Easterday Asks Ninth for Full Hearing

LINCOLN, Neb. (DTN) -- A former Washington rancher serving a prison sentence for wire fraud stemming from a so-called ghost cattle fraud, asked a federal appeals court to reconsider his claims that Tyson Fresh Meats breached a contract by not paying him for selling his beef in Japan.

At the end of October, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court's dismissal of Cody Easterday's claims. Now Easterday has asked for an en banc hearing in front of all judges of the Ninth Circuit. Such hearings are rarely granted.

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

"In counsel's judgment, this case involves a timely and important issue regarding personality rights," Easterday's attorneys said in a motion filed with the court.

"This circuit has always been a preeminent authority in NIL law. The panel's improper affirmation of the dismissal without leave to amend risks undercutting this role. As the court is aware, the right to publicity and more specifically, name and likeness, is a hot button issue in the current climate with the expansion of rights for collegiate athletes, as well as constant technological advancements that continue to bring NIL to the forefront."

Easterday pleaded guilty to one count of wire fraud as part of a $233 million scheme that included billing Tyson for raising cattle that didn't exist. Easterday is serving an 11-year prison sentence in California.

Easterday has alleged he had a handshake agreement with Tyson to sell his beef using his image and likeness in Japan, packaged as "Cody's Beef."

"Despite Mr. Easterday's name being used on beef less than six months before Mr. Easterday's complaint was filed, the panel held, without citation, that it would be futile for Mr. Easterday to amend the pleadings finding that doing so would somehow be time barred," Easterday said in his motion.

"Washington case law does not support this holding. To the contrary, Washington has not yet decided the statute of limitations of (the statute) or what accrual rules apply to such claims. Nor is the panel's decision supported by Supreme Court precedent since the closest federal analogue to the Washington statute, copyright law, has been construed the exact opposite."

On Aug. 28, 2023, the district court dismissed another lawsuit filed by Easterday against Tyson alleging the company committed several 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 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.

Read more on DTN:

"Easterday Appeals Tyson Ruling," https://www.dtnpf.com/…

"Winning Bid on Easterday Assets: $209M," https://www.dtnpf.com/…

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

Follow him on social platform X @DTNeeley

(c) Copyright 2024 DTN, LLC. All rights reserved.