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IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

MARCUS DELANO, individually and on behalf of all others similarly situated,

Plaintiff,

STONEFIELD LOGISTICS GROUP INC.,

Defendant.

Civil Action No. 3:25-cv-01847-RBC

Hon. Rebecca Chen, U.S. District Judge Hon. Timothy Farrell, U.S. Magistrate Judge

DEFENDANT STONEFIELD LOGISTICS GROUP INC.'S INITIAL DISCLOSURES PURSUANT TO FEDERAL RULE OF CIVIL PROCEDURE 26(a)(1)

Defendant Stonefield Logistics Group Inc. ("Stonefield," "SLG," or "Defendant"), by and through its attorneys of record, Calderwood & Harkness LLP, hereby serves its Initial Disclosures pursuant to Federal Rule of Civil Procedure 26(a)(1), subject to the objections, reservations, and limitations set forth herein. These disclosures are served upon counsel for Plaintiff Marcus Delano ("Plaintiff") in accordance with the parties' agreement regarding the scheduling of initial disclosures and the Court's Scheduling Order entered May 28, 2025 (Dkt. No. 22).

Date Served: June 16, 2025

I. PRELIMINARY STATEMENT AND RESERVATIONS

SLG makes the following Initial Disclosures subject to, and without waiver of, the following objections, reservations, and limitations:

1. These disclosures are made without waiver of any objections, defenses, affirmative defenses, or privileges, including but not limited to the attorney-client privilege, the work product doctrine, the common interest privilege, and any other applicable protections or immunities. The inclusion or identification of any individual, document, category of documents, or information in these disclosures shall not be construed as an acknowledgment that such individual, document, or information is relevant to Plaintiff's claims, admissible at trial, or otherwise discoverable under the Federal Rules of Civil Procedure.

2. SLG reserves the right to supplement, amend, or correct these disclosures as discovery proceeds and as additional information becomes available, in accordance with the continuing duty to supplement imposed by Federal Rule of Civil Procedure 26(e). SLG's investigation into the facts and circumstances underlying this litigation is ongoing, and these disclosures are not intended to represent a complete or final identification of all individuals with discoverable information, all documents or tangible things that may be used, or all categories of damages or insurance agreements that may become relevant.

3. These disclosures are based upon information reasonably available to Defendant as of the date hereof. They do not reflect the results of discovery that has not yet been conducted, documents that have not yet been reviewed, or information that may be obtained from third parties or from Plaintiff during the course of this litigation. SLG has not completed its document review or its investigation, and accordingly these disclosures should be understood as preliminary.

4. Nothing in these disclosures shall constitute, or be construed as constituting, an admission by SLG regarding the merits of any of Plaintiff's claims, the appropriateness of collective or class treatment under 29 U.S.C. § 216(b) or any other provision, the existence of any liability, the proper classification of any individual, or the amount of any alleged damages. SLG expressly denies all of Plaintiff's claims and contends that its drivers are and at all relevant times have been properly classified as independent contractors.

5. SLG reserves all affirmative defenses as set forth in its Answer and Affirmative Defenses filed June 2, 2025 (Dkt. No. 18), including, without limitation: (a) that all individuals within the proposed collective were properly classified as independent contractors under the economic reality test applied to claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. ("FLSA"), and under applicable state law; (b) the enforceability of the arbitration agreements and collective action waivers contained in the Independent Contractor Operating Agreement, Version 3.0 (January 2023), signed by approximately 640 drivers; (c) the statute of limitations applicable to FLSA claims under 29 U.S.C. § 255; (d) lack of standing for the named Plaintiff to represent individuals at hubs other than HUB-01 (Fort Worth); and (e) all other defenses identified in SLG's Answer.

6. SLG objects to any interpretation of these disclosures as an obligation to identify every individual who may possess any information tangentially related to any issue in this case. The individuals identified below are those whom SLG, based on its current investigation, believes are likely to have discoverable information that SLG may use to support its claims or defenses within the meaning of Rule 26(a)(1)(A)(i).

II. INDIVIDUALS LIKELY TO HAVE DISCOVERABLE INFORMATION — RULE 26(a)(1)(A)(i)

The following individuals are identified as likely to have discoverable information that Defendant may use to support its claims or defenses. The description of the subjects of each individual's information is general and non-exhaustive, and is provided in accordance with Rule 26(a)(1)(A)(i). SLG does not represent that it has contacted or interviewed every individual listed below, nor does the identification of any individual constitute a representation that SLG will or will not call such individual as a witness at trial. SLG reserves the right to supplement this list as its investigation and discovery continue.

A. Stonefield Logistics Group Inc. — Corporate Representatives

1. Margaret Hollis

Title: General Counsel, Stonefield Logistics Group Inc.

Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039

Subjects: Ms. Hollis is likely to have discoverable information concerning the following topics: SLG's corporate structure and governance, including its organization as a Delaware corporation registered to do business in Texas, Oklahoma, Louisiana, and Arkansas; the engagement of outside counsel at Pennfield & Daye LLP to conduct an independent contractor classification analysis and to provide legal advice regarding the proper classification of SLG delivery drivers; the development, drafting, and subsequent revision of the Independent Contractor Operating Agreement ("ICOA") template, including Version 1.0 (originally deployed in 2018), Version 2.0 (revised in August 2020), and Version 3.0 (revised in January 2023); legal advice received and provided regarding driver classification under the FLSA economic reality test and applicable state law standards; company policies regarding the engagement and management of delivery drivers; SLG's Employment Practices Liability Insurance coverage under Broadleaf Insurance Company Policy No. BIC-EPL-2024-07831; SLG's receipt of the reservation of rights letter dated May 19, 2025; implementation and management of the litigation hold in connection with this matter; and coordination with current litigation counsel at Calderwood & Harkness LLP.

2. Aaron Turcotte

Title: Chief People Officer, Stonefield Logistics Group Inc.

Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039

Subjects: Mr. Turcotte is likely to have discoverable information concerning the following topics: SLG's human resources and driver engagement policies and procedures; the processes by which ICOAs are executed by newly engaged drivers, including the onboarding process and orientation materials provided at the time of engagement; the design, content, and administration of SLG's driver training programs, including the initial training curriculum (approximately 16 hours) and the quarterly training updates (approximately 4 hours); the decision-making process regarding driver classification and the factors considered in that process; the receipt and handling of driver complaints, grievances, and feedback concerning working conditions, pay, and classification; the structure and frequency of performance review processes for drivers; the development, rationale, and enforcement of the minimum acceptance rate policy (requiring drivers to accept at least 85% of offered deliveries per rolling 30-day period); policies regarding branded uniforms, identification badges, and vehicle signage requirements; and driver relations policies, practices, and procedures as implemented across SLG's 14 distribution hubs.

3. Gerald Wynn

Title: Chief Executive Officer, Stonefield Logistics Group Inc.

Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039

Subjects: Mr. Wynn is likely to have discoverable information concerning the following topics: SLG's corporate strategy, mission, and overall business operations; the development and evolution of SLG's business model encompassing last-mile delivery, regional freight, and white-glove delivery services; the strategic decision to classify delivery drivers as independent contractors rather than employees, including the business rationale for that classification; SLG's financial performance and condition, including Fiscal Year 2024 revenue of approximately $312.7 million and EBITDA of approximately $28.4 million; the company's growth trajectory since 2019; the relationship between SLG and Ridgepoint Capital Partners Fund III, LP, including the nature and scope of Ridgepoint's involvement in SLG's strategic direction; and high-level communications with investors, board members, and senior management regarding the company's driver classification practices and any associated risks.

4. Trevor Sandoval

Title: Vice President of Operations, Stonefield Logistics Group Inc.

Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039

Subjects: Mr. Sandoval is likely to have discoverable information concerning the following topics: the operational structure of SLG's 14 distribution hubs located in Texas, Oklahoma, Louisiana, and Arkansas, including the operational differences among those hubs; the design, functionality, and day-to-day operation of the RouteSync dispatch platform, including how delivery opportunities are presented to drivers, how drivers interact with the platform, and how routes and delivery assignments are communicated; the deployment and use of GPS telematics tracking devices installed in driver vehicles, including the types of data captured and the purposes for which that data is used; the process for delivery route assignment and the degree of autonomy drivers exercise in selecting, modifying, or declining routes; SLG's standard delivery windows (7:00 AM through 8:00 PM, Monday through Saturday) and the extent to which drivers may operate outside those windows; the distinction between standard deliveries and white-glove deliveries and any differences in the level of direction provided to drivers for each type; vehicle specifications and requirements; hub-level management practices, including the degree of operational control exercised by individual hub managers; and driver scheduling flexibility, including the ability of drivers to set their own schedules, accept or decline work, and work for other delivery platforms.

5. Karen Lund

Title: Director of Driver Relations, Stonefield Logistics Group Inc.

Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039

Subjects: Ms. Lund is likely to have discoverable information concerning the following topics: the substance and evolution of the ICOA across its three versions — v1.0 (2018), v2.0 (August 2020), and v3.0 (January 2023) — including the specific differences among those versions and the reasons for the revisions; the driver onboarding process, including the information and materials provided to drivers at the time of engagement; the driver offboarding process, including the circumstances under which ICOAs are terminated and the procedures followed upon termination; the ICOA provisions governing subcontracting, including the process by which drivers may request and obtain approval to engage subcontractors to perform deliveries on their behalf; the range and variability of driver independence as reflected in SLG's records across different hubs and time periods; the non-compete provisions contained in the ICOA (providing for a 12-month non-competition period within a 50-mile radius of the driver's assigned distribution hub); the arbitration clause and collective action waiver provisions incorporated into ICOA v3.0 (January 2023); the number of drivers who signed each version of the ICOA, including the approximately 640 drivers who signed ICOA v3.0; and communications between SLG and its drivers regarding classification status, performance expectations, and company policies.

6. Dennis Faulkner

Title: Hub Manager, Fort Worth Distribution Hub (HUB-01), Stonefield Logistics Group Inc.

Address: 1015 Railhead Parkway, Fort Worth, TX 76106

Subjects: Mr. Faulkner is likely to have discoverable information concerning the following topics: the day-to-day operations at the Fort Worth distribution hub (designated internally as HUB-01); the named Plaintiff Marcus Delano's performance history, work patterns, delivery activities, and conduct during his engagement at HUB-01 from approximately March 2021 through September 2024; hub-specific scheduling practices at HUB-01, including how delivery opportunities were offered to drivers and the extent to which drivers could choose their schedules; the degree of route flexibility afforded to drivers at HUB-01, including whether drivers could select, modify, or decline assigned routes; records and data regarding delivery acceptance rates and delivery refusal rates among HUB-01 drivers; the approximate number of drivers engaged at HUB-01 during the relevant period (approximately 142 drivers); Mr. Delano's interactions with hub management personnel, including any performance-related communications, complaints, or disputes; and any differences between the management practices at HUB-01 and those at other SLG distribution hubs, to the extent Mr. Faulkner has knowledge thereof.

B. Ridgepoint Capital

7. Nathan Okonkwo

Title: Managing Director, Ridgepoint Capital Management LLC (SLG Board Observer)

Address: 225 W. Wacker Drive, Suite 2400, Chicago, IL 60606

Subjects: Mr. Okonkwo is likely to have discoverable information concerning the following topics: Ridgepoint Capital Partners Fund III, LP's acquisition of a 72% equity stake in Stonefield Logistics Group Inc. in July 2019, in a transaction valued at approximately $285 million; the nature and extent of Ridgepoint's oversight of SLG's business operations since the acquisition, including Ridgepoint's role as a board observer; governance-level and board-level communications regarding SLG's driver classification practices and any associated legal, financial, or reputational risks; the investment thesis underlying Ridgepoint's acquisition of SLG, including assumptions regarding the independent contractor classification model; and the potential exit or recapitalization timeline contemplated by Ridgepoint for late 2025 or early 2026, to the extent such timeline bears on the company's operations and driver engagement model.

C. Prior Outside Counsel

8. Attorneys at Pennfield & Daye LLP

Address: 801 Cherry Street, Suite 1400, Fort Worth, TX 76102

Subjects: Attorneys at Pennfield & Daye LLP are likely to have discoverable information concerning the following topics: the drafting of the original Independent Contractor Operating Agreement template (v1.0) in 2018; the independent contractor classification analysis and legal advice provided to SLG during the period from 2018 through 2024; and the subsequent revisions to the ICOA template in August 2020 (v2.0) and January 2023 (v3.0), including the addition of the arbitration clause and collective action waiver in v3.0.

Privilege Assertion: SLG asserts the attorney-client privilege and/or work product protection over all communications between SLG and attorneys at Pennfield & Daye LLP relating to legal advice concerning driver classification, the drafting and revision of the ICOA, and related legal matters. SLG will produce a privilege log identifying such communications in accordance with the Court's Scheduling Order and the requirements of Federal Rule of Civil Procedure 26(b)(5).

D. Expert Consultant

9. Dr. Priya Ramanathan

Title: Lead Consultant / Expert Economist, Corbin Risk Advisors LLC

Address: 1901 N. Moore Street, Suite 1020, Arlington, VA 22209

Subjects: Dr. Ramanathan is likely to have discoverable information concerning the following topics: statistical and economic analysis of SLG driver data, including the variance in hours worked, gross pay, delivery acceptance rates, route deviation frequency, and the extent of multi-platform engagement among drivers across SLG's 14 distribution hubs and among the 1,187 unique drivers within the proposed collective; expert opinions and analyses regarding whether the putative collective members are "similarly situated" for purposes of conditional certification under 29 U.S.C. § 216(b); and economic modeling relevant to SLG's defenses.

Note: Dr. Ramanathan has been retained by SLG through counsel as a consulting expert. SLG reserves all rights with respect to the designation of Dr. Ramanathan as a testifying expert and the production of expert reports pursuant to Federal Rule of Civil Procedure 26(a)(2), in accordance with the schedule to be set by the Court.

E. Named Plaintiff

10. Marcus Delano

Address: 3417 Calmont Avenue, Fort Worth, TX 76107

Subjects: Mr. Delano is likely to have discoverable information concerning the following topics: Plaintiff's delivery services performed for SLG from approximately March 2021 through September 2024 at the Fort Worth distribution hub (HUB-01); the ICOA signed by Mr. Delano, which was the 2018 version (v1.0) and which did not contain an arbitration clause or collective action waiver; the hours purportedly worked by Mr. Delano, which SLG's GPS and RouteSync data indicates averaged approximately 58 hours per week, though SLG disputes that all such time constitutes compensable work time; Mr. Delano's average weekly gross pay of approximately $1,247 based on 2023 pay records; the per-delivery payment rates received by Mr. Delano; Mr. Delano's delivery route practices, including route selection, route deviation, and delivery sequencing; Mr. Delano's alleged inability to obtain subcontracting approvals and any communications with SLG regarding subcontracting; Mr. Delano's work, if any, for competing delivery platforms during the period of his engagement with SLG; Mr. Delano's vehicle ownership, vehicle expenses, fuel costs, insurance costs, maintenance costs, and other business expenses; Mr. Delano's tax filings, including IRS Schedule C filings reflecting self-employment income and business deductions; and Mr. Delano's communications with other SLG drivers regarding working conditions, pay, classification, and this litigation.

F. Third-Party Financial and Audit Contacts

11. Representatives of Meridian National Bank

Address: 1700 Pacific Avenue, Suite 500, Dallas, TX 75201

Subjects: Representatives of Meridian National Bank are likely to have discoverable information concerning the following topics: SLG's senior secured credit facility with Meridian National Bank; financial reporting by SLG to Meridian in connection with the credit facility; and covenant compliance requirements relevant to SLG's business operations and driver engagement model, including any covenants relating to contingent liabilities, pending litigation, or labor and employment matters.

12. Representatives of Whitmore & Solano CPAs LLP

Address: 8350 N. Central Expressway, Suite 600, Dallas, TX 75206

Subjects: Representatives of Whitmore & Solano CPAs LLP are likely to have discoverable information concerning the following topics: the external audit of SLG's financial statements; the classification and accounting treatment of driver payments in SLG's financial records, including whether such payments were classified as independent contractor payments or otherwise; and the preparation and issuance of IRS Form 1099-NEC for independent contractor drivers engaged by SLG during the relevant period.

G. Insurance. 13. Representatives of Broadleaf Insurance Company

Address: 100 Constitution Plaza, Hartford, CT 06103

Subjects: Representatives of Broadleaf Insurance Company are likely to have discoverable information concerning the following topics: SLG's Employment Practices Liability Insurance Policy No. BIC-EPL-2024-07831, with a policy period of January 1, 2025 through January 1, 2026; the policy terms, including the $2,000,000 self-insured retention ("SIR") and the $10,000,000 aggregate policy limit; the reservation of rights letter issued by Broadleaf on May 19, 2025, in connection with this litigation; and the ongoing coverage determination regarding whether Plaintiff's misclassification claims constitute covered "Employment Practices Wrongful Acts" within the meaning of the policy.

H. Hub Managers at Other Distribution Hubs

14. Hub Managers at SLG's Remaining 13 Distribution Hubs (HUB-02 through HUB-14)

Addresses: c/o Stonefield Logistics Group Inc., 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039

Subjects: The hub managers at SLG's remaining 13 distribution hubs are likely to have discoverable information concerning the following topics: hub-specific operational practices at their respective hubs; the degree of driver control and autonomy afforded at each hub; delivery types serviced by each hub; scheduling practices and the extent of driver flexibility in scheduling; subcontracting permissions and the frequency of subcontracting by drivers; and variations in management approach and operational practices across hubs. The following table identifies the hub locations and the approximate number of unique drivers engaged at each hub during the relevant period:

Note: SLG reserves the right to identify specific hub managers by name in supplemental disclosures, in accordance with its continuing obligation under Rule 26(e). SLG is in the process of confirming the identity and current contact information for each hub manager who served during the relevant period, as some hubs experienced managerial turnover.

III. DOCUMENTS, ELECTRONICALLY STORED INFORMATION, AND TANGIBLE THINGS — RULE 26(a)(1)(A)(ii)

Pursuant to Federal Rule of Civil Procedure 26(a)(1)(A)(ii), SLG identifies the following categories of documents, electronically stored information ("ESI"), and tangible things that are in the possession, custody, or control of SLG and that SLG may use to support its claims or defenses, unless the use would be solely for impeachment. The identification of a category below does not constitute a representation that all documents within that category will be produced, as certain documents may be withheld on the basis of attorney-client privilege, work product protection, or other applicable protections. SLG reserves the right to supplement this disclosure as its investigation and document review continue.

A. Independent Contractor Operating Agreements (ICOAs)

Template versions of the Independent Contractor Operating Agreement, including: ICOA Version 1.0 (originally deployed in 2018); ICOA Version 2.0 (revised in August 2020); and ICOA Version 3.0 (revised in January 2023). The template ICOAs were drafted and/or revised by Pennfield & Daye LLP on behalf of SLG.

Executed ICOAs for all 1,187 unique drivers who signed ICOAs during the relevant period (April 30, 2022 through the present), including the executed ICOA for named Plaintiff Marcus Delano (Version 1.0, signed on or about March 2021).

Approximately 640 executed ICOA Version 3.0 agreements containing the arbitration clause and collective action waiver, which SLG contends requires the dismissal or compelled arbitration of claims brought by drivers who signed that version.

B. RouteSync Dispatch Platform Data

Delivery assignment records, route data, delivery completion records, delivery refusal and decline records, and acceptance rate calculations generated by and maintained within the RouteSync dispatch platform for all drivers across all 14 distribution hubs during the relevant period.

System logs reflecting driver interactions with the RouteSync platform, including login times, route review activity, delivery acceptance and refusal timestamps, and platform usage patterns.

C. GPS Telematics Data

GPS tracking logs from SLG-provided telematics devices installed in driver vehicles, reflecting location data, routes traveled, stops and idle time, speed data, and associated time stamps for all drivers during the relevant period.

Route deviation data reflecting instances in which drivers deviated from suggested or assigned delivery routes, including the frequency, duration, and nature of such deviations.

D. Pay Records and Financial Documents

Per-delivery payment records for all 1,187 unique drivers during the relevant period, reflecting payment rates that ranged from $14.50 to $38.00 per delivery depending on package weight, delivery distance, and delivery type (standard versus white-glove).

Payment history for named Plaintiff Marcus Delano, including records reflecting average weekly gross pay of approximately $1,247 in calendar year 2023.

IRS Form 1099-NEC issued to independent contractor drivers for the tax years within the relevant period, reflecting amounts paid to each driver.

SLG internal financial records reflecting Fiscal Year 2024 revenue of approximately $312.7 million and EBITDA of approximately $28.4 million, to the extent relevant to SLG's business operations and driver engagement model.

E. Training Materials

The initial training curriculum (approximately 16 hours in duration) provided to newly engaged drivers, including written materials, instructional guides, safety protocols, and delivery standards documentation.

Quarterly training update materials (approximately 4 hours in duration) provided to drivers on an ongoing basis.

Training attendance and completion records for drivers during the relevant period, reflecting the dates of training sessions attended, topics covered, and any assessments or certifications obtained.

F. Performance Records

Performance review records for drivers during the relevant period, including documentation related to the minimum acceptance rate policy (requiring drivers to accept at least 85% of offered deliveries per rolling 30-day period), notifications issued to drivers regarding non-compliance with the acceptance rate threshold, and any consequences imposed.

Customer complaint records and any resulting delivery assignment adjustments, including records reflecting whether customer feedback led to changes in driver assignments, additional training, or other actions.

Records regarding Marcus Delano's performance at HUB-01, including acceptance rates, delivery completion times, customer feedback, route adherence data, and any communications between hub management and Mr. Delano regarding his performance.

G. Subcontracting Records

Records of driver requests for subcontracting approval submitted under the ICOA's subcontracting provisions, including the dates of requests, the identities of proposed subcontractors, approvals granted, and approvals denied, along with the reasons for any denials.

Records reflecting the extent to which drivers who obtained subcontracting approval actually engaged subcontractors to perform deliveries on their behalf, including the frequency and volume of subcontracted deliveries.

H. Uniform and Branding Materials

SLG policies regarding branded uniforms, identification badges, and vehicle placards, including any written policies, memoranda, or directives issued to drivers regarding the use of SLG-branded materials.

Distribution records for uniforms, identification badges, and vehicle branding materials issued to drivers, including records reflecting whether such materials were mandatory or optional and whether drivers bore any cost for such materials.

I. Hub Operational Policies

Hub-specific operational manuals, standard operating procedures, and management guidelines for each of SLG's 14 distribution hubs, to the extent such documents exist and reflect the operational expectations and practices at individual hubs.

Records reflecting operational differences across hubs, including variations in scheduling practices, route assignment methods, delivery window enforcement, subcontracting practices, and management styles.

J. Driver Communications

Communications between SLG management, hub managers, and drivers regarding scheduling, route assignments, delivery expectations, performance, and classification status, including emails, text messages, platform messages, and memoranda.

Internal SLG communications regarding driver classification policies, including communications among SLG corporate personnel, hub managers, and other management regarding the independent contractor classification model and any discussions of reclassification.

K. Corporate and Governance Documents

SLG corporate formation documents, including its Certificate of Incorporation filed with the Delaware Secretary of State (Charter No. 6247183) and its registration to transact business in Texas filed with the Texas Secretary of State (Filing No. 0803127465).

Board meeting minutes and board materials referencing, discussing, or relating to driver classification, employment practices, or the risks associated with the independent contractor model.

Documents related to Ridgepoint Capital Partners Fund III, LP's acquisition of a 72% equity stake in SLG in July 2019, including the stock purchase agreement and any ancillary agreements, to the extent such documents bear on SLG's business model and driver classification practices.

L. Insurance Documents

Broadleaf Insurance Company Employment Practices Liability Insurance Policy No. BIC-EPL-2024-07831, with a policy period of January 1, 2025 through January 1, 2026, a self-insured retention of $2,000,000, and an aggregate policy limit of $10,000,000.

The reservation of rights letter issued by Broadleaf Insurance Company dated May 19, 2025, in connection with this litigation.

Prior policy period EPLI policies issued by Broadleaf Insurance Company or any predecessor insurer, to the extent relevant to coverage for claims arising during the relevant period.

M. Vehicle Specifications and Inspection Records

SLG vehicle specifications and requirements applicable to driver-owned vehicles, including the requirement that vehicles be cargo vans or box trucks with a model year of 2015 or newer.

SLG safety inspection records for driver vehicles, including records of periodic vehicle inspections, inspection results, and any actions taken with respect to vehicles that did not meet SLG's specifications.

N. Driver Multi-Platform Engagement Records

Records reflecting the extent to which SLG drivers performed work for competing delivery platforms or other delivery services during the relevant period, to the extent such information is contained in SLG's records, including self-reported information provided by drivers.

Records reflecting drivers' other business activities, including any documentation submitted by drivers in connection with their engagement by SLG reflecting the operation of independent delivery businesses or other entrepreneurial activities.

O. Privileged Materials (Withheld)

Communications between SLG personnel and attorneys at Pennfield & Daye LLP regarding the independent contractor classification analysis and the drafting, revision, and implementation of the ICOA (spanning the period from 2018 through 2024) are being withheld from production on the grounds of attorney-client privilege and work product doctrine. A privilege log identifying such communications with reasonable particularity will be produced separately, in accordance with the Court's Scheduling Order and Federal Rule of Civil Procedure 26(b)(5)(A).

SLG does not waive any applicable privilege or protection by reason of any inadvertent production of privileged or protected material, and SLG invokes the protections of Federal Rule of Evidence 502(b) and (d) with respect to any such inadvertent production.

IV. COMPUTATION OF DAMAGES — RULE 26(a)(1)(A)(iii)

Pursuant to Federal Rule of Civil Procedure 26(a)(1)(A)(iii), SLG states as follows with respect to the computation of any category of damages claimed by the disclosing party:

SLG is the Defendant in this action and does not assert any affirmative claim for monetary damages against Plaintiff. SLG disputes that Plaintiff or any putative collective member is entitled to any damages whatsoever in connection with the claims asserted in this action.

SLG contends that its delivery drivers were and are properly classified as independent contractors under the economic reality test applied by the Fifth Circuit to claims arising under the FLSA, see, e.g., Hopkins v. Cornerstone Am., 545 F.3d 338, 343 (5th Cir. 2008), and under applicable Texas law. Because SLG's drivers are independent contractors and not employees within the meaning of the FLSA, no overtime wages are or were owed, and Plaintiff's claims fail as a matter of law.

To the extent the Court requires SLG to address Plaintiff's damages methodology at this stage, SLG disputes Plaintiff's damages computation in its entirety, including the following specific objections:

(a) Hours Worked. Plaintiff claims that he averaged 58 hours per week of compensable work time during his engagement with SLG. SLG disputes this figure. SLG contends that certain periods captured by GPS telematics data and RouteSync platform logs reflect non-work activity, including personal errands, meal breaks, extended idle time, and time spent on personal matters unrelated to SLG deliveries. SLG's records indicate significant variability in the hours worked by individual drivers across hubs and time periods, and SLG will present evidence and expert analysis demonstrating that Plaintiff's claimed hours overstate compensable work time.

(b) Effective Hourly Rate. Plaintiff's computation of an effective hourly rate of approximately $21.50 per hour (calculated by dividing average weekly gross pay of $1,247 by 58 hours) does not account for vehicle expenses, fuel costs, commercial auto insurance premiums, vehicle maintenance and depreciation costs, and other business expenses borne by drivers as independent contractors. These costs, which drivers deducted on their IRS Schedule C filings, reduce the effective net rate but also reflect the drivers' entrepreneurial investment and risk — hallmarks of independent contractor status. SLG contends that Plaintiff's failure to account for these costs renders his effective hourly rate calculation misleading and unreliable.

(c) Extrapolation of Damages Across the Proposed Collective. Plaintiff's extrapolation of individual damages — calculated as $193.50 per week in claimed unpaid overtime, multiplied by 161 weeks within the limitations period, yielding $31,153.50 per driver — across all 1,187 drivers in the proposed collective to arrive at a total single damages figure of $36,979,204.50 (or $73,958,409.00 with liquidated damages under 29 U.S.C. § 216(b)) is speculative, unsupported, and fundamentally flawed. This extrapolation improperly assumes that all 1,187 drivers worked identical hours, were paid identical amounts, incurred identical expenses, and had identical working arrangements. SLG's records demonstrate that this assumption is false. Driver hours, gross pay, acceptance rates, delivery volumes, route deviations, multi-platform engagement, and expense profiles varied substantially across hubs and among individual drivers. This variability is precisely the kind of individualized inquiry that defeats both collective certification and any attempt to compute damages on a collective-wide basis.

SLG reserves the right to present its own damages calculations and expert analysis at the appropriate stage of the proceedings, including in connection with any motion to decertify the collective, at summary judgment, and at trial.

Documents supporting SLG's position on the absence of damages and the deficiencies in Plaintiff's damages methodology include, without limitation: RouteSync dispatch platform data, GPS telematics logs, per-delivery pay records, IRS Form 1099-NEC records, driver expense records, ICOA agreements, and the statistical and economic analysis prepared by Dr. Priya Ramanathan of Corbin Risk Advisors LLC regarding variance in hours, pay, acceptance rates, and working conditions across SLG's 14 distribution hubs and among the 1,187 drivers in the proposed collective.

V. INSURANCE AGREEMENTS — RULE 26(a)(1)(A)(iv)

Pursuant to Federal Rule of Civil Procedure 26(a)(1)(A)(iv), SLG identifies the following insurance agreement under which an insurance business may be liable to satisfy all or part of a possible judgment in the action or to indemnify or reimburse for payments made to satisfy the judgment:

Coverage Status: Broadleaf Insurance Company has acknowledged receipt of SLG's notice of this action and has issued a reservation of rights letter dated May 19, 2025. In its reservation of rights letter, Broadleaf reserves its rights on the following grounds, among others: (a) whether the misclassification claims asserted in this action constitute covered "Employment Practices Wrongful Acts" as that term is defined in the policy; and (b) a potential late-notice defense with respect to conduct alleged to have occurred prior to the inception of the current policy period.

A copy of the applicable insurance agreement, including the policy declarations page and all endorsements, will be made available for inspection and copying upon reasonable request by Plaintiff's counsel, subject to any applicable confidentiality protections.

SLG reserves the right to supplement this disclosure to the extent additional insurance policies are identified that may provide coverage for all or part of the claims asserted in this action.

VI. SIGNATURE BLOCK AND CERTIFICATE OF SERVICE

Respectfully submitted,

CALDERWOOD & HARKNESS LLP

By: ________

Bernard Crawford Texas Bar No. 04891273

Email: bcrawford@calderwoodharkness.com

Renata Vasquez Texas Bar No. 24076514

Email: rvasquez@calderwoodharkness.com

James Underwood Texas Bar No. 24108932

Email: junderwood@calderwoodharkness.com

Devon Archer Texas Bar No. 24125847

Email: darcher@calderwoodharkness.com

Lisa Cheng, Paralegal

2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Telephone: (214) 953-6000 Facsimile: (214) 953-6001

Attorneys for Defendant Stonefield Logistics Group Inc. EIN: 82-4731956

CERTIFICATE OF SERVICE

I hereby certify that on June 16, 2025, a true and correct copy of the foregoing Defendant Stonefield Logistics Group Inc.'s Initial Disclosures Pursuant to Federal Rule of Civil Procedure 26(a)(1) was served upon counsel for Plaintiff via the Court's CM/ECF electronic filing system and via email at the following address:

Claudia Hartwell HARTWELL & BRASHEAR PLLC 500 N. Akard Street, Suite 1750 Dallas, TX 75201

Email: chartwell@hartwellbrashear.com

________________________________________

Bernard Crawford

Hub Designation	Location	Approx. Driver Count (Relevant Period)
HUB-02	Dallas, TX	168
HUB-03	Houston, TX	195
HUB-04	San Antonio, TX	121
HUB-05	Austin, TX	98
HUB-06	Oklahoma City, OK	87
HUB-07	Tulsa, OK	64
HUB-08	Baton Rouge, LA	53
HUB-09	New Orleans, LA	71
HUB-10	Little Rock, AR	46
HUB-11	Shreveport, LA	34
HUB-12	El Paso, TX	41
HUB-13	Lubbock, TX	29
HUB-14	Corpus Christi, TX	38
Item	Detail
Insurer	Broadleaf Insurance Company
Policy Number	BIC-EPL-2024-07831
Type of Policy	Employment Practices Liability Insurance (EPLI)
Policy Period	January 1, 2025 – January 1, 2026
Self-Insured Retention (SIR)	$2,000,000
Aggregate Policy Limit	$10,000,000

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION
MARCUS DELANO, individually and on behalf of all others similarly situated,
Plaintiff,
v.
STONEFIELD LOGISTICS GROUP INC.,
Defendant.
Civil Action No. 3:25-cv-01847-RBC
Hon. Rebecca Chen, U.S. District Judge Hon. Timothy Farrell, U.S. Magistrate Judge
DEFENDANT STONEFIELD LOGISTICS GROUP INC.'S INITIAL DISCLOSURES PURSUANT TO FEDERAL RULE OF CIVIL PROCEDURE 26(a)(1)
Defendant Stonefield Logistics Group Inc. ("Stonefield," "SLG," or "Defendant"), by and through its attorneys of record, Calderwood & Harkness LLP, hereby serves its Initial Disclosures pursuant to Federal Rule of Civil Procedure 26(a)(1), subject to the objections, reservations, and limitations set forth herein. These disclosures are served upon counsel for Plaintiff Marcus Delano ("Plaintiff") in accordance with the parties' agreement regarding the scheduling of initial disclosures and the Court's Scheduling Order entered May 28, 2025 (Dkt. No. 22).
Date Served: June 16, 2025
I. PRELIMINARY STATEMENT AND RESERVATIONS
SLG makes the following Initial Disclosures subject to, and without waiver of, the following objections, reservations, and limitations:
1. These disclosures are made without waiver of any objections, defenses, affirmative defenses, or privileges, including but not limited to the attorney-client privilege, the work product doctrine, the common interest privilege, and any other applicable protections or immunities. The inclusion or identification of any individual, document, category of documents, or information in these disclosures shall not be construed as an acknowledgment that such individual, document, or information is relevant to Plaintiff's claims, admissible at trial, or otherwise discoverable under the Federal Rules of Civil Procedure.
2. SLG reserves the right to supplement, amend, or correct these disclosures as discovery proceeds and as additional information becomes available, in accordance with the continuing duty to supplement imposed by Federal Rule of Civil Procedure 26(e). SLG's investigation into the facts and circumstances underlying this litigation is ongoing, and these disclosures are not intended to represent a complete or final identification of all individuals with discoverable information, all documents or tangible things that may be used, or all categories of damages or insurance agreements that may become relevant.
3. These disclosures are based upon information reasonably available to Defendant as of the date hereof. They do not reflect the results of discovery that has not yet been conducted, documents that have not yet been reviewed, or information that may be obtained from third parties or from Plaintiff during the course of this litigation. SLG has not completed its document review or its investigation, and accordingly these disclosures should be understood as preliminary.
4. Nothing in these disclosures shall constitute, or be construed as constituting, an admission by SLG regarding the merits of any of Plaintiff's claims, the appropriateness of collective or class treatment under 29 U.S.C. § 216(b) or any other provision, the existence of any liability, the proper classification of any individual, or the amount of any alleged damages. SLG expressly denies all of Plaintiff's claims and contends that its drivers are and at all relevant times have been properly classified as independent contractors.
5. SLG reserves all affirmative defenses as set forth in its Answer and Affirmative Defenses filed June 2, 2025 (Dkt. No. 18), including, without limitation: (a) that all individuals within the proposed collective were properly classified as independent contractors under the economic reality test applied to claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. ("FLSA"), and under applicable state law; (b) the enforceability of the arbitration agreements and collective action waivers contained in the Independent Contractor Operating Agreement, Version 3.0 (January 2023), signed by approximately 640 drivers; (c) the statute of limitations applicable to FLSA claims under 29 U.S.C. § 255; (d) lack of standing for the named Plaintiff to represent individuals at hubs other than HUB-01 (Fort Worth); and (e) all other defenses identified in SLG's Answer.
6. SLG objects to any interpretation of these disclosures as an obligation to identify every individual who may possess any information tangentially related to any issue in this case. The individuals identified below are those whom SLG, based on its current investigation, believes are likely to have discoverable information that SLG may use to support its claims or defenses within the meaning of Rule 26(a)(1)(A)(i).
II. INDIVIDUALS LIKELY TO HAVE DISCOVERABLE INFORMATION — RULE 26(a)(1)(A)(i)
The following individuals are identified as likely to have discoverable information that Defendant may use to support its claims or defenses. The description of the subjects of each individual's information is general and non-exhaustive, and is provided in accordance with Rule 26(a)(1)(A)(i). SLG does not represent that it has contacted or interviewed every individual listed below, nor does the identification of any individual constitute a representation that SLG will or will not call such individual as a witness at trial. SLG reserves the right to supplement this list as its investigation and discovery continue.
A. Stonefield Logistics Group Inc. — Corporate Representatives
1. Margaret Hollis
Title: General Counsel, Stonefield Logistics Group Inc.
Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039
Subjects: Ms. Hollis is likely to have discoverable information concerning the following topics: SLG's corporate structure and governance, including its organization as a Delaware corporation registered to do business in Texas, Oklahoma, Louisiana, and Arkansas; the engagement of outside counsel at Pennfield & Daye LLP to conduct an independent contractor classification analysis and to provide legal advice regarding the proper classification of SLG delivery drivers; the development, drafting, and subsequent revision of the Independent Contractor Operating Agreement ("ICOA") template, including Version 1.0 (originally deployed in 2018), Version 2.0 (revised in August 2020), and Version 3.0 (revised in January 2023); legal advice received and provided regarding driver classification under the FLSA economic reality test and applicable state law standards; company policies regarding the engagement and management of delivery drivers; SLG's Employment Practices Liability Insurance coverage under Broadleaf Insurance Company Policy No. BIC-EPL-2024-07831; SLG's receipt of the reservation of rights letter dated May 19, 2025; implementation and management of the litigation hold in connection with this matter; and coordination with current litigation counsel at Calderwood & Harkness LLP.
2. Aaron Turcotte
Title: Chief People Officer, Stonefield Logistics Group Inc.
Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039
Subjects: Mr. Turcotte is likely to have discoverable information concerning the following topics: SLG's human resources and driver engagement policies and procedures; the processes by which ICOAs are executed by newly engaged drivers, including the onboarding process and orientation materials provided at the time of engagement; the design, content, and administration of SLG's driver training programs, including the initial training curriculum (approximately 16 hours) and the quarterly training updates (approximately 4 hours); the decision-making process regarding driver classification and the factors considered in that process; the receipt and handling of driver complaints, grievances, and feedback concerning working conditions, pay, and classification; the structure and frequency of performance review processes for drivers; the development, rationale, and enforcement of the minimum acceptance rate policy (requiring drivers to accept at least 85% of offered deliveries per rolling 30-day period); policies regarding branded uniforms, identification badges, and vehicle signage requirements; and driver relations policies, practices, and procedures as implemented across SLG's 14 distribution hubs.
3. Gerald Wynn
Title: Chief Executive Officer, Stonefield Logistics Group Inc.
Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039
Subjects: Mr. Wynn is likely to have discoverable information concerning the following topics: SLG's corporate strategy, mission, and overall business operations; the development and evolution of SLG's business model encompassing last-mile delivery, regional freight, and white-glove delivery services; the strategic decision to classify delivery drivers as independent contractors rather than employees, including the business rationale for that classification; SLG's financial performance and condition, including Fiscal Year 2024 revenue of approximately $312.7 million and EBITDA of approximately $28.4 million; the company's growth trajectory since 2019; the relationship between SLG and Ridgepoint Capital Partners Fund III, LP, including the nature and scope of Ridgepoint's involvement in SLG's strategic direction; and high-level communications with investors, board members, and senior management regarding the company's driver classification practices and any associated risks.
4. Trevor Sandoval
Title: Vice President of Operations, Stonefield Logistics Group Inc.
Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039
Subjects: Mr. Sandoval is likely to have discoverable information concerning the following topics: the operational structure of SLG's 14 distribution hubs located in Texas, Oklahoma, Louisiana, and Arkansas, including the operational differences among those hubs; the design, functionality, and day-to-day operation of the RouteSync dispatch platform, including how delivery opportunities are presented to drivers, how drivers interact with the platform, and how routes and delivery assignments are communicated; the deployment and use of GPS telematics tracking devices installed in driver vehicles, including the types of data captured and the purposes for which that data is used; the process for delivery route assignment and the degree of autonomy drivers exercise in selecting, modifying, or declining routes; SLG's standard delivery windows (7:00 AM through 8:00 PM, Monday through Saturday) and the extent to which drivers may operate outside those windows; the distinction between standard deliveries and white-glove deliveries and any differences in the level of direction provided to drivers for each type; vehicle specifications and requirements; hub-level management practices, including the degree of operational control exercised by individual hub managers; and driver scheduling flexibility, including the ability of drivers to set their own schedules, accept or decline work, and work for other delivery platforms.
5. Karen Lund
Title: Director of Driver Relations, Stonefield Logistics Group Inc.
Address: 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039
Subjects: Ms. Lund is likely to have discoverable information concerning the following topics: the substance and evolution of the ICOA across its three versions — v1.0 (2018), v2.0 (August 2020), and v3.0 (January 2023) — including the specific differences among those versions and the reasons for the revisions; the driver onboarding process, including the information and materials provided to drivers at the time of engagement; the driver offboarding process, including the circumstances under which ICOAs are terminated and the procedures followed upon termination; the ICOA provisions governing subcontracting, including the process by which drivers may request and obtain approval to engage subcontractors to perform deliveries on their behalf; the range and variability of driver independence as reflected in SLG's records across different hubs and time periods; the non-compete provisions contained in the ICOA (providing for a 12-month non-competition period within a 50-mile radius of the driver's assigned distribution hub); the arbitration clause and collective action waiver provisions incorporated into ICOA v3.0 (January 2023); the number of drivers who signed each version of the ICOA, including the approximately 640 drivers who signed ICOA v3.0; and communications between SLG and its drivers regarding classification status, performance expectations, and company policies.
6. Dennis Faulkner
Title: Hub Manager, Fort Worth Distribution Hub (HUB-01), Stonefield Logistics Group Inc.
Address: 1015 Railhead Parkway, Fort Worth, TX 76106
Subjects: Mr. Faulkner is likely to have discoverable information concerning the following topics: the day-to-day operations at the Fort Worth distribution hub (designated internally as HUB-01); the named Plaintiff Marcus Delano's performance history, work patterns, delivery activities, and conduct during his engagement at HUB-01 from approximately March 2021 through September 2024; hub-specific scheduling practices at HUB-01, including how delivery opportunities were offered to drivers and the extent to which drivers could choose their schedules; the degree of route flexibility afforded to drivers at HUB-01, including whether drivers could select, modify, or decline assigned routes; records and data regarding delivery acceptance rates and delivery refusal rates among HUB-01 drivers; the approximate number of drivers engaged at HUB-01 during the relevant period (approximately 142 drivers); Mr. Delano's interactions with hub management personnel, including any performance-related communications, complaints, or disputes; and any differences between the management practices at HUB-01 and those at other SLG distribution hubs, to the extent Mr. Faulkner has knowledge thereof.
B. Ridgepoint Capital
7. Nathan Okonkwo
Title: Managing Director, Ridgepoint Capital Management LLC (SLG Board Observer)
Address: 225 W. Wacker Drive, Suite 2400, Chicago, IL 60606
Subjects: Mr. Okonkwo is likely to have discoverable information concerning the following topics: Ridgepoint Capital Partners Fund III, LP's acquisition of a 72% equity stake in Stonefield Logistics Group Inc. in July 2019, in a transaction valued at approximately $285 million; the nature and extent of Ridgepoint's oversight of SLG's business operations since the acquisition, including Ridgepoint's role as a board observer; governance-level and board-level communications regarding SLG's driver classification practices and any associated legal, financial, or reputational risks; the investment thesis underlying Ridgepoint's acquisition of SLG, including assumptions regarding the independent contractor classification model; and the potential exit or recapitalization timeline contemplated by Ridgepoint for late 2025 or early 2026, to the extent such timeline bears on the company's operations and driver engagement model.
C. Prior Outside Counsel
8. Attorneys at Pennfield & Daye LLP
Address: 801 Cherry Street, Suite 1400, Fort Worth, TX 76102
Subjects: Attorneys at Pennfield & Daye LLP are likely to have discoverable information concerning the following topics: the drafting of the original Independent Contractor Operating Agreement template (v1.0) in 2018; the independent contractor classification analysis and legal advice provided to SLG during the period from 2018 through 2024; and the subsequent revisions to the ICOA template in August 2020 (v2.0) and January 2023 (v3.0), including the addition of the arbitration clause and collective action waiver in v3.0.
Privilege Assertion: SLG asserts the attorney-client privilege and/or work product protection over all communications between SLG and attorneys at Pennfield & Daye LLP relating to legal advice concerning driver classification, the drafting and revision of the ICOA, and related legal matters. SLG will produce a privilege log identifying such communications in accordance with the Court's Scheduling Order and the requirements of Federal Rule of Civil Procedure 26(b)(5).
D. Expert Consultant
9. Dr. Priya Ramanathan
Title: Lead Consultant / Expert Economist, Corbin Risk Advisors LLC
Address: 1901 N. Moore Street, Suite 1020, Arlington, VA 22209
Subjects: Dr. Ramanathan is likely to have discoverable information concerning the following topics: statistical and economic analysis of SLG driver data, including the variance in hours worked, gross pay, delivery acceptance rates, route deviation frequency, and the extent of multi-platform engagement among drivers across SLG's 14 distribution hubs and among the 1,187 unique drivers within the proposed collective; expert opinions and analyses regarding whether the putative collective members are "similarly situated" for purposes of conditional certification under 29 U.S.C. § 216(b); and economic modeling relevant to SLG's defenses.
Note: Dr. Ramanathan has been retained by SLG through counsel as a consulting expert. SLG reserves all rights with respect to the designation of Dr. Ramanathan as a testifying expert and the production of expert reports pursuant to Federal Rule of Civil Procedure 26(a)(2), in accordance with the schedule to be set by the Court.
E. Named Plaintiff
10. Marcus Delano
Address: 3417 Calmont Avenue, Fort Worth, TX 76107
Subjects: Mr. Delano is likely to have discoverable information concerning the following topics: Plaintiff's delivery services performed for SLG from approximately March 2021 through September 2024 at the Fort Worth distribution hub (HUB-01); the ICOA signed by Mr. Delano, which was the 2018 version (v1.0) and which did not contain an arbitration clause or collective action waiver; the hours purportedly worked by Mr. Delano, which SLG's GPS and RouteSync data indicates averaged approximately 58 hours per week, though SLG disputes that all such time constitutes compensable work time; Mr. Delano's average weekly gross pay of approximately $1,247 based on 2023 pay records; the per-delivery payment rates received by Mr. Delano; Mr. Delano's delivery route practices, including route selection, route deviation, and delivery sequencing; Mr. Delano's alleged inability to obtain subcontracting approvals and any communications with SLG regarding subcontracting; Mr. Delano's work, if any, for competing delivery platforms during the period of his engagement with SLG; Mr. Delano's vehicle ownership, vehicle expenses, fuel costs, insurance costs, maintenance costs, and other business expenses; Mr. Delano's tax filings, including IRS Schedule C filings reflecting self-employment income and business deductions; and Mr. Delano's communications with other SLG drivers regarding working conditions, pay, classification, and this litigation.
F. Third-Party Financial and Audit Contacts
11. Representatives of Meridian National Bank
Address: 1700 Pacific Avenue, Suite 500, Dallas, TX 75201
Subjects: Representatives of Meridian National Bank are likely to have discoverable information concerning the following topics: SLG's senior secured credit facility with Meridian National Bank; financial reporting by SLG to Meridian in connection with the credit facility; and covenant compliance requirements relevant to SLG's business operations and driver engagement model, including any covenants relating to contingent liabilities, pending litigation, or labor and employment matters.
12. Representatives of Whitmore & Solano CPAs LLP
Address: 8350 N. Central Expressway, Suite 600, Dallas, TX 75206
Subjects: Representatives of Whitmore & Solano CPAs LLP are likely to have discoverable information concerning the following topics: the external audit of SLG's financial statements; the classification and accounting treatment of driver payments in SLG's financial records, including whether such payments were classified as independent contractor payments or otherwise; and the preparation and issuance of IRS Form 1099-NEC for independent contractor drivers engaged by SLG during the relevant period.
G. Insurance. 13. Representatives of Broadleaf Insurance Company
Address: 100 Constitution Plaza, Hartford, CT 06103
Subjects: Representatives of Broadleaf Insurance Company are likely to have discoverable information concerning the following topics: SLG's Employment Practices Liability Insurance Policy No. BIC-EPL-2024-07831, with a policy period of January 1, 2025 through January 1, 2026; the policy terms, including the $2,000,000 self-insured retention ("SIR") and the $10,000,000 aggregate policy limit; the reservation of rights letter issued by Broadleaf on May 19, 2025, in connection with this litigation; and the ongoing coverage determination regarding whether Plaintiff's misclassification claims constitute covered "Employment Practices Wrongful Acts" within the meaning of the policy.
H. Hub Managers at Other Distribution Hubs
14. Hub Managers at SLG's Remaining 13 Distribution Hubs (HUB-02 through HUB-14)
Addresses: c/o Stonefield Logistics Group Inc., 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039
Subjects: The hub managers at SLG's remaining 13 distribution hubs are likely to have discoverable information concerning the following topics: hub-specific operational practices at their respective hubs; the degree of driver control and autonomy afforded at each hub; delivery types serviced by each hub; scheduling practices and the extent of driver flexibility in scheduling; subcontracting permissions and the frequency of subcontracting by drivers; and variations in management approach and operational practices across hubs. The following table identifies the hub locations and the approximate number of unique drivers engaged at each hub during the relevant period:
Note: SLG reserves the right to identify specific hub managers by name in supplemental disclosures, in accordance with its continuing obligation under Rule 26(e). SLG is in the process of confirming the identity and current contact information for each hub manager who served during the relevant period, as some hubs experienced managerial turnover.
III. DOCUMENTS, ELECTRONICALLY STORED INFORMATION, AND TANGIBLE THINGS — RULE 26(a)(1)(A)(ii)
Pursuant to Federal Rule of Civil Procedure 26(a)(1)(A)(ii), SLG identifies the following categories of documents, electronically stored information ("ESI"), and tangible things that are in the possession, custody, or control of SLG and that SLG may use to support its claims or defenses, unless the use would be solely for impeachment. The identification of a category below does not constitute a representation that all documents within that category will be produced, as certain documents may be withheld on the basis of attorney-client privilege, work product protection, or other applicable protections. SLG reserves the right to supplement this disclosure as its investigation and document review continue.
A. Independent Contractor Operating Agreements (ICOAs)
Template versions of the Independent Contractor Operating Agreement, including: ICOA Version 1.0 (originally deployed in 2018); ICOA Version 2.0 (revised in August 2020); and ICOA Version 3.0 (revised in January 2023). The template ICOAs were drafted and/or revised by Pennfield & Daye LLP on behalf of SLG.
Executed ICOAs for all 1,187 unique drivers who signed ICOAs during the relevant period (April 30, 2022 through the present), including the executed ICOA for named Plaintiff Marcus Delano (Version 1.0, signed on or about March 2021).
Approximately 640 executed ICOA Version 3.0 agreements containing the arbitration clause and collective action waiver, which SLG contends requires the dismissal or compelled arbitration of claims brought by drivers who signed that version.
B. RouteSync Dispatch Platform Data
Delivery assignment records, route data, delivery completion records, delivery refusal and decline records, and acceptance rate calculations generated by and maintained within the RouteSync dispatch platform for all drivers across all 14 distribution hubs during the relevant period.
System logs reflecting driver interactions with the RouteSync platform, including login times, route review activity, delivery acceptance and refusal timestamps, and platform usage patterns.
C. GPS Telematics Data
GPS tracking logs from SLG-provided telematics devices installed in driver vehicles, reflecting location data, routes traveled, stops and idle time, speed data, and associated time stamps for all drivers during the relevant period.
Route deviation data reflecting instances in which drivers deviated from suggested or assigned delivery routes, including the frequency, duration, and nature of such deviations.
D. Pay Records and Financial Documents
Per-delivery payment records for all 1,187 unique drivers during the relevant period, reflecting payment rates that ranged from $14.50 to $38.00 per delivery depending on package weight, delivery distance, and delivery type (standard versus white-glove).
Payment history for named Plaintiff Marcus Delano, including records reflecting average weekly gross pay of approximately $1,247 in calendar year 2023.
IRS Form 1099-NEC issued to independent contractor drivers for the tax years within the relevant period, reflecting amounts paid to each driver.
SLG internal financial records reflecting Fiscal Year 2024 revenue of approximately $312.7 million and EBITDA of approximately $28.4 million, to the extent relevant to SLG's business operations and driver engagement model.
E. Training Materials
The initial training curriculum (approximately 16 hours in duration) provided to newly engaged drivers, including written materials, instructional guides, safety protocols, and delivery standards documentation.
Quarterly training update materials (approximately 4 hours in duration) provided to drivers on an ongoing basis.
Training attendance and completion records for drivers during the relevant period, reflecting the dates of training sessions attended, topics covered, and any assessments or certifications obtained.
F. Performance Records
Performance review records for drivers during the relevant period, including documentation related to the minimum acceptance rate policy (requiring drivers to accept at least 85% of offered deliveries per rolling 30-day period), notifications issued to drivers regarding non-compliance with the acceptance rate threshold, and any consequences imposed.
Customer complaint records and any resulting delivery assignment adjustments, including records reflecting whether customer feedback led to changes in driver assignments, additional training, or other actions.
Records regarding Marcus Delano's performance at HUB-01, including acceptance rates, delivery completion times, customer feedback, route adherence data, and any communications between hub management and Mr. Delano regarding his performance.
G. Subcontracting Records
Records of driver requests for subcontracting approval submitted under the ICOA's subcontracting provisions, including the dates of requests, the identities of proposed subcontractors, approvals granted, and approvals denied, along with the reasons for any denials.
Records reflecting the extent to which drivers who obtained subcontracting approval actually engaged subcontractors to perform deliveries on their behalf, including the frequency and volume of subcontracted deliveries.
H. Uniform and Branding Materials
SLG policies regarding branded uniforms, identification badges, and vehicle placards, including any written policies, memoranda, or directives issued to drivers regarding the use of SLG-branded materials.
Distribution records for uniforms, identification badges, and vehicle branding materials issued to drivers, including records reflecting whether such materials were mandatory or optional and whether drivers bore any cost for such materials.
I. Hub Operational Policies
Hub-specific operational manuals, standard operating procedures, and management guidelines for each of SLG's 14 distribution hubs, to the extent such documents exist and reflect the operational expectations and practices at individual hubs.
Records reflecting operational differences across hubs, including variations in scheduling practices, route assignment methods, delivery window enforcement, subcontracting practices, and management styles.
J. Driver Communications
Communications between SLG management, hub managers, and drivers regarding scheduling, route assignments, delivery expectations, performance, and classification status, including emails, text messages, platform messages, and memoranda.
Internal SLG communications regarding driver classification policies, including communications among SLG corporate personnel, hub managers, and other management regarding the independent contractor classification model and any discussions of reclassification.
K. Corporate and Governance Documents
SLG corporate formation documents, including its Certificate of Incorporation filed with the Delaware Secretary of State (Charter No. 6247183) and its registration to transact business in Texas filed with the Texas Secretary of State (Filing No. 0803127465).
Board meeting minutes and board materials referencing, discussing, or relating to driver classification, employment practices, or the risks associated with the independent contractor model.
Documents related to Ridgepoint Capital Partners Fund III, LP's acquisition of a 72% equity stake in SLG in July 2019, including the stock purchase agreement and any ancillary agreements, to the extent such documents bear on SLG's business model and driver classification practices.
L. Insurance Documents
Broadleaf Insurance Company Employment Practices Liability Insurance Policy No. BIC-EPL-2024-07831, with a policy period of January 1, 2025 through January 1, 2026, a self-insured retention of $2,000,000, and an aggregate policy limit of $10,000,000.
The reservation of rights letter issued by Broadleaf Insurance Company dated May 19, 2025, in connection with this litigation.
Prior policy period EPLI policies issued by Broadleaf Insurance Company or any predecessor insurer, to the extent relevant to coverage for claims arising during the relevant period.
M. Vehicle Specifications and Inspection Records
SLG vehicle specifications and requirements applicable to driver-owned vehicles, including the requirement that vehicles be cargo vans or box trucks with a model year of 2015 or newer.
SLG safety inspection records for driver vehicles, including records of periodic vehicle inspections, inspection results, and any actions taken with respect to vehicles that did not meet SLG's specifications.
N. Driver Multi-Platform Engagement Records
Records reflecting the extent to which SLG drivers performed work for competing delivery platforms or other delivery services during the relevant period, to the extent such information is contained in SLG's records, including self-reported information provided by drivers.
Records reflecting drivers' other business activities, including any documentation submitted by drivers in connection with their engagement by SLG reflecting the operation of independent delivery businesses or other entrepreneurial activities.
O. Privileged Materials (Withheld)
Communications between SLG personnel and attorneys at Pennfield & Daye LLP regarding the independent contractor classification analysis and the drafting, revision, and implementation of the ICOA (spanning the period from 2018 through 2024) are being withheld from production on the grounds of attorney-client privilege and work product doctrine. A privilege log identifying such communications with reasonable particularity will be produced separately, in accordance with the Court's Scheduling Order and Federal Rule of Civil Procedure 26(b)(5)(A).
SLG does not waive any applicable privilege or protection by reason of any inadvertent production of privileged or protected material, and SLG invokes the protections of Federal Rule of Evidence 502(b) and (d) with respect to any such inadvertent production.
IV. COMPUTATION OF DAMAGES — RULE 26(a)(1)(A)(iii)
Pursuant to Federal Rule of Civil Procedure 26(a)(1)(A)(iii), SLG states as follows with respect to the computation of any category of damages claimed by the disclosing party:
SLG is the Defendant in this action and does not assert any affirmative claim for monetary damages against Plaintiff. SLG disputes that Plaintiff or any putative collective member is entitled to any damages whatsoever in connection with the claims asserted in this action.
SLG contends that its delivery drivers were and are properly classified as independent contractors under the economic reality test applied by the Fifth Circuit to claims arising under the FLSA, see, e.g., Hopkins v. Cornerstone Am., 545 F.3d 338, 343 (5th Cir. 2008), and under applicable Texas law. Because SLG's drivers are independent contractors and not employees within the meaning of the FLSA, no overtime wages are or were owed, and Plaintiff's claims fail as a matter of law.
To the extent the Court requires SLG to address Plaintiff's damages methodology at this stage, SLG disputes Plaintiff's damages computation in its entirety, including the following specific objections:
(a) Hours Worked. Plaintiff claims that he averaged 58 hours per week of compensable work time during his engagement with SLG. SLG disputes this figure. SLG contends that certain periods captured by GPS telematics data and RouteSync platform logs reflect non-work activity, including personal errands, meal breaks, extended idle time, and time spent on personal matters unrelated to SLG deliveries. SLG's records indicate significant variability in the hours worked by individual drivers across hubs and time periods, and SLG will present evidence and expert analysis demonstrating that Plaintiff's claimed hours overstate compensable work time.
(b) Effective Hourly Rate. Plaintiff's computation of an effective hourly rate of approximately $21.50 per hour (calculated by dividing average weekly gross pay of $1,247 by 58 hours) does not account for vehicle expenses, fuel costs, commercial auto insurance premiums, vehicle maintenance and depreciation costs, and other business expenses borne by drivers as independent contractors. These costs, which drivers deducted on their IRS Schedule C filings, reduce the effective net rate but also reflect the drivers' entrepreneurial investment and risk — hallmarks of independent contractor status. SLG contends that Plaintiff's failure to account for these costs renders his effective hourly rate calculation misleading and unreliable.
(c) Extrapolation of Damages Across the Proposed Collective. Plaintiff's extrapolation of individual damages — calculated as $193.50 per week in claimed unpaid overtime, multiplied by 161 weeks within the limitations period, yielding $31,153.50 per driver — across all 1,187 drivers in the proposed collective to arrive at a total single damages figure of $36,979,204.50 (or $73,958,409.00 with liquidated damages under 29 U.S.C. § 216(b)) is speculative, unsupported, and fundamentally flawed. This extrapolation improperly assumes that all 1,187 drivers worked identical hours, were paid identical amounts, incurred identical expenses, and had identical working arrangements. SLG's records demonstrate that this assumption is false. Driver hours, gross pay, acceptance rates, delivery volumes, route deviations, multi-platform engagement, and expense profiles varied substantially across hubs and among individual drivers. This variability is precisely the kind of individualized inquiry that defeats both collective certification and any attempt to compute damages on a collective-wide basis.
SLG reserves the right to present its own damages calculations and expert analysis at the appropriate stage of the proceedings, including in connection with any motion to decertify the collective, at summary judgment, and at trial.
Documents supporting SLG's position on the absence of damages and the deficiencies in Plaintiff's damages methodology include, without limitation: RouteSync dispatch platform data, GPS telematics logs, per-delivery pay records, IRS Form 1099-NEC records, driver expense records, ICOA agreements, and the statistical and economic analysis prepared by Dr. Priya Ramanathan of Corbin Risk Advisors LLC regarding variance in hours, pay, acceptance rates, and working conditions across SLG's 14 distribution hubs and among the 1,187 drivers in the proposed collective.
V. INSURANCE AGREEMENTS — RULE 26(a)(1)(A)(iv)
Pursuant to Federal Rule of Civil Procedure 26(a)(1)(A)(iv), SLG identifies the following insurance agreement under which an insurance business may be liable to satisfy all or part of a possible judgment in the action or to indemnify or reimburse for payments made to satisfy the judgment:
Coverage Status: Broadleaf Insurance Company has acknowledged receipt of SLG's notice of this action and has issued a reservation of rights letter dated May 19, 2025. In its reservation of rights letter, Broadleaf reserves its rights on the following grounds, among others: (a) whether the misclassification claims asserted in this action constitute covered "Employment Practices Wrongful Acts" as that term is defined in the policy; and (b) a potential late-notice defense with respect to conduct alleged to have occurred prior to the inception of the current policy period.
A copy of the applicable insurance agreement, including the policy declarations page and all endorsements, will be made available for inspection and copying upon reasonable request by Plaintiff's counsel, subject to any applicable confidentiality protections.
SLG reserves the right to supplement this disclosure to the extent additional insurance policies are identified that may provide coverage for all or part of the claims asserted in this action.
VI. SIGNATURE BLOCK AND CERTIFICATE OF SERVICE
Respectfully submitted,
CALDERWOOD & HARKNESS LLP
By: ________
Bernard Crawford Texas Bar No. 04891273
Email: bcrawford@calderwoodharkness.com
Renata Vasquez Texas Bar No. 24076514
Email: rvasquez@calderwoodharkness.com
James Underwood Texas Bar No. 24108932
Email: junderwood@calderwoodharkness.com
Devon Archer Texas Bar No. 24125847
Email: darcher@calderwoodharkness.com
Lisa Cheng, Paralegal
2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Telephone: (214) 953-6000 Facsimile: (214) 953-6001
Attorneys for Defendant Stonefield Logistics Group Inc. EIN: 82-4731956
CERTIFICATE OF SERVICE
I hereby certify that on June 16, 2025, a true and correct copy of the foregoing Defendant Stonefield Logistics Group Inc.'s Initial Disclosures Pursuant to Federal Rule of Civil Procedure 26(a)(1) was served upon counsel for Plaintiff via the Court's CM/ECF electronic filing system and via email at the following address:
Claudia Hartwell HARTWELL & BRASHEAR PLLC 500 N. Akard Street, Suite 1750 Dallas, TX 75201
Email: chartwell@hartwellbrashear.com
________________________________________
Bernard Crawford
Hub Designation | Location | Approx. Driver Count (Relevant Period)
HUB-02 | Dallas, TX | 168
HUB-03 | Houston, TX | 195
HUB-04 | San Antonio, TX | 121
HUB-05 | Austin, TX | 98
HUB-06 | Oklahoma City, OK | 87
HUB-07 | Tulsa, OK | 64
HUB-08 | Baton Rouge, LA | 53
HUB-09 | New Orleans, LA | 71
HUB-10 | Little Rock, AR | 46
HUB-11 | Shreveport, LA | 34
HUB-12 | El Paso, TX | 41
HUB-13 | Lubbock, TX | 29
HUB-14 | Corpus Christi, TX | 38
Item | Detail
Insurer | Broadleaf Insurance Company
Policy Number | BIC-EPL-2024-07831
Type of Policy | Employment Practices Liability Insurance (EPLI)
Policy Period | January 1, 2025 – January 1, 2026
Self-Insured Retention (SIR) | $2,000,000
Aggregate Policy Limit | $10,000,000

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

STONEFIELD LOGISTICS GROUP INC.,

I. PRELIMINARY STATEMENT AND RESERVATIONS

VI. SIGNATURE BLOCK AND CERTIFICATE OF SERVICE

CALDERWOOD & HARKNESS LLP

CERTIFICATE OF SERVICE

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