The 9th Circuit Court of Appeals, in a unanimous decision, has denied an appeal by Cody Easterday asserting Tyson Fresh Meats Inc. violated a breach of contract by splitting profits for the beef label Cody’s Beef.
“Easterday argues that he alleged sufficient facts to show an enforceable oral contract between him and Tyson,” the opinion said. “We disagree.”
The opinion said Easterday’s claim that he expected a 50-50 profit split with Tyson fails legally because his belief was never expressed to Tyson, making it irrelevant in court. Since Easterday doesn’t allege that Tyson agreed to any specific profit division, he hasn’t shown an enforceable contract, the court said.
Additionally, court documents said Easterday hadn’t provided facts to show an implied contract, which would require proof that Tyson requested work, Easterday expected payment and Tyson knew of this expectation.
The judges upheld a district court’s assertion that the unclean hands doctrine barred Easterday from pursuing unjust enrichment and promissory estoppel claims. The district court noted that Easterday “admitted to submitting false and fraudulent invoices for non-existent cattle,” directly affecting his current claims and “unclean hands cannot recover in equity.”
The 9th Circuit also found the district court did not abuse its discretion, dismissing the amended complaint as amendments would be futile. Since the statute of limitations bars Easterday’s claims, the court found no grounds for further changes.
Background
In 2022, Easterday filed suit against Tyson Fresh Meats, alleging Tyson breached an agreement to share profits from their Cody’s Beef sales in Japan. According to the suit, Tyson approached Easterday in 2013 to collaborate on branding and selling beef to Nippon Ham Foods in Japan, with Easterday’s name and likeness featured on the product under the Cody’s Beef label. The arrangement was set up as a joint venture, with an agreement to equally share the risks and profits from supplying cattle.
The suit continued that between 2015 and 2020, Easterday Ranches Inc. sold 65,000 head of cattle to Tyson, though not at premium prices. Despite acknowledging their written agreement as late as May 2020, Tyson allegedly failed to compensate Easterday according to the terms, prompting him to seek legal recourse.
In 2023, U.S. District Judge Stanley Bastian in the Eastern District of Washington ruled lawyers for Easterday failed to demonstrate an oral contract and the contract terms were not plausible. Bastian also ruled that unclean hands could not recover equity, and Easterday’s claims for relief were derived from cattle feeding agreements that were subject to fraud.
Easterday pled guilty in 2022 to one count of wire fraud in a ghost cattle scheme of providing false invoices to Tyson for non-existent cattle, defrauding the company and another $244 million. Bastian initially sentenced Easterday to 11 years in federal prison, but the sentence was reduced to 8 years and 9 months due to a change in sentencing guidelines.
According to federal prison records, Easterday is scheduled to be released in August 2029, and he is currently serving his term at a medium-security facility in Victorville, CA. — Charles Wallace, WLJ contributing editor
