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no calves during that partnership’s first year of operations.
Presumably, an important incident of breeding herd ownership is
the right to benefit from any calves produced by that herd. (The
sharecrop agreements provided that a partnership would still
retain the breeding value certificates (i.e., essentially the
rights to any registration papers) on any calves produced by its
breeding herd, even though, pursuant to the sharecrop agreement,
all calves were to belong to the Hoyt organization entity that
managed the partnership’s breeding herd.) For instance, SGE 84-5
(according to Jay Hoyt) entered into its transaction to acquire
769 breeding cows on April 1, 1984. At least 269 of SGE 84-5's
“breeding cows” (the Schedule A to the bill of sale that should
have listed and specifically identified these 269 cows allegedly
having been lost) are reflected as producing no calves during
1984. Similarly, another important incident of breeding herd
ownership would be the detriment suffered from losses to that
herd.20
20The Hoyt organization issued certain warranties to the
cattle-breeding partnerships that entered transactions with it.
For instance, Ranches (as the “seller” of the breeding cattle)
generally agreed to replace any cattle that could no longer serve
as breeding cattle during a 10-year period. Similarly,
Management (which managed a partnership’s “breeding herd”)
further guaranteed there would be a 10-percent annual increase in
the size of the partnership’s “breeding herd”. However,
according to certain Hoyt organization records, the Hoyt
organization for a number of years had been greatly “in arrears”
on its “warranty obligations” to the cattle-breeding partnerships
and by about 1990 “owed” over 5,000 breeding cattle to the
(continued...)
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