Morgan Drive Away and Bennett Truck Transport found themselves in court recently as a result of a fierce battle to dominate the manufactured housing drive-away business in Georgia.
On Sept. 26, Morgan filed suit against former officer Ruby Davis and Bennett, claiming that they had conspired to steal drivers, employees, customers and trade secrets, including confidential pricing data, from Morgan while Davis was employed there.
On Sept. 28, according to Morgan, a judge issued a preliminary injunction against Davis and Bennett.
The judge did not issue an order sought by Morgan preventing Bennett from leasing former Morgan drivers or soliciting Morgan customers. Instead, the court invalidated contracts between Bennett and the owner-operators Bennett had recruited from Morgan, an order that Bennett agreed to. Those drivers were freed from their contracts so they could choose between Morgan, Bennett, or another carrier based on full disclosure of information.
The court also invalidated letters from retail dealers to manufacturers that Bennett and Davis allegedly instigated, and "confirmed that retail dealers should not be improperly induced to use an alternate carrier," according to Morgan. Bennett and Davis were also prohibited by the court from keeping or using any confidential information and files allegedly taken from Morgan.
Bennett characterized the suit as “seemingly desperate legal tactics” in response to Bennett’s growth in the south Georgia manufactured housing market – growth it says was entirely legal.
The suit was apparently prompted by a sudden defection of nearly an entire Morgan facility. On Friday, Aug. 31, Morgan reportedly had a fully staffed terminal and regional office in Douglas, Ga., and a shipping force of some 50 tractors. By the end of Labor Day weekend on Sept. 4, Morgan’s entire Douglas operation had been diverted to Bennett.
Bennett admits it has been actively recruiting owner-operators and agents, but says it has done so only in a legal, competitive fashion.
Bennett officials suggest that the main reason drivers have left Morgan is that Morgan cut driver pay by 3 cents per mile in March.
Both companies claimed victory in the decision.
“We are very pleased with this decision” says Danny Lowry, president of Bennett Truck Transport, “because we feel that Bennett is clearly the superior company and we will benefit from equal competition.”
Michael J. Archual, President of Morgan Drive Away, said, “With the court's message that giving drivers and dealers false information will not be tolerated, we are confident that the drivers Morgan wants are going to return to Morgan and that our business and service to customers will return to normal."
In addition to the preliminary injunction issued by the court Sept. 28, Morgan is also seeking monetary damages from Bennett and Davis, as well as a permanent injunction against unfair competition and unlawful interference with Morgan's contracts.
On Sept. 26, Morgan filed suit against former officer Ruby Davis and Bennett, claiming that they had conspired to steal drivers, employees, customers and trade secrets, including confidential pricing data, from Morgan while Davis was employed there.
On Sept. 28, according to Morgan, a judge issued a preliminary injunction against Davis and Bennett.
The judge did not issue an order sought by Morgan preventing Bennett from leasing former Morgan drivers or soliciting Morgan customers. Instead, the court invalidated contracts between Bennett and the owner-operators Bennett had recruited from Morgan, an order that Bennett agreed to. Those drivers were freed from their contracts so they could choose between Morgan, Bennett, or another carrier based on full disclosure of information.
The court also invalidated letters from retail dealers to manufacturers that Bennett and Davis allegedly instigated, and "confirmed that retail dealers should not be improperly induced to use an alternate carrier," according to Morgan. Bennett and Davis were also prohibited by the court from keeping or using any confidential information and files allegedly taken from Morgan.
Bennett characterized the suit as “seemingly desperate legal tactics” in response to Bennett’s growth in the south Georgia manufactured housing market – growth it says was entirely legal.
The suit was apparently prompted by a sudden defection of nearly an entire Morgan facility. On Friday, Aug. 31, Morgan reportedly had a fully staffed terminal and regional office in Douglas, Ga., and a shipping force of some 50 tractors. By the end of Labor Day weekend on Sept. 4, Morgan’s entire Douglas operation had been diverted to Bennett.
Bennett admits it has been actively recruiting owner-operators and agents, but says it has done so only in a legal, competitive fashion.
Bennett officials suggest that the main reason drivers have left Morgan is that Morgan cut driver pay by 3 cents per mile in March.
Both companies claimed victory in the decision.
“We are very pleased with this decision” says Danny Lowry, president of Bennett Truck Transport, “because we feel that Bennett is clearly the superior company and we will benefit from equal competition.”
Michael J. Archual, President of Morgan Drive Away, said, “With the court's message that giving drivers and dealers false information will not be tolerated, we are confident that the drivers Morgan wants are going to return to Morgan and that our business and service to customers will return to normal."
In addition to the preliminary injunction issued by the court Sept. 28, Morgan is also seeking monetary damages from Bennett and Davis, as well as a permanent injunction against unfair competition and unlawful interference with Morgan's contracts.
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