Should You “Half Lease” Your Horse?
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By Julie I. Fershtman, Attorney at Law
www.equinelaw.net
What is a “half-lease” (sometimes called a “share board” arrangement)? Don’t ask any lawyer since the term won’t be found in law books (except for this author’s Equine Law books). These arrangements enable horse owners to continue use of their horses, though limited, while another person shares use of the horse. Horse owners sometimes consider these arrangements as a way of sharing expenses of boarding and care. The problem is, these arrangements can create problems and unintended consequences. This article discusses legal aspects of “half lease/share board” arrangements.
“Half-Lease”/“Share Board” Arrangements
These arrangements usually involve a horse owner agreeing with another person to divide days of the week for riding the horse. At all times, the horse usually remains boarded at the same stable.
Risks
What can seem like a simple, risk-free arrangement could turn out to be just the opposite. Before agreeing to enter into a half-lease arrangement, consider the risks involved. Here are some of them:
• Improper Use of Your Horse by the Lessee. By entering into a lease arrangement with someone else (called the “lessee”), you are taking a risk that the lessee might not use your horse as you expect. If the horse, for example, has restrictions against jumping, what if the lessee jumps the horse anyway? What if the lessee uses her own tack or equipment that do not fit the horse properly, making the horse sore? What if the lessee allows others to ride the horse, but those people have insufficient experience, not only putting themselves at risk but also setting back the horse’s training?
• The Other Person Fails to Pay. In these arrangements, the parties usually agree to share the horse’s maintenance expenses such as boarding fees, farrier, and routine veterinary care. But what if the lessee fails to pay his or her share of the bills?
• The lessee suffers a serious injury while riding or handling the horse. During a lease or “half-lease” arrangement, the fact is that lessors still own the horse. As owners of the horse, lessors run the risk of being targeted in a lawsuit if the lessee is injured (or worse) while riding or handling the horse. Whether or not the lawsuit has merit is not the point; even if the lessor has strong defenses, legal defense costs can be very expensive. Is the lessor ready for the possibility of defending against a lawsuit, and has the lessor done anything to reduce these risks, such as a well-worded waiver/release (where allowed by law)?
• The horse injures someone other than the lessee. While the lessee is riding or handling the leased horse, there’s always a risk that the horse could bite, kick, throw, or injure someone else. Certainly, injured people might target their claims or suits against the lessee, but because lessors own the horse, they could also be targeted, as well. Is the lessor properly protected against this risk?
• The lessee seriously injures the horse. Emergencies could arise from the “half-lessee’s” use of the horse, resulting in huge veterinary bills. For example, the horse might receive a severe cut during a trail ride or come up lame after a particularly strenuous ride. If any of these should happen while the “half-lease” arrangement is in effect, and if the problem is linked to the lessee’s use of the horse, who will pay the veterinary bills?
Risk Management
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