Organization for Competitive Markets
P.O. Box 6486
Lincoln, NE 68506
Date: December 6, 2004
FOR IMMEDIATE RELEASE
Contact: Michael Stumo, 860.379.6199
Pickett v Tyson Appellate Arguments Slated for December 17
Lincoln, NE ~ Lawyers for the cattle producer plaintiffs and
Tyson will argue before the Eleventh Circuit Court of Appeals in Montgomery,
Alabama on December 17, 2004. Arguments
will be heard at 9 a.m. before a panel of three appellate judges at the Frank
M. Johnson U.S. Courthouse on One Church Street in Courtroom 2F. This is the same courtroom in which the
trial was held.
“This was the most significant trial in the cattle industry since the 1920’s when the Beef Trust was broken up,” noted OCM president, Keith Mudd. “America’s cattlemen won a historic decision against the nation’s largest beef packer last February 17 when the jury found Tyson used captive supplies to manipulate the cattle market and awarded damages in the amount of nearly $1.3 billion.”
On Friday, April 23, Judge Lyle E. Strom overturned the
jury’s decision, saying Tyson may have manipulated the market, but the company
had justifiable reasons to do so. The
plaintiffs appealed.
The case was brought by six independent cattlemen on behalf
of approximately 30,000 cattlemen selling to Tyson between 1994 and 2002. The
named plaintiffs include Henry Lee Pickett, Pat Goggins, Johnny Smith, Chris
Abbott, Mike Callicrate and Robert Rothwell.
During the month-long trial that began in January of this year, evidence
showed that Tyson depressed prices by an average of 5.1% over those eight years.
“Translated, this means that IBP/Tyson received one out of every 20 cattle free
due to their manipulation of inventories allowing the company to depress cattle
prices,” said Mudd.
Judge Strom decided there were legitimate business reasons
for Tyson using captive supplies, even if prices were artificially lowered,
specifically 1) that Tyson was guaranteed a consistent, reliable supply of
cattle and 2) that Tyson needed captive supplies to meet the competition where
other packers engaged in the same practice. Oral arguments on December 17 will focus on these issues.
“The Court’s findings on legitimate business expectations were,
in our view, wrong,” stated Mudd. “We were very disappointed the trial judge
substituted his opinion for the jury’s.
Tyson was not able to quantify any benefit received by captive supplies
in dollar terms, rather, they merely made assertions. We are confident the Eleventh
Circuit Court of Appeals will correct these errors.”
The Organization for Competitive Markets (OCM) is a multidisciplinary, nonprofit group of farmers, ranchers, academics, attorneys and policy makers dedicated to reclaiming the agricultural marketplace for independent farmers, ranchers and rural communities. OCM helps lead the Cattlemen’s Competitive Market Project which is a voluntary contribution program funding the effort to increase demand for U.S. cattle and beef in open and competitive markets.