To avoid legal disputes, riding instructors should have a general understanding of how the law can affect them. Let’s discuss briefly what instructors should know about contracts.

Good, Written Contracts Are Valuable

For riding instructors - - and for everyone else involved in the horse industry - - good, written contracts can be very powerful. Surprisingly, riding instructors and equine professionals tend to avoid them. And the few who use contracts seldom give them the attention they deserve. To illustrate this, let me share some examples of problems instructors have encountered over the years:

*      Instructors used form liability releases borrowed from others or printed off the internet. Though these forms were quick and cheap, they failed to follow important legal requirements within the applicable state.

*      An instructor filed away all contracts and liability releases in the barn office, allowing all customers access to them. The day one of those customers sued the instructor, that release “mysteriously” disappeared from the office.

*      In horse sales, some instructors and professionals rely on simple “bill of sale” agreements. These documents merely show that a horse was sold, but they fail to include other protections, such as disclaim warranties (or include warranties) about the condition of a horse being sold or promise that the buyer will receive the horse’s registration papers.

Well-written contracts can be valuable, too. When done right, they can save money. One of my boarding stable clients, in particular, believes this. A couple of years ago, when he was sued by a boarder who claimed the stable injured her horse, I dismissed the suit quickly and with minimal expense based on the release in his boarding contract. Another client of mine loves his detailed installment payment contract. Several years ago, he sold a horse with it. Later, the buyer fell behind on payments. Hoping to prove that the contract was no good, the buyer had her lawyer look it over. To her surprise, the lawyer explained that the contract was “iron-clad.” The buyer paid the debt, and, to the delight of my client, told him that her lawyer praised the contract.

Verbal Contracts

Verbal agreements, in many cases, are valid and enforceable. Unfortunately, when legal disputes arise over verbal agreements, those who made them never seem to agree on the terms of the agreement or whether an agreement even existed! Imagine the shock people receive when a lawyer explains that enforcing a disputed verbal agreement in court could cost thousands of dollars. Instantly, these people realize that a good written contract, especially when drafted by an experienced lawyer, can be a tiny fraction of the expense of a lawsuit.

Certainly, no lawyer can guarantee that written contracts will prevent lawsuits. People who sign contracts can, and sometimes do, bring lawsuits. A well written contract, can help narrow the grounds of a dispute, if one should arise. And, as noted above, a well-written contract can potentially bring lawsuits to a quick, decisive end.

The mere process of developing and entering into a fair written contract can benefit everyone involved. Just discussing the elements of your contract with the other person and telling him or her what you expect can give tremendous insights into the sincerity of the person whom you are dealing with. For example, the client who promises to pay you on time for boarding, training, hauling, and lessons should have no hesitation signing a contract to this effect. Also, the horse seller who assures that the horse has never been sick or lame should be willing to put that in writing, if you ask.

Equine Liability Laws Affect Contracts

Does your state, or do the states where you do business, have an equine activity liability act? The answer is probably yes. As of October 2005, only five states do not have an equine liability law: California, Maryland, Nevada, New York, and Pennsylvania. In various ways, these state laws limit or control liabilities in their horse industries. The laws differ, although they often share common characteristics.

Read the equine activity liability laws that pertain to you very carefully. Pay attention to their requirements. Once you do, you will see that most require “equine professionals” and sometimes “equine activity sponsors” to include certain language in their contracts. While it is true that most equine liability laws require you to post “warning” signs, do not assume that this language is all that these laws expect you to include in your contracts.
Ohio’s equine activity liability law, for example, has no sign posting requirement. Yet, it requires certain contracts and releases to include a special list of “inherent risks.” As another example, the Kansas equine liability act requires every “domestic animal professional” to post and maintain signs with this warning language:

WARNING

     Under Kansas law, there is no liability for an injury to or the death of a participant in domestic animal activities resulting from the inherent risks of domestic animal activities, pursuant to sections 1 through 4. You are assuming the risk of participating in this domestic animal activity.

The Kansas law goes further. It requires professionals to include a special recitation of risks within their releases of liability, and the law supplies a list of risks to include.

Compliance with these warning language requirements and sign posting requirements can be very important. A small number of the equine liability laws specify that you only stand to benefit from the laws if you have complied with these requirements. Those states include Alabama, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, and South Carolina, and there could be others.

Know Who Can Sign Contracts

In the eyes of the law, not everyone is legally bound by contracts they sign. Minors (people under 18) are a prime examples. Several years ago one of my clients learned this the hard way. A 16-year-old girl fell from my client’s horse in a freak accident and was rendered a quadriplegic. My client assumed that victory was assured because the minor had signed its release of liability before the ride began. A painful lesson my client learned, however, was that the minor’s signature on the release was not legally binding under the state’s law.

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

About the Author

Julie I. Fershtman is an attorney with 19 years of experience who gets results for her clients. In 2004, alone, she won 3 jury trials, 2 appeals, and a major federal court case, all on equine-related cases. An independent lawyer rating service gives her its highest rating. She can be reached at (248) 851-4111, ext. 160. To learn more, visit www.equinelaw.net and www.equinelaw.info.

Protect yourself by reading Ms. Fershtman’s books. In plain and simple language the books help you avoid legal disputes. MORE Equine Law & Horse Sense sells for $22.95 + $5 shipping and handling, and Equine Law & Horse Sense sells for $17.95 + $5 shipping and handling. Order both books together for $42.90, first-class shipping included. Michigan residents add 6% sales tax. To order, call Horses & The Law Publishing at 866- 5-EQUINE, a toll-free number. Or, mail check or money order to Horses & The Law Publishing, P.O. Box 250696 Franklin, MI 48025-0696.