Easterday Appeals Tyson Ruling

LINCOLN, Neb. (DTN) -- Former eastern Washington rancher Cody Easterday asked the U.S. Court of Appeals for the Ninth Circuit to review the dismissal of a lawsuit he filed against Tyson Fresh Meats, in a petition filed with the court this week.

At the end of October 2023, the U.S. District Court for the District of Eastern Washington dismissed a January 2023 lawsuit by Easterday alleging Tyson Fresh Meats owed him money for breach of contract from selling his beef. In November 2023, Easterday filed a notice of appeal with the district court.

Easterday is serving an 11-year prison sentence after pleading guilty to one count of wire fraud, in perpetuating a $233 million scheme of billing Tyson for raising cattle that didn't exist.

Easterday's lawsuit alleged Tyson never paid for the use of his name and likeness as part of a joint venture that involved the marketing and selling of premium beef from his ranch. Easterday has alleged Tyson owes him about $100 million.

In a brief filed with the Ninth Circuit this week, Easterday alleges the district court committed a "reversible error" in dismissing his complaint.

"First, the order's finding that the FAC (amended complaint) failed to plead the elements of an agreement and that there was no meeting of the minds is at odds with the well-pleaded facts describing such a meeting of the minds," the brief said.

The district court ruled the terms of any agreement between Easterday and Tyson were "indefinite."

Easterday has argued in court that he essentially had a verbal agreement with Tyson to allow the company to sell his beef using his name, image and likeness on labels.

"In any event, taken to its logical conclusion, dismissal without leave to amend was also a reversible error," Easterday's brief said.

"If there were no agreement between Mr. Easterday and Tyson (as the order finds), in addition to being liable under contract implied-in-fact, unjust enrichment and promissory estoppel, Tyson would also be liable for misappropriating Mr. Easterday's name and photograph without authority."

In addition, Easterday argues the district court erred in dismissing his complaint based on the statute of limitations, arguing his beef "continued to be processed and sold into the statute of limitations period."

Easterday pleaded guilty to perpetuating a so-called "ghost cattle" scheme for billing Tyson to the tune of $233 million for raising cattle that didn't exist. Court documents show Easterday conducted the scheme in an attempt to make up for losses he sustained in the futures market.

On Aug. 28, 2023, the district court dismissed another lawsuit filed by Easterday against Tyson alleging the company had committed a number of antitrust violations and violated the Packers and Stockyards Act during a 10-year business relationship.

In the months following pleading guilty to wire fraud, Easterday raised tens of millions of dollars through asset sales in an attempt to make restitution to Tyson.

The Easterday Ranches saga drew national attention when a company connected to the Church of Jesus Christ Latter-day Saints was the winning bidder for the Easterday assets. The second-highest bidder was an investment company tied to Microsoft founder Bill Gates.

According to court documents in the U.S. Bankruptcy Court for the District of Eastern Washington, Farmland Reserve, owned by the church, was awarded the winning bid of $209 million for the Easterday assets.

Easterday operated an extensive family farm operation in eastern Washington involved in cattle feeding as well as 22,500 acres of potatoes, onions, corn and wheat in the Columbia Basin.

Beginning in 2016 and continuing through November 2020, Easterday submitted false and fraudulent invoices and other information to Tyson and another company.

The Easterday Ranches Inc. owner received reimbursement from the companies for the purported purchase and raising of cattle the company never actually bought.

Read more on DTN:

"Easterday's Tyson Lawsuits Dismissed," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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