googletag.cmd.push(function() { Get the latest business insights from Dun & Bradstreet. Contact Information. Total Quality Logistics 462 S 4th St, Louisville, Kentucky, United States, 40202-3466 Sharing is caring! 3). 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.") Your California Privacy Rights / Privacy Policy. To start, neither party has identified how the failure to enter a preliminary injunction would harm third parties. 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. 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. 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). In the emails, obtained by FreightWaves, Oaks states: Currently, we have 2,200 employees working from home, testing systems. The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. 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. 3d 892, 901 (S.D. Id. 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. Austin also worked at TQL for seven years, according to his bio on LinkedIn. 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. In fairness to TQL, this may be in part because TQL anticipated that Daniels would be present for the preliminary injunction hearing. Selecting among these various competing possibilities requires information, which is what discovery is designed to facilitate. All that is there is the subject-line header, which indicates that the emails concerned a potato starch shipment. }); Some attorneys who have represented former TQL employees in similar noncompete actions refer to the freight brokerage as the bully on the block. They say the company uses the legal system to keep employees from leaving for fear of being hit with a lawsuit and discourages other companies in the transportation industry from hiring its former employees for fear of being sued as well. TQL undoubtedly intended to ask him, under oath, about his past and current business activities. 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. My first morning in the new job my employer gets a fax from my former employer attorney. The Complaint Plausibly Alleges That Daniels Breached His Non-Compete. googletag.pubads().enableSingleRequest(); 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. Hr'g, Ex. (Mot. for Prelim. That said, a plaintiff need not provide "detailed" factual allegations. It does not provide the name of the customer at issue or any other factual context for TQL's claim. (Mot. Mot., Apr. 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. On February 22, 2021, TQL filed a complaint in the Clermont County Court of Common Pleas, alleging (1) a breach of contract claim against Daniels; (2) a misappropriation of trade secrets claim against EDA Logistics and Daniels; (3) a tortious interference with a contract claim against EDA Logistics; and (4) a tortious interference with a business relationship against EDA Logistics. Access the headquarters listing for Total Quality Logistics, LLC. Any such search, review, and production performed at the direction of this Court in connection with the above-captioned lawsuit shall not be a violation of the Stored Communications Act, 18 U . 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." 1:21-cv-164 (S.D. 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()); (Id. (Id. 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.'" 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. Total Quality Logistics (TQL) Phoenix, AZ. 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. }); 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.. Hr'g, Ex. The same month he accepted the vice president of operations role at PBJ Express, Jacob Patterson was hit with a lawsuit from TQL. 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. The "irreparable injury" prong, then, also weighs against a preliminary injunction. 8). But it is at least as likely that Daniels has already conducted fright brokering services under the authority granted to his newly formed LLC. (NCA at 10). Total Quality Logistics (TQL) is the largest privately held freight brokerage firm in the nation. Bridgestone Am. In short, the reason behind the drop off in Sunland's business is unclear. 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's Exs. Importantly, the freight-brokering business is precisely the industry that the NCA precludes Daniels from competing in until June 2021. Rather, the Court treats them more in the nature of allegations. Total Quality Logistics faces a class-action lawsuit in federal . (Id. 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 . 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. 1:17-CV-150, 2018 WL 1891354, at *7 (S.D. But, as "[p]reparing to compete is not equivalent to competing," this evidence alone is insufficient to support a preliminary injunction. Total Quality Logistics, LLC v. Johnson et al, No. TQL, however, has not made such a showing here. 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.. 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. 1, "Daniels Resume"). Notably, nowhere in either email chain does Daniels respond to, or reach out to, Sunland. googletag.enableServices(); to Prelim. 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." Org. However, employment talks with Patterson ended two weeks later after Austin spoke with Chris Brown, TQLs general counsel. 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()); These facts, then, raise a plausible inference that EDA is interfering with the NCA between Daniels and TQL. Then, on September 14, 2020, it appears that the Federal Motor Carrier Safety Administration granted the newly formed EDA Logistics a form of motor carrier authority called "broker" authority. Med. TQL is WORST Broker Pirates in industry . 29, 2021). Martin v. Jones, 41 N.E.3d 123, 141 (Ohio Ct. App. The contract at issue here is Daniels' non-compete agreement. 29, 2021). 1. There is no indication regarding the contents (if any) of the communication between Daniels and Sunland. That same day, TQL also filed a motion for a preliminary injunction and temporary restraining order. On the first day of his new job, Daniels signed a non-compete and non-solicitation agreement. Speaks volumes about the revolving door there. 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. 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..
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