Case Explains Why Livestock Sales Contracts Should Be in Writing

By tiffany.dowell

The Texarkana Court of Appeals recently issued an opinion in Lee v. Jorgenson, which offers a critical reminder about the need to have all livestock sales contracts in writing.

Ralph Lee sold Waygu cattle to TJ’s Land and Cattle Company, LLC, (“the LLC”) of which Tom Jorgenson was a member.  Lee alleges this was a “handshake deal” that was memorialized in a Cattle Purchase Agreement (“CPA”).  The CPA was not signed by Jorgenson or anyone representing the LLC, but did include price terms for Waygu steers, stated bills were to be sent to “TJ’s Cattle Co” and noted that payments had been made by “TJ’s Cattle Co. LLC.” Lee claims to have had no knowledge that an entity was involved in the deal, which he says he negotiated with Jorgenson.

Lee filed suit against Tom Jorgenson claiming that he still owed $76,104.56 that remained unpaid pursuant to their agreement.  Specifically, he brought claims of breach of contract, unjust enrichment, and quantum meruit.

In response, Jorgenson claimed that Lee failed to deliver the cattle in conformity with the contractual requirements, the suit was filed against the wrong party as it was not Jorgenson, but the LLC that was a party to the contract, the statute of frauds barred Lee’s claims or an oral contract, a quantum meruit claim was barred by an express contract, and that recovery for unjust enrichment was barred by the statute of limitations.