total quality logistics lawsuit

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. 8). 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. to Prelim. to Prelim. If the Court were to preliminarily enjoin Daniels and EDA today, that injunction will likely remain in effect for some time after June 2021, which is the date when Daniels' non-compete expires (at least absent tolling of the covered period). Our IT security teams identified the issue quickly and countered immediately to secure all online information.. 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. 3). 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. Customer and carrier information was exposed after threat actors breached the company's online web portal. 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. The company is considered the largest privately held company in the Cincinnati area, withannualrevenues of more than $3.5 billion. This means you're the single point of contact to get the job done right the first time, every time. of Med. 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. But Daniels was not there. Inj. 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. googletag.enableServices(); 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.enableServices(); (Id.). 3, #80-81). Even so, Defendants' arguments are unpersuasive. 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. C-060071, 2007 WL 120695, at *2, 4 (Ohio Ct. App. These factual allegations must support a claim that is "plausible on its face." 21, 2020) (collecting cases). }); 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.. A Cincinnati freight brokerage company is facing a $5m lawsuit over a data breach that occurred last month. 1997) (citing Mason Cnty. 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. But I suspect that the majority, if not the vast majority, of them are.. And, equally as problematic for TQL, nowhere in the email chain does Daniels ever respond to 721 Logistics or Sunland. 29, 2021). 462 S 4th St. . Defendants' only real argument to the contrary is that these facts do not plausibly allege a violation of the non-compete because "TQL's complaint does not allege any specific facts that Defendant EDA is actually brokering freight." If so, damages would naturally arise. 9, "Sunland Revenue Chart"). Therefore, Defendants continue, TQL's Complaint "does not sufficiently allege that Daniels's employment violates the NCA." (Id.). googletag.cmd.push(function() { 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. A week ago, Patterson, who worked at TQL from August 2007 to April 2021, filed a lawsuit against TQL seeking damages and injunctive relief. googletag.enableServices(); 1977)). 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. Gonzales v. Nat'l Bd. Co., 661 N.E.2d 218, 226 (Ohio Ct. App. Basicomputer Corp. v. Scott, 973 F.2d 507, 512 (6th Cir. Bostwick testified that Daniels' primary responsibility in those various roles was to manage customer accounts. TQL faces lawsuit over data breach. googletag.cmd.push(function() { As for the first piece of evidence, there are myriad reasons why Sunland might have decreased its book of business with TQL. The Court first addresses Defendants' Motion to Dismiss, and then turns to TQL's Motion for a Preliminary Injunction. 1, "Daniels Resume"). 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. Ohio 2020) case opinion from the Southern District of Ohio US Federal District Court Six Clinics Holding Corp. v. Cafcomp Sys., Inc., 119 F.3d 393, 399, 402 (6th Cir. As discussed above, TQL's evidence on that front creates a plausible inference that Daniels may have violated, and may be violating, his non-compete, but it falls short of providing "clear and convincing evidence" that he is doing so. 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. Accepting these facts as true, EDA's purpose and authority both at least suggest that it is competing in the freight-brokering business. Defendants' argument directed at damages similarly falls flat. 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. (Mot. (Doc. This is not enough to state a claim, Defendants contend, because, TQL "failed to allege that EDA actually engages in freight brokerage." TQL simply has not made a "clear" showing that Daniels is actually competing against TQL. window.googletag = window.googletag || {cmd: []}; But at this point in the process, federal pleading standards require TQL only to plausibly allege that Daniels is misappropriating trade secrets. Ohio 2017) (citing Garofalo v. Chicago Title Ins. Inj. The bench trial was scheduled to start on July 13. 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. This is all that is needed to plausibly allege damages for a breach of contract claim. In order to do business with TQL, trucking companies are required to provide certain financial information, the lawsuit says. 1997) (en banc)). 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()); Exactly our experience. 2, 28, #49). at 9(b)(iii)). 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. Bricker & Eckler is a leading law firm in and beyond Ohio. All said, TQL's evidence certainly shows that it is possible that Daniels is soliciting Sunland's business and that he is operating EDA Logistics as a direct competitor to TQL. Its fast-paced, energetic s TQL Total Quality Logistics Total Quality Logistics 462 S 4th St, Louisville, Kentucky, United States, 40202-3466 Sharing is caring! }); googletag.cmd.push(function() { Total Quality Logistics (TQL) Phoenix, AZ. USI, headquartered in Valhalla, New York, is one of the largest insurance brokerage and consulting firms in the world, according to its website. - 2021-Ohio-4242 Just Askin': What are the Seven Hills of Cincinnati, exactly? We are still gathering details, but it appears it was initially an information/data phishing attempt, according to Byrnes email to carriers. Total Quality Logistics (TQL) Phoenix, AZ. The Complaint provides sufficient facts to plausibly allege that Daniels breached the non-compete agreement. (Id. Capital Corp., 258 F. App'x. Mot., Apr. Meizlish said he expects the Illinois class-action case over former TQL employees overtime complaint to go to trial before his. When Daniels left TQL, it triggered his one-year obligation under the non-compete and non-solicitation agreements. (Id. 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." Certainly, there is no requirement under federal law to plead any particular or specific amount of damages. }); googletag.cmd.push(function() { Get the latest business insights from Dun & Bradstreet. Follow Total Quality Logistics on social media. Mot., Apr. This cause is before the Court on two pending motions: (1) Total Quality Logistics' ("TQL") Motion for a Preliminary Injunction (Doc. googletag.pubads().collapseEmptyDivs(); Finally, the Court considers the effect of a preliminary injunction on the public interest. Inj. Lucero v. Detroit Pub. (Id. Workers Union, Local 1099 v. Sw. Ohio Reg'l Transit Auth., 163 F.3d 341, 347 (6th Cir. See Hartman v. Acton, No. McNeilly v. Land, 684 F.3d 611, 615 (6th Cir. The Court thus DISMISSES TQL's claim for tortious interference with a business relationship. The data breach was announced by TQL at the end of February. There is no clearly defined line. 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. The next day, March 9, 2021, TQL re-filed its motion for a preliminary injunction in this Court. Therefore, on balance, the Court concludes that TQL is not entitled to a preliminary injunction at this time. This happened to me in 2015. Ohio 2021) Court Description: ORDER granting 8 Motion to Remand to State Court. Aaron Grant Bell Atl. 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. Speech First, Inc. v. Schlissel, 939 F.3d 756, 763 (6th Cir. Specifically, TQL asserts that a preliminary injunction would further (1) the public interest in upholding contracts and preventing unfair competition; and (2) the public interest in the fair, predictable administration of the freight-brokering industry. Horter Inv. The Court GRANTS the motion with respect to TQL's tortious interference with a business relationship claim, but does so WITHOUT PREJUDICE. Use RevDex to write a review Reviews Trucking Transportation Brokers, Motor Freight Trucking, Logistics, Freight Forwarding Total Quality Logistics Total Quality Logistics Reviews ( 17) Detail"). Iqbal, 556 U.S. at 678. This matter is before the Court on cross motions for summary judgment. Importantly, Twombly, and later Iqbal, require plaintiffs to do more than simply state the elements of the claim in fact-form. 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. 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()); 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.
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