litigation-hold-notice.docx

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CALDERWOOD & HARKNESS LLP Attorneys at Law 2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Telephone: (214) 553-7200 Facsimile: (214) 553-7201 www.calderwoodharkness.com

May 2, 2025

VIA EMAIL AND OVERNIGHT COURIER

PRIVILEGED AND CONFIDENTIAL — ATTORNEY-CLIENT COMMUNICATION

LITIGATION HOLD — IMMEDIATE ACTION REQUIRED

Margaret Hollis, Esq. General Counsel Stonefield Logistics Group Inc. 4200 Commerce Gateway Blvd., Suite 800 Irving, TX 75039

Re: Litigation Hold Notice — *Delano v. Stonefield Logistics Group Inc.*, Case No. 3:25-cv-01847-RBC, U.S. District Court for the Northern District of Texas, Dallas Division

Dear Ms. Hollis:

I. Purpose and Legal Obligation

As you are aware, Calderwood & Harkness LLP represents Stonefield Logistics Group Inc. ("SLG" or the "Company") in defending the above-captioned action. On April 30, 2025, named plaintiff Marcus Delano filed a collective action complaint in the United States District Court for the Northern District of Texas, Dallas Division, asserting claims under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. ("FLSA"), together with related state-law claims under the Texas Payday Law, Tex. Lab. Code §§ 61.001 et seq. The case has been assigned to the Honorable Judge R. Brian Caldwell and docketed as Case No. 3:25-cv-01847-RBC.

The complaint alleges that SLG has systematically misclassified approximately 1,200 delivery drivers across its network of distribution hubs as independent contractors rather than employees. Plaintiff Delano seeks recovery of unpaid overtime wages, liquidated damages, statutory penalties, pre-judgment and post-judgment interest, and attorneys' fees on behalf of himself and all similarly situated drivers. Plaintiff further alleges that SLG's classification practices were willful within the meaning of 29 U.S.C. § 255(a), thereby invoking a three-year statute of limitations. The complaint additionally asserts state-law claims under the Texas Payday Law for failure to pay wages in accordance with applicable statutory requirements.

The purpose of this letter is to notify you of SLG's immediate and ongoing legal obligation to preserve all documents, electronically stored information ("ESI"), and tangible things that are or may be relevant to the claims, defenses, and subject matter of this litigation. This obligation arises under federal law, including Federal Rule of Civil Procedure 37(e) and the common-law duty of preservation as articulated by the courts of the Fifth Circuit and the Northern District of Texas. The duty to preserve attached no later than April 30, 2025, when the complaint was filed and served, and may extend to an earlier date if SLG reasonably anticipated litigation prior to that time.

Failure to preserve relevant materials may result in severe consequences, including but not limited to court-imposed sanctions, adverse inference instructions to the jury, monetary penalties, preclusion of evidence, dismissal of defenses, default judgment, and other remedies the Court deems appropriate. These consequences can be case-dispositive and may fundamentally compromise SLG's ability to defend this action.

This preservation obligation supersedes any and all document retention or destruction policies currently in effect at SLG, including any routine or scheduled destruction, deletion, or recycling of records. To the extent that any SLG policy, procedure, or automated system calls for the periodic purging, overwriting, deletion, or disposal of records — whether in physical or electronic form — that policy, procedure, or automated system must be immediately suspended with respect to the categories of materials described in this notice.

Specifically and without limitation, the following automatic deletion protocols must be suspended immediately:

• Email purge schedules and mailbox size limitations that would result in the deletion of messages within the relevant time period;

• Database archiving routines that would result in the overwriting or deletion of RouteSync dispatch data, GPS telematics logs, or other operational databases;

• Backup tape recycling programs, including any rotation schedules that would result in the overwriting of backup media containing relevant data;

• Cloud storage lifecycle management policies that would result in the automatic deletion or migration of data to inaccessible tiers; and

• Any other automated or manual processes that could result in the destruction, alteration, or loss of potentially relevant information.

We cannot overstate the importance of immediate compliance with this litigation hold. The duty to preserve is absolute and non-delegable. Each day that passes without full implementation of this hold increases the risk that relevant evidence may be lost and that SLG may face sanctions.

II. Scope of the Litigation Hold

A. Temporal Scope

This litigation hold applies to all materials created, sent, received, modified, stored, or otherwise maintained from January 1, 2017 through the present, and shall continue in effect until Calderwood & Harkness issues a written release of the hold.

The January 1, 2017 start date has been selected to provide a reasonable pre-period buffer for materials that may be relevant to the claims and defenses in this action. While the relevant FLSA limitations period for willful violations is three years, commencing April 30, 2022 (calculated from the complaint filing date of April 30, 2025), pre-period documents are also potentially discoverable and relevant for several important reasons:

• The original Independent Contractor Operating Agreement ("ICOA") template (v1.0) was drafted in 2018 by Pennfield & Daye LLP. Communications, memoranda, and analyses relating to the development of that template — including classification analyses, legal opinions, and internal deliberations regarding contractor versus employee status — predate the statutory limitations period but are directly relevant to the Company's classification decisions and to the issue of willfulness;

• Company policies, standard operating procedures, training materials, and operational guidelines that were in effect prior to April 30, 2022 may have continued in force during the limitations period and may inform the factual record regarding the degree of control exercised by SLG over its drivers;

• Pre-period documents may also be relevant to affirmative defenses, including any good-faith reliance defense under 29 U.S.C. § 259; and

• Courts routinely permit discovery of pre-period documents where, as here, they provide context for the practices at issue during the limitations period.

All materials within the January 1, 2017 to present timeframe must be preserved regardless of whether they were created by current or former SLG employees, regardless of the medium on which they are stored, and regardless of whether they are located at SLG facilities or in the possession of third parties acting on SLG's behalf.

B. Organizational Scope

This litigation hold applies to SLG's corporate headquarters located at 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039, and to all fourteen (14) distribution hubs operated by SLG. The distribution hubs are as follows:

We request that SLG promptly provide the complete addresses for HUB-03 through HUB-14 so that our records are current.

The litigation hold also extends to any third-party storage providers, cloud platforms, and IT vendors that host, maintain, manage, process, or have access to SLG data. This includes, without limitation, the providers and platforms identified in Section IV.D below.

C. Key Custodians

The following individuals have been identified as key custodians whose files, email accounts, electronic devices, physical records, and all other materials within their possession, custody, or control must be preserved. This list is not exhaustive, and additional custodians may be identified as the litigation progresses. Calderwood & Harkness reserves the right to supplement this list at any time.

Named Key Custodians:

1. Gerald Wynn — Chief Executive Officer

2. Margaret Hollis — General Counsel

3. Aaron Turcotte — Chief People Officer

4. Trevor Sandoval — Vice President of Operations

5. Karen Lund — Director of Driver Relations

6. Dennis Faulkner — Hub Manager, Fort Worth (HUB-01)

7. All other Hub Managers at HUB-02 through HUB-14 — SLG is directed to provide the names and contact information of all current and former hub managers who served in that role at any time during the relevant period (January 1, 2017 to the present)

Functional Custodians:

In addition to the named key custodians listed above, the hold extends to:

8. Any employee in the Human Resources department who has had responsibility for driver-related matters, classification policies, ICOA administration, driver onboarding, driver training, or driver separation at any time during the relevant period;

9. Any employee in the Operations department who has had responsibility for dispatch operations, route assignments, delivery scheduling, hub management, or driver supervision at any time during the relevant period;

10. Any employee in the Compliance department who has had responsibility for regulatory compliance, internal audits, or policy development relating to driver classification or employment law compliance;

11. Any employee in the Legal department (in addition to Ms. Hollis) who has had involvement with driver classification matters, ICOA administration, or any prior complaints, demands, or investigations relating to driver classification;

12. Any employee in the Finance department who has had responsibility for driver compensation, payment processing, 1099 issuance, accounts payable relating to driver payments, or financial analysis of the independent contractor model;

13. Any employee in the Information Technology department who has had responsibility for the RouteSync platform, GPS telematics systems, email administration, data retention, backup management, or other systems that contain or process driver-related data; and

14. Any individual — whether current or former SLG employee — who communicated with Pennfield & Daye LLP (801 Cherry Street, Suite 1400, Fort Worth, TX 76102) regarding independent contractor classification analysis, ICOA drafting, ICOA revision, or any related legal matter at any time during the relevant period.

SLG is directed to compile a comprehensive list of all individuals falling within categories 7 through 14 above and to provide that list to Calderwood & Harkness as part of the custodian acknowledgment process described in Section IV.B below.

III. Categories of Materials to Be Preserved

The following categories describe the types of documents, ESI, and tangible things that must be preserved. These categories are intended to be illustrative and not exhaustive. If there is any doubt as to whether a particular document or data set falls within the scope of this hold, it should be preserved and the question should be directed to Calderwood & Harkness for guidance.

A. Independent Contractor Operating Agreements (ICOAs)

The ICOAs are central to the claims and defenses in this action and must be preserved with particular care. This category includes:

1. All executed ICOAs for every driver engaged by SLG during the relevant period (January 1, 2017 to the present), across all fourteen (14) distribution hubs;

2. All three template versions of the ICOA:

• ICOA v1.0 (2018) — the original template drafted by Pennfield & Daye LLP;

• ICOA v2.0 (August 2020) — the first revised template; and

• ICOA v3.0 (January 2023) — the second revised template, which includes the arbitration clause and collective action waiver;

3. All drafts, redlines, markup versions, and internal comments relating to each ICOA version, including drafts exchanged between SLG and Pennfield & Daye LLP and any internal SLG drafts circulated for review;

4. Records identifying which version of the ICOA each driver signed, the date of execution, and the hub at which the agreement was executed;

5. Special attention must be given to the preservation of records relating to the approximately 640 drivers who signed ICOA v3.0 (January 2023), which contains the arbitration clause and collective action waiver that will be the subject of an anticipated motion to compel arbitration. Records demonstrating whether each driver was presented with the agreement, the circumstances of execution, and whether alternative versions were offered are of particular significance;

6. Any addenda, amendments, side letters, supplements, waivers, or modifications to any ICOA, whether formal or informal, written or oral (to the extent any oral modifications are documented or referenced in correspondence);

7. All communications between SLG and Pennfield & Daye LLP regarding the original drafting (2018) and subsequent revisions (August 2020 and January 2023) of the ICOA template, including engagement letters, legal memoranda, opinion letters, emails, and billing records reflecting the nature of the work performed.

Note regarding attorney-client privilege: Communications with Pennfield & Daye LLP are to be preserved but may be protected by the attorney-client privilege and/or the work product doctrine. These materials must not be produced to any third party without prior authorization from Calderwood & Harkness. We will work with SLG to conduct a privilege review at the appropriate stage of discovery.

B. RouteSync Dispatch Data

All data from SLG's proprietary RouteSync dispatch platform must be preserved. The RouteSync platform is central to the Plaintiff's allegations regarding the degree of control exercised by SLG over its drivers. This category includes, without limitation:

1. Route assignments and delivery manifests — all records showing which routes were assigned to which drivers, when assignments were made, and whether drivers had the ability to accept, reject, modify, or exchange route assignments;

2. Delivery acceptance and refusal records — including all data related to the 85% minimum acceptance rate requirement calculated on a rolling 30-day basis. This includes records of individual delivery offers, driver responses (acceptance or refusal), timestamps, and the running calculation of each driver's acceptance rate;

3. Delivery completion timestamps — records showing when each delivery was completed, including any data regarding on-time versus late deliveries;

4. Customer-facing delivery window assignments — records showing the delivery windows communicated to customers and whether those windows were set by SLG, by the driver, or by mutual agreement;

5. Performance metrics, ratings, and performance review triggers — all data used to evaluate driver performance, including any scoring algorithms, rating systems, dashboard displays, and any automated triggers that flagged drivers who fell below the 85% acceptance threshold or other performance benchmarks for review or corrective action;

6. System logs showing driver interactions with the RouteSync platform — login times, logout times, session durations, route modifications, delivery sequence changes, communication logs, and any other user activity data captured by the platform;

7. Administrative settings and configuration data for each hub — including any hub-specific parameters, default settings, rule configurations, or algorithmic weights that may differ from hub to hub.

SLG should confer with its IT department and the RouteSync platform administrators to identify all data stores, databases, tables, and logs in which this information resides. We anticipate issuing a more detailed ESI preservation protocol following the data-mapping meeting referenced in Section VI below.

C. GPS Telematics Data

All GPS tracking data from SLG-provided telematics devices installed in driver vehicles must be preserved. This category includes:

1. Real-time and historical location data for all driver vehicles equipped with SLG-provided telematics devices;

2. Route tracking records, including actual routes traveled versus assigned routes;

3. Speed data, including records of any speed alerts, speed limit violations, or speed-related notifications;

4. Stop duration records, including the time spent at each delivery location and any non-delivery stops;

5. Idle time records, including the duration and location of vehicle idle events;

6. Any reports, dashboards, or analytics generated from GPS telematics data, whether for individual drivers, hub-level analysis, or company-wide reporting; and

7. Configuration and settings data for the telematics devices and associated software.

This preservation obligation encompasses GPS telematics data for all drivers across all fourteen (14) distribution hubs, and is not limited to the named plaintiff Marcus Delano. In a collective action, the preservation obligation extends to data for all putative class members.

D. Pay Records and Compensation Data

All records relating to driver compensation must be preserved. This category includes:

1. All payment records for drivers, including per-delivery payments. We understand that per-delivery rates currently range from $14.50 to $38.00 per delivery, varying by package weight, distance, and delivery type (standard delivery versus white-glove delivery). All records reflecting these rate structures, rate schedules, and any changes to rates over time must be preserved;

2. Pay statements, remittance advices, and payment summaries provided to drivers, whether in paper or electronic form;

3. IRS Form 1099-NEC (and, for earlier years, Form 1099-MISC) issued to drivers, together with supporting records and filings;

4. Any other compensation documentation, including bonus records, incentive payments, or supplemental payments of any kind;

5. Records of any deductions, chargebacks, penalties, or adjustments to driver pay, including deductions for damaged goods, failed deliveries, equipment damage, or any other reason;

6. Records of reduced delivery assignments imposed as penalties for late deliveries, customer complaints, or other performance issues — this is particularly significant because if SLG used delivery volume as a punitive mechanism, it bears on the degree of control SLG exercised over drivers;

7. Invoices submitted by drivers to SLG, if applicable under the ICOA framework, together with records of invoice processing, approval, and payment; and

8. Any internal rate-setting analyses, compensation benchmarking studies, or pay structure documentation used to establish or modify driver pay rates.

E. Training Materials and Records

All records relating to driver training must be preserved, as the existence and nature of mandatory training is a significant factor in the classification analysis. This category includes:

1. All mandatory safety and customer-service training materials used in connection with the initial 16-hour training program required for all new drivers and the quarterly 4-hour training sessions required for all active drivers;

2. Attendance records and completion certificates for all training sessions, including records identifying which drivers attended, which sessions they completed, and the dates of attendance;

3. Records of any consequences imposed for failure to complete required training, including deactivation, suspension, withholding of route assignments, or other adverse actions;

4. Training curricula, lesson plans, manuals, handbooks, videos, slide presentations, and testing materials, including any versions that were updated, revised, or replaced during the relevant period;

5. Records of any other training, onboarding, orientation, or certification programs for drivers, whether denominated as "training" or otherwise; and

6. Records identifying who developed, delivered, and administered the training programs, including any third-party training providers.

F. Communications with Drivers

All communications between SLG personnel and drivers must be preserved, regardless of the medium, format, or platform through which the communication occurred. This category includes:

1. Emails — all email communications between any SLG employee (at any level, at any hub, and in any department) and any driver during the relevant period;

2. Text messages — all SMS and MMS messages between SLG personnel and drivers, including messages sent from personal devices if used for business purposes;

3. Instant messages and app-based messages — all communications via messaging applications, collaboration platforms (e.g., Meridian Solutions, Northgate Data Systems), or any proprietary SLG communication tools;

4. Voicemails — all stored voicemails between SLG personnel and drivers;

5. RouteSync platform messaging — all communications transmitted through any messaging or notification feature within the RouteSync dispatch platform;

6. Notices, bulletins, policy updates, and directives sent to drivers, whether by email, physical posting at hub locations, in-app notification, or any other method;

7. Communications regarding delivery performance, complaints, or corrective actions — including any written warnings, performance improvement plans, or informal communications addressing driver conduct or performance; and

8. Any other written or electronic communications not specifically enumerated above.

G. Performance Reviews and Disciplinary Records

All records relating to driver performance evaluation, discipline, and separation must be preserved. This category includes:

1. All performance evaluations, reviews, assessments, and ratings for drivers, whether conducted on a scheduled basis or ad hoc;

2. All warnings, corrective action notices, performance improvement plans, and other disciplinary documentation issued to drivers;

3. All termination or contract termination records for drivers, including records reflecting the stated reason for separation, whether the separation was characterized as a termination, deactivation, non-renewal, or voluntary departure;

4. Records related to the "performance review" process triggered by a driver falling below the 85% minimum acceptance rate on a rolling 30-day basis, including documentation of the review process, communications with the affected driver, and any outcomes (e.g., probation, additional monitoring, reduced assignments, deactivation);

5. Customer complaint records attributed to specific drivers, including the substance of the complaint, the investigation or follow-up process, and any resulting action taken against the driver;

6. Records of any deactivation, suspension, temporary removal, or permanent removal of drivers from the RouteSync platform, including the reason for such action and any appeal or reinstatement process; and

7. Any internal guidelines, criteria, or decision-making frameworks used by hub managers or other SLG personnel in making performance evaluation, disciplinary, or separation decisions regarding drivers.

H. Subcontracting Records

All records relating to driver subcontracting must be preserved. The ability (or inability) of drivers to subcontract their work is a key factor in the independent contractor analysis. This category includes:

1. All records relating to driver requests to subcontract deliveries, including the application or request form, the identity of the proposed substitute, and any supporting documentation provided by the driver;

2. Records of all prior written approvals of subcontracting requests, including the identity of the approving authority and the basis for approval;

3. Records of all denials of subcontracting requests, including the identity of the denying authority and the stated reason for denial;

4. Any policies, guidelines, standard operating procedures, or internal communications regarding the subcontracting approval process, including any criteria or standards used to evaluate requests;

5. Aggregate data on the frequency of subcontracting requests, approvals, and denials across all hubs, broken down by hub if available; and

6. Records of any actual subcontracting that occurred, including the identity of the substitute, the terms of the arrangement, and any documentation provided to SLG.

I. Uniform, Branding, and Equipment Records

All records relating to uniforms, branding, and equipment required of or provided to drivers must be preserved. This category includes:

1. Records and policies regarding mandatory Stonefield-branded uniforms, including specifications, procurement, distribution, and any cost to the driver;

2. Records and policies regarding mandatory SLG identification badges, including issuance, replacement, and return requirements;

3. Records and policies regarding mandatory SLG vehicle placards or decals, including specifications, installation requirements, and any cost to the driver;

4. Records of SLG-provided equipment, including handheld scanners, mobile devices loaded with routing software, telematics hardware, and any other technology or tools provided by SLG to drivers;

5. Vehicle specification requirements imposed on drivers — we understand that drivers are required to operate a cargo van or box truck with a model year of 2015 or newer and that vehicles must pass SLG safety inspections. All records relating to these requirements, including written specifications, inspection standards, and inspection results, must be preserved;

6. Vehicle inspection records — all records of inspections conducted by SLG on driver-owned or driver-leased vehicles, including inspection forms, pass/fail results, deficiency notices, and re-inspection requirements; and

7. Any records reflecting costs borne by drivers for uniforms, equipment, vehicle modifications, or compliance with SLG's specifications.

J. Hub-Level Operational Policies and Procedures

All operational policies and procedures in effect at any of the fourteen (14) distribution hubs must be preserved. This category includes:

1. Standard operating procedures ("SOPs"), policy manuals, operational guidelines, and handbook materials applicable at each hub;

2. Any hub-specific variations in policies regarding:

• Driver scheduling and shift assignment;

• Route assignment methodology;

• Delivery windows (we understand that the standard delivery window is 7:00 AM to 8:00 PM, Monday through Saturday, but any hub-specific deviations must be documented and preserved);

• Driver management, supervision, and oversight practices;

• Performance standards and evaluation criteria; and

• Any other operational practice that may differ from hub to hub;

3. Organizational charts and reporting structures for each hub, including the chain of command from hub manager to regional management to corporate headquarters; and

4. Any memoranda, directives, or communications from corporate headquarters to the hubs (or vice versa) regarding operational policies and procedures.

K. Non-Compete and Restrictive Covenant Records

All records relating to non-compete agreements and other restrictive covenants imposed on drivers must be preserved. The existence and enforcement of non-compete provisions bears directly on the classification analysis. This category includes:

1. All non-compete agreements — we understand that the ICOA contains a non-compete provision with a duration of twelve (12) months and a geographic scope of fifty (50) miles from the driver's assigned hub. All executed non-compete agreements (whether contained within the ICOA or in separate instruments) must be preserved;

2. Records of any enforcement actions taken by SLG against drivers for alleged violations of non-compete provisions, including demand letters, cease-and-desist notices, and any litigation or threatened litigation;

3. Records of any modifications, waivers, or releases of non-compete provisions granted to individual drivers; and

4. Records of any drivers who were subjected to non-compete enforcement, including the circumstances, the outcome, and any settlement or resolution.

L. Financial Records

Certain financial records are relevant to the claims and defenses in this action and must be preserved. This category includes:

1. Any financial records, analyses, projections, models, or presentations relating to SLG's driver classification model, including any cost analyses, cost-benefit studies, or financial comparisons of the independent contractor model versus an employee model;

2. Financial records relating to SLG's fiscal year 2024 revenue ($312.7 million) and EBITDA ($28.4 million) to the extent they reflect, break out, or allocate driver-related costs, driver compensation expense, or the financial impact of the independent contractor classification;

3. Budgets, forecasts, and financial plans that include assumptions or line items relating to driver costs, driver headcount (or contractor headcount), or classification-related expenses;

4. Communications with Whitmore & Solano CPAs LLP or any other accounting firm regarding driver classification, independent contractor tax treatment, employment tax liability, or related financial, tax, or accounting matters; and

5. Communications with Meridian National Bank or any other financial institution regarding driver classification, related liabilities, or any loan covenants, representations, or disclosures that reference SLG's workforce classification model.

M. Legal and Compliance Records

All legal and compliance records relating to driver classification must be preserved. This category includes:

1. All communications with Pennfield & Daye LLP (801 Cherry Street, Suite 1400, Fort Worth, TX 76102) regarding independent contractor classification analysis, ICOA drafting, ICOA revisions, and any related legal advice or analysis during the period from 2018 through 2024.

IMPORTANT: These communications are to be preserved but may be subject to the attorney-client privilege and/or the work product doctrine. Under no circumstances should these materials be produced, disclosed, or made available to any third party — including Plaintiff's counsel, the Court, or any governmental agency — without prior written authorization from Calderwood & Harkness. We will conduct a privilege review and prepare a privilege log at the appropriate stage of discovery.

2. Internal compliance assessments, audit reports, memoranda, and analyses addressing driver classification under the FLSA, the Texas Payday Law, the Internal Revenue Code, or any other applicable federal, state, or local employment, labor, or tax statute;

3. Records of any prior complaints, demands, grievances, or disputes raised by drivers or former drivers regarding their classification status, compensation, working conditions, or any other employment-related matter;

4. Records of any federal or state audits, investigations, or inquiries relating to driver classification, including any communications with the U.S. Department of Labor, the Texas Workforce Commission, the Internal Revenue Service, or any other governmental agency;

5. Records of any internal investigations conducted by SLG relating to driver classification, driver complaints, or related matters;

6. Insurance-related communications, including all communications with Broadleaf Insurance Company regarding Employment Practices Liability Insurance ("EPLI") Policy No. BIC-EPL-2024-07831, including the policy application, the policy itself, any endorsements or riders, claims notifications, coverage correspondence, and any reservation-of-rights or declination letters; and

7. Records of any other litigation, arbitration, or administrative proceedings — pending, threatened, or concluded — involving claims by drivers or former drivers relating to classification, compensation, or working conditions.

N. Electronic Devices and Media

All electronic devices and media that may contain relevant information must be preserved. This category includes:

1. Laptops, desktop computers, and workstations used by key custodians, including any devices that have been reassigned, decommissioned, or placed in storage;

2. Mobile phones and tablets — whether company-issued or personal devices used for business purposes (including devices on which business email, messaging applications, or RouteSync access has been configured);

3. Backup tapes, backup images, and disaster recovery media that may contain relevant data within the preservation period;

4. External hard drives, USB flash drives, portable storage devices, and removable media in the possession of key custodians or the IT department;

5. Cloud storage accounts — including individual cloud storage (e.g., Cobalt Ridge Systems, Hollowell Health IT, Larkspur Technologies) and enterprise cloud repositories used to store relevant materials;

6. Archived email accounts — including any email accounts that have been archived, migrated, or placed in inactive status;

7. Decommissioned or deactivated accounts — email accounts, network accounts, and system accounts of former employees who held relevant positions during the preservation period; and

8. Server-based data — files, databases, and applications residing on SLG's corporate servers, whether on-premises or hosted in a data center or cloud environment.

IV. Preservation Instructions

A. Immediate Actions Required

The following actions must be taken immediately upon receipt of this litigation hold notice:

1. Suspend all routine document destruction, deletion, and recycling schedules for any materials falling within the categories described in Section III above. This includes paper records scheduled for shredding or offsite destruction, electronic records subject to automated deletion, and any other materials slated for disposal under SLG's document retention policies;

2. Notify the IT department immediately and direct IT personnel to halt any automated purge routines, data lifecycle management processes, or scheduled deletions affecting:

• Email systems (including mailbox size limitations, auto-archive, and deletion rules);

• The RouteSync dispatch platform and associated databases;

• GPS telematics data logs and associated reporting systems;

• Payroll and compensation databases;

• Human resources information systems;

• File servers and shared network drives; and

• Any other system, database, or application that stores or processes data within the categories described in Section III;

CALDERWOOD & HARKNESS LLP Attorneys at Law 2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Telephone: (214) 553-7200 Facsimile: (214) 553-7201 www.calderwoodharkness.com
May 2, 2025
VIA EMAIL AND OVERNIGHT COURIER
PRIVILEGED AND CONFIDENTIAL — ATTORNEY-CLIENT COMMUNICATION
LITIGATION HOLD — IMMEDIATE ACTION REQUIRED
Margaret Hollis, Esq. General Counsel Stonefield Logistics Group Inc. 4200 Commerce Gateway Blvd., Suite 800 Irving, TX 75039
Re: Litigation Hold Notice — *Delano v. Stonefield Logistics Group Inc.*, Case No. 3:25-cv-01847-RBC, U.S. District Court for the Northern District of Texas, Dallas Division
Dear Ms. Hollis:
I. Purpose and Legal Obligation
As you are aware, Calderwood & Harkness LLP represents Stonefield Logistics Group Inc. ("SLG" or the "Company") in defending the above-captioned action. On April 30, 2025, named plaintiff Marcus Delano filed a collective action complaint in the United States District Court for the Northern District of Texas, Dallas Division, asserting claims under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. ("FLSA"), together with related state-law claims under the Texas Payday Law, Tex. Lab. Code §§ 61.001 et seq. The case has been assigned to the Honorable Judge R. Brian Caldwell and docketed as Case No. 3:25-cv-01847-RBC.
The complaint alleges that SLG has systematically misclassified approximately 1,200 delivery drivers across its network of distribution hubs as independent contractors rather than employees. Plaintiff Delano seeks recovery of unpaid overtime wages, liquidated damages, statutory penalties, pre-judgment and post-judgment interest, and attorneys' fees on behalf of himself and all similarly situated drivers. Plaintiff further alleges that SLG's classification practices were willful within the meaning of 29 U.S.C. § 255(a), thereby invoking a three-year statute of limitations. The complaint additionally asserts state-law claims under the Texas Payday Law for failure to pay wages in accordance with applicable statutory requirements.
The purpose of this letter is to notify you of SLG's immediate and ongoing legal obligation to preserve all documents, electronically stored information ("ESI"), and tangible things that are or may be relevant to the claims, defenses, and subject matter of this litigation. This obligation arises under federal law, including Federal Rule of Civil Procedure 37(e) and the common-law duty of preservation as articulated by the courts of the Fifth Circuit and the Northern District of Texas. The duty to preserve attached no later than April 30, 2025, when the complaint was filed and served, and may extend to an earlier date if SLG reasonably anticipated litigation prior to that time.
Failure to preserve relevant materials may result in severe consequences, including but not limited to court-imposed sanctions, adverse inference instructions to the jury, monetary penalties, preclusion of evidence, dismissal of defenses, default judgment, and other remedies the Court deems appropriate. These consequences can be case-dispositive and may fundamentally compromise SLG's ability to defend this action.
This preservation obligation supersedes any and all document retention or destruction policies currently in effect at SLG, including any routine or scheduled destruction, deletion, or recycling of records. To the extent that any SLG policy, procedure, or automated system calls for the periodic purging, overwriting, deletion, or disposal of records — whether in physical or electronic form — that policy, procedure, or automated system must be immediately suspended with respect to the categories of materials described in this notice.
Specifically and without limitation, the following automatic deletion protocols must be suspended immediately:
• Email purge schedules and mailbox size limitations that would result in the deletion of messages within the relevant time period;
• Database archiving routines that would result in the overwriting or deletion of RouteSync dispatch data, GPS telematics logs, or other operational databases;
• Backup tape recycling programs, including any rotation schedules that would result in the overwriting of backup media containing relevant data;
• Cloud storage lifecycle management policies that would result in the automatic deletion or migration of data to inaccessible tiers; and
• Any other automated or manual processes that could result in the destruction, alteration, or loss of potentially relevant information.
We cannot overstate the importance of immediate compliance with this litigation hold. The duty to preserve is absolute and non-delegable. Each day that passes without full implementation of this hold increases the risk that relevant evidence may be lost and that SLG may face sanctions.
II. Scope of the Litigation Hold
A. Temporal Scope
This litigation hold applies to all materials created, sent, received, modified, stored, or otherwise maintained from January 1, 2017 through the present, and shall continue in effect until Calderwood & Harkness issues a written release of the hold.
The January 1, 2017 start date has been selected to provide a reasonable pre-period buffer for materials that may be relevant to the claims and defenses in this action. While the relevant FLSA limitations period for willful violations is three years, commencing April 30, 2022 (calculated from the complaint filing date of April 30, 2025), pre-period documents are also potentially discoverable and relevant for several important reasons:
• The original Independent Contractor Operating Agreement ("ICOA") template (v1.0) was drafted in 2018 by Pennfield & Daye LLP. Communications, memoranda, and analyses relating to the development of that template — including classification analyses, legal opinions, and internal deliberations regarding contractor versus employee status — predate the statutory limitations period but are directly relevant to the Company's classification decisions and to the issue of willfulness;
• Company policies, standard operating procedures, training materials, and operational guidelines that were in effect prior to April 30, 2022 may have continued in force during the limitations period and may inform the factual record regarding the degree of control exercised by SLG over its drivers;
• Pre-period documents may also be relevant to affirmative defenses, including any good-faith reliance defense under 29 U.S.C. § 259; and
• Courts routinely permit discovery of pre-period documents where, as here, they provide context for the practices at issue during the limitations period.
All materials within the January 1, 2017 to present timeframe must be preserved regardless of whether they were created by current or former SLG employees, regardless of the medium on which they are stored, and regardless of whether they are located at SLG facilities or in the possession of third parties acting on SLG's behalf.
B. Organizational Scope
This litigation hold applies to SLG's corporate headquarters located at 4200 Commerce Gateway Blvd., Suite 800, Irving, TX 75039, and to all fourteen (14) distribution hubs operated by SLG. The distribution hubs are as follows:
We request that SLG promptly provide the complete addresses for HUB-03 through HUB-14 so that our records are current.
The litigation hold also extends to any third-party storage providers, cloud platforms, and IT vendors that host, maintain, manage, process, or have access to SLG data. This includes, without limitation, the providers and platforms identified in Section IV.D below.
C. Key Custodians
The following individuals have been identified as key custodians whose files, email accounts, electronic devices, physical records, and all other materials within their possession, custody, or control must be preserved. This list is not exhaustive, and additional custodians may be identified as the litigation progresses. Calderwood & Harkness reserves the right to supplement this list at any time.
Named Key Custodians:
1. Gerald Wynn — Chief Executive Officer
2. Margaret Hollis — General Counsel
3. Aaron Turcotte — Chief People Officer
4. Trevor Sandoval — Vice President of Operations
5. Karen Lund — Director of Driver Relations
6. Dennis Faulkner — Hub Manager, Fort Worth (HUB-01)
7. All other Hub Managers at HUB-02 through HUB-14 — SLG is directed to provide the names and contact information of all current and former hub managers who served in that role at any time during the relevant period (January 1, 2017 to the present)
Functional Custodians:
In addition to the named key custodians listed above, the hold extends to:
8. Any employee in the Human Resources department who has had responsibility for driver-related matters, classification policies, ICOA administration, driver onboarding, driver training, or driver separation at any time during the relevant period;
9. Any employee in the Operations department who has had responsibility for dispatch operations, route assignments, delivery scheduling, hub management, or driver supervision at any time during the relevant period;
10. Any employee in the Compliance department who has had responsibility for regulatory compliance, internal audits, or policy development relating to driver classification or employment law compliance;
11. Any employee in the Legal department (in addition to Ms. Hollis) who has had involvement with driver classification matters, ICOA administration, or any prior complaints, demands, or investigations relating to driver classification;
12. Any employee in the Finance department who has had responsibility for driver compensation, payment processing, 1099 issuance, accounts payable relating to driver payments, or financial analysis of the independent contractor model;
13. Any employee in the Information Technology department who has had responsibility for the RouteSync platform, GPS telematics systems, email administration, data retention, backup management, or other systems that contain or process driver-related data; and
14. Any individual — whether current or former SLG employee — who communicated with Pennfield & Daye LLP (801 Cherry Street, Suite 1400, Fort Worth, TX 76102) regarding independent contractor classification analysis, ICOA drafting, ICOA revision, or any related legal matter at any time during the relevant period.
SLG is directed to compile a comprehensive list of all individuals falling within categories 7 through 14 above and to provide that list to Calderwood & Harkness as part of the custodian acknowledgment process described in Section IV.B below.
III. Categories of Materials to Be Preserved
The following categories describe the types of documents, ESI, and tangible things that must be preserved. These categories are intended to be illustrative and not exhaustive. If there is any doubt as to whether a particular document or data set falls within the scope of this hold, it should be preserved and the question should be directed to Calderwood & Harkness for guidance.
A. Independent Contractor Operating Agreements (ICOAs)
The ICOAs are central to the claims and defenses in this action and must be preserved with particular care. This category includes:
1. All executed ICOAs for every driver engaged by SLG during the relevant period (January 1, 2017 to the present), across all fourteen (14) distribution hubs;
2. All three template versions of the ICOA:
• ICOA v1.0 (2018) — the original template drafted by Pennfield & Daye LLP;
• ICOA v2.0 (August 2020) — the first revised template; and
• ICOA v3.0 (January 2023) — the second revised template, which includes the arbitration clause and collective action waiver;
3. All drafts, redlines, markup versions, and internal comments relating to each ICOA version, including drafts exchanged between SLG and Pennfield & Daye LLP and any internal SLG drafts circulated for review;
4. Records identifying which version of the ICOA each driver signed, the date of execution, and the hub at which the agreement was executed;
5. Special attention must be given to the preservation of records relating to the approximately 640 drivers who signed ICOA v3.0 (January 2023), which contains the arbitration clause and collective action waiver that will be the subject of an anticipated motion to compel arbitration. Records demonstrating whether each driver was presented with the agreement, the circumstances of execution, and whether alternative versions were offered are of particular significance;
6. Any addenda, amendments, side letters, supplements, waivers, or modifications to any ICOA, whether formal or informal, written or oral (to the extent any oral modifications are documented or referenced in correspondence);
7. All communications between SLG and Pennfield & Daye LLP regarding the original drafting (2018) and subsequent revisions (August 2020 and January 2023) of the ICOA template, including engagement letters, legal memoranda, opinion letters, emails, and billing records reflecting the nature of the work performed.
Note regarding attorney-client privilege: Communications with Pennfield & Daye LLP are to be preserved but may be protected by the attorney-client privilege and/or the work product doctrine. These materials must not be produced to any third party without prior authorization from Calderwood & Harkness. We will work with SLG to conduct a privilege review at the appropriate stage of discovery.
B. RouteSync Dispatch Data
All data from SLG's proprietary RouteSync dispatch platform must be preserved. The RouteSync platform is central to the Plaintiff's allegations regarding the degree of control exercised by SLG over its drivers. This category includes, without limitation:
1. Route assignments and delivery manifests — all records showing which routes were assigned to which drivers, when assignments were made, and whether drivers had the ability to accept, reject, modify, or exchange route assignments;
2. Delivery acceptance and refusal records — including all data related to the 85% minimum acceptance rate requirement calculated on a rolling 30-day basis. This includes records of individual delivery offers, driver responses (acceptance or refusal), timestamps, and the running calculation of each driver's acceptance rate;
3. Delivery completion timestamps — records showing when each delivery was completed, including any data regarding on-time versus late deliveries;
4. Customer-facing delivery window assignments — records showing the delivery windows communicated to customers and whether those windows were set by SLG, by the driver, or by mutual agreement;
5. Performance metrics, ratings, and performance review triggers — all data used to evaluate driver performance, including any scoring algorithms, rating systems, dashboard displays, and any automated triggers that flagged drivers who fell below the 85% acceptance threshold or other performance benchmarks for review or corrective action;
6. System logs showing driver interactions with the RouteSync platform — login times, logout times, session durations, route modifications, delivery sequence changes, communication logs, and any other user activity data captured by the platform;
7. Administrative settings and configuration data for each hub — including any hub-specific parameters, default settings, rule configurations, or algorithmic weights that may differ from hub to hub.
SLG should confer with its IT department and the RouteSync platform administrators to identify all data stores, databases, tables, and logs in which this information resides. We anticipate issuing a more detailed ESI preservation protocol following the data-mapping meeting referenced in Section VI below.
C. GPS Telematics Data
All GPS tracking data from SLG-provided telematics devices installed in driver vehicles must be preserved. This category includes:
1. Real-time and historical location data for all driver vehicles equipped with SLG-provided telematics devices;
2. Route tracking records, including actual routes traveled versus assigned routes;
3. Speed data, including records of any speed alerts, speed limit violations, or speed-related notifications;
4. Stop duration records, including the time spent at each delivery location and any non-delivery stops;
5. Idle time records, including the duration and location of vehicle idle events;
6. Any reports, dashboards, or analytics generated from GPS telematics data, whether for individual drivers, hub-level analysis, or company-wide reporting; and
7. Configuration and settings data for the telematics devices and associated software.
This preservation obligation encompasses GPS telematics data for all drivers across all fourteen (14) distribution hubs, and is not limited to the named plaintiff Marcus Delano. In a collective action, the preservation obligation extends to data for all putative class members.
D. Pay Records and Compensation Data
All records relating to driver compensation must be preserved. This category includes:
1. All payment records for drivers, including per-delivery payments. We understand that per-delivery rates currently range from $14.50 to $38.00 per delivery, varying by package weight, distance, and delivery type (standard delivery versus white-glove delivery). All records reflecting these rate structures, rate schedules, and any changes to rates over time must be preserved;
2. Pay statements, remittance advices, and payment summaries provided to drivers, whether in paper or electronic form;
3. IRS Form 1099-NEC (and, for earlier years, Form 1099-MISC) issued to drivers, together with supporting records and filings;
4. Any other compensation documentation, including bonus records, incentive payments, or supplemental payments of any kind;
5. Records of any deductions, chargebacks, penalties, or adjustments to driver pay, including deductions for damaged goods, failed deliveries, equipment damage, or any other reason;
6. Records of reduced delivery assignments imposed as penalties for late deliveries, customer complaints, or other performance issues — this is particularly significant because if SLG used delivery volume as a punitive mechanism, it bears on the degree of control SLG exercised over drivers;
7. Invoices submitted by drivers to SLG, if applicable under the ICOA framework, together with records of invoice processing, approval, and payment; and
8. Any internal rate-setting analyses, compensation benchmarking studies, or pay structure documentation used to establish or modify driver pay rates.
E. Training Materials and Records
All records relating to driver training must be preserved, as the existence and nature of mandatory training is a significant factor in the classification analysis. This category includes:
1. All mandatory safety and customer-service training materials used in connection with the initial 16-hour training program required for all new drivers and the quarterly 4-hour training sessions required for all active drivers;
2. Attendance records and completion certificates for all training sessions, including records identifying which drivers attended, which sessions they completed, and the dates of attendance;
3. Records of any consequences imposed for failure to complete required training, including deactivation, suspension, withholding of route assignments, or other adverse actions;
4. Training curricula, lesson plans, manuals, handbooks, videos, slide presentations, and testing materials, including any versions that were updated, revised, or replaced during the relevant period;
5. Records of any other training, onboarding, orientation, or certification programs for drivers, whether denominated as "training" or otherwise; and
6. Records identifying who developed, delivered, and administered the training programs, including any third-party training providers.
F. Communications with Drivers
All communications between SLG personnel and drivers must be preserved, regardless of the medium, format, or platform through which the communication occurred. This category includes:
1. Emails — all email communications between any SLG employee (at any level, at any hub, and in any department) and any driver during the relevant period;
2. Text messages — all SMS and MMS messages between SLG personnel and drivers, including messages sent from personal devices if used for business purposes;
3. Instant messages and app-based messages — all communications via messaging applications, collaboration platforms (e.g., Meridian Solutions, Northgate Data Systems), or any proprietary SLG communication tools;
4. Voicemails — all stored voicemails between SLG personnel and drivers;
5. RouteSync platform messaging — all communications transmitted through any messaging or notification feature within the RouteSync dispatch platform;
6. Notices, bulletins, policy updates, and directives sent to drivers, whether by email, physical posting at hub locations, in-app notification, or any other method;
7. Communications regarding delivery performance, complaints, or corrective actions — including any written warnings, performance improvement plans, or informal communications addressing driver conduct or performance; and
8. Any other written or electronic communications not specifically enumerated above.
G. Performance Reviews and Disciplinary Records
All records relating to driver performance evaluation, discipline, and separation must be preserved. This category includes:
1. All performance evaluations, reviews, assessments, and ratings for drivers, whether conducted on a scheduled basis or ad hoc;
2. All warnings, corrective action notices, performance improvement plans, and other disciplinary documentation issued to drivers;
3. All termination or contract termination records for drivers, including records reflecting the stated reason for separation, whether the separation was characterized as a termination, deactivation, non-renewal, or voluntary departure;
4. Records related to the "performance review" process triggered by a driver falling below the 85% minimum acceptance rate on a rolling 30-day basis, including documentation of the review process, communications with the affected driver, and any outcomes (e.g., probation, additional monitoring, reduced assignments, deactivation);
5. Customer complaint records attributed to specific drivers, including the substance of the complaint, the investigation or follow-up process, and any resulting action taken against the driver;
6. Records of any deactivation, suspension, temporary removal, or permanent removal of drivers from the RouteSync platform, including the reason for such action and any appeal or reinstatement process; and
7. Any internal guidelines, criteria, or decision-making frameworks used by hub managers or other SLG personnel in making performance evaluation, disciplinary, or separation decisions regarding drivers.
H. Subcontracting Records
All records relating to driver subcontracting must be preserved. The ability (or inability) of drivers to subcontract their work is a key factor in the independent contractor analysis. This category includes:
1. All records relating to driver requests to subcontract deliveries, including the application or request form, the identity of the proposed substitute, and any supporting documentation provided by the driver;
2. Records of all prior written approvals of subcontracting requests, including the identity of the approving authority and the basis for approval;
3. Records of all denials of subcontracting requests, including the identity of the denying authority and the stated reason for denial;
4. Any policies, guidelines, standard operating procedures, or internal communications regarding the subcontracting approval process, including any criteria or standards used to evaluate requests;
5. Aggregate data on the frequency of subcontracting requests, approvals, and denials across all hubs, broken down by hub if available; and
6. Records of any actual subcontracting that occurred, including the identity of the substitute, the terms of the arrangement, and any documentation provided to SLG.
I. Uniform, Branding, and Equipment Records
All records relating to uniforms, branding, and equipment required of or provided to drivers must be preserved. This category includes:
1. Records and policies regarding mandatory Stonefield-branded uniforms, including specifications, procurement, distribution, and any cost to the driver;
2. Records and policies regarding mandatory SLG identification badges, including issuance, replacement, and return requirements;
3. Records and policies regarding mandatory SLG vehicle placards or decals, including specifications, installation requirements, and any cost to the driver;
4. Records of SLG-provided equipment, including handheld scanners, mobile devices loaded with routing software, telematics hardware, and any other technology or tools provided by SLG to drivers;
5. Vehicle specification requirements imposed on drivers — we understand that drivers are required to operate a cargo van or box truck with a model year of 2015 or newer and that vehicles must pass SLG safety inspections. All records relating to these requirements, including written specifications, inspection standards, and inspection results, must be preserved;
6. Vehicle inspection records — all records of inspections conducted by SLG on driver-owned or driver-leased vehicles, including inspection forms, pass/fail results, deficiency notices, and re-inspection requirements; and
7. Any records reflecting costs borne by drivers for uniforms, equipment, vehicle modifications, or compliance with SLG's specifications.
J. Hub-Level Operational Policies and Procedures
All operational policies and procedures in effect at any of the fourteen (14) distribution hubs must be preserved. This category includes:
1. Standard operating procedures ("SOPs"), policy manuals, operational guidelines, and handbook materials applicable at each hub;
2. Any hub-specific variations in policies regarding:
• Driver scheduling and shift assignment;
• Route assignment methodology;
• Delivery windows (we understand that the standard delivery window is 7:00 AM to 8:00 PM, Monday through Saturday, but any hub-specific deviations must be documented and preserved);
• Driver management, supervision, and oversight practices;
• Performance standards and evaluation criteria; and
• Any other operational practice that may differ from hub to hub;
3. Organizational charts and reporting structures for each hub, including the chain of command from hub manager to regional management to corporate headquarters; and
4. Any memoranda, directives, or communications from corporate headquarters to the hubs (or vice versa) regarding operational policies and procedures.
K. Non-Compete and Restrictive Covenant Records
All records relating to non-compete agreements and other restrictive covenants imposed on drivers must be preserved. The existence and enforcement of non-compete provisions bears directly on the classification analysis. This category includes:
1. All non-compete agreements — we understand that the ICOA contains a non-compete provision with a duration of twelve (12) months and a geographic scope of fifty (50) miles from the driver's assigned hub. All executed non-compete agreements (whether contained within the ICOA or in separate instruments) must be preserved;
2. Records of any enforcement actions taken by SLG against drivers for alleged violations of non-compete provisions, including demand letters, cease-and-desist notices, and any litigation or threatened litigation;
3. Records of any modifications, waivers, or releases of non-compete provisions granted to individual drivers; and
4. Records of any drivers who were subjected to non-compete enforcement, including the circumstances, the outcome, and any settlement or resolution.
L. Financial Records
Certain financial records are relevant to the claims and defenses in this action and must be preserved. This category includes:
1. Any financial records, analyses, projections, models, or presentations relating to SLG's driver classification model, including any cost analyses, cost-benefit studies, or financial comparisons of the independent contractor model versus an employee model;
2. Financial records relating to SLG's fiscal year 2024 revenue ($312.7 million) and EBITDA ($28.4 million) to the extent they reflect, break out, or allocate driver-related costs, driver compensation expense, or the financial impact of the independent contractor classification;
3. Budgets, forecasts, and financial plans that include assumptions or line items relating to driver costs, driver headcount (or contractor headcount), or classification-related expenses;
4. Communications with Whitmore & Solano CPAs LLP or any other accounting firm regarding driver classification, independent contractor tax treatment, employment tax liability, or related financial, tax, or accounting matters; and
5. Communications with Meridian National Bank or any other financial institution regarding driver classification, related liabilities, or any loan covenants, representations, or disclosures that reference SLG's workforce classification model.
M. Legal and Compliance Records
All legal and compliance records relating to driver classification must be preserved. This category includes:
1. All communications with Pennfield & Daye LLP (801 Cherry Street, Suite 1400, Fort Worth, TX 76102) regarding independent contractor classification analysis, ICOA drafting, ICOA revisions, and any related legal advice or analysis during the period from 2018 through 2024.
IMPORTANT: These communications are to be preserved but may be subject to the attorney-client privilege and/or the work product doctrine. Under no circumstances should these materials be produced, disclosed, or made available to any third party — including Plaintiff's counsel, the Court, or any governmental agency — without prior written authorization from Calderwood & Harkness. We will conduct a privilege review and prepare a privilege log at the appropriate stage of discovery.
2. Internal compliance assessments, audit reports, memoranda, and analyses addressing driver classification under the FLSA, the Texas Payday Law, the Internal Revenue Code, or any other applicable federal, state, or local employment, labor, or tax statute;
3. Records of any prior complaints, demands, grievances, or disputes raised by drivers or former drivers regarding their classification status, compensation, working conditions, or any other employment-related matter;
4. Records of any federal or state audits, investigations, or inquiries relating to driver classification, including any communications with the U.S. Department of Labor, the Texas Workforce Commission, the Internal Revenue Service, or any other governmental agency;
5. Records of any internal investigations conducted by SLG relating to driver classification, driver complaints, or related matters;
6. Insurance-related communications, including all communications with Broadleaf Insurance Company regarding Employment Practices Liability Insurance ("EPLI") Policy No. BIC-EPL-2024-07831, including the policy application, the policy itself, any endorsements or riders, claims notifications, coverage correspondence, and any reservation-of-rights or declination letters; and
7. Records of any other litigation, arbitration, or administrative proceedings — pending, threatened, or concluded — involving claims by drivers or former drivers relating to classification, compensation, or working conditions.
N. Electronic Devices and Media
All electronic devices and media that may contain relevant information must be preserved. This category includes:
1. Laptops, desktop computers, and workstations used by key custodians, including any devices that have been reassigned, decommissioned, or placed in storage;
2. Mobile phones and tablets — whether company-issued or personal devices used for business purposes (including devices on which business email, messaging applications, or RouteSync access has been configured);
3. Backup tapes, backup images, and disaster recovery media that may contain relevant data within the preservation period;
4. External hard drives, USB flash drives, portable storage devices, and removable media in the possession of key custodians or the IT department;
5. Cloud storage accounts — including individual cloud storage (e.g., Cobalt Ridge Systems, Hollowell Health IT, Larkspur Technologies) and enterprise cloud repositories used to store relevant materials;
6. Archived email accounts — including any email accounts that have been archived, migrated, or placed in inactive status;
7. Decommissioned or deactivated accounts — email accounts, network accounts, and system accounts of former employees who held relevant positions during the preservation period; and
8. Server-based data — files, databases, and applications residing on SLG's corporate servers, whether on-premises or hosted in a data center or cloud environment.
IV. Preservation Instructions
A. Immediate Actions Required
The following actions must be taken immediately upon receipt of this litigation hold notice:
1. Suspend all routine document destruction, deletion, and recycling schedules for any materials falling within the categories described in Section III above. This includes paper records scheduled for shredding or offsite destruction, electronic records subject to automated deletion, and any other materials slated for disposal under SLG's document retention policies;
2. Notify the IT department immediately and direct IT personnel to halt any automated purge routines, data lifecycle management processes, or scheduled deletions affecting:
• Email systems (including mailbox size limitations, auto-archive, and deletion rules);
• The RouteSync dispatch platform and associated databases;
• GPS telematics data logs and associated reporting systems;
• Payroll and compensation databases;
• Human resources information systems;
• File servers and shared network drives; and
• Any other system, database, or application that stores or processes data within the categories described in Section III;
3. Ensure that backup tapes, backup images, and disaster recovery media that may contain relevant ESI are identified, preserved, and not overwritten, recycled, or destroyed. If SLG operates on a rotating backup schedule, the current rotation must be suspended for any media that may contain relevant data;
4. Identify and segregate any physical files — including paper records, file folders, binders, notebooks, and any other tangible materials — relating to the categories described in Section III, at each of the fourteen (14) distribution hubs and at corporate headquarters. These materials should be collected and stored in a secure location where they will not be subject to inadvertent destruction, loss, or unauthorized access; and
5. Instruct all key custodians and functional custodians identified in Section II.C above to refrain from deleting, destroying, discarding, altering, or modifying any materials within the scope of this hold, including emails, text messages, electronic files, and physical documents.
B. Distribution of This Notice
1. Margaret Hollis, as General Counsel, is directed to distribute a copy of this litigation hold notice — or an appropriately tailored internal version — to all key custodians identified in Section II.C above and to any other SLG employee who may possess, control, or have access to relevant materials. Calderwood & Harkness is available to assist in preparing an internal version of this notice if desired;
2. Each key custodian and recipient must acknowledge receipt of the hold in writing. Email acknowledgment is sufficient. The acknowledgment should confirm that the custodian:
(a) Has received and read the litigation hold notice;
(b) Understands the obligation to preserve all materials within the scope of the hold;
(c) Has taken affirmative steps to preserve their materials, including suspending any personal deletion or cleanup routines; and
(d) Will notify Margaret Hollis or Aaron Turcotte immediately if they discover any potentially relevant materials that were not initially preserved or if they become aware of any risk of data loss;
3. A comprehensive list of all individuals to whom the hold was distributed, together with copies of their written acknowledgments, must be compiled and provided to Calderwood & Harkness within ten (10) business days of the date of this letter — i.e., by Friday, May 16, 2025; and
4. A copy of the enclosed Custodian Acknowledgment Form should be provided to each recipient for completion and return.
C. Ongoing Obligations
The preservation obligations described in this notice are ongoing and will remain in effect until Calderwood & Harkness issues a written release. Accordingly:
1. This hold remains in effect until Calderwood & Harkness provides SLG with written notice that the hold has been released, in whole or in part. The hold shall not be released or modified without the express written authorization of Calderwood & Harkness;
2. If any custodian or employee discovers potentially relevant materials that were not initially preserved — whether due to oversight, the discovery of previously unknown data sources, or any other reason — they must immediately notify Margaret Hollis or Aaron Turcotte, who in turn must promptly notify Calderwood & Harkness;
3. Any new employees, contractors, or third-party vendors who assume relevant custodial roles or otherwise come into possession, custody, or control of materials within the scope of the hold must be notified of the hold and must acknowledge their preservation obligations in writing;
4. Periodic reminder notices should be issued to all custodians and recipients at least quarterly to reinforce the ongoing nature of the preservation obligation. Calderwood & Harkness will provide template reminder notices upon request; and
5. SLG should maintain a log of all preservation actions taken, including the dates on which automated deletion routines were suspended, the dates on which custodians were notified, and any issues encountered during the preservation process. This log will be important in demonstrating SLG's good-faith compliance with its preservation obligations should any spoliation issues arise.
D. Third-Party Vendors and Cloud Service Providers
SLG must take the following steps with respect to third-party vendors and cloud service providers:
1. Identify all third-party vendors and cloud service providers who host, store, process, manage, or have access to any of the categories of data listed in Section III above. This includes, without limitation:
• The RouteSync platform infrastructure provider (whether hosted in-house or by a third-party cloud or data center provider);
• The GPS telematics service provider that operates the telematics devices and stores the tracking data;
• The email hosting provider (e.g., Ashgrove Software, Crestline Software, or other platform);
• Any offsite storage or records management companies that store physical or electronic records on SLG's behalf;
• Any payroll processing providers that process driver payments or maintain payment records;
• Any cloud storage providers used for enterprise file storage, document management, or collaboration; and
• Any other vendor that stores or manages data potentially within the scope of this hold;
2. Issue written preservation notices to each identified vendor and service provider, directing them to preserve all relevant data and to suspend any scheduled deletions, data lifecycle management processes, data migration, or archival routines that could result in the loss of relevant information;
3. Obtain written confirmation from each vendor and service provider that they have received the preservation notice and have taken the necessary steps to preserve the data; and
4. Provide copies of all vendor preservation notices and confirmations to Calderwood & Harkness for our records.
V. Consequences of Non-Compliance
We must emphasize in the strongest possible terms the potential consequences of failing to comply with this litigation hold. Federal Rule of Civil Procedure 37(e) provides that if electronically stored information that should have been preserved in anticipation of or during litigation is lost because a party failed to take reasonable steps to preserve it, the Court may:
(a) Upon a finding of prejudice to the opposing party, order measures no greater than necessary to cure the prejudice; or
(b) Upon a finding that the party acted with the intent to deprive another party of the information's use in the litigation:
(i) Presume that the lost information was unfavorable to the party;
(ii) Instruct the jury that it may or must presume the information was unfavorable to the party; or
(iii) Dismiss the action or enter a default judgment.
Applicable Fifth Circuit case law further confirms the Court's broad inherent authority to impose sanctions for spoliation of evidence, including adverse inference instructions, exclusion of evidence, monetary sanctions, and case-dispositive sanctions in egregious circumstances. See Rimkus Consulting Grp., Inc. v. Cammarata, 688 F. Supp. 2d 598, 612-13 (S.D. Tex. 2010); Zubulake v. Ashgrove Trust Bank, 220 F.R.D. 212 (S.D.N.Y. 2003).
Spoliation of evidence could fundamentally undermine SLG's defense in this matter. The Company's position rests in substantial part on its classification of drivers as independent contractors, its contention that drivers exercised meaningful autonomy and entrepreneurial opportunity, and the enforceability of the ICOA provisions — including the arbitration clause and collective action waiver in ICOA v3.0. The loss of key evidence — such as RouteSync data showing driver autonomy in route selection, subcontracting records demonstrating entrepreneurial opportunity, or ICOA execution records — could deprive SLG of its ability to substantiate these critical defenses.
Additionally, SLG personnel who fail to comply with this litigation hold may be subject to internal disciplinary action, up to and including termination of employment. The preservation of evidence is not discretionary; it is a legal obligation, and SLG has the right and the duty to hold its personnel accountable for compliance.
VI. Contact Information and Questions
All questions regarding the scope, interpretation, or implementation of this litigation hold should be directed to the following members of the Calderwood & Harkness litigation team:
Bernard Crawford Partner, Calderwood & Harkness LLP 2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Direct: (214) 553-7244
Email: bcrawford@calderwoodharkness.com
James Underwood Lead Associate, Calderwood & Harkness LLP 2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Direct: (214) 553-7318
Email: junderwood@calderwoodharkness.com
Lisa Cheng Paralegal, Calderwood & Harkness LLP 2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Direct: (214) 553-7402
Email: lcheng@calderwoodharkness.com
Lisa Cheng has been designated as the day-to-day contact for preservation logistics, custodian acknowledgment tracking, vendor notification coordination, and other operational aspects of the litigation hold implementation. She should be the first point of contact for questions from custodians, IT personnel, and hub managers regarding the hold.
Calderwood & Harkness requests a meeting with Margaret Hollis, Aaron Turcotte, and SLG's IT leadership within five (5) business days of this letter — i.e., by May 9, 2025 — to discuss the following topics:
• Detailed implementation planning and assignment of internal responsibilities;
• Identification and mapping of all ESI sources, including databases, applications, servers, cloud platforms, and third-party systems;
• Review of SLG's current document retention policies and identification of any automated deletion processes that must be suspended;
• Identification of additional custodians and data sources not addressed in this initial notice;
• Discussion of data collection and forensic imaging requirements for key custodian devices;
• Timeline for custodian notification, acknowledgment, and compliance verification; and
• Any operational concerns or logistical challenges that should be addressed.
Please coordinate with Lisa Cheng to schedule this meeting at your earliest convenience.
VII. Closing
The obligations set forth in this litigation hold notice are of the utmost urgency and importance. Immediate compliance is essential to protect SLG's interests and to satisfy the Company's legal obligations. Every day that passes without full implementation of this hold creates risk — risk of data loss, risk of sanctions, and risk of irreparable harm to SLG's defense.
We stand ready to provide any clarification or additional guidance you may need regarding the scope, interpretation, or implementation of this hold. Do not hesitate to contact Bernard Crawford, James Underwood, or Lisa Cheng with any questions, no matter how minor they may seem. There are no questions too small when it comes to evidence preservation.
Calderwood & Harkness is committed to working collaboratively with SLG to ensure that this litigation hold is implemented efficiently, thoroughly, and in a manner that minimizes operational disruption to the extent consistent with the Company's legal obligations. We understand that SLG is a large, multi-hub operation with complex data systems, and we appreciate that full compliance will require coordination across departments and locations. We are here to assist at every step of that process.
Thank you for your prompt attention to this critical matter.
Very truly yours,
CALDERWOOD & HARKNESS LLP
By: ________
Bernard Crawford Partner 2200 Ross Avenue, Suite 3600 Dallas, TX 75201 Direct: (214) 553-7244
Email: bcrawford@calderwoodharkness.com
cc: (via email)
Aaron Turcotte, Chief People Officer, Stonefield Logistics Group Inc. Trevor Sandoval, Vice President of Operations, Stonefield Logistics Group Inc. Renata Vasquez, Billing Partner, Calderwood & Harkness LLP James Underwood, Lead Associate, Calderwood & Harkness LLP
Enclosure:
Custodian Acknowledgment Form (for completion and return by all identified custodians)
CONFIDENTIAL — This communication is protected by the attorney-client privilege and constitutes a confidential communication between Calderwood & Harkness LLP and its client, Stonefield Logistics Group Inc. This document and any attachments are intended solely for the use of the addressee(s) and the individuals identified in the cc block above. Any unauthorized review, use, disclosure, or distribution is strictly prohibited. If you have received this communication in error, please notify Calderwood & Harkness LLP immediately and destroy all copies.
Hub Designation | Location | Address (if identified)
HUB-01 | Fort Worth, TX | 1015 Railhead Parkway, Fort Worth, TX 76106
HUB-02 | Dallas, TX | 2780 Distribution Drive, Dallas, TX 75212
HUB-03 | Houston, TX | To be confirmed by SLG
HUB-04 | San Antonio, TX | To be confirmed by SLG
HUB-05 | Austin, TX | To be confirmed by SLG
HUB-06 | Oklahoma City, OK | To be confirmed by SLG
HUB-07 | Tulsa, OK | To be confirmed by SLG
HUB-08 | Baton Rouge, LA | To be confirmed by SLG
HUB-09 | New Orleans, LA | To be confirmed by SLG
HUB-10 | Little Rock, AR | To be confirmed by SLG
HUB-11 | Shreveport, LA | To be confirmed by SLG
HUB-12 | El Paso, TX | To be confirmed by SLG
HUB-13 | Lubbock, TX | To be confirmed by SLG
HUB-14 | Corpus Christi, TX | To be confirmed by SLG

VIA EMAIL AND OVERNIGHT COURIER

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