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

2022 Ohio 1802
CourtOhio Court of Appeals
DecidedMay 31, 2022
DocketCA2021-06-031
StatusPublished
Cited by6 cases

This text of 2022 Ohio 1802 (Total Quality Logistics, L.L.C. v. Tucker, Albin & Assocs.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

[Cite as Total Quality Logistics, L.L.C. v. Tucker, Albin & Assocs., 2022-Ohio-1802.]

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 Clermont CA2021-06-031

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

-2- Clermont CA2021-06-031

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

-3- Clermont CA2021-06-031

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.

-4- Clermont CA2021-06-031

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2022 Ohio 1802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/total-quality-logistics-llc-v-tucker-albin-assocs-ohioctapp-2022.