Equine Law Blog

In these challenging financial times, more and more horse owners have entered into arrangements they call “free leases.” No legal dictionary, to our knowledge, recognizes the term “free lease,” but in the horse industry it has come to mean a horse that is leased to another with no lease payment to the owner (the lessor) as long as the lessee provides the horse care and attention.

In our experience, lessors (horse owners) usually enter into these arrangements to avoid costly horse care. In an effort to save money, lessors rarely insist on contracts. Not surprisingly, disputes arise. For example:

Nationwide, 46 states – all but California, Maryland, Nevada and New York – have some form of an equine activity liability act. All of these laws differ, but approximately 31 require sign posting, usually, but not always, by “equine professionals.” The sign posting requirements vary considerably among the laws. Here’s a sampling of how the laws differ.

We are often asked how long a waiver or release “lasts.” The answer depends on several factors, such as:

• Did the document specify that it was only intended to be valid for activities taking place on the day when it was signed?
• Does a state law supply a time limitation during which the document is valid?

Many in the industry have been discussing the Connecticut Supreme Court case of Vendrella v. Astriab Family Limited Partnership. Oral arguments took place recently, and we await an opinion.  

When equine business operators take legal matters into their own hands, problems can occur. Here are some of them:

• The horse seller has a sales agent that advertised the horse online and negotiated a sale to a buyer who is located out of the country. The sales agent, believing promises of the out-of-country buyer that the purchase payment was “in the mail” on the same day that the buyer’s shipper was picking up the horse,  allowed the shipper to haul away the horse. Unfortunately, the seller never sent a payment, but the horse was already out of the country before the buyer discovered the problem.

How to Avoid: In addition to insisting on a carefully worded sales agreement, the seller can insist that the buyer’s payment in full is received and clears the bank before the horse can be shipped away.

We receive numerous calls and e-mails from people in the midst of serious legal issues who are unprepared for, or unwilling to undertake, the expense involved in hiring a lawyer. For example, a trainer could be faced with a lawsuit arising out of a sales agency. An individual horse owner might want to “free-lease” her gelding to a friend and want a contract that protects her as much as possible in the situation.

How can people who cannot afford a lawyer seek legal services at low, or no cost?

Some boarding contracts specify that the boarded horse has a stated value. For example, the contract might state: “The parties agree that the horse boarded under this agreement is worth $15,000.”

How do you find the right lawyer for your equine-related legal matter? Here are some ideas:

Consider the Lawyer’s Expertise

Because of their expertise, lawyers with equine law expertise could potentially save money because they often can get the work done in less time than other lawyers. Their understanding of the industry and the terminology used within it might offer you a distinct advantage.

Well-intentioned horse owners and equine professionals sometimes expect a well-written release of liability (sometimes known as a “waiver”) to be their sole weapon in their efforts to avoid liability. Acting on the mistaken belief that those who sign releases cannot bring lawsuits, some people even consider cancelling their liability insurance policies.

You just bought a horse but believe the seller lied to you about its health, history, and training. You want the sale reversed, the horse returned to the seller, and your purchase price returned. You also want all of your hauling expenses and veterinary bills reimbursed. Can you avoid the expense of a lawyer and sue the seller on your own in small claims court?

Your property stables horses, but your community seems anything but supportive. In fact, you’ve heard that the local government might be exploring possible zoning changes that might make it harder to stable horses in the community. Can you try to maintain things as they are without a costly lawsuit? Yes.

Do you understand what equine-related liability insurance policies do? Many people in the horse industry learn the shortcomings of their liability insurance policies after something goes wrong.

To gain a better understanding of how these policies work, here are examples of some occurrences:

Is every legal dispute appropriate for a lawsuit? Not necessarily. Sometimes the dispute can be resolved quickly and amicably – as long as the parties are willing to consider an alternative to the legal system such as arbitration or mediation.

You allowed someone to ride your horse, but the worst-case scenario later came true – your friend fell off and was injured. Certainly, the immediate response is to make sure that your friend received proper medical attention and that your friend is safe. But can your words, made after the fact, form a basis for liability? Sometimes they can. In a recent case from New Jersey, in fact, they did.

A few years ago, some valuable breeding stallions contracted Contagious Equine Metritis (“CEM”), an equine venereal disease, while boarded at a breeding farm in Kentucky. The stallion owners sued the breeding farm, alleging that it was negligent in allowing the CEM to spread to their stallions from an incoming stallion, who had been brought to the farm from a Wisconsin quarantine facility where it contracted the CEM. [CEM is regulated by the United States Department of Agriculture (“USDA”), in part through its importation guidelines for horses that arrive from foreign countries and are quarantined. These guidelines also prohibit horses with CEM from being imported into the United States.]

Horse owners are, in large part, self-reliant people. They train their own horses, fix their own equipment, and some even do their own hoof trimming and routine vaccinations. When people try to take legal matters into their own hands, however, problems sometimes occur. Here are some examples taken from real cases:

Equine Activity Liability Acts, now found in 46 states, frequently include requirements that “equine activity professionals” and sometimes “equine activity sponsors” post warning signs on the premises. One example of such a sign, from the Commonwealth of Massachusetts, states:

WARNING

Under Massachusetts law, an equine professional is not liable for an injury to, or the death of, a participant in equine activities resulting from the inherent risks of equine activities, pursuant to section 2D of chapter 128 of the General Laws.

But what happens if the “warning” sign falls off or disappears? Will the “equine activity professional” lose benefits from the equine activity liability act?

Why Do States Regulate Brands?

The reasons for state government regulation of livestock brands are just as valid today as they were a century ago. States regulate brands to protect the integrity of a given brand, to avoid confusing the public by having two farms with nearly identical brands, to give notice that a brand has been "taken" in order to fend off others who might want to claim a similar design, and sometimes to help identify the owner or breeder of the branded animal (comparable to a permanent "dog tag").

“Can I borrow your horse?” We hear this question from friends, acquaintances, co-workers, and relatives. When we answer “yes,” what usually follows is a fun and pleasurable experience. Sometimes, however, the opposite holds true, someone is hurt, and a lawsuit follows.

This article briefly discusses why people sue others who lend out horses and offers some suggestions for horse owners to try to protect themselves.

You are leaving your horse with a horse trainer who comes well-recommended but has no experience working with you. Can you trust this person to give your horse humane treatment? If your horse sustains an injury during training, will the trainer keep you informed? Will your horse receive adequate turn-out?

You can leave these matters to guesswork. Or, you can insist on a training contract.

Horse trainers and their clients have every incentive to document their relationship with a contract. Horse owners could potentially bring a variety of legal challenges against the trainer, including:

Breach of contract

A lawsuit might claim that the trainer breached (broke) the terms of a contract by failing to properly train.

State “Good Samaritan laws” are generally designed to protect medical caregivers from lawsuits that arise from negligent acts as long as the caregivers have acted voluntarily (not for compensation) at the time of service. With some of the laws, liability only exists where the injured patient can prove that the defendant was grossly negligent.

Horse breeding transactions can generate several disputes, including the following:

Problem

The stallion’s show or race schedule prevents its availability for breeding by cooled semen or live cover.

If the breeding will be accomplished by live cover, AI, or shipped cooled semen, which requires the stallion to be available for collection, this problem can be avoided by a contract that specifies a range of dates or months in which the stallion can be available.

In a typical veterinary malpractice case, the plaintiff (the party suing the veterinarian) must retain a qualified expert witness in an attempt to prove that the veterinarian breached an applicable standard of care and that the breach, and not something else, caused the horse to be injured. Finding the right expert takes effort, and paying the right expert for his or her evaluation and time can be expensive.

In some cases, however, the facts are so compelling that courts have found that no expert witness is deemed necessary. Here are some of those cases:

Not every claim against a veterinarian is really a claim of veterinary malpractice. A small number of cases involving veterinarians are more appropriately brought as a claim of ordinary negligence on part of the veterinarian or the staff.

Generally speaking, it is completely legal to do business with an agent in a business transaction.  An agency relationship generally exists when one person, such as a horse seller, agrees to allow another person to act on his or her behalf in a transaction. The agent acts on behalf of the “principal.”

Risks

Those who deal with parties claiming to be agents can encounter risks, such as:

In March 2013, I was a speaker at an Agribusiness Conference in Sacramento, California. Members of the audience raised excellent questions, one of which was: Should minor children be permitted to sign a horse facility’s contracts, such as releases, even if the child’s parent or legal guardian also signs?

Our office receives numerous calls from first-time horse buyers who are soured on the horse industry due to bad experiences with horse sellers. Some proceed with lawsuits. Horse buyers who proceed cautiously and seek assistance at the proper time can, in many cases, avoid disputes. This article offers some suggestions.

Gene buys a mare from a horse seller across the country, and pays the full purchase price, which the seller receives. Shipping was set for the next day. As the shipper pulls in to get the horse, it is discovered that the horse has become seriously ill and dies within hours, while still at the seller’s stable. Is Gene entitled to a refund?

The answer could depend on three important words, “Risk of loss.”

Police departments and local governments often enjoy governmental immunity, which protects them from liability except in limited situations. In one interesting but tragic loose horse case, a Florida court held that governmental immunity might not protect a municipality. That case involved a loose horse on an unlit highway late at night. A police officer spotted the horse on the road and followed from his squad car, but without lights (apparently, the officer had decided that the lights might spook the horse and turned them off). This resulted in a “slow speed chase” of the horse in an apparent attempt to herd it near the highway median.

In January 2013, I spoke at a number of education programs on Equine Law. Attendees raised several questions, and some of them are shared on this blog.

Question

Has your equine law experience made a difference in specific cases where opposing counsel may have lacked similar experience? If so, how?

In January 2013, I was invited to New York City speak at a continuing legal education conference sponsored by the New York State Bar Association Committee on Animals and the Law. Below is a question posed by an attendee and my answer. This question relates to industry regulation and certification.

Question

Are professional horse trainers licensed, certified or accredited by any government agency or professional organization?

During a national teleconference on Equine Law in January 2013, I was asked: “Do you recommend pre-sale agreements regarding inspections and testing?”

Answer

Yes.  When I represent sellers in equine sale transactions, I prefer a contract that specifies that the buyer has received an opportunity to have the horse tested by veterinarians and equine professionals of the buyer's own choosing and at the buyer's sole expense.  Allowing, if not encouraging, the buyer to seek professional opinions on the horse can help break the chain of reliance on the seller. 

In January 2013, I was the speaker at a national teleconference on Equine Law and also spoke at continuing legal education programs on Equine Law for the Washington State Bar Association and New York State Bar Association. Attendees raised several questions, and some of them are shared on this blog.

Question:

Regarding an Equine Activity Liability Act, are there any similar or analogous statutes relating to any other animals/species?

In January 2013, I was the speaker at a national teleconference on Equine Law and also spoke at continuing legal education programs on Equine Law for the Washington State Bar Association and New York State Bar Association.  Attendees raised several questions, and some of them are shared on this blog.

Question:

Should the boarding stable specifically ask the owner to disclose a horse’s known “aggressive behavior” (which may, of course, be manifested in biting and kicking)?

In January 2013, Julie was the speaker at a national teleconference on Equine Law and also spoke at continuing legal education programs on Equine Law for the Washington State Bar Association and New York State Bar Association. Attendees raised several questions, and some of them are shared on this blog.

Question

Some boarding contracts in the equine industry ask owners to give their consent for veterinary services. What is your opinion of these kinds of clauses?

An interesting, and tragic, case that Julie Fershtman handled several years ago involved a professional race horse driver’s death during a race at a Michigan race track.  Julie represented one of the defendants, the owner/trainer of a Standardbred race horse that broke stride during the race and slowed down near the finish line.  This allegedly caused a pile up of horses behind him on the track, and one of the drivers lost his life.

On October 1, 2012, a new Michigan law went into affect that has implications for certain people or businesses who engage in selling or transporting horses and livestock in Michigan.  The law, HB 5784, was designed to control the spread of infectious diseases of livestock and animals in Michigan.  It now requires those engaged in the buying, receiving, selling, transporting, exchanging negotiating or who solicit sale, resale, exchange, or transportation of livestock to be licensed bonded by the Michigan Department of Agriculture.

Maddie, a struggling horse trainer, made up a nasty rumor that another trainer, John, abused his horses and administered performance enhancing drugs.  Maddie knew that none of this was true.  The rumor spread and John's customers slowly left him.  Many became Maddie's new customers.

A major difference between mortality insurance on a horse and life insurance on a human is that equine mortality policies typically expect the possibility that the insured horse can be destroyed and payment can still follow.  Over the years, court battles have also arisen on the question of whether the owner’s intentional destruction was truly warranted.  A discussion of some of the cases follows.

On January 9, 2013, the U.S. Department of Agriculture adopted the Animal Disease Traceability Program (ADTP). It takes effect 3/11/2013 and impacts the equine industry.

Equine liability litigation sometimes focuses on the equipment worn by a horse before an accident occurred.  Some cases claim that the horse was equipped with defective reins, which caused someone (the plaintiff in the case) to be hurt.  Here are two such cases.

What do you do if you believe that a professional, such as a horse trainer or veterinarian, engaged in abusive conduct.

Know the Risks

If you suspect that an equine industry professional is engaging in abusive practices, proceed very cautiously and always in good faith.  Your accusations, if improperly made, could potentially destroy someone’s business and reputation.  Your conduct could even generate a lawsuit against you in which a professional claims that you defamed him (through slander or libel) or improperly interfered with his business.

Desert Mirage - December 2012

A 2001 case involved the plaintiff, a highly experienced trick rider, who was dragged from her horse and injured while engaging in trick riding activity. She sued the saddle manufacturer, Weaver Leather Goods, claiming that an off-billet on the saddle was defective. Her lawsuit claimed that the saddle maker violated a provision of the Tennessee Uniform Commercial Code by breaching an implied warranty of fitness for a particular purpose. She also sued for products liability and failure to warn.

The holiday season is here, and many stables around the country are hosting their annual year-end parties for customers and friends.  But celebrations can quickly turn to tragedies.  Here are some suggestions to avoid liability:

Once you have presented your liability release form to a new customer, how much time is enough time to allow him or her to read the document before signing?  In some states, when the enforceability of a liability release is at issue, courts have focused on the amount of time given to the signer before executing the document.

Is “two seconds” enough?

Equine facilities nationwide have encountered the problem of busy parents who allow babysitters, non-parental relatives, or family friends to drive their children for riding lessons.  Can a babysitter, relative, or family friend sign a liability release on behalf of the child?

Legally, no.  Why?

A teenager, 17 years old, drives herself to your stable and expresses an interest in buying or leasing one of your horses.  She is old enough to drive a car, but is she old enough to enter into a contract with you?

The answer is no.  Unless she has reached the age of majority in the applicable state, she does not have the legal capacity to enter into a contract with you.

Part one of this series explored the buyer's legal rights against sellers who fail or refuse to provide breed registration papers.  This part examines suggestions for buyers to consider in an attempt to avoid equine registration paper disputes.

Two months ago you bought the mare you always wanted.  Your goal was to win championships in breed-recognized horse shows and then retire the mare for breeding.  A terrible problem has derailed your plans:  The seller will not transfer the horse's registration papers into your name.  Your arsenal of weapons is limited -- there is no written sales contract, but you recall the seller promising to send you the horse's papers "right away" the day you gave him your money (a promise he now denies ever making).

What are the buyer's options in these types of situations?  Here are a few of them:

Over the years, horse sellers have entered another’s property, such as a private barn or pasture, in an attempt to repossess a horse, only to face costly legal battles and sometimes even criminal charges of trespass and theft, as a result.

Here are suggestions for avoiding equine installment sales disputes.

Here are common risks involving installment sales.  Part III addresses ways to minimize them.

1) The Buyer Stops Making Payment

The most common risk of an installment payment arrangement is also the most foreseeable – the buyer stops paying.  Horse owners, unlike banks, put themselves at greater risk of encountering this problem because they fail or refuse to gather important information about the creditworthiness of a buyer, even if the buyer is a total stranger.

Banks do it.  Credit card issuers do it.  Horses can be expensive, and buyers often ask sellers to spread out their payments over months, or even years.  Should you, the horse seller, do it?

Ron Turcotte rose to fame after winning Thoroughbred racing’s Triple Crown riding the legendary “Secretariat.”  He lost his own legal battle in New York after being seriously injured in a horse race, mainly because of New York’s doctrine of “assumption of risk.”  Assumption of risk is a legal defense based on the theory that horse racing is an inherently dangerous sport and profession­al jockeys or drivers are best situated to know and appreciate the risks involved in the sport.

Are you held liable if a child trespasses onto your property and is injured?

Hazardous places, conditions, or things on the land that tend to lure unsuspecting children are commonly known as "attractive nuisances."  Attractive nuisances are typically not natural conditions of the land, such as a pond, but rather are conditions that were created by the landowner or someone else on the property.  Swimming pools are classic examples.  Depending on the circumstances and how the state defines an “attractive nuisance,” a horse might qualify.

Stables looking to collect past-due board by invoking a stablemen’s lien law should take caution.

Almost all states have laws on the books that are specifically designed to give lien rights to horse boarding stables.  State laws differ significantly as to stables’ rights when board has not been paid.  Here are some examples of how the laws differ:

Almost all states have laws on the books that are specifically designed to give lien rights to horse boarding stables.  Some of these laws also give special lien rights to people who provide services to horses, such as veterinarians or farriers.  These laws are often referred to as “stablemen’s lien laws” or “agisters lien laws.”  They differ widely across the country and usually explain:

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:

Horse boarding stables nationwide have been encountering the problem of non-paying or slow paying boarders.  At the same time, expenses continue to rise.  What are the boarder’s options when they owe the stable board money?

Liability Releases in Michigan Equine Activities: Why They Fail

State Bar of Michigan Animal Law Section Newsletter - Spring 2012

“Liability releases are not worth the paper on which they’re printed.”

Some of our clients may say this, but the reality in Michigan is that liability releases have been enforced in recreational and equine-related activities.  Still, these documents sometimes fail in legal challenges.  This article explores liability releases in Michigan equestrian activities and themes in release-related litigation with an emphasis on equine liability.  Read more >

When a boarding stable accepts a customer’s horse for care and keeping, the law generally imposes a duty on the stable to use reasonable care. Consequently, a stable could potentially be liable for a horse’s injury even if it had no real intention of harming a horse.

If a boarder wins a case against the stable, the stable might (depending on the facts and the applicable law) be ordered to pay:

A summer camp’s Business Manager comes to work over the weekend to “test out” the camp’s newly donated horses, allegedly to determine their suitability, but he is thrown and sustains serious injuries.  Is he entitled to recover workers' compensation insurance?  No, says a worker’s compensation appeals panel of the Tennessee Supreme Court in Parish v. Highland Park Baptist Church, No. E2010-01977-WC-R3-WC (Tenn. 10/18/11)(unpublished).

Why?

Disputes occasionally occur when a buyer purchases a horse that is represented as being one age when, it later turns out, the horse is many years older.  Does the buyer have a case against the seller?

Desert Mirage - August 2012

Are you considering allowing a boarding stable to use your horse in its riding lesson program?  Take caution.  Horse owners face risks in these arrangements, including:

I receive numerous calls from people who either believe they have a case against a horse seller or from horse sellers who have been threatened with lawsuits.  As an attorney who has handled many sales cases and tried them in court, representing buyers and sellers, I know that many of these disputes are avoidable.  Here are some options to help avoid sales disputes:

Genome sequencing/DNA-mapping of horses has been under way. A research team at Texas A&M University mapped one of its University-owned Quarter Horses (an adorable bay, foundation-bred mare). The testing provided, according to a Texas A & M geneticist, triple the genetic variation normally known about horses.

Many recall the legendary “Secretariat” ridden to his 1973 Triple Crown victory by jockey Ron Turcotte.  Years later, Mr. Turcotte sustained crippling injuries while racing a horse at Belmont Park, and his litigation against multiple defendants was dismissed primarily because New York recognizes the doctrine of “primary assumption of risk,” and the court found that Turcotte assumed the risk of injury.  [That case was Turcotte v. Fell, 68 N.Y.2d 432, 502 N.E.2d 964, 510 N.Y.S.2d 49 (1986).]  New York is one of four states nationwide without an equine activity liability act.

Animal rescue organizations sometimes face the question of whether the “adoptee” of a rescued animal holds title to that animal and can use it for any purpose, even re-sell it.  An equine rescue in New York litigated the issue of title in Cohen v. Rostron.¹

Saddles, bridles, and harnesses are necessary assets in equine activities, but they can also generate liabilities.  Over the years, lawsuits have claimed that someone either provided faulty equipment or improperly failed to detect and fix foreseeable equipment defects.  For example, a 1992 Illinois court case involved a community center that provided horseback rides.  During a ride, a cinch strap broke, causing the rider to fall from the horse and suffer injuries.  The injured person blamed the mishap on an allegedly “worn, dry, and old” cinch strap that the center knew of or should have known about.

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  A key detail to consider for a contract is attorney fees.

If you are entering into a contract with someone who claims to be signing on behalf of someone else – such as the sales agent signing for the owner, or a person claiming to be signing on behalf of a corporation or partnership –  how can you be sure that this person has the authority to bind the other person or entity to the contract?  Careful language in your contract can help.  The contract could state, for example:

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  A key detail to consider for a contract is insurance.

Different types of insurance exists for numerous horse-related activities and interests. Here are a few examples of how a contract can address insurance:

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  A key detail to consider for a contract is indemnification.

After you’ve devoted considerable time and expense to developing a good contract for your equine transaction, the last thing you can afford is for the other party to claim that your contract was somehow changed.  Disputes have arisen when parties to contracts claim the contract was canceled through a verbal agreement or somehow replaced by a claimed verbal understanding.

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  One detail to consider is alternative ways to resolve disputes.

Resolving legal disputes through the court system can be time-consuming and costly.  Alternative methods of resolving disputes, whether through arbitration or mediation, have become popular because they are generally considered quicker and cheaper than the court system.  Once parties have become embroiled in a legal dispute, it is usually too late to find them agreeing on anything – much less agreeing to settle their differences through arbitration or mediation.  Contracts, however, can plan ahead to protect the right to resolve certain matters through these methods.

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  One detail to consider in equine contracts is attention to certain laws that could impact the contract or the rights of the parties.

Examples of some contract provisions affected by state law are:

As of April 2012, 46 states (all but California, New York, Nevada, and Maryland) have passed laws that are designed to limit or control liability involving equines and equine activities.  In many states, these laws have created an important fine point for horse-related contracts. Several of the laws require special language in certain equine-related contracts or releases. 

The state-by-state requirements, based on equine activity liability law differences, can vary considerably.  For example, Ohio’s law requires a statement of inherent risks in certain contracts:

We occasionally receive calls from horse buyers who suspect that the horse delivered to them was not the horse they thought they bought.  The problem is, almost all of these buyers had no contract and no clear identification of the horse.

Everyone benefits if the contract specifies the horse involved.  To help avoid disputes, an equine-related contract can specify the horse's:

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  A key detail to consider for a contract is identifying the parties involved.

The first two articles in this series explored myths 1-10 surrounding equine-related insurance (Myths 1-5 and Myths 6-10).  Remember, it is important to read your insurance polices thoroughly and not rely on common myths.  Let's take a look at myths 11-15 in the final part of this series.

Relying on myths and failing to read your insurance policies can lead to costly mistakes.  This series explores 15 of the most common myths surrounding equine-related insurance.  Check out myths 1-5 in my post from last week.  Let's review myths 6-9 here:

When it comes to equine-related insurance, myths and misconceptions have plagued the horse industry for years.  People fail to read their policies and instead rely on myths, making costly mistakes.  Coverage may be denied because they failed to comply with an important policy condition.  Or, in some cases, people learn that the policy they bought offers no coverage for the problem at hand.

This series will explore 15 of the most common myths surrounding equine-related insurance.  Here are the first 5:

Some statistics say that as many as 97% of cases are settled or dismissed without ever going to trial.  Many people believe that out-of-court settlements are downright wrong, especially if your position in the case seems strong and winnable.  Why do cases settle?

In the horse industry, sellers sometimes offer mares for sale as a “2-in-1 package” where the mare is represented as being in foal.  But what if the mare fails to carry a foal to term?  What if the foal dies soon after the birth?  Can a mare owner enforce a “live foal guarantee” on a breeding that he or she never arranged?  Mare owners have options.

Farms and stables often bring on “casual” labor, especially during times when hay is being loaded or other occasional labor-intensive chores are in progress.  What happens if one of these occasional helpers is hurt and you have no workers' compensation insurance.  Will your business liability policy protect you?

What is a Right of First Refusal?

A “right of first refusal” is a right that is granted under a contract that requires that the one who has bought or received a horse, under certain terms and conditions, give the seller an opportunity to own the horse again if or when the buyer wants to part with the horse.

Non-Profit Corporations

A non-profit corporation is a corporate entity that has been established under certain federal regulations.  Non-profit entities are primarily engaged in educational, scientific, religious, or charitable endeavors.  Entities that qualify for 501(c)(3) status can also enjoy federal and state tax-exempt status, and donations made to the entity by individuals may be tax-deductible.

Corporations that exist on a “for-profit” basis, such as Ford Motor Company, and non-profits share some common characteristics, such as:

Interstate and international equine transactions are more common than ever.  The internet takes some of the credit for this.  When people do business with others across state and international lines, however, they face numerous legal risks.

A boarded horse colics and is in need of surgery, but the owner cannot be reached to find out what, if anything, can be done. What can the stable do?

We occasionally receive calls from people exploring new equine businesses.  A few have expressed interest in caring for horses belonging to people who are away or on vacation.  What should they consider?  Here are a few ideas.

We occasionally receive calls from people exploring new equine businesses.  A few have expressed interest in becoming professional equine massage therapists.  What should they consider?  Here are a few ideas.

A horse seller agrees to sell a horse on a handshake, but the seller was about to sell the horse to someone else.  The would-be buyer wants to enforce the sale and stop the sale to someone else.

The answer almost always involves the law of injunctions.  Injunctions can be complex, and the legal proceedings are usually very costly.

Liability insurance is almost always a choice.  However, it is an important choice.  As my caseload has shown, average (non-professional) horse owners have been sued.  Here are some examples:

This article addresses the process of preparing yourself and your horse for an interstate trip, from a legal standpoint. Regardless of where you find a hauling company, be sure to check references and make sure you are dealing with a reputable, caring, and experienced service.

Spectators at horse shows and visitors at stables, just by being near a horse, are at risk of being injured. And, as these examples show, spectators sometimes bring lawsuits. For example:

A mare is in foal, and the mare/prospective foal owner sells the foal months before the foal is born.  These arrangements occur with some frequency in the equine industry. In these unique arrangements, a carefully worded contract is important for a few reasons:

Many riding instructors have no home base but, instead, do business by traveling from stable to stable.  The problem is, stables put themselves at risk of liability by providing facilities for lessons.  What should stables consider when they are approached by instructors who seek to give lessons on stable’s property?

When boarding stables are not paid, they sometimes ask for trouble by taking matters into their own hands without following the law.  For example, some have been known to give away the boarded horses, sell them to offset the debt, or place the horses in their lesson program without first receiving clear permission from the horses' owners.  These actions are usually illegal.

Stables that accept horses for boarding and keeping do not automatically own them when board is unpaid. To become the owner, the stable must follow the law.  Depending on state law, legal action that can include: