Lease agreement question - Liability

[Ayamouse]

Hi everyone,

I’m considering entering a half lease agreement that allows me access to two horses with the flexibility to ride as desired, including jumping and dressage. The lease agreement states:

“Should horse become injured while in lessee’s care, lessee is responsible for medical bills.”

Is this a typical clause?

While I genuinely hope such a situation never arises, what if an unfortunate incident occurs while I’m with one or both horses, or even the day after I’ve been with them? This could lead to substantial costs. Would it be wise to get insurance for both horses? (Is that even possible and would that be super expensive given that the horses are probably in the mid-high 5 figures) Should I discuss modifying the clause to specify negligence on my part?

This is my first time considering a horse lease, so I appreciate any guidance on the matter.

Thank you in advance!

[mmeqcenter]

Yes, this is a very standard clause.

“While in lessee’s care” indicates that you would be responsible for medical bills that occur while you are riding or handling the horse, or while you have it off-site at a show or clinic (if the lease allows that) even if you’re not physically with the horse at the time. Since it is a half lease, it would exclude injuries/illnesses that occur on days or at times you are not at the barn with the horse (except when you have the horse off-site for your own purposes, like a show or clinic).

I would not expect a horse owner to be willing to make the clause apply only for negligence on your part. What if you’re jumping the horse, and it knocks a rail and bruises a tendon? It wasn’t negligence, rails happen, but the horse was in your care and control, not the horse owner’s, why would they pay for that medical care?

Yes, it could lead to substantial costs. That’s horses. The point of leasing is to become accustomed with ownership. A half lease or full lease isn’t just paying for riding time, it’s taking on partial or full responsibility for the horse and all aspects of horse ownership. If someone doesn’t want any financial responsibility for a horse, they should stick to paying an instructor for lessons on school horses. That’s paying for riding time.

[clanter]

@Ayamouse

a half lease agreement

I am not sure you can even get medical insurance for horse that less than fully leased

[Posting_Trot]

I’ve only ever leased once, so I don’t have a lot of experience. But my sense is that you can negotiate almost any clause. The negotiation may not go your way, but it’s a smart thing to do.

And it’s very smart to be very specific about vet costs, particularly if it’s a longer lease. What if the horse develops arthritis-related lameness–are you expected to cover the diagnostic costs and the costs of injections? Who is responsible for routine vet bills? What kind of maintenance is the horse on in terms of veterinary care, supplements, special shoeing, etc.? Do you have the option of ending the lease early?

These are all good things to have spelled out so that the horse receives proper care and so everyone knows who will owe what.

[candyappy]

@Ayamouse

“Should horse become injured while in lessee’s care, lessee is responsible for medical bills.”

Is this a typical clause?

@mmeqcenter

If someone doesn’t want any financial responsibility for a horse, they should stick to paying an instructor for lessons on school horses. That’s paying for riding time.

Is there usually an agreed upon limit on how much can/ will be spent for an incident?

Otherwise the owner can go wild at the expense of someone else??

[BlueDrifter]

You would also need to think about who pays if the horse colics (my guess is the horse would colic regardless of lessee, and thus I think of that as an owner expense.)

Or, what if owner rides and does something, but the lameness shows up on your watch? How would that be handled?

On a much less pricey horse, the owner and lessee agreed on an amount: if it was over $XX the owner paid, if under, the lessee paid.

[dmveventer]

@mmeqcenter

I would not expect a horse owner to be willing to make the clause apply only for negligence on your part. What if you’re jumping the horse, and it knocks a rail and bruises a tendon? It wasn’t negligence, rails happen, but the horse was in your care and control, not the horse owner’s, why would they pay for that medical care?

My experience has been the opposite. My half-leases have specified I would be responsible for costs associated with injuries I caused, by negligence or otherwise, but I have never been expected to pay for normal “wear-and-tear” type injuries, even if I was the one riding when they happened. As a half-leaser you specifically do not have full control over the horse’s care or any decision-making power, and I would not sign up to pay vet bills if I didn’t have a say in what care was being provided. The clause as written also leaves a lot of room to be misinterpreted. How are they defining “in lessee’s care” in this case? Would the lessee get a say over which vet was used or how far to take the diagnostics? What happens if both parties disagree over the standard of care? What if the horse injures itself in the field overnight and the owner comes back and insists it must have happened during the lessee’s ride the day before? Much more straightforward for the owner to factor in maintenance costs to the lease fee and handle all care themselves.

OP you can always negotiate if you want, half-leases can vary a lot so there’s really no standard. You’re already describing a pretty weird situation (half lease covering two horses with unlimited riding?) so what is “normal” probably won’t apply anyway. At a minimum I would insist on adding clarification, either “as a result of lessee’s actions” or “while being directly handled/supervised by lessee” or something similar depending on what you and the owner agree to.

[mmeqcenter]

@BlueDrifter

Or, what if owner rides and does something, but the lameness shows up on your watch? How would that be handled?

If the horse comes out lame when the lease rider “brings them in” or starts their ride, then the horses became lame while not in the lease rider’s control, the horse owner would be responsible for care.

@candyappy

Is there usually an agreed upon limit on how much can/ will be spent for an incident?

There can be, idk how frequently that is an occurrence in a contract. I would certainly expect some language around “reasonable” or “industry standard of care.” If the horse owner wants to do a bunch of extra stuff like shockwave and such, that’s on them.

@dmveventer

but I have never been expected to pay for normal “wear-and-tear” type injuries, even if I was the one riding when they happened.

I guess our definitions of “normal” wear-and-tear type injuries differs. Or maybe your lease fee was high enough the horse owner felt it covered incidentals.
If a horse came up lame and it was determined to be something like arthritis, navicular, or other chronic-related issue, I would expect the horse owner to be responsible for bills, and I guess that’s what I would consider “normal wear-and-tear.” An acute injury is an injury, not “wear-and-tear.”
Something for each horse owner and lease rider to clarify for their situations.

[vxf111]

Is this horse insured? Does the insurance cover injury while in the care, custody, control of the lessee?

[2tempe]

I leased out 2 different horses offsite (full lease) over the years. Both contained clauses re medical expenses, responsibility for normal vet maintenance like vaccines and coggins as well as injuries. One horse was older and lease included the ability to call me if there was a significant issue and I would take over. He came home after a year due to showing some neuro symptoms. Later diagnosed cervical arthritis. The other horse had a colic history and hers included language that if medical care was needed other than banamine, I would take over. This horse came back after a year or so, no issues.
Offsite leases can be easier to define some limits. 1/2 lease onsite, I would personally limit their costs to injuries while riding, off at shows, etc. If horse cuts leg in turnout on “their day”, that’s not really their problem, IMO.