Problems Stables Make With Non-Paying Boarders – and How to Avoid Them

Julie I. Fershtman, Attorney at Law

www.equinelaw.net

Virtually every trainer, boarding stable, and breeding farm has encountered the problem of horses left in their care without payment. Unfortunately, these businesses sometimes make wrong assumptions about their rights and legal responsibilities. Wrong assumptions can lead to bad decisions, multiple lawsuits, and even criminal proceedings. This article discusses mistakes stables sometimes make in these situations and offers ideas for avoiding them.

Never Assume You Can Sell The Horse Your Own Way And On Your Own Time

Faced with past-due board problems, stables have been known to sell off horses and pocket the proceeds, without ap- proval from the non-paying horse owners. Situations like these are ripe for legal trouble for reasons that include:

• Stablemen’s lien laws. Most states have stablemen’s lien laws (sometimes called “agister’s lien laws”) that require stables to follow specific procedures before they can sell off horses belonging to others for unpaid board. Over the years, this author has written about these laws and how they differ around the country. Depending on the law, procedures can be complicated and expensive to pursue. Before selling a horse due to non-payment, stables would be wise to consult with a knowledgeable lawyer to understand the applicable law.

• Civil suits for depriving the non-paying owner’s property rights. Selling off horses without proper advance permission from the owners is an invitation for trouble on a few fronts. Non-paying horse owners might sue the stable, claiming it “stole” or converted their horse without permission. Depending on the law, consequences can be harsh. For example, lawsuits might claim conversion and seek up to three times the value of the horse, plus the non-paying boarder’s legal fees and costs.

• Criminal charges for theft. Potentially, the police and prosecutor’s office might take interest in pursuing criminal charges against a stable or trainer that sold off a boarded horse without permission.

• Lawsuit from the buyer. A hasty sale to relieve a stable of a horse with unpaid board could generate litigation from the buyer. That is, a disgruntled buyer might sue the stable challenging its sale on the basis that the stable lacked clear title. A buyer might also challenge the sale because the breed registry won’t transfer over the registration papers.

Never Assume You Can Tack On Any Rate Of Interest

State laws differ on allowable rates of interest that businesses, including equine-related businesses, can charge. Stables that charge illegally high rates of interest risk violating these laws.

Never assume you can use the horse for your own purposes, such as in your riding lesson program or even your breeding program

Even when board is not paid timely, the law expects stables to give boarded horses “reasonable care.” Placing the horse in the stable’s lesson program might not qualify, unless the horse owner gave proper consent. Because these uses put the horse owner at risk of being sued by an injured rider or handler, horse owners would be wise to seek legal guidance before agreeing.

Never Assume, Without Consulting With A Lawyer, That The Horse In Your Care Was “Abandoned”

A horse with an absent or non-paying owner may seem to be “abandoned,” but the law may say otherwise. Before taking drastic action based on an unfounded assumption of abandonment, know the law and know your rights. You might be surprised to learn that “abandonment,” under your state law, is a legal conclusion that a court of law must make, not you.

Conclusion

Laws regarding non-payment and creditors’ rights can be more complex than you think. When board is past due, stables may have options available to them, such as suing the boarder for collection or pursuing lien foreclosure rights under a stablemen’s lien law. State laws might even allow stables to pursue both. Stables can negotiate payment plans and special arrangements with their nonpaying boarders, as well. Avoid legal disputes by knowing your rights, planning ahead, and seeking legal guidance where appropriate.

This article does not constitute legal advice. When questions arise based on specific situations, direct them to a knowledgeable attorney.

About the Author

One of the nation’s best-known Equine Law practitioners, Julie Fershtman is a Shareholder with the law firm Foster Swift Collins & Smith, PC, in Michigan. A lawyer with 36 years of experience, she has handled cases in 20 jurisdictions nationwide and has tried equine cases before juries in 4 states. She is listed in The Best Lawyers in America and Super Lawyers. Her speaking engagements span 29 states. Her newest book is “Equine Law & Horse Sense,” published in 2019 by the ABA. Written for non-lawyers and lawyers, this book received 4 national book awards. Find it on Amazon and look for the horse on the cover. For more information, visit www.equinelaw.net