Durham Farms #1 - Page 53




                                       - 53 -                                         
          Court believes that the Hoyt organization failed to provide such            
          a full and proper accounting because the requisite numbers of               
          individual breeding cattle it purportedly sold to and managed on            
          behalf of these partnerships never existed.  See infra note 38.             
          Moreover, there is evidence in the record indicating that a large           
          number of breeding cattle previously assigned to many of the                
          partnerships may have been sold off by the Hoyt organization to             
          meet its financial obligations.30  In addition, as indicated                
          earlier, the Hoyt organization had claimed that large numbers of            
          cattle it managed on behalf of the partnerships died as a result            
          of drought and disease during the 1987 through 1992 period–-a               
          claim the Court finds dubious.31                                            


               30Included in materials the Hoyt organization prepared for a           
          special meeting in early 1990 of Hoyt & Sons Ranch Properties               
          (another Hoyt organization entity) unit holders are statements              
          that the Hoyt “combined herd” was now one-third its former size             
          because of (1) the Hoyt organization’s repayment of loans                   
          received from institutional lenders and (2) reductions due to the           
          drought from 1987 through 1988.  See infra note 31.                         
               31In his written statement submitted to the District Court             
          in the summons enforcement proceeding in early 1993, Jay Hoyt               
          stated that “In 1987, 1988 and 1989, because of drought, we were            
          forced to sell at beef prices, a substantial portion of our                 
          purebred cow herd.”  Similarly, a Combined Report, Analysis, And            
          Conclusion Of Experts, dated Feb. 19, 1994 (written by Mr. Favre            
          and several of the Hoyt organization’s cattle people), asserts              
          that, because of the drought that occurred in California, Oregon,           
          and other western States from 1988 through 1992, the Hoyt                   
          organization was unable  to determine and record the deaths of              
          thousands of cattle.  This report relates that, in 1988, the Hoyt           
          organization decided not to sell some cows and bulls and,                   
          instead, to use the drought as part of a natural selection                  
          process that would eliminate cattle unable to forage well in poor           
                                                             (continued...)           





Page:  Previous  43  44  45  46  47  48  49  50  51  52  53  54  55  56  57  58  59  60  61  62  Next

Last modified: May 25, 2011