Emotionally and Legally: How do I know if a Horse is Right for Me?

Both longtime horsemen and first time horse owners or lessees ask the same question: How do I know if a horse is right for me?

Horse sales can often ride the fringe of unscrupulous dealings- there can be hidden commissions or agendas, or untruthful seller guarantees regarding the horse's health or skill level.

Even in the best situations in which all dealings are honest, nothing can guarantee that a horse won't change after purchase.  The horse may injure himself the week after you buy him, he may not like his new facility, or you may find that you and your new horse may not work well  together as a team.

The legal steps to knowing whether a horse is right for you

1. Whether the deal is the right one for you.  This includes whether the horse is priced in your budget- can you make payments in one lump sum or do you need to pay on an installment contract?  Is the horse's price an accurate reflection of his skill, experience, and health?  Will his health and training needs fit into your financial plan?

2. Whether the terms are right for you.  Does the purchase and sale agreement clarify any warranties or guarantees that are made on the horse?

Has it been disclosed to you who is receiving commissions on the sale?  Does your agreement specify what will happen if something goes wrong- such as mediation, arbitration, and attorney fees?

3. Whether the horse's health is right for you.  Is your veterinarian unbiased?  Have you communicated with your veterinarian what your needs will be for the horse?  Have you requested that any questionable results in radiographs be read by a second opinion?  

4. Whether you are the right team.  Many barns do not allow their horses to go on trial, if so, have you made other provisions to get to know the horse?  If you are taking the horse on trial, have you protected yourself with a trial agreement and insurance?

 I have found that the most reliable horses are found through referrals: people who know the horse and think it would be a good fit for you.  Your trainer can help you find the right horse, a trusted friend who knows horses, or your vet may come across one that is for sale.  Many people also find horses online, which carry their own legal concerns: is the horse fairly represented?  If buying sight unseen, is the horse that arrives the same horse you purchased?

The Facebook group Equitation, by Judge My Ride recently asked, and I share some of the responses below:

What was the one thing that made you decide to buy/lease your horse?

-Her kind eyes.

-His personality matched me to a T! Don't think I'll ever find another like him:(

-He chose me.... And there was no way I was going to let him go to someone else
-He was my dream horse

-I knew him for a long time and bought him as fell in love and now I would never let him go not to anyone

-I didn't want him to go to slaughter..... he was very close...... but now he is happy and healthy and a super athlete!

-give me responsibility and keep me out of trouble!

-How easy he was to jump

-Couldn't resist the moose ears and auto changes!

-He was so willing to learn and his personality was like no other. I knew he was going to be great!

-Free

-Jumping abilities and super pretty face

-I searched for a year for an 8-10 yr old Bay, Gelding and ended up with a 3 yr old, Chestnut mare... I fell in love with her eyes...

-From the second I saw that add online I had to have him. So I emailed the trainer and fell in love instantly. I rode him once and we bought him the next day.

-I could go swimming on her I could ride her bare back and all if the work I have done I didn't want I go to waste. If I didn't buy my horse after free leasing her she would be sitting in a field doin nothing

he was well trained and gorgeous and i fell in love as soon as i met him

Many of the answers come from an emotional response to the horse, which of course is a very important element in your ownership and partnership with the horse.  However, always ensure that the rational response is also involved and consider the legal and business perspective.  As I repeat to all my clients, "A horse isn't a good deal if it isn't the right horse for you."

So what is the one thing that made you want to purchase or lease your horse?  Did you consider both the emotional, the legal, and the rational?

_______________

For a couple funny articles on how looking for a horse online is like online dating:

Horse Shopping vs Online Dating: The Wish List

Horse Shopping vs Online Dating: Buyer Beware

Not Going Away: Dealing with a Lawsuit

         I'm not going away, I'm not going

                      Say goodbye forever, I'll wait for you in no man's land                                                                      [SOLO]

                                                           I'm not going away
                                                           I'm not going away
                                                           I'm not going away
                                                           I'm not going away
                                                           I'm not going away
                                                           I'm not going away
                                                           I'm not going away
                                                           I'm not going away

Any Ozzy Osbourne fans?  His song titled- as you may have guessed- "Not Going Away" has an important lesson for your legal education.

Recently I have had a number of cases crop up that were new to me, but not new to the people being sued.  One of these equine cases was brought to me over 6 months after the case had commenced.  

Some people ignore lawsuits because they think they are being wrongfully sued, and therefore ignore the case out of annoyance or anger.  Some people ignore lawsuits because they think they can handle it on their own (while this is not technically "ignoring," a number of mistakes are often made in the course of attempting to defend on your own).  Some people ignore them because they don't want to call their liability insurance company and face a rate hike.  Some people ignore lawsuits because they think they are just going to go away (NB: go read the solo chorus to the song above).

Nope, not going.

Lawsuits generally do not "just go away."  They may go away if a plaintiff either represents him/herself and fails to appropriately prosecute the suit after the initial commencement of the action, or if a plaintiff stops paying his/her attorney, then the suit may not continue.

But what is likely to happen if you ignore the suit is that the plaintiff will continue to prosecute, the court will enter a default and default judgment against you, you will be ordered to appear in court for a debtor's examination (the plaintiff essentially has a free for all to find out where your assets are), and if you don't show up to that, then you will have a bench warrant ordered against you.

The earlier you deal with a lawsuit, the better your attorney can help you.  If you are sued by an unrepresented person then you can try settling the suit just between the two of you (especially if the case is in small claims court), if it can be handled in a calm and professional manner.  However, the very best plan of attack when you are served with intimidating legal papers is to call your attorney.  Even if the only attorney you know is your estate planning attorney, give him or her a call and you will be pointed in the right direction- either how to take the next step or a referral to a recommended attorney. 

When you are served with papers, there are three main pieces of information to give to your attorney on the phone: 1) Determine which court the case is in: small claims, civil, or criminal.  2) Take note who the parties are (there may be multiple defendants).  3) Pay attention to dates in the paperwork. 

One attorney recently wrote that his mere presence at a deposition was invaluable to his client:

"Just being there, in the chair sitting next to my client—that was enough to protect her from what undoubtedly would’ve been a field day for opposing counsel, who had summoned my client in an effort to collect a debt, who wanted the treasure map, to see for himself the proverbial X on the map where the loot was buried."

It is so important to deal with lawsuits as soon as possible, even when they seem frivolous or intimidating.  It will save you money and time in attorney fees and costs if your attorney doesn't have to correct or unwind errors in the case.  

And of course, the very best thing is to keep yourself from being sued at all!  This is best achieved by legally sound business dealings; liability prevention safety practices; and clear, upfront communication with clients and other acquaintances involved in your horse life.

Oh yes, if you are sued- don't discuss it with others, and please don't post it to Facebook or other social media!

There are TWO things that are certain in life....

1. Your worst horse wouldn't be harmed if he was set loose on a freeway at rush hour, but your best horse will somehow injure himself in a rolling green idyllic pasture;

2. The one day you choose to just "hop on" without a helmet will be the day your horse violently spooks at an imaginary monster

Just kidding; while those are true, the maxim is that 'Death and Taxes' are the two most certain things in life.  Welcome to tax season!

Equine tax losses are a MAJOR red flag for the IRS.  Horses and sailboats are known as the top two businesses that the IRS loves to hate.  The IRS calls them "hobby losses."

In a recent IRS case, a man bred Morgan horses.  His first business angle was to breed "grade horses," which are below show quality (for Morgan breed shows).  He wasn't financially successful in that, so he switched his plan to breeding premiere, world-class horses, and made some money, but also wrote-off a lot of expenses.

He didn't ride the horses for pleasure, he only hired experts to ride and train them.  He kept accounting records.  He switched methods of breeding to try to increase his profits.

However, the IRS shook its head and declared that the Morgan breeding business was a hobby.  It made this decision on two key points:

1. The breeder did not have a separate bank account for his horse business

2. His business plan had "too generalized goals." The tax court wanted: financial projections, economic forecasts, and other detailed analyses for cutting expenses, increasing profits, and evaluating the "overall performance of the operation."

The decision might be overturned on appeal, but in the meantime, if you run an equine business be sure to have a separate bank account and a bullet-proof business plan!

For a more in-depth article on the Morgan breeder, read this one from Forbes.

If you're an equine business owner, do you feel your financials could hold up to the IRS?

Side Note: My family had a Morgan named Rebel many years ago- a great horse- though a bit hot.  And I love the history of the Morgan horse and how it got its name.  It is interesting that I don't see many Morgan's in the hunter/jumper show ring; do you see them showing outside of Morgan breed shows very much?

Marching into Spring!

Finally, March!  An extra hour of sun, shamrocks and leprechauns, Easter celebrations, horses high with Spring Fever, vigorous cleaning of tack rooms, and an exciting upcoming show schedule. 

It might be a bit muddy where you are, and I imagine your horses are still shedding like crazy, but I hope you get to enjoy a little more brightness and spring in your step this month.

Are you showing this month?  If you're on the hunter/jumper circuit, be sure to pick up the February/ March issue of Horse and Style Magazine; you'll find my latest article on page 40.  As a teaser, it opens with some rather tongue-in-cheek self-deprecating humor... you can find hardcopies at show grounds and tack stores, or the entire electronic version at the Horse & Style website.

Racing to the Slot Machine: Yay or 'Neigh?'

Who is getting excited for the Kentucky Derby?!

Do you have a ticket?  Or perhaps a Derby party in the works?

Once again I will be out in Lexington in early May to revel in the festivities.

Who are you placing your bets on?

I had a reader once remind me of the quote:

You know horses are smarter than people.  You never heard of a horse going broke betting on people.  ~Will Rogers

Would Keeneland be marred or enhanced by the addition of a casino?

(Photo is my own)

There is currently a lot of controversy over racing and gambling - Kentucky doesn't permit casinos at their tracks (defined generally by slot machines and roulette tables).  This accounts for an enormous loss in potential revenue.  In other states, such as Pennsylvania, West Virginia, and Indiana, gambling is permitted at the tracks.  And in England you can bet online for races (like the upcoming Cheltenham Festival or the Gold Cup, if you wish to do so).

Horse racing mingles with casinos at operations dubbed "racinos"

The advocates of on-site slots at the Kentucky tracks claim that the revenue would contribute to higher purses, and higher purses draw the better horses, and better horses makes for better races, and better races bring more people in- to therefore complete the circle of more people funding higher purses.

Dissenters claim that on-site slot machines are just a short-term solution that won't offer long-term positive consequences; others claim that casinos on-site will besmirch the reputation of racing; many just find casinos to be contrary to the public interest.

I have placed bids at the racetracks before (based solely on horse conformation and not on calculations of the odds or bloodlines), but have never gambled online.

In general, I tend to oppose the addition of more casinos in my hometown, but I can certainly see how "racinos" would provide valuable funding to Kentucky tracks.

How would you vote, whether you gamble or not, in favor of racinos or against?

Quote provided by USA Today

A Mystery Lameness for a very clear Reason: Cookies!

Hello!  I hope you've all had fantastic half-month of February so far.  The weather has been outstanding in California, and I have been trail riding as much as possible.   Our weather has been in rather stark contrast to the Nemo survivors on the east coast!

I find that the more I am engaged and immersed in horses, the more equine legal topics I find to blog about! I have started riding a little mare more often, and thought I would introduce to you my latest equine muse, Tobiana (I know, not a very original name; Tobiana is Spanish for a tobiano (paint) colored horse).

"She now gets a thickly-bedded stall at night and lots of cookies- I think she is pleased with her choice"

She is a retired polo pony, though only retired because she has a mystery lameness whenever she plays field polo.  We can't find any concrete physical reason why she goes lame, but she is perfectly sound as a hack horse, so voila! she has a new job.

Her mystery lameness made me think of lawsuits over lame horses.
Typically these lawsuits are by the buyers against the sellers and/or vet, alleging fraud and collusion in the sale.  One lawsuit I worked on was for a horse that the buyer claimed could no longer perform at the level it was alleged to be able to perform at the time of sale.  This would be a breach of implied or express warranty, plus, the buyer claims the vet and the sellers conspired to hide the horse's lameness issues.

So what about this little mare Tobiana and her mystery lameness?  She has been in our family for a longtime, has been an excellent mare, and will forever be our pet.  However, if I had purchased her with the expressed intent to play field polo with her, whether I would have a valid case or not would depend in part on: what the seller warranted the mare could do, the cause and timing of the lameness (whether the seller had knowledge of the mare's mystery lameness when she played field polo), and of course expert testimony regarding the existence of the mare's lameness.

I'm just glad that Tobiana is happy in her new job- after the relatively non-cushy life of polo pony, she now gets a thickly-bedded stall at night and lots of cookies- I think she is pleased with her choice.  Plan on seeing a lot more of her on the blog!

Have you ever had a horse that had a mystery lameness?  Perhaps he or she lightly brushes a jump pole, then feigns lameness?  Such funny, and clever, creatures!

Most Popular 2012 Posts and Looking Ahead to 2013

Image Source

I know that the 'happy 2013' posts have more or less come and gone by now, however,  I thought a quick look back at the most popular Ribbon and Red Tape posts written in 2012 would be great to share.

I'll be away from blogging for a couple weeks, so please enjoy reading back through some of these equine topics viewed through a legal lens.....

Looking Back

1. 2012 was marked with controversial news stories about mares used for stallion CEM testing.  I discussed the issue in the blog post: Stallions and the Law: Impregnation, Castration, Importation (the post also includes a great picture of veterinarian Dr. Knopf in action!)

2. A subject we don't often think about, but in fact irks many people: The Golf Cart: Friend or Foe at a Show.  Not surprisingly, golf carts have injured many horses and people due to their misuse.

3. Turmoil in the racing world was the third most popular blog post, particularly surrounding the on-set deaths of horses on the television show "Luck," in What are the Odds?  Gambling on a Horse Race. [Update: there is now a lawsuit pending]  

4. The final contender in post popularity was a series on horse diving, a hallmark dispute in 2012, when Atlantic City proposed re-opening the diving show, discussed in Welfare Water Watch: Diving Horses and Welfare and Horse Diving: a final word.

The most popular Facebook post shared in 2012 was of Bugsy, a very freckled and colorful horse that I rode in the summer show season, as well as the feature on the Nicest Indoor I have ever seen!

Looking Ahead

I predict 2013 will see...

1. Continued scrutiny of drugs in the racing world and increased and new scrutiny of drug use in the show horse world.  

2. The horse community will continue to debate horse slaughter and what to do about wild and also unwanted horses.

3. Depending on the 2013 U.S. fiscal policies, horses, horse businesses, and horse activities may face tax increases or issues.

Be sure to follow or subscribe to this blog, as well as follow along on Facebook to stay up to date and in the loop with the many equine legal issues we will see in 2013!

 Please also share with me on the blog, via email, or other social media any particular equine legal topics you would like to see featured in the year ahead (for example, quite a few readers requested the post about Paternity rights if a stallion impregnates someone's mare without the owner's consent!)  There are already some great posts in the 2013 lineup.

Thanks for a great year my fellow horse-crazy friends!