Insituform Technologies, Inc. v. Cat Contracting, Inc.

99 F.3d 1098, 40 U.S.P.Q. 2d (BNA) 1602, 1996 U.S. App. LEXIS 29069, 1996 WL 637903
CourtCourt of Appeals for the Federal Circuit
DecidedNovember 5, 1996
DocketNos. 96-1078, 96-1099
StatusPublished
Cited by12 cases

This text of 99 F.3d 1098 (Insituform Technologies, Inc. v. Cat Contracting, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Insituform Technologies, Inc. v. Cat Contracting, Inc., 99 F.3d 1098, 40 U.S.P.Q. 2d (BNA) 1602, 1996 U.S. App. LEXIS 29069, 1996 WL 637903 (Fed. Cir. 1996).

Opinion

MICHEL, Circuit Judge.

Inliner1 appeals from the district court’s order denying its motion for post-verdict judgment notwithstanding the verdict (“JNOV”)2 of invalidity of United States Patent No. 4,336,012 (“the ’012 patent”), the district court’s order denying its motion to amend certain counterclaims, and the district court’s final decision finding infringement under the doctrine of equivalents. Insituform3 cross-appeals from the district court’s order granting Inliner’s motion for post-verdict JNOV of no literal infringement of claim 1 of the ’012 patent. The case was submitted for decision after oral argument on July 10,1996. We affirm in all respects, except one: we vacate the finding of infringement under the doctrine of equivalents and remand to redetermine infringement under the doctrine because, although the prosecution history of the ’012 patent does not estop Insituform from claiming that the accused processes infringe, the district court’s doctrine of equivalents infringement analysis was tainted by the use of an incorrect claim construction.

The appeal and cross-appeal at bar arise from a complex series of trials spanning five years in the U.S. District Court for the Southern District of Texas, Case No. H-90-1690. In February 1990, Insituform brought suit against Inliner, alleging infringement of the ’012 patent. Inliner filed an answer, as well as counterclaims for a declaratory judgment of noninfringement, invalidity, and un-enforceability of the ’012 patent. Inliner also filed a counterclaim for tortious interference with contractual relations which included the assertion that “Insituform has successfully monopolized the market for soft-lining sewer rehabilitation in the United States for many years.” The counterclaim did not, however, refer to the federal antitrust laws, nor was there a separate counterclaim alleging antitrust violations.

[1101]*1101On March'5, 1991, almost a year after Insituform had filed its answer and counterclaims, the district court filed an order indicating that, inter alia, “defendants’ counterclaim for antitrust violations is severed.”4 Shortly thereafter, Inliner entered a motion to amend its counterclaims so as “to include specific allegations regarding Insituform’s antitrust violations.” The district court did not take any immediate action on Miner's motion.

In June 1991, the patent and state law issues in the ease were tried to a jury for two weeks. At the close of the trial, the jury returned verdicts of infringement, no invalidity, no inequitable conduct, and no tortious interference with contract. Although the jury was instructed on both literal infringement and infringement under the doctrine of equivalents, the interrogatory- form asked only whether “Inliner made, used, or sold a method that infringes claim one of the ’012 patent,” i.e., for a general infringement verdict. Inliner moved for JNOV on all issues. By order dated August 28, 1991, the court granted the JNOV motion in part, concluding that Inliner had not literally infringed the ’012 patent and that it was entitled to retrial on the question of infringement under the doctrine of equivalents. The court denied Inliner’s motion with respect to the jury’s verdict of no invalidity, thus leaving that verdict intact.

In February 1995, the claim of infringement under the doctrine of equivalents was retried, this time to the bench, for three days.5 On October 11, 1995, the district court denied Inliner’s motion to amend its allegedly severed counterclaims. In November 1995, the district court entered amended findings of fact and conclusions of law, according to which two of Inliner’s processes were found to have infringed under the doctrine. At that time, the court also explained that its earlier reference to the severance of an antitrust counterclaim had been “erroneous[],” inasmuch as no such counterclaim had ever existed.

Inliner appeals from the district court’s (1) August 28,1991 order denying its motion for post-verdict JNOV of invalidity of the ’012 patent, (2) October 11,1995 order denying its motion to amend the counterclaims, and (3) final decision finding infringement under the doctrine of equivalents despite Inliner’s alleged prosecution history estoppel defense. Insituform cross-appeals from the district court’s August 28,1991 order granting Inliner’s motion for post-verdict JNOV of no literal infringement of claim 1 of the ’012 patent.

We write solely on the questions of infringement, both literal and by equivalency, of the ’012 patent. Of the issues raised by the parties, only these infringement issues merit extended analysis. The jury’s rejection of Inliner’s attack on the validity of the ’012 patent is amply supported by the evidence, and we discern no error in the district court’s denial of Inliner’s motion for post-verdict JNOV on this point. The district court’s eventual denial of Inliner’s 1991 motion to amend its “antitrust” counterclaim was not, as Inliner contends, an abuse of discretion, inasmuch as no “antitrust” counterclaim in need of amending ever existed. The district court’s decisions on these two points are straightforward, and we affirm them without further discussion. Because the district court’s grant of Inliner’s motion for post-verdict JNOV of no literal infringement is consistent with the proper construction of claim 1 of the ’012 patent, we affirm that grant. Although the district court properly determined that the prosecution history of the ’012 patent did not estop Insituform from claiming infringement by the accused processes under the doctrine of equivalents, we vacate the district court’s decision that Inliner infringed under the doctrine in light of Judge Gilmore’s reliance on a claim construction that is incorrect as a matter of law.

BACKGROUND

The Technology

Underground pipes, such as sewer pipes, are subjected to great stress. As a result, [1102]*1102over time, the pipes develop cracks and other structural defects. Before the development of the technology involved in the ease at bar, the only way to rehabilitate a section of underground pipe was to dig up the broken portion and replace it.

Eric Wood, an inventor at Insituform, pioneered a process for rehabilitating a sewer or other underground pipe without digging it up. Specifically, in the process developed by Wood, one inverts within the pipe a flexible tubular liner comprising an impermeable plastic láyer and a thick, resin-impregnated felt layer, such that the resin-impregnated felt layer is held against the inner wall of the pipe. The resin used to impregnate the felt is thermosetting; in other words, although soft while at “room” temperature, the resin hardens permanently when exposed to heat. After the tubular liner has been put in place — plastic layer facing in, felt side facing out — and pressed out to conform to the pipe under repair, hot water is pumped through the lining to harden the resin.

Early in the development of this technology, artisans learned that they could facilitate the impregnation process, as well as make the resulting impregnation more thorough, by drawing air from the interior of the felt tube during impregnation.

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99 F.3d 1098, 40 U.S.P.Q. 2d (BNA) 1602, 1996 U.S. App. LEXIS 29069, 1996 WL 637903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/insituform-technologies-inc-v-cat-contracting-inc-cafc-1996.