Equine Law Blog

The Horse and Hound has recently (August 2012) reported that the Olympic medal winning horse “London” has been seized from showjumper Gerco Schroeder in connection with insolvency proceedings involving Dutch real estate company, Eurocommerce. 

James Woodhouse

London is a 10-year-old warmblood stallion who took Gerco Schroeder to individual and team silver at Greenwich. 

Full details of the case are unavailable and it appears the proceedings were started in Holland, in which case a different legal jurisdiction will apply.  In any event, it is worth remembering that horses (and other animals) are by no means exempt from seizure when it comes to insolvency or enforcement proceedings.

Where a creditor has obtained judgment against a debtor he might need to look at means of enforcing that judgment if it remains unsatisfied.  One option is to apply to the Court for a Warrant of Execution, or Writ of Fieri Facia, which will enable an enforcement officer to seize goods belonging to the debtor in satisfaction of the judgment and enforcement costs.

If the enforcement officer seizes animals or livestock he must ensure that they are properly fed and cared for.  The costs of care may be added to the enforcement costs.  The enforcement officer will be prevented from working any animals whilst in his care, so (for example) would be unable to enter a racehorse for an event.

Generally, enforcement officers will be reluctant to seize animals because they are then faced with a burden of care.  If sold by the enforcement officer to satisfy the judgment debt, the usual legislation that applies to animals at market will need to be complied with.  However, a thoroughbred racehorse (or in the Eurocommerce case, a prized show-jumper) can be a very valuable asset and might make the effort worthwhile.

One difficulty with horses is establishing who the owner is.  For example, racehorses are often owned by a syndicate or any number of people, in which case it would be inappropriate to remove in circumstances where the judgment is against one owner only.  Indeed, it appears that in the Eurocommerce case there is likely to be an argument as to whether London is in fact an asset of the business (ownership of the horse having been transferred on possibly two occasions earlier this year).

Where a third party asserts title to goods seized he may begin Interpleader Proceedings, in which the case the Court will decide the issue of ownership.

For more information please contact James Woodhouse on 01635-521212 or james.woodhouse@clmlaw.co.uk

or

Kelly Carson on 01635-521212 or kelly.carson@clmlaw.co.uk

or

Rupert Wright on 01635-521212 or rupert.wright@clmlaw.co.uk

One way of owning a share in a racehorse is by way of a racing partnership. At least two partners will be, or must become, registered owners. They will be known by the Racehorse Owners Association (“ROA”) as Nominated Partners.

It is important that a proper Partnership Agreement is drawn up to avoid the potential for disputes later down the line. The ROA website contains helpful guidance as to what any such Partnership Agreement should contain. This guidance includes (as paraphrased by the writer):

1. Description of the horse; factional interests;

2. Duration and methods / consequences of dissolution; retirement; rights of pre- emption;

3. Management and remuneration;

4. Basis / nature of each partner’s interest in the racehorse;

5. Allocation of costs as between partners; expenditure controls;

6. Insurance arrangements (as regards the horse itself); valuation;

7. Third party liability; partners’ liability;

Charles Lucas and Marshall has extensive experience of partnership matters, including drafting Partnership Agreements and resolving partnership disputes. In matters of this nature it pays to seek professional advice.

For more information please contact James Woodhouse on 01635-521212 or james.woodhouse@clmlaw.co.uk

or

Kelly Carson on 01635-521212 or kelly.carson@clmlaw.co.uk

or

Rupert Wright on 01635-521212 or rupert.wright@clmlaw.co.uk

Rupert Wright – Kelly Carson – James Woodhouse

Thames Valley law firm, Charles Lucas & Marshall has launched a specialist equine law team to provide a wide range of services to the horse-racing and equestrian industries.

“We realised we had a group of people in the firm who are passionate about horses, the horse racing world and understand the broad spectrum of legal issues which surrounds them,” says Hemant Amin, head of practice development at Charles Lucas & Marshall.

“This ‘hands on’ experience will be invaluable when it comes to providing advice which is practical and geared towards problem solving.”

Key people in the firm’s equine team include Kelly Carson whose family has worked in the horse-racing industry for several generations. As well as contributing to her family’s racehorse transport business as travelling groom, Kelly herself is well-known among the local racing community and competes her own horse.

“I was keen to combine my legal experience with my passion for horses,” says Kelly.

“Equine businesses require specialist support because of the many and complex risks associated with owning horses.”

Civil litigation specialist, James Woodhouse is another key member of the team. A specialist in employment law and contractual and property-based disputes, he has a keen interest in equine pursuits and rides regularly in Oxfordshire.

The final member of the legal team is corporate lawyer, Rupert Wright, who trained in the City before moving to the Thames Valley.  He too has a strong family connection with equine matters.

“We will cover all aspects of equine law including horse purchase and sale disputes, stud contracts, services for syndicates, any litigation or ownership disputes, livery disputes and negligence claims,” says Kelly.

“The horse-racing industry is a major employer in this part of the world, so from a location perspective, we could not be in a better place.”

For more information please contact Kelly Carson on 01635 521212 or kelly.carson@clmlaw.co.uk.