Sandbox Logistics LLC v. Proppant Express Investments

CourtCourt of Appeals for the Federal Circuit
DecidedMay 18, 2020
Docket19-1684
StatusUnpublished

This text of Sandbox Logistics LLC v. Proppant Express Investments (Sandbox Logistics LLC v. Proppant Express Investments) 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
Sandbox Logistics LLC v. Proppant Express Investments, (Fed. Cir. 2020).

Opinion

Case: 19-1684 Document: 53 Page: 1 Filed: 05/18/2020

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

SANDBOX LOGISTICS LLC, OREN TECHNOLOGIES, LLC, Plaintiffs-Appellants

v.

PROPPANT EXPRESS INVESTMENTS LLC, PROPPANT EXPRESS SOLUTIONS LLC, Defendants-Appellees ______________________

2019-1684 ______________________

Appeal from the United States District Court for the Southern District of Texas in No. 4:17-cv-00589, United States District Judge George C. Hanks, Jr. ______________________

Decided: May 18, 2020 ______________________

JOHN C. O'QUINN, Kirkland & Ellis LLP, Washington, DC, for plaintiffs-appellants. Also represented by CALVIN ALEXANDER SHANK, JASON M. WILCOX; GIANNI CUTRI, Chi- cago, IL.

JONATHAN S. FRANKLIN, Norton Rose Fulbright US LLP, Washington, DC, for defendants-appellees. Also rep- resented by STEPHANIE DEBROW, Austin, TX; MARK Case: 19-1684 Document: 53 Page: 2 Filed: 05/18/2020

FRANCIS EBERHARD, CHARLES BRUCE WALKER, JR., Hou- ston, TX. ______________________

Before LOURIE, WALLACH, and HUGHES, Circuit Judges. WALLACH, Circuit Judge. Appellants SandBox Logistics LLC and Oren Technol- ogies, LLC (together, “SandBox”) sued Appellees Proppant Express Investments LLC and Proppant Express Solutions LLC (together, “PropX”) in the U.S. District Court for the Southern District of Texas (“District Court”) alleging in- fringement of claims 2 and 13 of U.S. Patent No. 9,296,518 (“the ’518 patent”), claims 6 and 17 of U.S. Patent No. 9,403,626 (“the ’626 patent”), claims 1, 3, 7, 8, 16, 18, 19, and 21–23 of U.S. Patent No. 9,440,785 (“the ’785 pa- tent”), and claims 4 and 7 of U.S. Patent No. 9,511,929 (“the ’929 patent”) (collectively, “the Asserted Claims”). 1 After a Markman hearing, the District Court issued an opinion, construing the parties’ disputed claim terms. See Sandbox Logistics LLC v. Grit Energy Sols. LLC, Nos. 3:16-CV-12, 4:17-CV-589, 2018 WL 3344773, at *2–17 (S.D. Tex. July 9, 2018) (Opinion). Thereafter, SandBox and PropX stipu- lated to non-infringement of the Asserted Claims by PropX’s accused products (“the Accused Products”), and the District Court entered a final judgment in favor of PropX. See J.A. 1–4 (Final Judgment). SandBox appeals. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1). We affirm.

1 SandBox also sued Liberty Oilfield Services LLC, J.A. 115, which is not a party to this appeal. Case: 19-1684 Document: 53 Page: 3 Filed: 05/18/2020

SANDBOX LOGISTICS LLC v. PROPPANT EXPRESS 3 INVESTMENTS

BACKGROUND I. The ’518, ’626, and ’929 Patents Entitled “Proppant Storage Vessel and Assembly Thereof,” the ’518, ’626, and ’929 patents share a common specification that “relates to storage containers” for prop- pant and “[m]ore particularly, . . . to storage container as- semblies whereby a product in one container can flow to an interior volume of a lower container.” ’518 patent col. 1 ll. 34–37. 2 The ’518, ’626, and ’929 patents explain that “[p]roppant is a material, such as grains of sand, ceramic, or other particulates” used during hydraulic fracturing (or “fracking”) to “prevent . . . fractures from closing[.]” Id. col. 1 ll. 53–54. 3 The ’518, ’626, and ’929 patents disclose “a proppant storage vessel . . . compris[ing] a container having a first end wall, a second end wall, a first side wall[,] and a second side wall.” Id. col. 3 ll. 20–22; see id. col. 4 l. 48 (“Each of the containers is [an] ocean freight con- tainer.”). “The container also has a top wall and a bottom wall” and “[a] hatch . . . formed on the bottom wall” which “is movable between an open position and a closed posi- tion.” Id. col. 3 ll. 22–26. An “inclined surface” extends from each wall to the bottom hatch, id. col. 3 ll. 26–32, “to assure that the proppant contained within the [container] is suitably funneled toward the bottom hatch[,]” id. col. 7 ll. 18–21. The container may include “support brace[s]” to “structurally enhance the strength of the container . . . so as to . . . withstand the weight of the proppant that is

2 Because the ’518, ’626, and ’929 patents share a common specification, we cite to only the ’518 patent for ease of reference, unless otherwise specified. 3 “Hydraulic fracturing is the propagation of frac- tions in a rock layer caused by the presence of pressurized fluid[,] . . . made in order to release petroleum, natural gas, coal seam gas, or other substances for extraction.” ’518 pa- tent col. 1 ll. 36–41. Case: 19-1684 Document: 53 Page: 4 Filed: 05/18/2020

contained therein.” Id. col. 7 ll. 24–44. The ’518, ’626, and ’929 patents disclose that the containers may be “vertically aligned in a stacked orientation[,]” id. col. 6 l. 65, so that proppant “in one container can flow to an interior volume of a lower container[,]” id. col. 1 ll. 36–37, and ultimately onto a “portable conveyer . . . placed below the bottom hatch” of the lowermost container, id. col. 6 ll. 7–8; see id. col. 4 ll. 2–6 (“The bottom hatch of the second container is aligned with the opening of the first container such that a proppant in the first container can flow through the [bot- tom] hatch thereof into the interior volume of the first con- tainer.”); see also id., Figs. 1, 2. II. The ’785 Patent Entitled “Method of Delivering, Storing, Unloading, and Using Proppant at a Well Site,” the ’785 patent “relates to storage containers” and “[m]ore particularly, . . . to prop- pant discharge systems wherein proppant can be dis- charged from the storage container. Additionally, the [’785 patent] relates to a process for providing proppant to a well site by the transport and delivery of the proppant contain- ers.” ’785 patent col. 1 ll. 16–21. The ’785 patent discloses “a container for the transport and storage of proppant . . . compris[ing] a box having a bottom, a pair of side walls[,] a pair of end walls[,] and a top.” Id. col. 7 ll. 53–55; see id. col. 10 ll. 32–36 (“[T]he container . . . is a ten-foot [Interna- tional Organization for Standardization] container.”). An “inlet [is] formed at or adjacent to the top” of the box and an “outlet” is formed “at the bottom.” Id. col. 7 ll. 56–57. A “ramp” extends from each wall to the outlet, id. col. 7 ll. 60– 64, and “serve[s] to funnel[] the proppant that is retained within . . . the container . . . toward the outlet[,]” id. col. 10 ll. 44–46. The container also includes an “exterior frame” that “provides structural support for the container . . . and generally surrounds the exterior of the container” with “a plurality of vertical bars that extend so as to form a cage- like configuration around the walls[.]” Id. col. 9 l. 64, col. 10 ll. 15–20; see id., Figs. 1, 2. Case: 19-1684 Document: 53 Page: 5 Filed: 05/18/2020

SANDBOX LOGISTICS LLC v. PROPPANT EXPRESS 5 INVESTMENTS

III. Procedural History In February 2017, SandBox sued PropX in the District Court, alleging infringement of the Asserted Claims. J.A. 115. In March 2018, the District Court held a Mark- man hearing. J.A. 125–26. In July 2018, the District Court issued its Opinion, construing, among other terms, “[t]he term ‘bottom’ in the ’518, ’626, and ’929 patents[,]” Sandbox Logistics, 2018 WL 3344773, at *4, and “[t]he term ‘struc- tural support members’ in the [’]785 patent[,]” id. at *15. 4 Thereafter, SandBox and PropX stipulated to non-infringe- ment of the Asserted Claims by the Accused Products and the District Court entered the Final Judgment in favor of PropX. See J.A. 1–4. DISCUSSION I. Standard of Review and Legal Standard “The proper construction of a patent’s claims is an issue of Federal Circuit law[.]” Powell v. Home Depot U.S.A., Inc.,

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