Lawyers for Cody Easterday have appealed a case to the 9th Circuit Court of Appeals, citing the decision of a superior court judge ruling Easterday was entitled to share the profits of the “Cody’s Beef” label by Tyson Fresh Meats.
In November 2023, U.S. District Judge Stanley Bastian in the Eastern District of Washington ruled that lawyers for Easterday failed to demonstrate an oral contract between Easterday and Tyson contained the requirements of offer, acceptance and an objective manifestation. Bastian said the terms of the contract asserted by Easterday were not plausible as he relied on previous business arrangements that Tyson and Easterday would share the profit in the venture.
The appeal documents state Tyson used Easterday’s name and likeness to sell beef to Nippon Ham Foods in Japan and that the company needed Easterday’s authority to use them. Lawyers further claim Tyson entered into an agreement with Easterday to give compensation for the use of his name and likeness to market “Cody’s Beef.”
They asserted the agreement is separate from Tyson’s arrangement with Easterday Ranches and acknowledged Easterday’s ownership of name and photograph rights.
In May 2020, Tyson reaffirmed in writing its understanding with Easterday, emphasizing a prior agreement and committing to continued compensation, lawyers said. Despite the ongoing use of Easterday’s name and photograph through 2022, the first demand for payment occurred in 2021, followed by another in 2022, according to court documents.
The documents state that Bastian overlooked all these facts in the amended complaint when the case was dismissed, and is asking the appeals court to review all the facts based on several arguments.
First, Bastian’s conclusion that Easterday’s complaint failed to plead the elements of an agreement adequately contradicts the facts presented by the lawyers indicating a clear meeting of the minds, making the dismissal without leave to amend an error, laywers said. The appeal continued, if there was no agreement, Tyson could still be held liable under contract implied-in fact, unjust enrichment and promissory estoppel for misappropriating Easterday’s name and photograph without authority.
Second, the documents claim the order erred when Bastian applied the “unclean hands” doctrine to preclude Easterday’s equitable claims based on his false invoicing as the president of Easterday Ranches under a separate cattle feeding agreement.
Bastian had ruled, “A party with unclean hands cannot recover in equity.”
Easterday, in 2021, pleaded guilty to one count of wire fraud and was sentenced by Bastian to 11 years in federal prison; therefore, Easterday’s “unclean hands” prevented him from recovering any damages, according to the ruling.
Finally, the lawyers contend the decision committed reversible error by dismissing without leave the statute of limitations under Washington state law with the ongoing sale of “Cody’s Beef” within the statute and email correspondence in May 2020 by Tyson acknowledging the agreement.
Easterday Lawyers are asking the appeals court to reverse Bastian’s decision and reinstate the amended complaint. — Charles Wallace, WLJ contributing editor
