Horse Boarding Liability

By: Crystal McDonough

Whether you are boarding your horse or providing boarding facilities and services you should always have liability insurance, a well-written boarding contract, and waivers and/or releases as well as posting the standard liability signage per your state’s equine laws.  If you are just starting a boarding operation you might want to consider setting up an LLC or corporation for the business as well so that all business activity falls under the business entity rather than you personally.

Insurance
A few types of insurance for horse boarding facilities includes (but is not limited to) fire and theft, commercial liability, and care, custody, and control policies.  An insurance provider will be able to provide more comprehensive details regarding the types of insurance coverage needed depending on the types of activities and boarding at a facility.  In addition, horse owners should also carry sufficient insurance to cover their horses for potential liability arising from leasing, lessons, guests, riders, veterinary care, barn/stable rules, safety, and state specific equine laws.

Boarding Contract
A well-written boarding contract should cover more than just payment terms and length of stay.  It should include specifics related to feed and feeding schedule, bedding, exercise, timing and frequency for cleaning stalls and paddocks, veterinary care, injuries and/or illness, special care, and decision making when the horse owner is unavailable or absent.  The contract should include details regarding the types and policy limits for insurance policies covering the boarding facility and covering the horse.  The contract should also include terms for default and boarding facility remedies in the event of a breach of contract by the horse owner. 

Let’s face it, horses sometimes find ways to break a gate or a fence.  My horses seem to find ways to break our irrigation pipes every year.  A good boarding contract should address if the horse owner pays, the barn or stable pays, or if there is a joint payment of some set fee for damages caused by the horse.  What happens if the horse causes injury or death to another animal or a person?  Most boarding contracts include a risk of loss or injury section that requires the horse owner to assume these risks.  

Some boarding facilities require the horse owner to provide a warranty regarding the horse’s health.  This warranty may require that a horse be free from diseases whether infectious, transmissible, or contagious prior to boarding.  This warranty also requires the horse owner to notify the boarding management if the owner has any reason to believe the horse has been exposed to or becomes sick from any such diseases.

Disagreements can arise between boarding facilities and horse owners so it is important to include some type of dispute resolution section in the contract such as mediation, arbitration, or some other terms for resolving disputes.

Liability Waivers and Releases
It is not enough to hang the standard liability signage per your state’s equine laws.  Each person who may be around or near a horse or may ride a horse must sign a waiver and release in case of accident, injury, or death.  This policy should apply to the horse’s owner, family, guests, students, facility employees or volunteers, and any and all persons who may be near the horses or are participating in a an activity at the facility. 

Waivers and release agreements (also known as hold harmless agreements) typically cover the rules and risks related to riding or handling horses and are meant to protect the boarding facility from liability.  These agreements also serve to notify the rider that she assumes all the risk associated with riding, handling, or being near the horse.  The rider acknowledges in writing that she understands all the risks and assumes all liability in case of injury or death.  Each state has statutes governing the liability and assumption of risk for equine activities that should be included in a waiver or release agreement.  It is also important to include that the rider assumes the risk of damage to property or other animals when handling or riding the horse.

Liability waivers and releases can be useful in providing a strong defense if the boarding facility is sued and can assist in dispute resolution situations.  In addition, they might discourage a person from filing a lawsuit.  However, no waiver and release or contract can prevent a person from filing a lawsuit.  It is important to have the proper insurance coverage along with well-written and enforceable contracts, waivers and releases that are in compliance with your state’s laws and specific to the boarding facility and the types of activities at the facility. 

If you are boarding horses at your barn or stables or if you are boarding your horse at a facility, then you should contact your attorney to make sure you have the proper contracts, waivers and releases and that you understand your legal obligations and risks.

Contact us to schedule an appointment to make sure you are protected.

Mitigating the Risk of Corporate Veil Piercing: Strategies for Business Protection

By: Marc Summers

Introduction
Corporate veil piercing is a legal concept that allows courts to hold a company’s shareholders or directors personally liable for the company’s debts and obligations. This article explores the implications of corporate veil piercing and provides strategies to mitigate its risks.

Understanding Corporate Veil Piercing
The corporate veil is a legal distinction that separates the identity of a corporation or LLC from its shareholders/members, protecting them from personal liability. However, courts may pierce this veil if the corporation is found to be a mere facade for personal dealings or if there is fraudulent conduct.

Implications for Businesses

1. Personal Liability: Shareholders and directors or members may face personal financial responsibility for corporate debts.
2. Reputational Damage: Legal actions can harm the company’s reputation and stakeholder trust.
3. Financial Loss: Piercing the corporate veil can lead to significant financial losses for individuals involved.

Strategies to Mitigate Risks

1. Maintain Corporate Formalities: 
– Hold regular board meetings and document minutes.
– Keep accurate and separate financial records for the corporation.
– Ensure compliance with all corporate governance requirements.

2. Adequate Capitalization:
– Ensure the corporation is adequately funded to meet its obligations.
– Avoid commingling personal and corporate assets.

3. Transparent Operations:
– Conduct business transparently and ethically.
– Avoid fraudulent or deceptive practices.

4. Proper Documentation:
– Maintain clear and thorough documentation of all business transactions.
– Use written agreements for all significant business dealings.

5. Separate Identities:
– Clearly distinguish between personal and corporate activities.
– Use the corporation’s name on all contracts and legal documents.

6. Legal Compliance:
– Adhere to all applicable laws and regulations.
– Regularly review and update compliance programs.

Conclusion
Mitigating the risk of corporate veil piercing is essential for protecting shareholders and directors from personal liability. By maintaining corporate formalities, ensuring adequate capitalization, and operating transparently, businesses can safeguard their corporate structure. Proactive measures and adherence to legal requirements are key to preserving the integrity of the corporate veil.

At McDonough Law Group we provide business services for all businesses big and small. Whatever your needs, McDonough Law Group can assist by providing an array of services from in-house and outside corporate counsel services to small business legal subscription services that allow companies access to superior legal services on an as needed basis. Let the attorneys at McDonough Law Group perform a business stress test on your company to assess any risks and liabilities, and to proscribe the action steps needed to fix any such exposure.

Contact us to schedule an appointment to make sure you are protected.

Buying or Selling a Horse – Not as Simple as a Handshake

By: Crystal McDonough

When I bought our first horse it was for my daughter for 4H. At that time, I knew very little about horses, much less buying or selling a horse. Fortunately for me, we had a good veterinarian, and my husband grew up with horses so he had a fair amount of knowledge. That first horse turned out to be a good experience for all of us (my daughter included), but that is not always the case. What do you need to know if you are buying or selling a horse?

First thing to know – do not use a “form” contract off the internet! Each state has specific laws that may apply such as brand inspections, state or local agency requirements, or some other legalities. Sometimes a bad contract is worse than no contract. But a good contract can cover the state requirements and potential issues that could arise, giving both the buyer and seller some certainty and understanding of the process. As I like to say, if good fences make good neighbors, then good contracts make good business deals.

Typically, horse sellers, breeders, or brokers do not offer guarantees or returns. So it is important to know what you are getting into before you sign a contract or purchase a horse. If you are buying a horse, get a copy of the veterinary records and a full health history and Coggins report, and have your veterinarian do a comprehensive examination. For registered horses, you may want to enter into a Letter of Intent to Purchase that allows for a due diligence period in order to examine medical records, insurance documents, and registration papers. If you are considering a trial period or a lease/purchase option, then you will want to have a more comprehensive pre-purchase agreement. A pre-purchase exam is at the buyer’s expense and should be done either by your veterinarian or an independent veterinarian. A pre-purchase medical exam can cost between $500 and $5,000 and is paid by the buyer regardless of whether the buyer purchases the horse or not.

For more expensive horses, it is not uncommon to have agents or trainers act as brokers for the sale. This can be a great option; however, it is important that you understand the agent or trainer’s experience in such sales and their fees up front before you sign any agent or broker agreement. In addition, you need to know who is paying those fees which are essentially commission fees. For example, a trainer may charge 10-25% of the purchase price, and the buyer is often on hook for those fees.

If you are purchasing a horse from out of state, then you will need to know both the seller’s state laws and your state laws regarding transporting livestock between states. You may have to board a horse temporarily before transportation can be arranged or scheduled. If boarding is required, then a boarding agreement must be in place to cover details such as cost and care for your horse. Make sure to have insurance cover your horse the day you take ownership even though you may not have physical possession of the horse yet.

Occasionally, I will have a client ask the difference between a horse’s legal title and the horse’s breed registration. This is an important distinction, especially if you are taking out a loan to purchase the horse. Legal title is established through a bill-of-sale and other written transactional documents that trace the ownership from one owner to another, and often include warranties related to the horse. The breed registration does not establish legal title, but it is an important part of ownership. It can educate the legal title, and in some cases, breed registration can be used as collateral for the purchase of a horse.

Both sellers and buyers should understand that horses are usually sold “as is” without any warranties, expressed or implied. There is no guarantee that a horse is going to perform for you as it does for the previous owner. If you are the seller, it is important to disclose all known health and behavioral issues. If you don’t disclose, and it is discovered later by the buyer that you knew there were problems or potential issues, then you could be liable to the buyer for veterinary bills, training, and possibly other legal remedies. It is always best practice to be transparent during the purchase/sale of a horse. It will make the transaction smoother and reduce potential risks.

Horse ownership can be so enjoyable, but there are risks. The best way to mitigate these risks is to have all the appropriate documents such as a bill-of-sale, breed association transfer form, brand inspection if required, insurance, and all necessary health documentation. Having these assurances in place can make both the sale/purchase process smoother and horse ownership a rewarding experience. Ready to buy or sell a horse? Contact McDonough Law Group today.

Navigating the Complexities of Elder Law with McDonough Law Group

Elder law addresses the complex needs of elderly individuals and their families. As people age, many face the uncertainty of how their health, assets, and overall well-being will be managed. At McDonough Law Group, we understand these challenges and are committed to guiding you and your loved ones through the intricacies of planning for the future.

End-of-Life Planning: Preparing for the end of life is a sensitive but essential aspect of elder law. Our attorneys assist in crafting detailed plans that respect your wishes and ensure that your end-of-life care is handled according to your specific desires. This includes drafting estate plans (wills and trusts), end of life directives, making funeral or memorial arrangements, and ensuring that all pertinent legal and financial affairs are in order.

Powers of Attorney: Establishing a power of attorney (POA) is vital in elder law planning. This allows individuals to appoint someone they trust to manage their affairs if they become incapacitated. A power of attorney allows you to authorize one or more individuals to act on your behalf regarding property, finances, and healthcare decisions, if you are ever unable to do so.

Guardianship and Conservatorship: When an individual no longer has the capacity to make certain decisions on their own, establishing guardianship or conservatorship may become necessary. These legal tools allow a designated guardian or conservator to make crucial decisions on behalf of the incapacitated or vulnerable adult. Our attorneys guide families through the legal process ensuring the protected person’s interests are prioritized and safeguarded.

At McDonough Law Group, we pride ourselves on our ability to offer personalized elder law services that anticipate the needs and address the concerns of older adults and their families. If you’re looking for guidance on elder law matters, or if you have questions about how best to protect the interests of an elderly loved one, contact McDonough Law Group today.

Expanding Horizons: McDonough Law Group’s Growth and Enhanced Legal Services

McDonough Law Group is proud to announce significant expansion, enhancing our capacity to deliver exceptional legal services across a broader geographical area. With recent additions to our team licensed in Idaho and New Mexico, we are better positioned than ever to serve our diverse client base.

Our firm’s commitment to innovation and client-focused service remains at the forefront of our expansion. By integrating cutting-edge technology and streamlined processes, we’ve simplified client interactions, making our services more accessible and user-friendly. Whether through virtual consultations from the comfort of your home or in-person meetings in our strategically located offices, our approach is designed to cater to your convenience and needs.

Each new attorney at McDonough Law Group brings a unique experience and a fresh perspective, contributing to our collective ability to handle a wide range of legal challenges. Under the leadership of founder Crystal McDonough, we continue to foster deep, meaningful relationships with our clients. This relational approach allows us to truly understand and effectively address your specific legal needs, delivering personalized results.

As McDonough Law Group steps into this exciting phase of growth, we remain dedicated to our mission: providing smarter, more creative legal solutions through genuine client relationships and a streamlined, efficient service model. We are grateful for the trust our clients place in us and look forward to continuing to serve both existing and new clients with the highest standards of legal excellence.

Contact McDonough Law Group today to discuss your specific needs.

Understanding Conservatorships and Guardianships: Legal Protection for Vulnerable Adults

Navigating the complexities of conservatorships and guardianships is crucial for ensuring the protection of vulnerable adults. These legal arrangements are designed to safeguard individuals who are no longer able to manage their personal care or financial affairs due to various incapacities.

Conservatorships
A conservatorship is a legal arrangement designed to protect vulnerable adults who cannot manage their financial affairs. It creates a relationship between a court-appointed Conservator and a protected person.

The Conservator gains the authority to make financial decisions on behalf of the protected person when they are unable to do so themselves. This safeguards the individual from financial exploitation, including scams and other forms of abuse.

Establishing a conservatorship requires judicial intervention, with ongoing court oversight to ensure the protected person’s interests are safeguarded. Conservatorships typically arise when no financial power of attorney is in place.

Guardianships
A guardianship is a legal arrangement that may become necessary when an individual becomes incapacitated, even if they have a medical power of attorney in place. This often occurs due to illnesses like dementia or Alzheimer’s, which can leave adults vulnerable and unable to secure their basic needs.

Similar to a conservator, a guardian is appointed by the court to ensure that an incapacitated adult is properly cared for when they can no longer care for themselves. The guardian’s responsibilities include securing essential needs for their ward, such as food, shelter, clothing, and healthcare.

Conservatorships and guardianships serve as essential legal tools for protecting vulnerable adults from exploitation and ensuring their basic needs are met. Whether managing finances through a conservatorship or addressing personal care needs under a guardianship, the oversight provided by these arrangements is vital. For families facing such decisions, understanding these legal structures and seeking competent legal advice is crucial to navigate the process effectively and ensure the well-being of their loved ones.

If you or someone you know might benefit from a conservatorship or guardianship, or if you have questions about establishing these protective arrangements, don’t hesitate to reach out. Contact McDonough Law Group today to discuss your specific needs and ensure your loved ones receive the protection they deserve.