Tyson calls Easterday allegations over Cody’s Beef ‘fanciful’
Published 3:15 pm Thursday, April 6, 2023
- Ex-Eastern Washington cattleman Cody Easterday has filed two lawsuits against Tyson Fresh Meats since being imprisoned for fraud.
SPOKANE — In a court filing, Tyson Fresh Meats brushes off as “fanciful” claims it had an oral contract with Cody Easterday to supply beef for a commercial venture in Japan.
Tyson filed the brief Tuesday in U.S. District Court for Eastern Washington to support its motion to dismiss one of two lawsuits Easterday filed against the meatpacker after being sent to prison.
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Tyson has not yet responded to a suit claiming it used its dominant position as a cattle buyer in the Northwest to impose unfair terms on Easterday, who fattened cattle for Tyson’s plant in Pasco, Wash.
The brief submitted Tuesday responds to allegations Tyson reneged on a deal to share profits from selling beef marketed to Japanese consumers as “Cody’s Beef.”
A hearing on Tyson’s motion to dismiss the suit is scheduled for April 19 in federal court in Yakima. The hearing was switched to Yakima from Richland on Friday.
Easterday is serving an 11-year term in federal prison in Lompoc, Calif., for defrauding Tyson out of $233 million. Easterday billed Tyson for more than 265,000 head of cattle that didn’t exist.
By selling the family’s farming empire in Eastern Washington through bankruptcy court, Easterday repaid Tyson some money, but still owes $177.1 million in court-ordered restitution.
Easterday’s criminal defense lawyer last fall speculated Easterday may be owed as much as $100 million from the Cody’s Beef campaign, which Tyson conducted with Japanese food conglomerate Nippon Ham.
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Easterday has not submitted details or records to document the alleged oral contract, according to Tyson.
Tyson argues it did business with Easterday Ranches, not personally with Cody Easterday. Easterday Ranches and Tyson settled all claims in bankruptcy court, Tyson argues.
In replying to Tyson’s motion to dismiss, Easterday has argued that he can prove his claims if given a chance at a trial.
The other suit alleges antitrust violations of the Sherman Act, the Packers and Stockyards Act and Washington’s Consumer Protection Act.
According to the lawsuit, Tyson advanced Easterday funds to buy and feed cattle. Easterday had to repay the advance with interest and pay a $15 per head fee to Tyson when the cattle were delivered.
Easterday took all the risk of falling cattle prices, but did not control when the cattle were delivered, according to the lawsuit.
Easterday had no choice but to accept Tyson’s terms, the suit claims. The Northwest’s only other beef-plant operator, Agri Beef, has its own feedlots, according to the suit.
The suit seeks triple lost profits, but does not specify an amount.