A federal judge dismissed a suit against Tyson Fresh Meats with prejudice over an oral contract to sell beef to Japan under Easterday Ranches’ “Cody’s Beef” label and split profits from the sale.
U.S. District Judge Stanley Bastian in the Eastern District of Washington ruled that lawyers for Cody Easterday failed to demonstrate the oral contract contained the requirements of offer, acceptance and an objective manifestation. Bastian continued the terms of the contract asserted by Easterday were not plausible as he relied on previous business arrangements they would share the profit in the venture.
Bastian asked if Easterday Ranches and Cody Easterday were to share in the venture’s profits, what is Tyson entitled to? Bastian said it is plausible to split the profit three ways, not as Easterday asserts. Bastian said the oral agreement failed to show the facts that it was an enforceable joint venture between Easterday and Tyson.
According to previous court documents, in 2013, Tyson approached Easterday to use his name and likeness to sell beef to Japan’s Nippon Ham Foods under the “Cody’s Beef” label. Easterday and Tyson had an agreement for a joint venture to share the risk and profits of supplying cattle to Tyson equally.
The documents also state there was no formal written contract, but a series of emails in 2020 provides written evidence of a venture.
Bastian further stated that, “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.
Bastian wrote Easterday’s claims for equitable relief were derived from the cattle feeding agreements subject to the fraud committed by Easterday, and the relationship between Easterday and Easterday Ranches is inseparable.
Charles R. Macedo, partner from Amster, Rothstein & Ebenstein LLP and counsel for Easterday, told WLJin an email they are disappointed with the court’s decision.
“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,” Macedo said. — Charles Wallace, WLJ contributing editor
