Smith, Gambrell & Russell, LLP

So, You Want a Horse?

A Primer on Equine Law

Horse ownership can be very enjoyable and, for many people, a lifelong passion that brings you face-to-face with the cycle of life, the weather and nature. When you own a horse, you start to adjust your life around the seasons in the same way that farmers and ranchers have done for hundreds of years.

Although a highly rewarding experience, purchasing and owning a horse presents certain risks and challenges. Horses are animals, not machines, and an average, well-maintained horse weighs around 1,000 pounds. Like people, they have good days and bad. And even a very friendly, mature, trained horse can still unintentionally hurt someone when startled, nervous or frightened.

In this feature, we will discuss how the use of contracts and equine liability legislation can maximize your horse ownership experience by mitigating or eliminating many of those risks and challenges and helping you avoid tort liability.

Contracts

Contracts can mitigate and apportion risk and need not be complicated. You should have a written contract whenever you buy, sell or lease a horse. You should have a written contract when you board a horse, hire a trainer or start riding lessons. You should also consider apportioning risk by purchasing insurance.

Sales and Leases

Buying a horse without a written contract is a risky business. Even if both parties are acting in good faith, recollections of conversations, decisions, and terms and conditions can easily become confused. It is beneficial to both parties involved in the transaction to put their negotiations in writing.

What kind of things should be in the contract?

  • The seller’s name and address
  • The buyer’s name and address
  • The horse’s name, registration number and identifying marks
  • The sales terms including price and contingencies (e.g., passing a vet check or a “try out” period)
  • A warranty as to title, and that the horse is free of liens

Horses can be purchased or leased. Many people are unfamiliar with the idea of leasing a horse, but it is an option that more people might consider. Leases can reduce risk and are a very good idea for individuals who may want to “try out” a horse for an extended period, or whose needs may change over time.

For example, if a rider wants to compete in a particular event for a limited period of time, leasing a “finished” horse with expertise in a particular event can be a good idea. Similarly, a parent with a growing child might want to lease a pony until the child outgrows the animal and then purchase a full-sized horse. Likewise, if a parent wants to give a child a chance to see if he or she will stick with riding, leasing is a good option.

Leases can be a full lease or half lease. In a half lease, parents of two children can split the cost of the lease and expenses and have their children share a horse or pony. If a horse or pony is half leased, be sure to spell out who has what rights to use the horse. This can be a challenge not unlike negotiating joint custody of a child, but failing to spell things out ahead of time can lead to hard feelings or worse. Leases should include the same information as a sales contract plus the beginning and ending periods of the lease, the conditions under which the horse will be kept, who pays for vet care and farrier visits, and who bears the risk of loss.

Boarding Options

Agreements for boarding, riding lessons and training should always be in writing. In fact, if the boarding facility, teacher or trainer does not require you to sign a contract, you should strongly consider finding another place with which to do business. Professionals and ethical horsemen will always use written contracts. Not being presented with a written contract to sign is a “red flag” and signals unnecessary risk.

Boarding barns should have several key clauses in their contracts. The contract should spell out the level of care for the horse. Generally, the options are “full board,” “stall board” or “pasture board.”

Full board usually means that the horse will be fed and watered, its stall will be picked and the horse turned out for exercise. With full board, the owner need do nothing but groom, saddle and enjoy his horse.

Stall board usually means that the boarder has access to a stall, but bears the burden of daily care for the horse.

Pasture board generally means the horse remains turned out to graze. For an additional fee, a pasture-boarded horse may get grain and supplemental vitamins, minerals or hay.

The boarding contract should state the parts of the facility to which the boarder has access. There may be trails, round pens or arenas that are off limits to some boarders. The contract should describe what emergency care will be rendered without the boarder present and what vet is on call for emergency care. If the boarder requests that a certain vet or clinic provide care, be sure to include the name and contact information in the contract to reduce the risk of a mistake ending in a bad result. The contract should recite what, if any, insurance the barn has that covers boarders’ horses, tack and potential liability to third parties.

Lessons and Training

There is a difference between a horse trainer and a riding instructor. A horse trainer trains horses. A riding instructor teaches people how to ride. That distinction may seem obvious, but many horse owners mix and match the terms. The two fields of endeavor are very different. To avoid risk of injury to the rider and the horse, as well as the risk of disappointment, make sure you know with which one you are contracting. A riding instructor often has a “string” of “lesson horses.” Lesson horses are normally finished, mature horses that are calm and unflappable regardless of what mistakes a novice rider makes. Some riding instructors are good horse trainers too, but do not count on it. Horse trainers seldom give riding lessons.

Regardless of whether you are hiring a trainer or a riding instructor, you need a written contract. The contract should spell out what is to be done, for how long and at what cost. If you are hiring a horse trainer, there will likely be board involved, so the issues discussed above all apply.

Mitigating Tort Liability

“Tort” is the area of the law that encompasses “negligence,” or liability through fault. Tort also includes another legal concept many people never encounter called “strict liability,” or liability without fault.

An owner or lessee runs the risk of liability in tort if his or her horse injures or causes damage to a third party. This might be due to the horse escaping a boarding facility, “spooking” and injuring another rider or bystander, or getting into a fight with a pasture mate and injuring another horse.

Risk of tort liability is mitigated in three ways. First, purchase a good insurance policy. Second, make sure the boarding or training facility has good fences, workers and equipment. Third, make sure the facility has “equine liability” signs posted that comply with state law.

Insurance

Insurance for horses and their owners is readily available and covers a wide range of risks. Insurance companies sell life and health insurance, fertility insurance, insurance for “loss of use” and to cover liability to third parties. Premiums are generally quite reasonable. If the owner or lessee does not want or need anything but liability insurance, many insurance carriers can add that coverage to a homeowner’s liability policy.

Facility inspection

Before you board your horse, look around. Talk to people you meet at the barn. Look at the fences. Are they in good repair? Are the gates standing well on their hinges, or dragging on the ground? Is there trash and loose tack lying around? Are the pastures free of obstructions and parked farm equipment? Are workers friendly and going about their business? A well-managed barn will be clean, organized and exhibit a professional air. Pastures with holes or equipment in them, damaged fences and loose gates are very dangerous for horses and riders. If your inspection reveals problems, you might consider boarding your horse somewhere else.

Equine Liability Laws

Nearly all states now have laws that protect barn and horse owners, trainers and riding instructors from liability for injuries or damages suffered in the ordinary course of riding, showing or handling horses. The majority of states require that signs be posted that recite specific language from the applicable statute informing the reader that he or she assumes the risk of injury from engaging in “equine activities.”

Look around the barn. If you do not see such signs, ask the owner if that state has such a law. If it does, ask why the signs are not posted. It may be that the state is one of the minority of jurisdictions that do not require posting. If signs are required but not posted, this is a red flag, too. This tells you the barn management does not care enough to protect itself, or you and your horse.

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