Disputes sometimes occur between boarding stables and horse
owners when board fees are not paid. Boarding stable owners,
who realize that the law requires them to give boarded horses
“reasonable care,” grow frustrated as the owners fail to keep
their promises to pay mounting fees. Boarding stable owners
who fail to follow their laws, but instead rely on myths and
misunderstandings about handling these situations, can get
into serious trouble. So serious are some of the mistakes
that stables can be targeted for costly lawsuits or even for
criminal charges of theft, conversion, or trespass.
This article explores in a general way some of the myths that
surround the stable’s legal rights when boarding fees have not
been paid. Keep in mind that this article does not, and
cannot, discuss the laws of all states. Because laws differ
widely on these matters, it makes good sense to find out what
law applies to your situation or consult with a lawyer, as
appropriate.
Myths Regarding Boarding Stables’ Rights
Myth: When a horse owner has not paid the stable its boarding
fees, the stable automatically becomes the horse’s owner.
Not true. Under the laws of most states, boarding stables
do not automatically own boarded horses merely because the
owner has fallen behind on payments. The answer would be
different, however, if the stable followed – to the letter –
all of the requirements of the applicable state law. Laws
that apply in these situations are known as “agister’s lien”
laws or “stablemen’s lien” laws.
For example, under Michigan’s law, Michigan Compiled Laws
Section 570.185 (and the sections that follow), a stable must
wait until 9 months pass, without payment, before holding a
special public sale that a sheriff's deputy or authorized
court officer must conduct with the purpose of selling the
horse to the highest bidder. The top bidder pays the money and
wins the horse. One month before the sale, a specially-worded
notice must be sent to the owner using language that has been
supplied by the statute.
Ohio’s law states that “if the owner of an animal, upon
written demand by the lienholder, fails to satisfy a lien . .
. the lienholder may sell the animal at public sale to satisfy
such lien, provided that before the animal is offered for sale
the lienholder shall give ten days' notice of the time and
place of sale in a newspaper of general circulation in the
county where food or board was furnished. The lienholder, on
the day following publication, shall mail a copy of the public
notice to the owner by registered mail at the last known
address of such owner.”
Finally, Arizona’s law provides that a stable can file a
lawsuit in the proper Arizona court and the court schedules a
hearing. If the horse owner fails to submit payment within a
specific time, the stable could become the legal owner of the
horse and possibly also recover court costs and reasonable
attorney's fees.
Myth: All stables must file a lien on the horse before
they can assert their rights, such as the right to sell off
the boarded horse.
Not always. Generally speaking, a lien is a right or a
claim against property, such as a horse, belonging to another
as security for the payment of a debt. Often a lien is
created through a contract, but according to the laws of
several states, liens can be created automatically, without
paperwork. For example, Ohio’s lien statute, Ohio Revised
Code Chapter 1311.48, states, in part, that “any person who
feeds or boards an animal under contract with the owner shall
have a lien on such animal to secure payment for food and
board furnished.” Similarly, the Michigan agister's lien
statute gives stables a lien merely by taking in a horse
belonging to another for care and keeping. Another example is
the Texas law, Texas Statutes, Title 5B, chapter 70(a) Section
70.003, which states that “a stable keeper with whom an animal
is left for care has a lien on the animal for the amount of
the charges for the care; and an owner or lessee of a pasture
with whom an animal is left for grazing has a lien on the
animal.”
Myth: To cut the debt, boarding stables can use the horses
in their lesson program, or even lease out the horse to
someone else, without the owner’s permission.Not true.
There is a difference between owning a horse and having lawful
custody of it. Boarding stables, just like parking lot
attendants, have responsibility for keeping and protecting the
items in their care. But neither automatically owns the item
left in their care. Consequently, boarding stables can get in
trouble with the law when they use, sell, or lease out boarded
horses without the owners’ permission.
Myth: If the non-paying boarder tries to remove his or her
horse from the stable, without paying board, the stable must
part with the horse.
Not necessarily true. Nationwide, many stablemen’s lien laws
specifically give stables the right to keep possession of the
boarded horse until its owner has become current on payments.
For example, California’s law, California Statutes Section
3080.01, states, in part: “In addition to any other rights and
remedies provided by law, a lienholder may: Retain possession
of the livestock and charge the owner for the reasonable value
of providing livestock services to the livestock until the
owner's obligations secured by the lien have been satisfied.”
Arizona’s law, Arizona Statutes Section 3-1295, states in
part: “A person who furnishes pasture, feed or other services
for livestock on the premises of that person has a lien on the
stock for the amount of the charges that are due and unpaid. A
person having such lien may retain the stock until the charges
are paid.” Similarly, New Jersey’s law, New Jersey Statutes,
2A:44-51, states: “Every keeper of a livery stable or boarding
and exchange stable, shall have a lien on all animals left
with him in livery, for board, sale or exchange . . . for the
amount due such proprietor for the board and keep of such
animal and also for such storage, and shall have the right,
without process of law, to retain the same until the amount of
such indebtedness is discharged.”
By comparison, Florida’s law would allow a horse owner to
remove a horse from the boarding stable, even though the
stable holds a lien, if he or she pays a bond. That law
states, in part: “Any lienee may release his or her property
from any lien claimed thereon under this part by filing with
the clerk of the circuit court a cash or surety bond, payable
to the person claiming the lien, in the amount of the final
bill, and conditioned for the payment of any judgment which
may be recovered on said lien, with costs.”
Conclusion
Whether you are a horse owner or a stable owner, watch out
for industry myths regarding your legal rights. Be sure to
follow the law and read the applicable state’s law very
carefully or hire a qualified lawyer to help you.
Julie I. Fershtman is an attorney with nearly 19 years of
experience and an active law practice involving equine,
business, and insurance law matters. In 2004, alone, she won
3 jury trials, 2 appeals, and a major federal court case, all
on equine-related matters. An independent lawyer rating
service gives her its highest rating. She can be reached at
(248) 851-4111, ext. 160.
Learn how to avoid legal disputes. Ms. Fershtman is the
author of two books that educate horse owners and businesses
about the law. 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.
