STABLE LEGAL
By Tim Johnson

Legal issues are encountered by Thoroughbred industry participants far more regularly then people realise. Breeders and racehorse owners usually turn their mind to legal issues and the need for a lawyer when there is a problem.

In reality every time a horse is sent to a trainer or a farm there is some form of contractual relationship established whether it be in writing or verbally. The agistment contract or the Term and Conditions on the back of the Trainers' invoice are the most common legal documentation that sets out the obligations of the parties involved.

In many situations a horse is sent to its destination whether it be to a spelling farm, mare farm or stables for pre-training on the back of a phone call and an email containing where the bills are to be sent and who will be responsible for them. All is fine until the farm is not getting paid by 'Mr Brown' who owns 30% of the horse. The horse won't be released without payment but the owners of the 70% portion want the horse back to the trainers and in work. Who is responsible and how do we fix it?

If there is a "Contract" with the farm what are their terms and conditions? Is there a partnership agreement between the owners? Is the owner jointly and severally liable? All things that need to be established before there is problem, not after.

Another issue that does occur is when a horse is retired from the track and sent to a good home to be a riding horse, rarely is there anything in writing as the change of ownership. The Registrar of Racehorses records show the owners as being those that last raced the horse. They rarely receive notification of a Transfer of ownership as that documentation is required only if the horse is to continue to race. The Registrar also categorically states that being a registered owner of a horse is not a proof of proprietorship.

The much loved 'riding horse' gets out on to the road and a car run into it resulting in a dead horse and a very damaged car, the cars owner is going to seek recompense. Who is responsible - clearly not the original owner if they have a letter/document stating that they no longer own "Freddy" as they gave it to Miss Equestrian. The most common scenario s the trainer tells you he has found a good home for it and that is the last time you turn your mind to "Freddy".

It is important that the rules of the relationship between co-owners with trainers, stallion farms and agistment farms are set out either formally or in an informal manner such as an exchange of letters/ emails. The more detailed obviously the better if things go wrong, but something to set out the guidelines that can be referred to when needed is much better than " I thought" or 'he said".

The other issue with Agreements is that usually each operation will have its standard set of Terms and Conditions. Pending the document might highlight a clause you are uncomfortable with. If the person with whom you are dealing may waive some conditions for people that have an established trading record with them or if they value your business greatly enough they will be flexible in those terms and conditions.

With contracts (agreements) both parties should be comfortable with what the obligations are that they are entering into. One area that a breeder or racehorse owners should be cautious of is that when aligning a agreement that contains a cause absolving the 'farm' of any responsibility for a negligent act resulting in damage to your horse then any potential claim on an insurance policy maybe refused by your insurer. Read the fine print!

Stable Legal can provide advice as to the drawing up of documentation so as to assist in quickly resolving problems when things go wrong. Hopefully the 'contracts' gets put in a file after all parties have read and signed it and never needed again. Our services extend to everyday legal matters such as Conveyancing, Wills, Probate, Debt Collection and Employment Contracts. Stable Legal is here to provide practical solutions to legal issues always.