Ninth Circuit Rejects Easterday Appeal

LINCOLN, Neb. (DTN) -- The U.S. Court of Appeals for the Ninth Circuit denied Cody Easterday's petition for an en banc hearing to reconsider his claims that Tyson Fresh Meats breached a contract by not paying him for selling his beef in Japan.

The court's decision not to grant a rehearing before the entire Ninth Circuit effectively ends the lawsuit filed by the former eastern Washington rancher who is serving 11 years in prison after pleading guilty to one count of wire fraud in connection with a $233 million ghost-cattle scheme.

At the end of October, the Ninth Circuit affirmed a district court's dismissal of Easterday's claims.

Easterday sued Tyson and alleged the company 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 Washington ranch. Easterday has alleged the company owes him about $100 million.

Easterday perpetuated a scheme that included billing Tyson for raising cattle that didn't exist.

Easterday 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 U.S. District Court for the District of Eastern Washington 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:

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

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

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

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