What is Equine Law?
Equine law is the niche of legal practice that involves horses. That may seem superficial, but the reality is the law governing anything related to horses is incredibly vast and varied. From the sale and purchase of horses to their transportation across jurisdictions, from liability for injuries, diseases, defects, and injuries, to everything that has to do with horse boarding, equine law covers it all. Because it is so broad, the types of practice areas specific to equine law can be endless, and include (but are certainly not limited to) bringing a lawsuit for injury or death caused by riding, training, exhibiting, or boarding a horse, buying or selling a horse, drafting, interpreting, or enforcing contracts, and developing and writing state-specific equine law and regulations, to name a few .
Most people who have a casual involvement with the equine industry may tend to think of the practice areas identified above as the only areas of law that qualify as equine law. However, what they do not necessarily realize is most of the laws that govern the equine industry do not exist specifically to regulate equine-related transactions or conduct. For example, state fraud laws are not technically equine laws, yet they apply to the sale of horses; so too, laws involving the disclosure of defects or transfer of ownership usually arise from statutes that apply to ownership of goods generally, not just horses. That said, there are certain areas of law, such as liability, that are prevalent in all equine-related transactions and conduct, and those are the most common areas of law, which lawyers engaged exclusively in equine law tend to handle.
Services Provided by Equine Law Firms
To cater to the multifaceted concerns of stakeholders in the equine industry, a specialized equine law firm must offer a wide range of services that address the unique legal needs associated with all aspects of the industry. These services should be tailored to the equestrian ecosystem and provide the support an equine professional or horse owner may need. Some of the key services offered by these specialized firms include:
Contract Drafting and Review
A large variety of contracts and agreements are used within the equine industry, from boarding and training contracts to purchase and sale agreements, leases of land or horses, waivers and releases of liability, and beyond. Equine law firms can draft, review, negotiate, and amend these contracts in order to ensure the security of the interests of the horse owner or trainer and minimize the risk of future disputes.
Litigation and Dispute Resolution
Litigation is often a last resort, but when necessary, equine law firms can guide clients through the process. Equine dispute resolution can be an alternative to litigation, employing methods such as arbitration, mediation, and other formal and informal techniques to resolve a conflict, often more cost-effectively and with a lower emotional toll. Some issues that are more likely to be resolved through equine mediation include disputes between trainers and owners or between co-owners over horse usage or sales, claims from boarders whose horses were harmed while at a boarding facility, and fights between trainers and farriers regarding procedures for horses in training.
Liability Issues
From premises liabilities to equine related injuries, liability poses a risk for all involved in horse ownership and operation in any capacity. Equine law firms can assist in reviewing records and insurance coverage, obtaining medical records, assessing the situation, negotiating settlements, and preparing defense if necessary. Some equine law firms are additionally certified in equine insurance appraisals and can assist in obtaining horse appraisals and statements of value for the purposes of facilitating these insurance claims.
Tax Planning
Equine businesses, professional stables, and show horse owners all have specific tax issues. Laws can vary by state, and tax rates can vary by type of business or activity. An equine lawyer can aid in helping clients save money and avoid penalties when it comes to taxes related to their horse endeavors.
Corporate and Business Structure
Equine law firms can counsel clients on how to best structure their horse oriented business. Several structures are available that can help experts in the industry save money and create a more secure operation. There are different taxation options, liability limitations, business names, special protections not available to unincorporated businesses, and more to consider when structuring a business.
These are just a few of the examples of how equine law firms can serve their clients. Horse related matters are multifaceted and can vary widely both for different industries encompassed by the equine industry and between individual issues within a particular industry. A law firm that understands how to deal with these issues and can provide competent legal advice and representation in equine matters is an invaluable resource to equine professionals and equestrians alike.
How to Select an Equine Law Firm
When considering the selection of an equine law firm, it is important that the firm have experience in representing clients in all aspects of the law concerning the equine industry. While any personal injury lawyer may be able to handle an injury case for an injured party, a sexual assault attorney can handle a claim within that realm, and a divorce lawyer can handle a divorce and child custody matter, the problems that may arise within the equine industry range from simple contract disputes to complex business transactions and lawsuits and may even be as far reaching as criminal cases where a trainer or owner is charged with drugging horses in their stable.
Equine law is a combination of all areas of the law related to horse operations, including, but not limited to, commercial disputes, litigation, sales, purchases, equine liability, animal cruelty, private stable insurance as well as all aspects of thoroughbred racing, including licensing and drug testing.
Horse Industry Related Legal Matters
As in any industry or profession, the equine industry does have its share of common legal issues. Property disputes are one of the most frequent legal issues that occur. These disputes can arise between owners of neighboring properties, landlords and tenants, or even buyers and sellers of property. The nature of this industry and activity around stables and barns often leads to conflicts over livestock being kept on neighboring properties. Landowners may also have complaints regarding violations of zoning laws if a business transaction leads to an animal-related business operating on the property. Horse owners who are renting space have the potential for conflict with impairment to their ability to engage in horse operations, such as stables, fences, arenas, horse trailers, and by extension animals, based on a landlord’s exercise of their property rights. Rental agreements allocating use of the land along with compensation for its use should specifically address and limit the risk of these issues from arising.
Animal welfare laws – enforcement of humane treatment of animals – are also common legal issues in the equestrian industry. These laws govern the actions and responsibilities of the owners of animals to provide humane and adequate care. In some instances, such laws can also extend to pet care facilities and associated employees. For this reason, legislation intended to address these laws and employment agreement and statutory provisions can be complicated. A good equine law firm can work with you to make certain that you understand and follow all of the different requirements in your local area.
Business transactions and contracts also frequently arise. In the equestrian industry, business transactions may involve sales of horses, purchases of equine related supplies, equipment, and the transfer of property relevant to an equine business. Generally, contracts for horse sales include a health statement and financial disclosures such as ownership disclosures and identification requirements. Certain equine sales carry estoppel letters to protect sellers from claims of misrepresentation. Equine sales contracts therefore must be drafted with these types of considerations promoting protection and minimizing risks for buyers and sellers.
What Equine Lawyers Can Do To Resolve Disputes
Once the choice to pursue formal legal action has been made, staying on track is critical to the goal of resolving the matter as efficiently as possible. Equine attorneys are highly experienced in all avenues of alternative dispute resolution, including mediation and arbitration, and can be vital to the resolution process.
Equine mediation allows for outcomes that are flexible, creative and more likely to meet each party’s needs than they would via traditional methods. Unlike in court, mediated settlements can potentially include terms that go beyond what is available in the law. Equine mediators serve as catalysts and guides, helping everyone keep their emotions in check, discussing strengths and weaknesses of their cases, and working collaboratively with all involved to find a solution that works for each party.
While mediation involves a skillful facilitator , arbitration requires an impartial third party to render a judgment on the case. Arbitrators – who typically have industry experience and/or dispute resolution expertise – analyze the facts at hand and make a rendering of the law and equitable remedies available to the parties to hopefully resolve the case. Arbitration is advantageous in complex matters that involve ongoing business relationships because an experienced neutral is able to create terms that are customized to the needs of the business relationship. Having an experienced attorney to guide you through the process is important in arbitration, especially in light of the fact that the right to appeal an arbitrator’s decision is extremely limited.
In addition to mediation and arbitration, equine lawyers are highly trained in all other forms of alternative dispute resolution, including informal negotiation and civil litigation. From simple problems to high-stakes litigation, equine attorneys can help resolve the situation in a way that meets the specific needs of the parties involved.
Notable Equine Law Cases and Their Impact
The history of equine law includes several notable cases that have gone on to set significant legal precedents for the industry. Some of these cases even continue to shape legal practice in the modern age. In the following sections, we take a closer look at some of these important equine law cases: The 1830 case of Umstead v. Shultz laid the foundation for equine law as we know it today. This case provided a precedent in support of racehorses being considered private property. To this day, ownership of racehorses and their use in gambling markets falls under the category of contracts and property laws. In 1983, California Superior Court Judge Betty Lou Lores ruled in the case of Cieha v. Wright that all stallions across California must be branded, marking a significant shift in the battle against Stallion Bred disease. Though the ruling was eventually overruled when a higher court later classified it as "inappropriate," this case led the way for more advanced scientific treatment to minimize this disease in horses. The 1994 case of Sparks v. Averette is an important one for the horse racing industry, as it determined that roulette is not considered a game of chance, and therefore did not slot into the same category as traditional gambling. The result of this case allowed for the use of roulette wheels in race tracks across Virginia and paved the way for technological advancement in horse racing today. In 2008, Farah Muxeed, a son of millionaire and racehorse owner Sheikh Mohammed, pursued legal action against his parents to prevent them from transferring assets to a rival thoroughbred association. Muxeed’s move came during a dispute over who should receive income from the Dubai race meeting ticket sales. Dubai Horse Racing Association dominated the market for several years and was embroiled in several legal disputes with investment firms and rival sponsors. The case would go on to set an important legal precedent for years to come. In 2015, a group of farmers in Illinois brought a lawsuit against the Illinois Department of Transportation in order to ensure that the state took responsibility for a road crossing over the State Salam Rail Line. This group of landowners owned thoroughbred tracks along the rail line that had had regularly crossed their land. When IDOT attempted to close down the crossing, a group of farmers and conservationists sued in an effort to keep the crossing open.
Emerging Trends in Equine Law and Regulations
One of the most significant challenges facing the industry is the increasing prevalence of technology and changes to established regulations. As technology continues to change the way services are provided, resulting in potential regulatory issues, the law firms who practice equine law must stay ahead of these issues. For example, applications such as FreeJump® can regulate the temperature of horses and assist in keeping them comfortable and healthy . But as people inevitably try to sell new technologies as means of profit, attorneys must work with clients to make sure appropriate intellectual property protection is in place. With the racehorse industry in New York gaining popularity and visibility, it is also likely that new regulations will be implemented to protect both employees and employers. Knowing how the industry is evolving and what regulations will impact clients this year helps Equine Law firms to stay ahead of the game and advise clients appropriately.