Equine Law Blog

Equine Leases – Avoiding Disputes When They End

What happens when an equine lease ends, but the lessee refuses to return the horse?  Can the lessor (the “lessor is the one who owns the horse and leases it to another) simply enter the premises and remove it?  A lessor owns the horse, and one would expect that he or she can simply re-claim the property, even if it means entering someone else's land and taking away the horse.  Be careful!

Problems can occur, especially when a lease agreement is not in writing.  For example, what if the “lessee” (the “lessee” is the one who takes possession of the leased horse under the terms of the lease agreement) thought he bought the horse?  Or, what if the lessee thought the lease was not over?

Risks

Lessors who attempt to repossess their horse take risks, even if they are certain they are proceeding properly.  If the lessee denies that the lease has ended or if the lessee claims ownership of the horse, the lessor who tries to repossess under these circumstances could be faced with charges of criminal trespass and/or theft.

For lessors seeking to re-claim their horse, the safest approach is to consult with a lawyer and consider bringing a civil lawsuit in which a final, enforceable court ruling allows the horse to change hands.  If both parties have totally different understandings of the same transaction, unfortunately, the outcome of a case will never be certain.  What is certain is that the legal battle will not be quick, easy, or cheap to resolve.

Suggestions to Avoid the Problem

Legal disputes over possession when a lease ends can be prevented if the parties have a carefully worded written contract.  The contract can cover several elements, such as:

• Who owns the horse, and who is permitted to use it.
• Where the horse must be kept during the term of the lease arrangement.
• When the lease arrangement begins and ends, whether it can be extended, and how it can be extended.
• How the horse can and cannot be used.
• Whether the lessor can visit or inspect the horse.
• The standard of care that the horse must receive while the lease is in effect.
• Who must pay any extraordinary expenses while the lease arrangement is in effect, such as if the horse becomes seriously injured or requires colic surgery.
• A release of liability from the one using the horse (where allowed by law).
• Whether the horse will be insured with equine insurance during the lease arrangement and whether any proceeds, if paid, are to be shared.
• At the end of the lease arrangement, who must return the horse, where, and at whose expense.

These are provisions for a very basic equine lease agreement.  Leases can be much more complex, depending on the nature of the arrangement and the interests of the parties involved.  The legal fee to prevent disputes through a lease agreement is a small fraction of the legal fee to resolve a dispute.

If you have any issue with an equine lease or have any questions, please give me a call or send me an email using the form below.

Categories: Contracts, Sales/Disputes