Total Quality Logistics, L.L.C. v. Tucker, Albin & Assocs.

2022 Ohio 1802
Ohio Court of Appeals·Decided May 31, 2022·No. CA2021-06-031·Published·Cited by 6 cases

Opinion

IN THE COURT OF APPEALS

TWELFTH APPELLATE DISTRICT OF OHIO CLERMONT COUNTY

TOTAL QUALITY LOGISTICS, LLC, : CASE NO. CA2021-06-031

Appellant, : OPINION 5/31/2022

:

- vs -

:

TUCKER, ALBIN AND ASSOCIATES, : et al., :

Appellees.

CIVIL APPEAL FROM CLERMONT COUNTY COURT OF COMMON PLEAS Case No. 2019 CVH 01237

Lindhorst & Dreidame, and Barry F. Fagel and Elizabeth M. Johnson, for appellant. Statman, Harris & Eyrick, and William B. Fecher, for appellees.

M. POWELL, P.J.

{¶ 1} Total Quality Logistics, LLC, ("TQL") appeals the judgment of the Clermont County Court of Common Pleas granting summary judgment to appellees, Tucker, Albin and Associates ("Tucker") and Chris Reed ("Reed"), on its claims for breach of contract and punitive damages and its request for a permanent injunction. TQL also appeals the judgment of the trial court dismissing, under Civ.R. 12(B)(6), its claim for tortious

interference with contract and/or business relationships.

{¶ 2} TQL is a freight broker that arranges transportation of goods for its customers with third-party trucking companies. In this case, TQL arranged for Daansa Services, LLC ("Daansa"), to transport a load of goods to Prestige Kitchen and Bath ("Prestige"), a customer of The Corsi Group. Daansa had signed a Broker-Carrier Agreement with TQL, paragraph 4(b) of which pertinently states that Daansa may seek payment only from TQL:

CARRIER [Daansa] agrees that BROKER [TQL] is the sole party responsible for payment of CARRIER's invoices related to the Services and that, under no circumstances, will CARRIER contact or seek payment from any CUSTOMER or any other party responsible for any payment related to the Services.

CARRIER waives any right to collect from CUSTOMERS, unless BROKER provides CARRIER with consent in a writing[.]

{¶ 3} A dispute developed between TQL and Daansa concerning the Corsi load, and TQL refused to pay Daansa, leaving Daansa with an account receivable on its balance sheet. Daansa sold the account to Tucker, a Texas company that purchases accounts receivable from trucking companies and tries to collect.

{¶ 4} On September 11, 2019, Tucker began efforts to collect upon the Daansa account. Reed, one of Tucker's collections agents, called Prestige and demanded payment on the Daansa account. This call spawned a series of communications that day. Unsure what to do, Prestige emailed Corsi about the call, noting, "I guess TQL did not pay the trucking company." Corsi forwarded Prestige's email to Kevin Fitzgerald at TQL, who evidently called Reed right away, because Reed sent Fitzgerald a follow-up email, stating, "Yes I agree calling 3rd parties creates hassle however it is part of the process." Fitzgerald responded that he was transferring the matter to TQL's legal department. Shortly after, TQL legal-claims specialist Amy Unger sent Reed an email telling him plainly that under the Broker-Carrier Agreement payment may be sought only from TQL and that contacting anyone else about payment violates the Agreement. Unger further told Reed, "Besides

being a blatant breach of our Agreement, contacting its customers is not something TQL takes lightly. * * * We will work with you on any payment disputes that you represent, but this unlawful contact is not something we will abide."

{¶ 5} Less than a month later, on October 4, 2019, TQL filed suit against Tucker and Reed (herein collectively referred to as Tucker), asserting claims for breach of contract, tortious interference with contract and/or business relationships, and punitive damages. The complaint alleged that Tucker is bound by the Broker-Carrier Agreement signed by Daansa, because Tucker either is the assignee of Daansa's account receivable or was acting as Daansa's agent. In addition to punitive damages, the complaint sought compensatory damages for injury to business goodwill, attorney fees, and costs. The complaint also sought "injunctive relief prohibiting the Defendants, or their agents, from contacting or suing any TQL customers, or TQL's customers' customers, demanding payment for invoices allegedly owed to trucking companies."

{¶ 6} Tucker filed a motion to dismiss TQL's tortious interference claim under Civ.R.

12(B)(6). On May 22, 2020, the trial court granted the dismissal motion, concluding that the complaint failed to allege that Tucker's actions caused a breach in TQL's relationship with a third party or caused the breach of a contract that existed between TQL and a third party. Tucker later filed a motion for summary judgment on the breach-of-contract and punitive- damages claims and separately filed a motion for summary judgment on the request for an injunction. On May 21, 2021, the trial court ruled on both summary-judgment motions together. The court granted summary judgment for Tucker on the breach-of-contract and punitive-damages claims as well as on TQL's permanent-injunction request. The court found that while Tucker had violated the Agreement, TQL failed to show that it suffered injury to goodwill as a result. Additionally, because TQL failed to show damages and failed to show that Tucker threatened imminent and irreparable harm, the court declined to grant

injunctive relief.

{¶ 7} TQL now appeals, raising two assignments of error.

{¶ 8} Assignment of Error No. 1:

{¶ 9} THE TRIAL COURT ERRED AS A MATTER OF LAW WHEN IT GRANTED DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT.

{¶ 10} TQL first challenges the trial court's May 21, 2021 decision granting summary judgment for Tucker regarding TQL's claim for breach of contract and request for injunctive relief. TQL argues that the trial court erred by finding that it failed to show damage caused by Tucker's violation of paragraph 4(B) of the Broker-Carrier Agreement. TQL maintains that its goodwill was injured because of Reed's call to Prestige, because it suggests to TQL's customers that TQL does not always pay the companies who might transport their goods. TQL also argues that the trial court erred by finding that it failed to show imminent and irreparable harm. TQL contends that Tucker will continue to violate the Agreement without an injunction prohibiting it from doing so.

{¶ 11} Under Civ.R. 56(C), summary judgment is proper when the movant demonstrates "that there is no issue as to any material fact, that the moving party is entitled to judgment as a matter of law, and that reasonable minds can come to but one conclusion, and that conclusion is adverse to the nonmoving party." Miller v. Bike Athletic Co., 80 Ohio St.3d 607, 617, 1998-Ohio-178. We review a trial court's ruling on a summary-judgment motion de novo, that is, without deference to the trial court's decision. Shannon v. Fischer, 12th Dist. Clermont No. CA2020-05-022, 2020-Ohio-5567, ¶ 13. "De novo review means that this court uses the same standard that the trial court should have used, and we examine the evidence to determine whether as a matter of law no genuine issues exist for trial." Morris v. Dobbins Nursing Home, 12th Dist. Clermont No. CA2010-12-102, 2011-Ohio- 3014, ¶ 14.

{¶ 12} A plaintiff seeking to recover on a claim for breach of contract must prove not only a contractual violation but also that "the plaintiff incurred damages as a result." S&G Invests., L.L.C. v. United Cos., L.L.C., 12th Dist. Clermont No. CA2010-03-017, 2010-Ohio- 3691, ¶ 12. Tucker does not dispute that it is bound by and violated the Agreement. The issue is whether TQL presented sufficient evidence to show that it is entitled to monetary relief for the violation.

Free access — add to your briefcase to read the full text and ask questions with AI

Total Quality Logistics, L.L.C. v. Tucker, Albin & Assocs., 2022 Ohio 1802 (Ohio Ct. App. 2022).

2022 Ohio 1802 (Total Quality Logistics, L.L.C. v. Tucker, Albin & Assocs.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

S.E. v. Edelstein
2024 Ohio 1090 (Ohio Court of Appeals, 2024)
Von Stein v. Brandenburg
2023 Ohio 4481 (Ohio Court of Appeals, 2023)
State ex rel. Yost v. Combs
2023 Ohio 3295 (Ohio Court of Appeals, 2023)
Columbus v. State
2023 Ohio 2858 (Ohio Court of Appeals, 2023)
Total Quality Logistics, L.L.C. v. Johnson
2023 Ohio 1319 (Ohio Court of Appeals, 2023)
Geico v. Willis
2022 Ohio 4227 (Ohio Court of Appeals, 2022)