from 721 Logistics about a potato starch shipment from Sunland. I need to desperately access my husbands whatsapp to find out what as been keeping him away from home but no hacker was down to assist me until I contacted wisetechacker @gmail com I actually have been able to get access to my husbands whatsapp messages and gotten all evidence I needed for this divorce. These facts, then, raise a plausible inference that EDA is interfering with the NCA between Daniels and TQL. Your California Privacy Rights / Privacy Policy. Total Quality Logistics, LLC v. Johnson et al, No. 8). That said, the Court's holding today is simply that TQL has not provided sufficient evidence at this time to substantiate an entitlement to preliminary injunctive relief. Maybe Sunland does not like the new TQL logistics account executive who now manages its account; perhaps COVID-19 hit Sunland hard and it decreased shipments across the board; or maybe Sunland just transferred its business to a new logistics company (other than EDA Logistics). 3. Inj. Detail"). TQL, which is the second-largest company of its kind in North America, says it has a network of more than 85,000 carriers. 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()); The two emails show that 721 Logistics copied Daniels on an early correspondence concerning this shipment from Sunland. Get the latest business insights from Dun & Bradstreet. Aero Fulfillment Servs., Inc. v. Tartar, No. googletag.cmd.push(function() { Newman v. Total Quality Logistics, LLC (Bostwick Test., Hr'g on Prelim. Total Quality Logistics, LLC v. OTC Logistics LLC - casetext.com lets get these guys. She is an award-winning journalist known for her investigative and business reporting. at 9(b)(i)). 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. 2, 25-26, #49). TQL's records show a 41% drop in revenues from Sunland from quarter one of 2020 to quarter two of that same year, while Daniels was still with TQL. googletag.pubads().enableSingleRequest(); The motion to dismiss, like the motion for a preliminary injunction, is fully briefed and ripe for review. TQL is a multi-billion dollar leader in the 3rd party logistics industry. 8). 13, 2018). 2:20-cv-1952, 2020 WL 1932896, at *4 (S.D. TQL commenced an internal investigation where it learned the facts alluded to abovethat Daniels had both started EDA Logistics and obtained "broker" authority. As of 2016, Oaks was listed as Cincinnatis wealthiest person, with a net worth estimated at $980 million, according to Forbes. googletag.pubads().enableSingleRequest(); 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().enableSingleRequest(); 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. 8, #97-98). (TQL's Exs. 1977)). Inj. 29, 2021). 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." googletag.pubads().collapseEmptyDivs(); The parties will have ample opportunity to access specific damage information through the discovery process."). to Dismiss, Doc. Total Quality Logistics, LLC v. Cornelius Leasing Sys ., Inc ., No. 7, "TQL Separation Email"). 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." But Ohio has a doctrine that authorizes courts to reform overbroad noncompetes.. Inj. Managers also reminded them of the noncompete agreements they had signed on their first day of employment with the freight brokerage and that it would be enforced if they went to work at another brokerage within one year of leaving TQL. 3). Hr'g, Exs. (citing Twombly, 550 U.S. at 556). }); While hes been an attorney for more than 43 years, Meizlish said hes ready to retire soon, but that he must see the TQL case, which he filed 10 years ago, through. (Id. Defendants argue that TQL's Complaint fails to plausibly allege the third element: that EDA/Daniels used TQL's trade secrets. Total Quality Logistics, LLC | Better Business Bureau Profile Id. Inj. (Id.). Defendants' argument directed at damages similarly falls flat. Mot., Apr. TOTAL QUALITY LOGISTICS, LLC, Plaintiff, v. EDA LOGISTICS, et al., Defendants. Cincinnati Firm Faces $5m Data Breach Lawsuit Total Quality Logistics (TQL) Phoenix, AZ. (Id. Again, discovery, not a motion to dismiss, is the proper avenue to address any missing specifics about the existence, and amount, of any such damages. Org. (Mot. Although a finding that there is no likelihood of success on the merits is "usually fatal" to the request for a preliminary injunction, Gonzales, 225 F.3d at 625, the Court could still exercise "its discretion to issue a preliminary injunction if the movant has, at minimum, 'show[n] serious questions going to the merits and irreparable harm which decidedly outweighs any potential harm to the defendant if the injunction is issued.'" They threaten with a Carrier411 write up that could bankrupt a company. Follow Total Quality Logistics on social media. J. Feldkamp Design Build. Total Quality Logistics, LLC v PBD, Inc et al | 1:19-CV-00212 | Court This is all that is needed to plausibly allege damages for a breach of contract claim. 3d 892, 901 (S.D. My brother left TQL and did not want to do anything improper, so he didnt go to work for a broker. TQL's noncompete hurts ex-employee's job prospects, lawsuit claims Hr'g, Ex. 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()); 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. 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.pubads().enableSingleRequest(); Bricker & Eckler is a leading law firm in and beyond Ohio. to Prelim. 29, 2021). 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.. 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. The "irreparable injury" prong, then, also weighs against 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. 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()); 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. Mot., Apr. Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. to Prelim. 2017) (citing Heartland Home Fin., Inc. v. Allied Home Mortg. 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. Inj. 1. Hackers, the company said, gained access to information in some of our carrier accounts.. googletag.cmd.push(function() { Rule 30 (b) (6) Deposition. Computer systems at Total Quality Logistics ( TQL) were compromised in a cyber-attack that took place on February 23. How many vacation days do you get per year? The existence, and extent, of TQL's injury, however, again depends on whether TQL can demonstrate that Daniels is currently violating his non-compete. 2, 16, #47). 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. Because Daniels founded EDA, TQL reasons, he "inevitably will use [trade secret] information for his and EDA's benefit." 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. And TQL had not subpoenaed him. Aaron Aanderud Commercial HVAC Technician. 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()); 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. 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. 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()); 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. 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.. Jacob Patterson started at TQL in August 2007 and rose through the ranks to become a senior logistics account executive. Speaks volumes about the revolving door there. TQL requested damages and injunctive relief on all counts. Capital Corp., 258 F. App'x. Happened to me in 2012!!!!! Total Quality Logistics. Products & Services Logistics Services, Full Truckload, Intermodal, Less Than Truckload. Inj. at 557; Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 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. googletag.enableServices(); $4B not paying on the agreement (ratecon) rate. PNC. googletag.pubads().collapseEmptyDivs(); More specifically, Bostwick explained that Daniels would have cold-called potential customers, as well as coordinated services and provided pricing estimates for existing customers. 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. Call Us 24/7/365 800.580.3101 Logistics Services Carriers Jobs Moves That Matter About Us Contact Us Get a Quote Track Shipment Request a Login LOGIN WORK WITH THE BEST Our mission is to be the leading service provider in the transportation industry and continue to build a company to be proud of. Freight brokerage must face some claims over 2020 data breach The Complaint Fails To Plausibly Allege That EDA Logistics Tortiously Interfered With TQL's Business Relationships. Meizlish said he expects the Illinois class-action case over former TQL employees overtime complaint to go to trial before his. (Id. 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()); (NCA at 10). 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.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()); Wizard James Recovery Service did a fantastic job at recovering my life savings which got stolen. Total Quality Logistics Reviews, Complaints, Customer Service 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. Our IT security teams identified the issue quickly and countered immediately to secure all online information.. Make your practice more effective and efficient with Casetexts legal research suite. Med. at 9(b)(iii)). 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. We are still gathering details, but it appears it was initially an information/data phishing attempt, according to Byrnes email to carriers. Finally, the Court considers the effect of a preliminary injunction on the public interest. During 2020 and continuing into this year, Sunland's book of business with TQL steadily shrunk. 29, 2021). 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. googletag.cmd.push(function() { I have actually gone through a lot emotionally for over 9 months now and there has been no one to help me. 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. }); 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. 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." }); President Joe Biden signed an executive order in July 2021 encouraging the Federal Trade Commission (FTC) to ban or limit noncompete agreements. Send your complaint to this team now, you can find them on google. Co., 661 N.E.2d 218, 226 (Ohio Ct. App. 2019). TQL is WORST Broker Pirates in industry . 1). Company Profile. 2, 16, #47; TQL's Exs. }); Some told FreightWaves that workers were fired because the company simply didnt have the technological bandwidth to support all of its employees working remotely. UPDATED: Freight broker TQL faces lawsuit, backlash after data breach Twombly, 550 U.S. at 555. 12, "W. Va. Sec'y of State Bus. (Compl., Doc. Ohio Apr. Have something to share about Total Quality Logistics? Horter Inv. In short, the reason behind the drop off in Sunland's business is unclear. googletag.pubads().enableSingleRequest(); Tenn. 2016). (Doc. Lucero v. Detroit Pub. Secondly, TQL provided evidence that the Federal Motor Carrier Safety Administration granted the newly formed EDA Logistics "broker" motor carrier authority. 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. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. 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. Mot., Apr. (Doc. }); 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. (Mot. Total Quality Logistics (TQL) Employment and Reviews | SimplyHired 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. googletag.cmd.push(function() { To start, neither party has identified how the failure to enter a preliminary injunction would harm third parties. googletag.pubads().enableSingleRequest(); In late 2015, Ryan Daniels, "a seasoned sales professional," was on the job hunt. 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. According to the lawsuit, the company is working with the FBI to identify the hackers. Read Total Quality Logistics, LLC v. DeSantis, Case No. MATTHEW W. MCFARLAND, JUDGE. Importantly, all of TQL's claims require proof that Daniels is (or, at least, has been) actually competing against TQL. googletag.pubads().collapseEmptyDivs(); Ohio Mar. Those arguments are not particularly relevant here, as the Court has already held that there is no "substantial likelihood of success on the merits" that can justify a preliminary injunction. at 9(b)(vi)). That is a heavy burden to bear. 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. Inside Sales - Base Salary + Commission Job in Phoenix, AZ at Total Aaron Grant (TQL's Exs. 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." 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. 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. The regulating bodies in charge of controlling these establishments really need to do better! 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. Ohio 2020) case opinion from the Southern District of Ohio US Federal District Court Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. 80589, 2002 WL 31667316, at *6 (Ohio Ct. App. TQL filed its lawsuit in the Court of Common Pleas of Clermont County, Ohio on October 29, 2018. 3). Total Quality Logistics LLC v. Logistic Dynamics, LLC - Casetext 2, 49, #52). Id. 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. googletag.cmd.push(function() { Six Clinics Holding Corp. v. Cafcomp Sys., Inc., 119 F.3d 393, 399, 402 (6th Cir. 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. Ohio 2021) Court Description: ORDER granting 8 Motion to Remand to State Court. Tenn. Mar. 3); and (2) Defendants EDA Logistics ("EDA") and Ryan Daniels' (collectively, "Defendants") Motion to Dismiss TQL's Complaint (Doc. Def. A lawsuit charges that Total Quality Logistics, LLC BB #:203922 Cincinnati, had a massive data breach that has allegedly harmed thousands of people. TQL has provided several pieces of evidence in this regard. 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.") 1:2019cv01052 - Document 15 (S.D. Total Quality Logistics, LLC v. Integrity Express Logistics, LLC Rather, the Court treats them more in the nature of allegations. 1-1 at PageID 6). at 556. Answered Apr 10, 2023. 2 at 2). Leary, 228 F.3d at 736 (quoting McPherson v. Mich. High Sch. Even so, Defendants' arguments are unpersuasive. These restrictions last only "for a period of one (1) year after termination or cessation of [Daniels'] employment." at 30, #49). Until that process is complete later this week, were holding on sending any additional employees home for testing or work-from-home moves.. 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. Clarissa has covered all aspects of the trucking industry for 14 years. googletag.pubads().collapseEmptyDivs(); }); TQL states it has more than 5,000 employees in 57 offices across 26 states. TQL provides freight brokerage and third-party logistics services to customers across the continental United States. Working at Total Quality Logistics | Glassdoor But it is at least as likely that Daniels has already conducted fright brokering services under the authority granted to his newly formed LLC. A TQL representative confirmed at oral argument that the business from the potato starch shipment, in fact, eventually went to TQL. Dont miss the hottest freight event of the summer! But, because TQL presented evidence at the preliminary injunction hearing suggesting that it may be able to supplement this claim, that dismissal is WITHOUT PREJUDICE. 17, 2021). 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.'") Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. At that time, TQL experienced an additional 61% drop in Sunland's business. at 9(b)). The Court, therefore, DENIES Defendants' motion to dismiss TQL's breach of contract claim. 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. TQL | Truckload, LTL, Intermodal, Drayage, Air, Ocean, Specialized Services 10 days. Exactly our experience. A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. The parties finished briefing that motion on April 20, 2021, and the Court held a hearing on the matter on April 29, 2021. googletag.pubads().enableSingleRequest(); googletag.pubads().enableSingleRequest(); googletag.enableServices(); to Prelim. googletag.pubads().enableSingleRequest(); 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. literally needed to contact (spynerdy @ gmail) to get some of my funds back from them. "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.'" 1:17-CV-150, 2018 WL 1891354, at *7 (S.D. A massive data breach at a Cincinnati-area freight brokerage firm that does business across the U.S. and Canada has harmed tens of thousands of people, a lawsuit says. But, here, the facts in the Complaint, and particularly the allegation that EDA sought and received exactly the same kind of freight-brokering licensure that TQL uses to offer its services, give rise to the common sense, reasonable inference that Daniels is conducting freight-brokering services through EDA. The "facts" in this section are taken from the Complaint and certain evidence introduced at the preliminary injunction hearing. Total Quality Logistics, LLC v. Riffe - Casetext 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. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. The same month he accepted the vice president of operations role at PBJ Express, Jacob Patterson was hit with a lawsuit from TQL. Hackers accessed and in a growing number of cases"have used the information to conduct fraudulent transactions,according to the lawsuit. However, the plaintiffs claim in the class-action suit they werent paid for the additional hours they worked and that TQL violated the Fair Labor Standards Act (FLSA) by not paying them overtime. All rights reserved. Both in their briefs and at the preliminary injunction hearing, Defendants argued that a preliminary injunction would harm all current and former TQL employees. The contract at issue here is Daniels' non-compete agreement. googletag.cmd.push(function() { But the agreement further provides that the one-year period would be tolled for any period of time during which Daniels was in violation of his obligations under those terms. 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.