Cattlemen's Lawyer Says Tyson
Price-Fixing Case Is Not Over
The lead attorney for the cattlemen who sued the world's largest beef packer says the case is not over, but the packer says the cattlemen will have to pay the packer's legal expenses.
The 11th U.S. Circuit Court of Appeals panel this summer upheld a federal district judge's decision that IBP, now Tyson Fresh Foods, has a legitimate business interest in using marketing agreements to purchase live cattle. In 2004, following a five-week trial in Montgomery, Ala., a jury found that there was no legitimate business reason and awarded an estimated 30,000 cattlemen more than $1.28 billion in damages in a class action lawsuit.
Six cattlemen, representing cattlemen who had sold cattle to IBP during the period covered by the suit, had accused IBP of violating the Packers and Stockyards Act.
While the jury found for the cattlemen, U.S. Senior District Judge Lyle E. Strom ruled in April 2004 that as a matter of law, the cattlemen did not present evidence to prove their case and set aside the jury's award.
The cattlemen appealed, and in August, a three-member panel of the 11th U.S. Circuit Court upheld Strom's ruling.
David Domina, the cattlemen's lead attorney in the case, says the setback does not mean the case is over.
"We expect to ask for review by the entire 11th Circuit and the U.S. Supreme Court," the Omaha, Neb., -based attorney said in a prepared statement.
"Certainly, the three-judge panel's decision is a major disappointment, and I am especially disappointed with this ruling in view of the attentive efforts of the jury for five weeks and its five full days of deliberations."
Domina presented an emotional appeal to the jury, but the appeals panel contended the evidence was lacking.
"This case was decided by a fair-minded, intelligent, focused jury," Domina said. "It was upset by an appellate tribune with less regard for the principle that a jury's decision is to remain inviolate than I had hoped the court would exhibit."
The 11th Circuit panel also ruled that the cattlemen must pay IBP's court expenses. The appellate judges upheld Strom's decision that the plaintiffs — the cattlemen — must pay more than $70,000 in expenses related to the trial in Montgomery.
Gary Mickelson, a spokesman for Tyson, says the appeals court rejected the cattlemen's argument that the case was close and that they should be exempt from paying Tyson's expenses.
Mickelson says the court wrote that the case was not a close or difficult one and that the cattlemen lost every aspect of it.
The appeals panel noted in their decision that witnesses for both parties, the cattlemen and the packer, agreed that the packer had a number of competitive justifications for using marketing agreements.
"The legal issues were not particularly novel or difficult," the judges wrote in their opinion. "Although it took a long time to try, the case was not especially complicated."
(Editor's note: Well, that's why lawyers — and lawyers who become judges — make the big bucks. No one disputes the fact that captive supplies manipulate the market and thereby reduce prices; even IBP/Tyson's own witnesses freely admitted to that. The only question was whether that is illegal under the Packers and Stockyards Act. As we commoners read the language of that law, it appears to say "It shall be unlawful for any packer … to: (e) Engage in any course of business or do any act for the purpose of or with the effect of manipulating or controlling prices …" It doesn't appear to say anything whatsoever about illegal and prohibited conduct being acceptable just because everybody else does it or because the packer can rationalize an excuse by pretending he had a different intention. It says the conduct is unlawful if it has "the effect of manipulating or controlling prices" — period. Unlike us commoners, Judge Strom and the three wise men of the appellate panel evidently are able to see the invisible ink that says something different. Even Superman didn't have eyes that good. Then there's the part where they found that eliminating half the competition in the market actually increases competition. Are these guys amazing, or what?)
Price-Fixing Case Is Not Over
The lead attorney for the cattlemen who sued the world's largest beef packer says the case is not over, but the packer says the cattlemen will have to pay the packer's legal expenses.
The 11th U.S. Circuit Court of Appeals panel this summer upheld a federal district judge's decision that IBP, now Tyson Fresh Foods, has a legitimate business interest in using marketing agreements to purchase live cattle. In 2004, following a five-week trial in Montgomery, Ala., a jury found that there was no legitimate business reason and awarded an estimated 30,000 cattlemen more than $1.28 billion in damages in a class action lawsuit.
Six cattlemen, representing cattlemen who had sold cattle to IBP during the period covered by the suit, had accused IBP of violating the Packers and Stockyards Act.
While the jury found for the cattlemen, U.S. Senior District Judge Lyle E. Strom ruled in April 2004 that as a matter of law, the cattlemen did not present evidence to prove their case and set aside the jury's award.
The cattlemen appealed, and in August, a three-member panel of the 11th U.S. Circuit Court upheld Strom's ruling.
David Domina, the cattlemen's lead attorney in the case, says the setback does not mean the case is over.
"We expect to ask for review by the entire 11th Circuit and the U.S. Supreme Court," the Omaha, Neb., -based attorney said in a prepared statement.
"Certainly, the three-judge panel's decision is a major disappointment, and I am especially disappointed with this ruling in view of the attentive efforts of the jury for five weeks and its five full days of deliberations."
Domina presented an emotional appeal to the jury, but the appeals panel contended the evidence was lacking.
"This case was decided by a fair-minded, intelligent, focused jury," Domina said. "It was upset by an appellate tribune with less regard for the principle that a jury's decision is to remain inviolate than I had hoped the court would exhibit."
The 11th Circuit panel also ruled that the cattlemen must pay IBP's court expenses. The appellate judges upheld Strom's decision that the plaintiffs — the cattlemen — must pay more than $70,000 in expenses related to the trial in Montgomery.
Gary Mickelson, a spokesman for Tyson, says the appeals court rejected the cattlemen's argument that the case was close and that they should be exempt from paying Tyson's expenses.
Mickelson says the court wrote that the case was not a close or difficult one and that the cattlemen lost every aspect of it.
The appeals panel noted in their decision that witnesses for both parties, the cattlemen and the packer, agreed that the packer had a number of competitive justifications for using marketing agreements.
"The legal issues were not particularly novel or difficult," the judges wrote in their opinion. "Although it took a long time to try, the case was not especially complicated."
(Editor's note: Well, that's why lawyers — and lawyers who become judges — make the big bucks. No one disputes the fact that captive supplies manipulate the market and thereby reduce prices; even IBP/Tyson's own witnesses freely admitted to that. The only question was whether that is illegal under the Packers and Stockyards Act. As we commoners read the language of that law, it appears to say "It shall be unlawful for any packer … to: (e) Engage in any course of business or do any act for the purpose of or with the effect of manipulating or controlling prices …" It doesn't appear to say anything whatsoever about illegal and prohibited conduct being acceptable just because everybody else does it or because the packer can rationalize an excuse by pretending he had a different intention. It says the conduct is unlawful if it has "the effect of manipulating or controlling prices" — period. Unlike us commoners, Judge Strom and the three wise men of the appellate panel evidently are able to see the invisible ink that says something different. Even Superman didn't have eyes that good. Then there's the part where they found that eliminating half the competition in the market actually increases competition. Are these guys amazing, or what?)