Equine Law Blog

In Tough Financial Times - What Happens When the Boarding Stable Has Not Been Paid?

In these difficult financial times, more boarding stable customers than ever are falling behind in their board payments.

Stable’s Rights

Many states have stablemen's lien laws (sometimes called “agister's lien laws”) that often give the stable a lien (or right of lien) on the boarded horse.  In some states, the lien is created automatically, but in other states, procedures, such as a suit, must be taken to formalize the lien.  Laws can also address whether the stable can deduct side charges (such as legal fees, hauling fees, sale fees, or others) from the sale proceeds.  With wide variations among the laws, stable managers need to check the law carefully before taking drastic action.

Alternatively (or additionally, if the lien sale fails to satisfy the debt), stables can consider bringing a lawsuit against the non-paying boarder to collect the debt.

Avoiding Disputes

Here are some suggestions for avoiding payment disputes:

• Written Contracts.  Written contracts can avoid disputes by specifying the fees, when due, and numerous other details.
• Demand Receipts.  Boarders who pay in cash can insist on a written receipt specifying date of payment, type of payment (cash or check), amount, and who received it on the stable’s behalf.
• Law.  Lien laws vary considerably nationwide.  Check the applicable state's law.

If you have any questions regarding the recovery of boarding fees, please shoot me an email or give me a call at 248.785.4731.

Categories: Boarding, Liability