Equine Law Blog

Risk of a Dispute

Disputes can, and do, occur in international equine transactions.  For example, horse buyers have sent money abroad before a transaction only to find that the sellers have deposited the funds but never shipped the horse.  Buyers have also complained of sellers shipping unsound horses.

Parties to equine transactions have a difficult enough time resolving disputes when they are situated within the same country.  In sharp comparison, doing business with someone from a foreign country complicates the problem even more.  Careful advance planning and well-written documents might help.  A few elements they can include are:

• Escrow Agent.  The parties can designate a neutral, respected person or business professional to serve as an escrow agent to receive the full purchase price of the horse, hold the funds, and later pay the seller if the horse arrives as represented.
• Disputes.  A contract can specify that legal disputes, should they arise, will be handled in the United States within the state where the U.S. citizen lives. Keep in mind that if you should later win a judgment against in the United States against people from a foreign country, such as Canada, you can expect to go through extra legal proceedings later on to have that judgment recognized and enforced.
• Attorney fee clause.  Contracts can address which party recovers legal fees in the event of a legal dispute.  Some contracts, for example, include “loser pay” clauses.

Because the issues can be complicated and the risks great, consult with a knowledgeable lawyer before engaging in an international transaction.  If you have any questions, please let me know.