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Half Lease - Whole Problem

The words “half lease” seem unique to the horse industry. In law school, this lawyer never heard the phrase mentioned, and the authoritative legal dictionary, Black’s Law Dictionary, nowhere mentions it. Yet, people in the horse industry, with greater frequency, are entering into arrangements they call “half leases” through which one or more persons (the “lessees”) pay a horse owner (the “lessor”) for shared use of the horse. “Half lease” arrangements might seem budget-friendly, but without careful planning, they could be quite the opposite as disputes could follow.

Paying for Routine Upkeep

Without a written agreement specifying who pays routine expenses, such as veterinarian and farrier, and how these expenses will be split, the parties may be left to guess. Also, if one party to the half lease wants costly attention for the horse, such as equine massage or acupuncture, can that party automatically obligate the others to share the cost?  

You Injured the Horse – Can You Walk Away?

If the leased horse becomes injured while under the lessee’s control, who must pay ongoing expenses for veterinary treatment? What if the time frame for treatment, such as a lay up, is longer than the expected length of the lease? Can the lessees be relieved of their obligations?

Moving the Horse

A party to the arrangement might want to haul the horse out of state, such as to a lengthy show circuit, which would deprive the others in the “half lease” arrangement of their time with the horse. What is an equitable arrangement?

Liability Surprises

All persons in the half lease arrangement could be at risk of liability if the leased horse injures someone while the arrangement is in progress. For example, let’s look at the scenario of a lessee being thrown from the leased horse, and the horse thereafter running loose into the road, colliding with a motor vehicle, and injuring a motorist. The collision also injures the horse.

  • Injured Motorist v. Lessee and Lessor. The injured motorist might file suit against the Lessee (claiming he or she negligently handled the horse, which caused it to run loose) and the Lessor (claiming, for example, that the Lessor negligently entrusted the horse to the Lessee).
  • Lessee v. Lessor. The Lessee might potentially sue the Lessor under the theory that the Lessor, who owned the horse, failed to disclose known dangerous propensities that led to the horse throwing the Lessee and running off.
  • Lessor v. Lessee. Possibly the Lessor might sue (or countersue) the Lessee, claiming that the Lessee is responsible for all damages caused in the accident because the Lessee misrepresented his or her riding experience, and the Lessor relied on the misrepresentation in allowing the half lease arrangement to proceed.  

Could these legal battles occur? The answer depends on the circumstances and the applicable law, but the risk is present. The parties to half lease arrangements have every incentive to protect themselves by communicating up front, using detailed contracts that address foreseeable issues and risks, and considering appropriate insurance.

This blog post does not constitute legal advice. When questions arise based on specific situations, direct them to a knowledgeable attorney.

Categories: Contracts, Insurance, Lawsuit, Liability

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is considered to be one of the nation's leading attorneys in the field of equine law. A frequent author and speaker on legal issues, she has written over 400 published articles, three books, and has lectured at seminars, conventions, and conferences in 29 states on issues involving law, liability, risk management, and insurance. For more information, please also visit www.fershtmanlaw.com and www.equinelaw.net, and www.equinelaw.info.

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Our Equine law blog (and its author) in the news!

Julie Fershtman, author of our popular and prolific Equine Law Blog, was interviewed this week by the State Bar of Michigan. The interview, which called Fershtman "Lawyer-Blogger," discussed our Equine Law Blog. We truly believe that this blog is the nation's most active blog serving the equine industry on equine law topics, and we thank you for visiting it. Read more here.

Honors & Recognitions

Congratulations, Julie! We're proud to share that Julie Fershtman has received two prestigious awards.

On April 13, 2013, she received the American Youth Horse Council's 2013 "Distinguished Service" Award. As the award itself states, she received it "[i]n recognition of years of dedicated service to the American Youth Horse Council and tireless efforts to touch the lives of youth involved with horses." For more information about the American Youth Horse Council, please visit www.ayhc.com/.

On May 7, 2013, Julie received the 2013 "Industry Award" from the Michigan Equine Partnership for her work over the years supporting legislation to promote and protect the Michigan equine industry. For more information about the Michigan Equine Partnership, please visit www.miequine.com/.

RECENT EQUINE LAW COURTROOM VICTORY

We're pleased to share that Julie just won a case in Michigan where she defended a boarding and training stable that was sued by a visitor who was injured in the barn aisle. Julie cautions that this case might have been avoided altogether if the stable required every visitor to sign its waiver/release of liability. (Julie, interestingly, drafted that stable's release document years ago but the stable only presented it to customers.) Make sure that your release is well-worded and complies with the laws of your state.

Other Articles

"The Seller's Contract Includes an "As Is" Disclaimer – Now What?" - Desert Mirage Magazine, August 2013

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Large Step Forward for the Horse Industry

We applaud the American Horse Council (www.horsecouncil.org) for its national marketing initiative for the horse industry. The AHC joined together ten national associations and large corporate industry stakeholders to make this happen. We await its marketing plan, which will propose ways to help people become more interested in horses and equine activities, either as participants or spectators.

THE NATION'S MOST SOUGHT-AFTER EQUINE LAW SPEAKER

Did you know Julie Fershtman has spoken at the American Horse Council Annual Meeting, Equine Affaire, Midwest Horse Fair, Equitana USA, US Dressage Federation Annual Meeting, North American Riding for the Handicapped (now PATH International) Annual Meeting, American Morgan Horse Association Annual Meeting, American Paint Horse Association Annual Meeting, US Pony Clubs, Inc.'s Annual Meeting, All-American Quarter Horse Congress, American Youth Horse Council Annual Meeting, American Riding Instructors Association Annual Meeting, CHA Annual Meeting, and numerous others? Consider signing her up for your convention. Contact Julie.

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