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Copyright
2010 Rocky Mountain Rider. ALL RIGHTS RESERVED. Reproduction of any
editorial material, artwork and photos is strictly forbidden without
express written permission of the publisher. For information about
reprint rights, please contact the editor; editor@rockymountainrider.com.
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Questions
for an Equine Law Practitioner
In
Tough Financial Times –
A
Well Worded Breeding Contract Can Help Save Money
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by
Julie I. Fershtman, Attorney at Law; www.equinelaw.net.
© 2010, Julie I. Fershtman. All rights reserved |
March
2010 Issue
In these tough economic times, many stallion owners are finding it harder
than ever to make a profit. Fewer people are breeding their mares. Fewer people
are buying horses. Yet, the cost of maintaining and campaigning stallions
remains higher than ever.
Some stallion owners think they should stop
using written contracts in an effort to make business less complicated and more
inviting to mare owners. Simplicity, they think, creates a competitive edge that
will attract more business and reduce operating costs. Think again. Well-written
contracts can save money and avoid costly legal battles. And in a down economy,
that makes good business sense.
This article discusses the benefits of written
breeding contracts.
How
Contracts Can Help Prevent Disputes
Traditionally, people arranged horse breedings
on a handshake with nothing in writing. Since then, the horse breeding process
has become far more complicated. And so has the business. When problems arise,
even successful equine businesses are not equipped to pay huge legal fees.
Breeding contracts, as illustrated below, can effectively avoid disputes when
they foresee and address possible problems.
Common
Problems Breeding Contracts Can Avoid
Dispute
#1 - The mare fails to deliver a live foal
Breeding contracts can plan for this in several
ways. For example:
•
The contract can clearly define what “live foal guarantee” means. For
example, if a “live foal” means a single foal that can stand and nurse
unassisted within 24 hours of birth, this would prevent a free re-breed request
if a mare delivered twin foals but one was healthy and the other died soon after
birth.
•
It can explain fees and charges that mare owners must pay when seeking
re-breed privileges through the live foal guarantee, such as the stallion
owner’s most recent booking fees and deposits (even if they are higher than
last year’s fees).
•
It can explain what mare owners must do before they are entitled to claim
re-breed privileges such as submit a prompt veterinary certification of no live
foal and the circumstances of the lost foal.
•
It can also specify what actions on part of the mare owner will void the
live foal guarantee.
Dispute
#2 - Mare owners demand semen shipments more frequently than the stallion
manager can send
In transactions involving shipped semen,
disputes occasionally arise when mare owners expect semen shipments more
frequently than the stallion manager is prepared to fulfill. Contracts can avoid
this problem. In contracts involving shipped cooled semen, for example:
•
The contract can specify what days of the week, and even what hours of
the day, the stallion manager is available to receive and process requests for
shipped semen.
•
It can explain what months of the year the stallion is available and can
be collected.
Dispute
#3 - The stallion manager imposes charges
In horse breeding transactions, stallion
managers often impose extra fees and charges such as semen collection fees,
shipping fees, shipping container deposits, and late payment fees. The parties
have every incentive to list these charges in the contract and to explain when,
and if, mare owners can receive a refund.
Dispute
#4 - A dispute arises and legal action is threatened by either party
Even the best written contracts cannot prevent
all possible disputes. But a
well-written breeding contract brings the best chance of avoiding disputes.
Also, the contract can plan for this possibility and accomplish several things,
such as:
•
It can include an attorney fee clause through which one party must pay
the other party’s legal fees.
•
It can explain what state law applies to the transaction and where legal
disputes must be brought.
•
It can allow for disputes to be submitted to an alternative to the
traditional legal system, such as mediation or arbitration.
Conclusion
Well-written contracts can help avoid disputes
and spare all parties money and aggravation. Standardized, one-size-fits-all
form contracts are, at best, a starting point from which to develop a good
customized contract. Do not be afraid to enlist a lawyer to help – the cost to
draft a good contract is a mere fraction of the cost to litigate in court an
equine contract dispute.
This article does not constitute legal advice. When questions arise based on
specific situations, direct them to a knowledgeable attorney.
—
Julie Fershtman, Attorney at Law
About
the Author
A lawyer for over 23 years, Julie Fershtman is
one of the nation’s most experienced Equine Law practitioners, has
successfully tried equine cases before juries in four states, has drafted
hundreds of equine industry contracts, and is a Fellow of the American College
of Equine Attorneys. For more information, visit www.equinelaw.net
or www.equinelaw.info.
Julie Fershtman’s books, MORE Equine Law
& Horse Sense and Equine Law & Horse Sense, help people avoid disputes.
Order both for $42.90, first class shipping included. To order, call Horses
& The Law Publishing at 866-5-EQUINE. Or, send check or money order to
Horses & The Law Publishing,
P.O. Box 250696
,
Franklin
,
MI
48025-0696
.
Attention Lawyers and Paralegals: This year
the American Bar Association published Julie’s new book on Litigating Animal
Law Disputes. The book covers a wide variety of legal issues involving horses
and other animals and includes sample court filings. Horses & The Law
Publishing sells the book for a large discount off the
ABA
’s $130 cover price. Contact Ms. Fershtman directly for information.
Copyright
2010 Rocky Mountain Rider. ALL RIGHTS RESERVED. Reproduction of any
editorial material, artwork and photos is strictly forbidden without
express written permission of the publisher. For information about
reprint rights, please contact the editor; editor@rockymountainrider.com.
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