No Spill, LLC. v. Scepter Corporation

CourtDistrict Court, D. Kansas
DecidedSeptember 5, 2023
Docket2:18-cv-02681
StatusUnknown

This text of No Spill, LLC. v. Scepter Corporation (No Spill, LLC. v. Scepter Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
No Spill, LLC. v. Scepter Corporation, (D. Kan. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

NO SPILL, LLC and TC CONSULTING, INC.,

Plaintiffs, Case No. 2:18-cv-02681-HLT v.

SCEPTER CANADA, INC. and SCEPTER MANUFACTURING,

Defendants.

ORDER This is a patent case about flame mitigation devices (“FMDs”) in portable fuel containers. Plaintiffs allege that Defendants’ fuel containers literally infringe (either directly or indirectly) various claims of their two related United States Patents: 9,174,075 and 10,029,132. Defendants contend that the accused products do not infringe the asserted claims and that the asserted claims are invalid. The jury returned a status-quo verdict (all asserted claims valid; no asserted claims infringed) in this four-year-old case after a weeklong trial. Plaintiffs now seek judgment as a matter of law and a new trial. Doc. 738. Plaintiffs contend that infringement was clear and that there was no relevant evidence to the contrary. Plaintiffs also argue that Defendants made irrelevant and improper arguments to the jury that mandate a new trial. The Court disagrees. There is a legally sufficient evidentiary basis for the no-infringement verdict. And the issues about which Plaintiffs complain do not constitute prejudicial error or warrant a new trial. The Court denies Plaintiffs’ motion (Doc. 738), denies without prejudice Defendants’ conditional motion (Doc. 740), and denies the motion for surreply (Doc. 753). I. BACKGROUND This litigation spans four years, hundreds of docket entries, and thousands of pages. This background is a summary to provide context. Plaintiffs1 are the owner by assignment of the asserted patents. The ‘075 Patent is the parent, and the ‘132 Patent is a continuation. Thomas M. Cray is the sole inventor on both patents, and both patents are titled “Explosion inhibiting portable

fuel container and method of inhibiting explosions.” Claim 12 of the ‘075 Patent is a representative claim and states: A fuel container comprising: a hollow tank body defining a fuel-receiving chamber and a main container opening for permitting flow of a liquid fuel into and out of the fuel-receiving chamber; a fuel dispensing assembly coupled to the tank body proximate the main container opening and configured to dispense the liquid fuel from the container; and a fuel retention structure located proximate the main container opening and extending generally downwardly into the fuel- receiving chamber, wherein the fuel retention structure comprises a plurality of perforations through which the liquid fuel is required to flow in order to dispense the liquid fuel from the container, wherein the perforations are configured in a manner such that after the liquid fuel has been dispensed from the container and the fuel retention structure is no longer submerged in the liquid fuel, a quantity of the liquid fuel is retained in the perforations, wherein the retained quantity of the liquid fuel is sufficient to provide a fuel-air mixture within the fuel retention structure that is too rich to support combustion, wherein the retained quantity of the liquid fuel is held in the perforations by intermolecular forces, wherein the intermolecular forces are sufficient to retain the quantity of liquid fuel in the perforations regardless of the orientation of the portable fuel container.

1 The Court refers to Plaintiffs and Defendants collectively for ease and readability unless specific identification of a party is necessary. Plaintiffs sued Defendants in December 2018 for patent infringement. The parties engaged in some initial motion practice and then progressed to claim construction. The parties disputed several terms, but the central dispute was Defendants’ indefiniteness challenge to the “too-rich-to- support-combustion” claim elements. Plaintiffs argued that these elements did not require construction but alternatively provided a construction. Defendants argued the terms were

indefinite. Both parties argued about the intrinsic and extrinsic evidence. The intrinsic record included a discussion of the prosecution history and a declaration provided by Cray during prosecution that outlined the three-step Cray test (submerge, remove, insert and activate a spark generator) to traverse an invalidity rejection. The extrinsic evidence included expert declarations from Dr. Richard Roby (Plaintiffs’ expert) and Dr. Glen Stevick (Defendants’ expert). The Court ultimately sided with Plaintiffs, rejected the indefiniteness challenge after tracing the claim language, specification, prosecution history, and extrinsic evidence, and construed the “too-rich- to-support-combustion” claim element in claim 12 to mean “retained quantity of the liquid fuel is sufficient to provide a fuel vapor-air mixture within the fuel retention structure that is above the upper flammability limit.”2 The parties refer to the “upper flammability limit” as “UFL.” The 18-

page claim construction order then includes the following passage, which is relevant to the instant motion: Read in its entirety, the applicant submitted these materials to demonstrate three points: (1) the cited prior art required wires to absorb and dissipate heat, (2) the claimed invention operated differently by retaining a sufficient amount of fuel to provide a fuel- air mixture too rich to support combustion, and (3) the prior art devices do not operate like the claimed invention. It is true that the three-step test is one test that could be performed to determine whether a structure is a device that retains enough liquid fuel to provide a fuel-air mixture that is above the UFL. But this test is a

2 The construction of these elements for claim 1 of the ‘075 Patent and claim 17 of the ‘132 Patent is “retained quantity of the liquid fuel is sufficient to provide a fuel vapor-air mixture proximate to the main container opening that is above the upper flammability limit.” demonstration that was offered to distinguish the prior art devices because they did not achieve a fuel-air mixture that was too rich to combust. It did not limit the claims to this test, render this test the only test for determining infringement, or disclaim other tests. Defendants’ argument to the contrary makes too much of the response and these materials. Doc. 257 at 9. The parties then moved to infringement and validity. The parties exchanged infringement expert reports. Roby submitted a June 2022 opening infringement report. Doc. 572-3. He outlined his infringement opinions and explained his “dipped” and “shake” tests and his “spark” test and concluded that Defendants’ FMD satisfied the “too-rich-to-support-combustion” claim elements. See, e.g., id. at 35-36 and 47-48. Stevick responded with a July 2022 report. Doc. 554-2. He identified various flaws with Roby’s testing. Id. at 37-47. He stated that “[p]erhaps the most glaring error . . . is that he only tests freestanding flame arresters outside of a gas can.” Id. at 38. Stevick further noted that “it would be clear to a person of ordinary skill in the art that any test for infringement must occur inside a gas can, and that any test, like [Roby’s], that does not occur in a gas can would be irrelevant to determining infringement.” Id. He also challenged Roby’s spark energy. Id. at 39-43. And Stevick performed his own testing based on Plaintiffs’ response to Interrogatory No. 26 (“the headspace test”) and opined that the accused products did not infringe. Id. at 34-37. Next was summary judgment and Daubert motions. Plaintiffs moved to exclude Stevick’s headspace test because it lacks a nexus to the asserted claims and was inconsistent with the Markman order. The Court denied the motion. Doc. 636. The Court stated that Stevick performed the headspace test based on parameters provided by Plaintiffs in response to Interrogatory No. 26. The Court also agreed with Defendants that the Markman order did not limit the claims to the three-step Cray test. Id.

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No Spill, LLC. v. Scepter Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/no-spill-llc-v-scepter-corporation-ksd-2023.