Judge dismisses Easterday suit against Tyson

Published 11:00 am Wednesday, November 1, 2023

A federal judge has dismissed Cody Easterday’s lawsuit against Tyson Fresh Meats that alleged the company reneged on an oral contract to split profits from selling “Cody’s Beef” in Japan.

The terms of the alleged contract were too vague to enforce, U.S. District Judge Stanley Bastian in Eastern Washington ruled. Plus, Easterday’s “unclean hands” bar him from claiming Tyson owes him, the judge ruled.

Bastian sentenced Easterday, 52, last year to 11 years in prison for defrauding Tyson out of $233 million. Easterday supplied cattle to Tyson’s Pasco, Wash., beef plant. He billed Tyson to procure and feed more than 265,000 head of cattle that didn’t exist.

Easterday owes Tyson $177.1 million in restitution and filed two lawsuits against the company seeking to reduce his debt.

Bastian dismissed a lawsuit in August alleging Tyson exploited its near monopoly as a cattle buyer in the Pacific Northwest to force Easterday to accept a disadvantageous cattle-supply agreement.

The Cody’s Beef lawsuit alleged Tyson recruited Easterday to participate in a marketing campaign that also involved Japanese food conglomerate Nippon Ham.

The campaign featured Easterday’s photo on labels and in advertising brochures. Easterday hosted Nippon executives on tours of his feedlots. Easterday alleged Tyson promised to split profits from the venture.

Tyson denied ever having an oral contract with Easterday and argued that it dealt with Easterday’s company, Easterday Ranches, not with Cody Easterday personally.

Easterday’s attorneys asked for a hearing to argue against Tyson’s motion to dismiss the suit, but Bastian canceled the hearing last week and said he would ruled based on briefs submitted by the two sides.

In the written ruling, Bastian said Easterday didn’t provide enough facts. There was no written agreement. Easterday submitted to the court an email asking Tyson employees, “How much of a cut do I get?”

Bastian said the terms were so indefinite that a court wouldn’t be able to enforce them even if a contract existed. If Easterday had failed to participate in the marketing campaign, could Tyson have sued? Bastian asked.

“We are disappointed with the court’s decision,” Easterday attorney Charles R. Macedo, a partner from Amster, Rothstein & Ebenstein LLP, said in an email.

“We believe Mr. Easterday has a valid claim against Tyson for the use of his name and photograph as part of the Cody’s Beef program,” he said.

Tyson did not immediately respond to a request to comment.

Easterday is serving his sentence at a federal prison in Lompoc, Calif. After his fraud was uncovered, Easterday liquidated his farming and ranching empire through bankruptcy court.

Tyson argued that all claims involving Easterday Ranches were settled during bankruptcy proceedings.

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