Horse ownership is a big responsibility and there are times when legal help is needed.
Contract disputes and liability issues are the most common types of law involved with horses but there can be other areas of law where we can help too. For instance, you may need a lawyer if you are purchasing real estate for a stable or forming a business for boarding and lessons. If you are a trainer or barn manager, you should have a clear understanding about the terms of your employment as well as be aware of possible situations that could expose you personally to liability.
We’ve put together a small list, but not exhaustive list, of some common mistakes made by the horse owner or barn/stable owner.
A Few Common Mistakes Which Can be Avoided:
For the Horse Owner:
* Assuming your home owner's policy covers you if your horse hurts someone else or damages property. Most home owner's policies do not cover you if your horse hurts someone else off your premises. Consider that most people board their horses elsewhere where an accident can occur or consider your horse losing control on a trail and injuring another rider. Without private owner's liability insurance, you could be personally liable for substantial medical bills. You should also make sure that your Barn requires this insurance for all of its boarders as well.
* Doing a deal on a handshake or relying on a Form Contract.
Sure, the seller seems really nice and you are so excited to get your new horse!
Unfortunately, once a problem occurs, no one's recollection of the agreement is
ever the same. A contract is for everyone's protection. You should also have a
provision that allows you to have a trial period with the new horse. Be sure to
address which party bears the risk for injuries, damages, sickness and the like
during the trial period.
Other contracts associated with horse ownership are boarding contracts, breeding
contracts, trainer contracts, and this list is not all inclusive. It is better to be penny
wise than pound foolish before signing any contract. Have your attorney
review any contract with you before you sign it.
* Purchasing a horse without a vet check.
While some sellers will have their own vet perform a check, it is better to
retain your own vet so that there is no conflict of interest.
For the Stable/Barn Owner:
* Assuming that a parental waiver of liability will protect you if a minor is injured.
While Pennsylvania now has the Equine Activity law that provides immunity to
owners, groups, clubs or business entities for equine activities, the immunity only
applies for adults, not minors. A parent can sign a waiver but Pennsylvania does
not allow a parent to give up a child's right for damages should an injury occur.
* Not having the proper signage.
The Equine Activity law only provides immunity where the signage is
conspicuously posted on the premises in two or more locations and the sign shall
be at least three feet by two feet stating: You assume the risk of equine activities
pursuant to Pennsylvania law.
* Assuming the Equine Activity Law is blanket protection from liability.
Unfortunately, the law does not specifically define what
Equine Activity is. To be safe, make sure that all of your tack and safety
equipment are routinely inspected and are in good shape. An injury from
defective equipment may not be considered "Equine Activity" and could subject
you to liability. Similarly, a defect on your premises, such as a defective electric
fence, that causes injury would not necessarily be considered "Equine Activity."
* Operating your stable as a sole proprietorship when another business formation
may offer a way to reduce personal liability.
* Calling your barn help "independent contractors" instead of having workers'
compensation insurance. This is very tempting to do especially since the cost
of workers' compensation insurance is very high for barn workers. However,
more expensive are the medical bills and potential jail time for not having this
insurance in place. It can also get you into trouble with the IRS.
* Not having a written contract with your boarders. What do you do when a boarder stops paying? Can you sell the horse? What happens when the boarder
complains that she is not receiving a particular service for which you did
not agree to perform? Protect yourself with a written contract!
These are just some of the issues that can face the horse owner or barn/stable owner.
Hopefully, you will never need the help of an attorney for a contract dispute or a liability situation. If you do, we at Herr & Low are willing to help.
