Freeman v. H.I.G Capital
CourtSuperior Court of Delaware
Date FiledOctober 30, 2026
DocketN24C-12-212 PRW
StatusPublished
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Full Opinion
IN THE SUPERIOR COURT OF THE STATE OF DELAWARE
QUINTON FREEMAN, )
)
)
Plaintiff, )
)
v. ) C.A. No. N24C-12-212 PRW
)
H.I.G CAPITAL and )
CAPSTONE LOGISTICS, LLC, )
)
Defendants. )
Submitted: August 4, 2026
Decided: October 30, 2026
Upon Capstone Logistic’s Motion to Dismiss
Mr. Freeman’s Second Amended Complaint,
GRANTED in part, DENIED in part.
MEMORANDUM OPINION AND ORDER
Quinton Freeman, Self-represented.
Michele D. Allen, Esquire, ALLEN & ASSOCIATES, Wilmington, Delaware; Christina
M. Michael, Esquire, and Monica L. Simmons, Esquire, FISHER & PHILLIPS LLP,
Philadelphia, Pennsylvania, Attorneys for Defendant Capstone Logistics, LLC.
WALLACE, J.
In this case, the plaintiff, Quinton Freeman, has sued defendant Capstone
Logistics, LLC, for breach of contract (Count I), breach of the implied covenant of
good faith and fair dealing (Count II), tortious interference with business
relationships (Count III), and promissory estoppel (Count IV). Mr. Freeman also
requests punitive damages. This Memorandum Opinion resolves Capstone’s Motion
to Dismiss his Second Amended Complaint.1 And for the reasons explained now,
that motion is GRANTED, in part, and DENIED, in part.
I. FACTUAL AND PROCEDURAL BACKGROUND2
A. THE PARTIES
Mr. Freeman is an independent delivery contractor, conducting business with
Defendant Capstone Logistics LLC.3
Defendant Capstone Logistics LLC is a company engaged in the trade of
freight and logistics contracting.4
1
Mr. Freeman originally filed suit against both H.I.G. Capital, LLC, and Capstone Logistics,
LLC. See Initial Complaint (D.I. 1). The Court entered an earlier order dismissing H.I.G. Capital,
LLC, from the case with prejudice. D.I. 51.
2
Unless otherwise noted, the Court draws the following background from undisputed facts in the
operative complaint and documentary exhibits submitted therewith. See Windsor I, LLC v. CW
Capital Asset Mgmt. LLC, 238 A.3d 863, 873 (Del. 2020) (“In most cases, when the Superior Court
considers a 12(b)(6) motion, it limits analysis to the ‘universe of facts’ within the complaint and
any attached documents.”).
3
See Second Amended Compl. (hereafter “Compl.”), ¶¶ 1-2 (D.I. 61).
4
See id. ¶¶ 1-2.
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B. THE INDEPENDENT CONTRACTOR OPERATING AGREEMENT
On November 11, 2018, Mr. Freeman signed an Independent Contractor
Operating Agreement (“ICOA”) with Priority Express, which Capstone later
acquired.5 Per this ICOA, Mr. Freeman was an independent contractor to Capstone
and provided trucking services.6 From 2018 to 2023, Mr. Freeman ran more than 15
routes under the ICOA and earned over $700,000.7
C. ROUTE 300
On April 11, 2023, Capstone’s Terminal Manager offered Mr. Freeman to
work Route 300 at a rate of $506.82 per day; Mr. Freeman accepted and began
operations on April 18, 2023.8
Three events followed. On June 28, 2023, Capstone’s freight manager added
an additional delivery requirement that was not part of the original route contract
without first seeking agreement in writing.9 On September 19, 2023, Capstone
issued a Route Rate Agreement cutting the rate to $485 per day.10 Two days later,
Capstone issued a written notice under ICOA § 26.2 that accused Mr. Freeman of
5
See id. at 1 ¶ 1.
6
Exhibit (“Ex.”) E, § 1 (D.I. 61).
7
Amended Compl., 2 (D.I. 53).
8
See Compl., 1 ¶ 3.
9
See id. at 1 ¶ 4.
10
Id., at 1 ¶ 5; see Ex. A (Route Agreement for Route 300) (D.I. 61). It is unclear what the original
rate was for Route 300. The Route Rate Agreement is dated “9.19.2023” without a specific
designation of a separate effective date. Thus, one must assume it was effective immediately.)
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(1) failing to find coverage for working Route 300; and (2) respond to Capstone.11
According to Mr. Freeman, he had already arranged coverage with Capstone’s
dispatcher at 12:47 a.m. the same day.12 On September 25, Capstone issued a 10-
day notice under ICOA § 3.3 terminating Mr. Freeman’s Route 300 service ten days
hence, citing “Other Adjustment/Prior Period Adjustments” as the sole reason.13
D. ROUTE 34
Mr. Freeman also worked Route 34 using a 16-foot truck that Capstone had
approved.14 The Route 34 agreement contains no specific truck-sizing requirements,
but only that the route may “require[] a second trip in the event of increased volume
or any other unforeseen circumstances.”15
On October 11, 2023, Capstone’s Warehouse Manager orally informed
Mr. Freeman that he must upgrade to a 26-foot truck in order to stay on this route.16
The next day, Capstone issued a 10-day notice making the same demand, effective
October 23, 2023.17 By that time, Mr. Freeman had operated his 16-foot truck for
11
Compl., 1 ¶ 6; see Ex. B (Notice of Material Breach and Requirement to Cure) (D.I. 61); see
Ex. E, § 26.2.
12
See Compl., 1 ¶ 6.
13
See id. at 2 ¶ 7; Ex. C (Capstone 10-Day Notice) (D.I. 61).
14
Compl., 2 ¶ 13.
15
Id. at 2 ¶ 11.
16
See id. at 2 ¶ 9.
17
See id. at 2 ¶ 10; see Ex. D (Capstone 10 Day Notice) (D.I. 61). The notice stated the reason for
removal was “Vehicle Requirement – 26Ft Box Truck,” and that the affected route was “Same Day
34.”
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over 18 months without changes in service volume or contract terms.18
On an October 16th conference call, Capstone’s terminal manager called
Mr. Freeman’s account of the original trucking-size requirement a “bold-faced lie”
and said he had worked on that contract himself.19 Mr. Freeman noted that the
representative worked in a different division at the time.20
On October 23, Capstone reassigned Route 34 to another contractor.21
Mr. Freeman’s only notice of the reassignment was a phone call from Capstone’s
Warehouse Manager; Mr. Freeman received no written notice.22
E. PROCEDURAL BACKGROUND
Mr. Freeman initially filed this action against Capstone in December 2024.23
Six months later, Mr. Freeman filed an amended complaint.24 And upon Capstone’s
motion to dismiss,25 he was granted leave to file a second amended complaint.26 That
is now the operative complaint.27
18
See Compl., 2 ¶ 10; see Ex. D.
19
See Compl.,2 ¶ 12.
20
See id.
21
Id. at 2, ¶ 13.
22
See id.
23
Initial Compl. (D.I. 1).
24
Amended Compl. (D.I. 53).
25
Motion to Dismiss Amended Compl. (D.I. 59).
26
See Motion for Leave to File an Amended Compl. (D.I. 61); see Order (D.I. 64).
27
See Compl.
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Mr. Freeman seeks, in total, $394,984.46 in damages from Capstone.28
Specifically, Mr. Freeman seeks lost profits on Route 300 of $229,589.46 and
$165,345 in lost income from Routes 300 and 34, respectively.29 He also seeks an
estimated $50,000 in consequential damages for alleged harmed reputation and lost
business opportunities; punitive damages in an amount the Court deem fits; and
costs, attorney’s fees, and interest.30 While seeking wholesale dismissal of his
complaint, Capstone suggests that—should any of Mr. Freeman’s claims survive—
any recovery should be limited to damages suffered during the ICOA’s 30-day notice
period, i.e., from October 11 to November 10, 2023.31
II. PARTIES’ CONTENTIONS
Mr. Freeman pens four claims: breach of contract, breach of the implied
covenant of good faith and fair dealing, tortious interference with business relations,
and promissory estoppel.32 Capstone moves to dismiss all four.33
A. BREACH OF CONTRACT (COUNT I)
In Count I, Mr. Freeman alleges Capstone breached the ICOA by: (1) adding
28
Compl., 6.
29
Id. at 5-6.
30
Id.
31
Defendant’s Opening Brief in Support of Motion to Dismiss Mr. Freeman’s Second Amended
Complaint (hereafter “Opening Br.”), 16-17 (citing J.E. Rhoads & Sons, Inc. v. Ammeraal, Inc.,
1988 WL 32012, at *10 (Del. Super. Ct. Mar. 30, 1988)).
32
See Compl., 3-4.
33
See generally Opening Br.
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a delivery obligation without giving written confirmation, even though Mr. Freeman
asked for it; (2) cutting his route rate without written notice or Mr. Freeman’s
consent; (3) falsely accusing Mr. Freeman to failing to cover the route; and
(4) terminating Route 300 without “substantiated cause.”34
Capstone moves to dismiss Count I under Rule 12(b)(6).35
First, Capstone maintains that § 3.3 of the ICOA was not triggered.36
According to Capstone, § 3.3 defines “gross compensation” by an attached rate sheet
(“Rate Sheet”),37 and because neither the ICOA nor the Rate Sheet sets a day rate for
Route 300, cutting that rate did not change Mr. Freeman’s “gross compensation.”38
Capstone argues that § 3.3 says nothing about route changes, so Capstone didn’t
need to provide notice nor seek consent.39 Even if § 3.3 applies, says Capstone, it
requires only advance notice, and Capstone may terminate if Mr. Freeman declines.40
Capstone argues its 10-day notice complied with ICOA § 8.7 and thus there can be
no breach found.41
34
See Compl., 2 ¶ 8, 3.
35
Opening Br., 8.
36
Id. at 9-10.
37
Id. at 10.
38
Id. at 10-11.
39
Id. at 11.
40
Id. at 3.
41
Id. at 11-12; Ex. E, § 8.7.
-6-
In response, Mr. Freeman posits that “gross compensation” should be
construed to include all monetary forms of payment, not just base pay.42 Because
the Route 300 Agreement is an integrated component of the ICOA, Mr. Freeman
contends, Route 300 pay is part of his gross compensation.43 To him, Capstone’s
narrow reading contradicts both the term’s plain meaning and Delaware’s statutory
approach.44 Accordingly, Mr. Freeman argues that Capstone’s unilateral cut
triggered § 3.3 and, because it was made without notice or consent, was a material
breach.45
Capstone replies that § 3.3 clearly defines “gross compensation” and the Court
cannot rewrite this defined, unambiguous term “simply to placate Mr. Freeman.”46
Even if the term were ambiguous, says Capstone, Mr. Freeman has offered no
evidence of prior trade usage or course of dealing to support his reading.47
Second is Mr. Freeman’s contention that Capstone’s imposition of an overflow
requirement without notice or the opportunity to cure was a breach.48 Capstone
42
Answering Br., 6 (no citation of authority provided).
43
Id.
44
Id. (citing 19 Del. C. § 709B, Delaware Department of Labor Regulation WP-101, and Delaware
Compensation Rating Bureau Rule 2-C).
45
Id. at 7.
46
Reply Brief in Further Support of Defendant Capstone Logistics, LLC’s Motion to Dismiss
Plaintiff’s Second Amended Complaint (hereafter, “Reply Br.”), 2 (citing Paul v. Deloitte &
Touche, LLP, 974 A.2d 140, 145 (Del. 2009)).
47
Reply Br., 3.
48
Compl., 3; Answering Br., 8-9.
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counters that ICOA § 8.7 requires Mr. Freeman to comply with all specifications
dictated by Capstone’s customers.49 Mr. Freeman maintains that the parties never
agreed to an overflow requirement.50
Third, Capstone asserts that it did not maliciously or falsely accuse
Mr. Freeman of breach.51
Fourth, Capstone argues that it did not materially breach by terminating the
Route 300 Agreement.52
Fifth, Capstone charges that Mr. Freeman breached the contract, and so any
breach that Capstone may be found to have committed is excused.53 Capstone says
that Mr. Freeman admitted to noncompliance with delivery and equipment
requirements, which is enough to excuse Capstone’s performance.54 Mr. Freeman
responds that Capstone has not pointed to any material provision of the ICOA that
he breached.55
Sixth, Capstone contends that Mr. Freeman waived his right to claim Capstone
49
Reply Br., 5.
50
Sur-Reply Brief in Opposition to Capstone Logistics, LLC’s Reply Brief Motion to Dismiss
(hereafter, “Sur-Reply”), 3-4.
51
Answering Br., 11-12.
52
Id. at 12.
53
Opening Br., 13-14.
54
Id.
55
Answering Br., 12.
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breached, and so the claim is estopped.56 As support, Capstone points out that
Mr. Freeman waited more than 117 days to object to the rate change.57 In Capstone’s
view, by continuing to work, he acquiesced to the “new” rate and route terms.58 But,
Mr. Freeman responds that waiver is inapplicable here because of a lack of evidence
that Mr. Freeman expressed an intent to waive his right to this claim.59
Seventh, Capstone argues that the ICOA expired well before the conduct at
the heart of this lawsuit.60 Capstone says that ICOA expired on December 31, 2021,
before the conduct giving rise to this action occurred.61 Mr. Freeman responds that
the parties continued performing under the ICOA well after that date, and so the
ICOA was extended beyond its term.62
Lastly, Capstone suggests that if dismissal isn’t warranted, Mr. Freeman’s
damages should be limited to what was accrued during the notice period.63 Capstone
was able to terminate the ICOA with 30 days’ written notice, and so Capstone
contends that Mr. Freeman should be limited to the damages accrued during those
56
Opening Br., 14-15.
57
Id.
58
Id.
59
Answering Br., 15.
60
Opening Br., 15.
61
Id.
62
Answering Br., 5.
63
Opening Br., 16.
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30 days.64
Mr. Freeman says this is inconsistent with Delaware law. He insists that he is
entitled to damages that would restore him to a position as if the contract was fully
performed, not solely the damages arising from the 30-day window.65 Further,
Mr. Freeman avers that he wasn’t even provided 30 days’ notice of the ICOA’s
termination, but rather received only a 10-day notice that threatened termination if
alleged noncompliance with Captone’s specifications persisted.66
The parties also dispute whether the Route 300 Agreement is part of the
ICOA. Capstone contends they are standalone agreements and that Mr. Freeman
offers no support otherwise.67 Mr. Freeman calls out ICOA § 2.1, the duration and
termination provision, which states: “Each party agrees to satisfy all of its
obligations incurred hereunder prior to the effective termination date, including but
not limited to obligations related to any accepted dispatch.”68 Mr. Freeman argues
that “accepted dispatch” refers to the route agreement for each dispatchment.69
64
Id. at 17.
65
Answering Br., 17-18.
66
Id. at 18.
67
Reply Br., 3-4.
68
Sur-Reply, 3.
69
Id.
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B. IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING (COUNT II)
Mr. Freeman claims that Capstone breached the implied covenant of good
faith and fair dealing by acting arbitrarily and in bad faith.70 Capstone seeks
dismissal of Count II.71 Capstone contends that Mr. Freeman has identified no gap
in the operative contract for the implied covenant to fill.72
Mr. Freeman counters that there was a binding agreement between himself
and Capstone and that Capstone unilaterally altered or terminated said contract
without notice to Mr. Freeman.73 Specifically, Mr. Freeman argues that Capstone
modified his compensation and the trucking requirements without opportunity for
negotiation or cure.74 Mr. Freeman asserts that Capstone’s actions were arbitrary
and caused financial harm, which, to him, constitutes a breach of the implied
covenant of good faith and fair dealing.75
C. TORTIOUS INTERFERENCE (COUNT III)
Capstone argues two bases for Count III’s dismissal. First, it says,
70
Compl., 3.
71
Opening Br., 18.
72
Id. at 18-19 (arguing that the Court cannot use the implied covenant to rewrite the contract
especially when the contract’s express term provides answers).
73
Answering Br., 19.
74
Id.
75
Id. at 19-20.
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Mr. Freeman failed to plead Capstone’s alleged interference was intentional.76
Second, Mr. Freeman failed to demonstrate that Capstone’s conduct caused any
disruption to any relationships.77 Mr. Freeman responds that Capstone’s termination
of the agreement disrupted his business relationship with his subcontractors, and that
Capstone did, in fact, act intentionally in doing so.78 Mr. Freeman emphasizes that
the contract’s termination was pretextual, and the threat of termination was a bad
faith attempt to force Mr. Freeman to comply with Capstone’s unilateral
modifications.79
D. PROMISSORY ESTOPPEL (COUNT IV)
Capstone argues that Mr. Freeman failed to identify the specific promises,
express or implied, that his service would continue, and so, with only the
Complaint’s conclusory allegations, the Court must dismiss Mr. Freeman’s
promissory estoppel claim.80
Mr. Freeman echoes his original argument for promissory estoppel:
(1) Capstone made “clear and definite promises” of continued route assignments,
76
Opening Br., 20.
77
Id. at 21; Reply Br., 6.
78
Answering Br., 20-21.
79
Id. at 21.
80
Opening Br., 22; Reply Br., 6.
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compensation, and authorized equipment use;81 (2) Mr. Freeman reasonably relied
upon those promises; and (3) Capstone’s termination is unjust.82 He contends that
reliance on Capstone’s promises is demonstrated through hiring subcontractors to
operate the agreed-upon routes, maintaining business operations, and giving up
different opportunities because of his commitment to Capstone.83
E. DAMAGES
Capstone says that Mr. Freeman’s claim for punitive damages must be
dismissed since a claim for punitive damages cannot stand without a tort
counterpart.84 In Capstone’s view, there is no tort either alleged or surviving, the
call for punitive damages falls.85
Mr. Freeman again complains that Capstone acted in bad faith by interfering
with his business relations, arbitrarily terminated the instant contract as leverage,
and induced reliance on the agreement.86 According to Mr. Freeman, such conduct
warrants punitive damages.87
81
Compl., 3.
82
See Answering Br., 22; Compl., 4.
83
Answering Br., 22.
84
Opening Br., 23.
85
Id.
86
Answering Br., 22.
87
Id. at 22-23.
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III. STANDARD OF REVIEW
Under this Court’s Rule 12(b)(6), a party can move to dismiss a case for failure
to state a claim.88 In its review of such motions, the Court “(1) accepts as true all
well-pleaded factual allegations in the complaint; (2) credits vague allegations if
they give opposing party notice of the claim; (3) draws all reasonable factual
inferences in favor of the non-movant; and (4) denies dismissal if recovery on the
claim is reasonably conceivable.”89 The Court need not “accept every strained
interpretation of the allegations proposed by [Mr. Freeman], but the [he] is entitled
to all reasonable inferences that logically flow from the face of [his] complaint.”90
“The complaint generally defines the universe of facts that the trial court may
consider in ruling on a Rule 12(b)(6) motion to dismiss.”91 But, there are some
circumstances where “it may be proper for a trial court to decide a motion to dismiss
by considering documents referred to in a complaint.”92 And the Court might also
consider documents external to the complaint in three situations: “(1) when a
document is integral to a claim and incorporated into a complaint; (2) when the
document is not being relied upon to prove the truths of its contents; or (3) when the
88
Del. Super. Ct. Civ. R. 12(b)(6).
89
Doe for Doe v. Snap, Inc., 2025 WL 2926161, at *3 (Del. Super. October 15, 2025) (citing Cent.
Mortg. Co. v. Morgan Stanley Mortg. Cap. Holdings LLC, 27A.3d 531, 535 (Del. 2011)).
90
Malpiede v. Townson, 780 A.2d 1075, 1083 (Del. 2001).
91
In re Gen. Motors (Hughes) S’holder Litig., 897 A.2d 162, 168 (Del. 2006).
92
Id. at 169.
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document is an adjudicative fact subject to judicial notice.”93 The pleading standard
under Delaware law is “minimal.”94
IV. DISCUSSION95
A. MR. FREEMAN’S BREACH-OF-CONTRACT CLAIM SURVIVES DISMISSAL.
“To prevail on a breach-of-contract claim, one must show: (1) a contractual
93
Murray v. Mason, 244 A.3d 187, 192 (Del. Super. Ct. 2020), modified (Jan. 5, 2021) (citing In
re Gardner Denver, Inc., 2014 WL 715705, at *2 (Del. Ch. Feb. 21, 2014)).
94
Doe for Doe, 2025 WL 2926161, at *3 (citing Cent. Mortg. Co., 27A.3d at 536).
95
Throughout its examination the Court remains mindful that it and its sisters prefer to hear cases
on their merits rather than dismissing them for procedural reasons. See In re Asbestos Litig., 228
A.3d 676, 685 (Del. 2020) (“A court . . . should be especially mindful of one overarching
consideration—Delaware’s strong judicial policy that courts should decide cases on their merits.”
(citations omitted)); Beckett v. Beebe Med. Ctr., Inc., 897 A.2d 753, 757-58 (Del. 2006) (“In
Delaware, public policy favors permitting a litigant a right to a day in court. Courts should apply
[the Civil Rules] with a liberal construction because of the underlying policy that favors a trial on
the merits, as distinguished from a judgment based on a default.” (internal quotation marks and
citations omitted)).
It remains mindful also of the treatment our courts afford one who represents himself. See Johnson
v. State, 442 A.2d 1362, 1364 (Del. 1982) (“First, we adopt the view that a pro se pleading is judged
by a less stringent standard than a pleading or document filed by an attorney.”).
Still, though “the Court is cognizant of the difficulties faced by pro se litigants, it cannot sacrifice
the orderly and efficient administration of justice or impair the substantive rights of represented
parties to save their claims when their claims plainly have no merit.” Mikkilineni v. PayPal, Inc.,
2021 WL 2763903, at *5 (Del. Super. Ct. July 1, 2021) (cleaned up). And so, to provide each side
here the fairest possible treatment and greatest guidance going forward, the Court—though it
normally need not under Rule 12(b)(6)—has examined and passed on each count and its varied
articulated theories of liability as best it can divine them from Mr. Freeman’s pleadings. See
inVentiv Health Clinical, LLC v. Odonate Therapeutics, Inc., 2021 WL 252823, at *4-6 (Del. Super.
Ct. Jan. 26, 2021) (Explaining that “at the pleading stage of a case, a trial judge is not a robed
gardener employing Rule 12(b)(6) as a judicial shear to prune individual theories from an
otherwise healthily pled claim or counterclaim.”); see also Envolve Pharm. Sols., Inc. v. Rite Aid
Hdqtrs. Corp., 2021 WL 855866, at *4 n.45 (Del. Super. Ct. Mar. 8, 2021) (“[I]t is not generally
the Court’s duty to dissect a single claim for either dismissal or rescue of its constituent theories
of liability.”).
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obligation; (2) a breach of that obligation; and (3) resulting damages.”96 The Court
will generally prioritize “the parties’ intentions contained in the four corners of the
contract.”97 In doing so, the Court will decide “whether the intent of the parties can
be determined from its express language.”98 The Court will examine the contract as
a whole, as the meaning of terms can be deciphered in the context of the entire
agreement.99 “Specific language in a contract controls over general language, and
where specific and general provisions conflict, the specific provision ordinarily
qualifies the meaning of the general one.”100 “When construing a contract, and
unless a contrary intent appears, [courts] will give words their ordinary meaning.”101
Where a “contract’s language is plain and unambiguous, it must be enforced as
written.”102
Mr. Freeman, in his breach-of-contract claim, alleges that Capstone breached
the ICOA by “unilaterally altering compensation, imposing unauthorized delivery
96
Jiggy Puzzles, LLC v. Steelhead Acquisition EE, Inc., 2026 WL 465112, at *5 (Del. Super. Ct.
Feb. 18, 2026); VLIW Tech., LLC v. Hewlett-Packard, Co., 840 A.2d 606, 612 (Del. 2003).
97
Jiggy Puzzles, 2026 WL 465112, at *5; Paul, 974 A.2d at 145.
98
Paul, 974 A.2d at 145.
99
Riverbend Cmty., LLC v. Green Stone Eng'g, LLC, 55 A.3d 330, 334-335 (Del. 2012) (“The
meaning inferred from a particular provision cannot control the meaning of the entire agreement
if such an inference conflicts with the agreement’s overall scheme or plan.”).
100
Jiggy Puzzles, 2026 WL 465112, at *5 (cleaned up).
101
Id.; Citadel Hldg. Corp. v. Roven, 603 A.2d 818, 824 (Del. 1992).
102
Jiggy Puzzles, 2026 WL 465112, at *6; Lorillard Tobacco Co. v. Am. Legacy Found., 903 A.2d
728, 740 (Del. 2006).
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requirements, and terminating the contract without justification or adherence to
contractual notice provisions.”103
Capstone’s motion to dismiss Mr. Freeman’s breach-of-contract claim is
DENIED, in part, and GRANTED, in part, for the foregoing reasons.
1. It is reasonably conceivable that the ICOA was in effect at the time
of the breaches alleged.
According to Capstone, the ICOA expired in 2021 and no longer governed the
parties’ dealings in 2023.104 To Capstone, that expired contract cannot be the basis
of these breach-of-contract claims.105 And so, the issue is whether the parties’
continued performance created an implied contract incorporating substantially the
same terms as the ICOA.
When a written contract expires by its terms and the parties continue to
perform as before, their conduct may establish an implied contract on substantially
the same terms.106 In P.C. Connection, Inc. v. Synygy Ltd., a provider continued
supplying software services for fourteen months after the alleged expiration date of
103
Compl., 3.
104
Opening Br., 15; Ex. E, § 2.1, 20.
105
Opening Br., 15.
106
P.C. Connection, Inc. v. Synygy Ltd., 2021 WL 57016 at *19-20 (Del. Ch. Jan. 7, 2021.) (“After
a contract expires, ‘one party’s continued rendition of services’ and ‘the other’s acceptances of
those services and payment in accordance with the terms of the written contract can establish a
contract implied in fact with substantially the same terms and conditions as embodied in the
expired written contract.’”).
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and demanded payment under a prior agreement; the Court found an implied contract
existed between the parties after the expiration date.107
Here, neither party identifies an automatic renewal provision. But the
complaint does allege that the parties kept performing under the ICOA after
December 2021.108 It appears Capstone’s own conduct confirms this. In 2023,
Capstone invoked ICOA § 3.3 to remove Mr. Freeman from Route 300.109 Like P.C.
Connection, where continued services and reliance on prior contractual rates
supported an implied contract,110 here, the parties’ continued performance and
Capstone’s reliance on § 3.3 may support an implied contract under the same terms
as the ICOA. The ICOA’s alleged expiration does not, by itself, establish that its
terms ceased to govern the parties’ relationship in 2023. At this point in the
litigation, the record demonstrates that both Mr. Freeman and Capstone continued
their relationship with one another. Capstone’s motion to dismiss based on
expiration of the ICOA is DENIED.
107
P.C. Connection, 2021 WL 57016 at *19-20.
108
See Compl., 1.
109
Id. at 2, ¶¶ 3, 4, 7.
110
P.C. Connection, 2021 WL 57016 at *19-20.
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2. Capstone’s unilateral reduction of Mr. Freeman’s daily rate and
delivery requirements without adequate notice may be a breach of the
ICOA.
a. Mr. Freeman has adequately alleged a breach of contract regarding
the unilateral modification of his compensation.
Mr. Freeman argues that Capstone breached the ICOA when it unilaterally
altered reduced his compensation.111 Compensation is detailed in ICOA § 3.112
Section 3.1 of the ICOA reads as follows:
Contractor’s gross compensation is set forth in Appendix A
and constitutes the total compensation for the use of the
Equipment and for everything furnished, done by, or
required of Contractor’s workers in connection with this
Agreement, including (but not limited to) driving the
Equipment and performing all non-driving activities, such
as pre- and post-trip inspections, waiting to load or unload
(detention), loading or unloading (if required), fueling,
repairing and maintaining the Equipment, hooking and
unhooking trailers (loaded or empty), preparing records of
duty status and other paperwork, communicating with
dispatch, and other services. Contractor—as an
independent contractor, not an employee—agrees that
Contractor is responsible for paying all operating expenses.
Contractor acknowledges and understands, unless
otherwise agreed to by the parties, Carrier’s compensation
obligation hereunder applies only to the extent of full and
complete performance of any dispatch accepted by
Contractor.113
Section 3.2 of the ICOA reads:
Carrier and Contractor may agree in advance on gross
111
Compl., 3; Opening Br., 9.
112
See Ex. E, § 3.
113
Ex. E, § 3.1.
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compensation to be paid for services relating to one or more
specific shipments by both signing an addendum to that
effect. The gross compensation described in such an
addendum will constitute the total gross compensation
Contractor is entitled to for all services performed with
respect to those shipment(s). Contractor agrees not to load
any shipment or start any trip to which a proposed
compensation addendum relates until Contractor has
signed that addendum. Contractor authorizes its drivers to
sign compensation-related addendums on its behalf under
this section.114
And Section 3.3 of the ICOA provides:
Carrier will provide Contractor with a proposed addendum
containing any change to Contractor’s gross compensation
at least 10 days in advance. If Contractor wishes to
continue operating on Carrier’s behalf, Contractor may
consent to the change by signing the addendum. If
Contractor does not consent to the change before the date
indicated on the addendum, this Agreement may be
terminated on the date set forth on the addendum, and
Contractor will not be subject to the change proposed in the
addendum.115
Capstone contends that this breach claim should be dismissed because
“neither the rate sheet nor the ICOA contain a promised day rate for the Route 300
assignment[,]” and so Capstone’s modification of such day rate didn’t breach any
provision dictating a specific rate.116 Further, Capstone argues that any change to
Mr. Freeman’s day rate did not impact Mr. Freeman’s gross compensation, and as
114
Ex. E, § 3.2.
115
Ex. E, § 3.3.
116
Opening Br., 10.
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such, § 3.3 was not materially breached.117 Mr. Freeman counters, arguing that a
change to the day rate did indeed impact gross compensation.118
When viewing the allegations in the light most favorable to the non-movant,
it can be understood that a day rate for working a particular route will be factored
into gross compensation. A reasonable read of ICOA § 3.3 obligates the Carrier—
Capstone—to provide the Contractor—Mr. Freeman—with 10 days’ notice if his
gross compensation were to be changed, and the Contractor is obligated to sign the
addendum should the Contractor desire to consent to the change. 119 Mr. Freeman
alleges in his complaint that Capstone did not provide 10 days’ notice, but instead
unilaterally modified his daily rate to $485 without notice, and made the change
effective immediately.120 Generally, absent a contract term allowing it, one party
cannot change any term thereof without the other’s consent.121 This change in
compensation is a material modification of the ICOA; compensation is the key
consideration Mr. Freeman received in return for his delivery and trucking
117
Id.
118
Answering Br., 6.
119
See Ex. E, § 3.3.
120
Compl., 1.
121
See De Cecchis v. Evers, 174 A.2d 463, 464 (Del. Super. Ct. 1961) (“A contract having been
made, no modification of it could be brought about without consent of both parties and without
consideration.”); Sersun v. Morello, 1999 WL 350476, at *2 (Del. Ch. Mar. 29, 1999) (“When a
contract is validly made, it cannot be modified without the consent of all parties and an exchange
of consideration.”).
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services.122 Not abiding by the notice requirement for a pay change is sufficient for
an allegation of breach of contract on this point.
Accordingly, Capstone’s motion to dismiss regarding the breach-of-contract
claim relating to compensation is DENIED.
b. Mr. Freeman’s claim relating to Capstone’s modifications to delivery
requirements does not survive.123
Mr. Freeman alleges that Capstone breached its contract with him by creating
unauthorized delivery requirements.124 Specifically, Mr. Freeman says that the
freight manager of Capstone imposed an additional overflow delivery requirement
that was not in the original terms.125 Capstone argues that Mr. Freeman wrongly
relies on § 3.3 in his argument because that specific provision does not address
delivery requirements, but only compensation.126 Capstone contends that this
provision cannot be read to impose delivery requirements when it only references
122
See Material, BLACK’S LAW DICTIONARY 1166 (12th Ed. 2024) (defining “material” as “having
some logical connection with the consequential facts [or] of such a nature that knowledge of the
item would affect a person’s decision-making; significant; essential[.]”).
123
The Court notes here that as a question of law, a contract’s proper interpretation can be resolved
on a motion to dismiss. Blue Cube Spinco LLC v. Dow Chemical Co., 2021 WL 4453460, at *7
(Del. Super. Ct. Sept. 29, 2021) (citing Allied Cap. Corp. v. GC-Sun Holdings, L.P., 910 A.2d 1020,
1030 (Del. Ch. 2006) (“Under Delaware law, the proper interpretation of language in a contract is
a question of law. Accordingly, a motion to dismiss is a proper framework for determining the
meaning of contract language.”)). And when doing so, “the Court’s contract interpretation must
be reasonable, reading the agreement in full and situated in the commercial context between the
parties.” Id. at *6 (cleaned up) (quoting Chi. Bridge & Iron Co. N.V. v. Westinghouse Elec. Co.
LLC, 166 A.3d 912, 926–27 (Del. 2017)).
124
Compl., 3.
125
Id. at 1.
126
Opening Br., 11; Ex. E, § 3.3.
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compensation.127 In his answering brief, Mr. Freeman further argues that the
unilateral decision to change the delivery requirements constitutes a breach of the
ICOA.128
“Under Delaware law, simply referring to the parties’ contract will not sustain
a claim for breach of contract.”129 “A party must identify the particular contractual
terms that were breached.”130 That is, a plaintiff must “identify a provision of the
relevant contract that allegedly was breached and provide a basic explanation [of]
why a breach occurred” to sufficiently put the defendant on notice of his claim.131
In Marydale Preservation Associates the plaintiffs’ breach-of-contract claim
failed because they failed to identify a specific applicable contractual provision that
was breached but baldly alleged a breach of the controlling contract.132 This is
slightly distinguishable from the instant matter. It is true that Mr. Freeman—unlike
the plaintiff in Marydale Preservation Associates—identified a provision that he
claimed was breached, but the named provision does not support this specific breach
127
Opening Br., 11.
128
Answering Br., 8.
129
Marydale Pres. Associates, LLC v. Leon N. Weiner & Associates, Inc., 2022 WL 4446275, at
*17 (Del. Super. Ct. Sept. 23, 2022).
130
Marydale Pres. Associates, 2022 WL 4446275, at *17.
131
An v. Cosman, 2025 WL 2180575, at *10 (Del. Ch. July 31, 2025) (quoting IAC Search, LLC
v. Conversant LLC, 2017 WL 3500244, at *1 (Del. Ch. Jan. 13, 2017)).
132
Marydale Pres. Associates, 2022 WL 4446275, at *17.
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claim.133 Section 3.3 only addresses changes in compensation, but adding a route or
delivery duty is a change in workload, not compensation.134 Mr. Freeman’s reliance
on § 3.3 is mislaid, and provides no proper basis for his breach-of-contract claim on
this basis.
Accordingly, Mr. Freeman’s claim for breach of contract as to the delivery
requirements is dismissed, and Capstone’s motion to dismiss this specific breach
allegation is GRANTED.
c. At this stage, Mr. Freeman has sufficiently alleged that Capstone’s
termination of Route 300 was a breach.
Mr. Freeman alleges that Capstone breached their contract when Capstone
terminated his operation of Route 300 without reason and did not abide by the
termination notice provisions.135 Capstone counters by arguing that the ICOA only
defines and explains the parties’ rights and obligations when they desire to terminate
the ICOA, and not how specific route agreements are terminated.136
Section 26 governs breaches of the ICOA.137 This provision provides that, if
the Contractor—here, Mr. Freeman—commits a material or non-material breach of
the agreement, then Capstone will investigate the circumstances to determine
133
Compl., 1.
134
See Ex. E, § 3.3.
135
Compl.