What to Consider Before an Equine Professional Does Business on Your Property
An elderly widow lives alone on the family farm. The horse barn has been empty since the children moved out. Recently, an equine professional asked to rent the horse facility to run a boarding, training, and lesson business. Should this arrangement proceed?
Risks of Horse Property Rental Arrangements
For property owners, these kinds of arrangements pose risks. Let’s look at some of them.
Liability
For both parties, liability is the biggest risk. But even though the widow property owner here would have no involvement in the equine professional’s business, she’ll probably be named in a personal injury lawsuit, anyway. This means, for example, that if the professional forgets to close a gate, and a horse runs loose into the road and collides with a motorist, the injured motorist’s lawyer could very well target the professional and the land owner. When this happens, who will pay the land owner’s legal fees? Who will pay a judgment or settlement?
Insurance
In this example, the property owner probably only has homeowner’s or farm owner’s insurance. Her insurance coverage probably excludes liabilities arising from a “business pursuit,” but if she accepts rent payments from the equine professional, her insurer would probably consider this a “business pursuit.” She risks having no coverage. To protect herself in the arrangement, she’ll need business insurance coverage, such as a commercial general liability insurance.
Zoning
Years ago, the horse farm was a family-run horse operation. But now, the equine professional wants to run a business out of it. Local zoning ordinances might not allow this. Or, the laws might require the property to be modified with special lights, roads, signs, handicapped ramps, or others.
Protecting Yourself With Contracts
Equine property rental arrangements call for detailed contracts. Here are just a few of the many elements to consider:
- Permitted Uses. What can the equine professional do, or not do? The contract can set limits for the professional’s activities on the property.
- Zoning. A contract can require the professional’s compliance with zoning and land use ordinances, fire codes, and other local laws.
- Lease Term/Termination. The contract can specify its duration and when it can be terminated. It can also address what actions can be taken (also called “remedies”) if either party fails to honor certain important obligations.
- Insurance. The contract can address who must buy the commercial liability insurance and who must be listed as “additional named insureds” on the policies. For their protection, however, both parties might want to determine whether they are properly insured.
- Liability releases. Aside from any liability release that the landowner might require the professional to sign on his or her own behalf, the land owner can also demand that the professional require everyone who enters the property sign a release of liability (where allowed by law). Who writes the release, who presents it, and who it names are among the factors for the parties to consider addressing in their contract.
- Assignment and Sub-Leasing. The contract can address whether or not the professional can assign or sub-lease it to someone else.
With careful advance planning and thorough contracts, a facility use arrangement can work well for everybody.
This blog post does not constitute legal advice. When questions arise based on specific situations, direct them to a knowledgeable attorney.
Categories: Contracts, Insurance, Liability, Zoning & Land Use
Julie Fershtman is considered to be one of the nation's leading attorneys in the field of equine law. She has successfully tried equine cases before juries in four states. A frequent author and speaker on legal issues, she has written over 400 published articles, four 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.
View All Posts by Author ›Top 10 Things The Equine Community Needs To Know About Equine Liability Laws
"Julie Fershtman is considered by many to be the nation's leading expert on equine activity liability acts. Her 30-minute presentation for a recent educational webinar on equine activity liability acts for the American Horse Council is available for viewing. Please take a look, here's a link: https://www.youtube.com/watch?v=hCROISSPMJs
Fershtman’s Equine Law Book Wins Fourth National Award
Julie Fershtman’s latest book, Equine Law and Horse Sense, won its fourth national award on May 31, 2021. It was selected to receive a "Finalist" Medal in the 2021 Next Generation Indie Book Awards.
The 2021 Next Generation Indie Book Awards are presented by Independent Book Publishing Professionals Group, which is the largest International awards program for indie authors and independent publishers. Here’s a link for the complete list of 2021 winners and finalists: https://www.indiebookawards.com/winners.php?year=2021
Fershtman’s Equine Law Book Receives Third National Award
Julie Fershtman’s book, Equine Law & Horse Sense, published by the American Bar Association, has been selected to receive a 2020 NYC Big Book Award in the category of “Reference” books.
The NYC Big Book Awards draws nominations world-wide. This is the third award for Fershtman’s book since its publication last year. Here is a link for more information, and to see the list of winners: https://www.nycbigbookaward.com/2020winners
Information on the book: https://www.amazon.com/gp/product/164105493X/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i0
Equine Blog Ranked in Feedspot
Foster Swift's Equine Law Blog was ranked #8 in Feedspot.com's "15 Best Equine Law Blogs and Websites".
Categories
- Billing/Payment
- Insurance
- Sales/Disputes
- Zoning & Land Use
- Veterinary Malpractice
- Employment
- Department of Labor
- Defamation
- Did you Know?
- Boarding
- Employee Handbook
- Workers' Compensation
- Fashion
- Breeding
- Regulatory
- Radio Broadcasts
- Fraud & Abuse
- Labor Relations
- Animal Abuse
- Contracts
- Compliance
- News & Events
- News
- Licensing
- Lawsuit
- Liability
Upcoming Speaking Engagements
In 2022, Julie Fershtman is scheduled to be a speaker on equine liability at these conventions:
- American Horse Council Annual Meeting and National Issues Forum, Washington D.C. - June 6, 2022
- National Conference on Equine Law, Lexington, Kentucky – May 4, 2022
- IRMI Agribusiness Conference (“AgriCon”), Sacramento, California – March 8, 2022
- New York State Bar Association Equine Law Symposium (virtual conference) – February 9, 2022
Fershtman’s Equine Law Book Receives Second National Award
Julie Fershtman’s book, Equine Law & Horse Sense, published by the American Bar Association, has been selected to receive a 2020 NYC Big Book Award in the category of “Reference” books.
The NYC Big Book Awards draws nominations world-wide. This is the third award for Fershtman’s book since its publication last year. Here is a link for more information, and to see the list of winners: https://www.nycbigbookaward.com/2020winners
Information on the book: https://www.amazon.com/gp/product/164105493X/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i0
Honors & Recognitions
Equine lawyer, Julie Fershtman, has received these prestigious equine industry awards from respected equine organizations:
"Excellence in the Advancement of Animal Law Award" - American Bar Association Tort Trial & Insurance Law Section Animal Law Committee
"Distinguished Service Award" - American Youth Horse Council
"Industry Service Award" - Michigan Equine Partnership
"Catalyst Award"- Michigan Horse Council
"Outstanding Achievement Award" - American Riding Instructors Association
"Partner in Safety Award" - American Riding Instructors Association
"Associate Service Award" - United Professional Horseman's Association
"National Partnership in Safety" Award" - Certified Horsemanship Association
Some of our Equine Law Services
Handling breach of contract, fraud/ misrepresentation, commercial code, and other claims involving equine-related transactions including purchases/sales, leases, mare leases/foal transfers, and partnerships.
Litigating a wide variety of equine-related disputes in court or through alternative dispute resolution (arbitration, mediation, facilitation).
Defending equine/farm/equestrian industry professionals, businesses, and associations in personal injury claims and lawsuits.
Drafting and negotiating contracts for boarding, training, sales, waivers/releases, leases, and numerous other equine-related transactions.
Representing and advising insurers on coverage and policy language as well as litigation;
Advising equine industry clubs and associations regarding management, rules, bylaws, disputes, and regulations.
Representing some of the equine industry's top trainers, competitors, stables, and associations.
Counseling industry professionals, stable managers, and individual horse owners.
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, US Hunter/Jumper Association Annual Meeting, Midwest Horse Fair, Equitana USA, US Dressage Federation Annual Meeting, North American Riding for the Handicapped (now PATH International) 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 directly.
Follow Us on Twitter!
Follow us for updates regarding news, cases, disputes, and issues regarding Equine Law. @horselawyers