Equine Law Blog

Collecting Past-Due Board – The Stable’s Perspective

Stables with non-paying boarders have several options to consider.  Proceed with caution as some options are mutually exclusive, meaning that state law might prevent the stable from pursuing two or more of them at the same time.  The stable’s options, depending on the applicable state law, could include:

• Sue The Boarder For Collection.  The stable can file a lawsuit against the boarder to collect unpaid board.  Depending on the terms of the boarding contract and the applicable state’s law, the stable might also recover interest, attorney fees, late payment fees, and court costs.  If the stable wins a judgment against the boarder, it might be legally permitted to hold a creditor’s sale of the boarded horse, under guidelines and conditions established by the state law.
  
  Stables take caution:  the boarder might counter-sue, claiming that the boarded horse received improper care that somehow injured the horse.
• Pursue a Stablemen’s Lien Sale.  Most states have laws on the books that are designed to allow stables with non-paying boarders to hold lien foreclosure sales of the horse.  The stable’s rights, however, vary by state law, and the laws can be complex.  Stables are strongly cautioned to follow their laws to the letter and consult with counsel before attempting these types of sales.
• Ask The Boarder To Leave.  If the boarder will be unable or unwilling to pay down an increasing debt, stables have the option of asking the boarder to leave, with sufficient advanced notice.  Stables considering this option might want to check with counsel first because parting with a boarded horse could, under some state laws, make it difficult, or even impossible, to enforce rights under the Stablemen’s Lien laws.

Stables and boarders would be wise to make sure that their arrangements take into account the law and to make sure their arrangements are in writing.  And stables need to be aware that improper actions could potentially put them in legal trouble.  Seek legal counsel to guide you in the process.

Categories: Boarding, Contracts