That’s my understanding as well. My one and only foray in making a claim against equine insurance involved a really nice weanling that ran into a fence and died. Despite the fact that I had him looked at bloodstock agents before the accident and their estimate ran between three to four times the stud fee as a sales prospect in a winter sale, that was all woulda, shoulda, coulda to the insurance company and they paid me the stud fee.
I haven’t insured anything for a long time. Did the math during the economic meltdown. The money spent over the years verses a claim/s. Saved the $$ and went with with the odds of self insuring.
That being said there is/was Stated Value policies for mortality, accident-sickness & decease. This takes into account, the cost/expenses of board and raising cost and theoretical market value of the weanling/yearling when the policy is written. IME this required paying for an appraisal usually by someone known to and or used by the Underwriter. Requires the same person to inspect the horse. Requires a vet report for over all health and well being.
The Stated Value has to be realistic and on the low side of the sire’s yearling average all things being equal. The higher the value the higher the risk = a higher premium. This may or may not be available to the average person. Those who insure regularly with the same underwrite and have a large schedule of horses on their books. Have more options available to them and lower premiums. That then those that insure the odd horse from time to time. The underwrite also takes into account where the horse is boarded and the expertise of those running the operation. Before making a decision to write a policy.
If a State Value claim is made an Adjuster will take a close look at things. The over all health and condition of the horse at the time of death. Health records, vet report and the facility. They can deny the claim.
But this foal was not a yearling. To extrapolate its value from that of a high risk foal to that of a high value 18 month old yearling is like comparing a toddler to his full brother who is captain of his high school football team.
Perhaps the toddler will turn into a top NFL player, but he has a long way to go until he even makes his middle school team.
Plaintiffs will also have a hard time proving proximate cause between the actions of R&R’s vets and the foal’s death.
Seems like a specious lawsuit to me.
2 Likes
This is not exactly true.
When a mare has a healthy good looking foal. Within days it is worth considerably more then the stud fee. I promise you. And can be insured for considerably more. If the owner had called me up and said he was interested in selling this foal. It would only take a couple of phone calls at best to find an interested buyer. It would be a gift phone call for a Bloodstock agent.
As someone who has been asked to be an expert witness in this sort of situation. You’d be surprised how easy it is, all things being equal to come up with a theoretical future market valuation. That will pass muster.
A friends of mine was an expert witness in a case where a “back yard breeder” lost his young stallion when given a new mediation that just came on the market. The “expert” explained things like in your scenario. Toddle to captain of his HS football team. Took it a step further, star quarterback on a Superbowl winning team.
The person’s stallion was moderately bred to say the least. Won a couple of minor stake races. Which is why he was standing him and not a leading Stud Farm. Bred the horse to a bunch of his nickle bred mares. Which theoretically were going to go on and produce Kentucky Derby winners. And winners of just about every other major race.
In theory could this happen? Yes. In reality you and I have a better chance of winning a $500 million lottery.
The pharma company lost and the guy was awarded an absurd amount of money. Millions. Don’t know if he ever got it.
As to the merits of the suit. Non of use know the exact details. As I said in my earlier comment. I know the owner of Hill N Dale and he is not given to waste money on legal fees at the drop of a hat. I would bet this never gets to court. Maybe dismissed or settled out of court by Rood and Riddle’s Malpractice, E&O insurance company.
2 Likes
Would the mare’s previous history of difficult foaling make it harder to insure her foals?
Not harder, possibly more expensive.
Well, if the foal was insured, then the owner has no say in whether or not the insurance company subrogates. I interviewed for a job once with a medical malpractice company and they told me that they NEVER settle, and always defend.
When I was a lawyer, I worked for a law firm that did MedMal. We ALWAYS offered to settle. ALWAYS. A Med Mal insurer would go broke if it defended every (or even most) potential suits. Just as it would go broke with an enormous award for the plaintiff. In fact, we tried to settle long before the case got near a court. If a case went to court, it was because settlement talks stalled. ---- And this might well be the reason why this lawsuit was filed so long after the foal was born. The parties might have been trying to settle, but were at a standstill. There is nothing like filing suit and letting the issues play out in the court of public opinion. R&R has more to lose than Sikura does, if they actually end up in court. Chances are, R&R’s insurance company is now rethinking its top offer.
Although, if I were a betting person, I think that R&R would win in court. But, even so, the loss of its reputation might be more important than winning.
Settlements come with a non-disclosure clause, so you rarely hear about them. It meant that we were doing a good job.
