Texas Lawyer Names Beck Redden Case a Top Texas Verdict of 2018

  • July 11, 2019

On October 2, 2018, a Beck Redden team headed by Partner Matthew Whitley obtained a $49.2 million dollar win on behalf of our client SandBox Logistics. The $49.2 million verdict was recently ranked by Texas Lawyer and VerdictSearch as the largest Texas verdict in a contract case in 2018. Overall, it was the ninth largest verdict in Texas last year, regardless of subject matter.

In 2014, SandBox retained Arrows Up to help it build a plastic version of SandBox's metal frac sand container. After Arrows Up signed a non-disclosure agreement, SandBox provided it with detailed information about SandBox's container design. After the parties' commercial relationship ended, Arrows Up launched a new product line of plastic frac sand containers derived from SandBox's design. That led SandBox to file this case in early 2016.

Beck Redden Partner Matthew Whitley led the trial team. After a four-week trial, a unanimous jury found that Arrows Up and John Allegretti (Arrows Up's CEO) breached their contractual obligations and committed fraud by using SandBox's information to design and market copycat products. As Whitley explained when interviewed by The Texas Lawbook, several jurors stated afterwards that "they did not believe Arrows Up's witnesses told the truth," which was a major theme of the trial.

In addition to monetary damages, the judgment includes a judicial declaration that all of the frac sand shipping containers that Arrows Up has manufactured, sold or leased since January 2015 are "owned solely and exclusively" by SandBox because key features of Arrows Up's containers were derived from SandBox's design. The judgment awards SandBox title to and possession of Arrows Up's frac sand shipping containers, and it sets up a schedule by which Arrows Up is to deliver those containers to SandBox.

Partner Matthew Whitley served as lead counsel for the trial team, which included Partner Michael Richardson and Associate Seepan Parseghian. Partner Russell Post and Associate Parth Gejji provided appellate assistance. The style of the case is Cause No. 2016-03483, SandBox Logistics, LLC et al. v. Arrows Up, Inc., et al., in the 334th Judicial District Court of Harris County, Texas. The case is now on appeal.

A complete list of the Top Texas Verdicts & Settlements of 2018 is available at: https://images.law.com/media/texaslawyer/supplements/TVS_TXL_2018/mobile/index.html