Problems post-purchase: horse sale disputes
The joy of a new horse can sometimes be overshadowed by the discovery of soundness or suitability issues after purchase. The risk of these issues leading to expensive and stressful disputes is problematic for both buyers and sellers.
In the world of equine law, disputes over the sale and purchase of horses are common. These disputes typically flow from the observation of soundness or behavioural issues post-purchase. The law in this area can be complex and is highly fact specific. However, there are some key principles to be aware of and practical steps that both buyers and sellers can take to reduce the risk of ending up in court.
Sellers should take care to avoid misrepresenting the horse by disclosing relevant health, soundness, behavioural issues or vices that they are aware of.
In the case of Boogs v Missen [2017] VCAT 835, Ms Missen (Buyer) purchased 10 year old eventer “Rex” from Ms Boogs (Seller) for $7,500 in February 2015. Prior to the purchase, the Buyer asked the Seller whether Rex had suffered any injuries in the past. The Seller replied that there were no injuries that she was aware of, and that he had previously passed a vet check for insurance purposes. The Buyer inspected Rex herself and agreed to buy him. Within weeks, the Buyer noticed soundness issues. She had a vet examine him in May 2015 who found that he was lame, and x-rays confirmed arthritic changes. The vet concluded that Rex was not sound and not suitable for eventing.
The parties ended up in court. A letter from Rex’s previous owner was produced as evidence. It stated that the Seller had been made aware that Rex had a history of being unsound when she bought him. Further, the Seller was unable to produce a copy of the written vet check/insurance examination that she had claimed Rex had passed during initial discussions with the Buyer. The Tribunal held that the Seller had misrepresented Rex to the Buyer, and found that Rex’s condition must have been present at the time of the sale in February 2015, as the defects observed were not ones that develop in a short period of time. The Tribunal ordered the Seller to collect Rex, refund the purchase price and pay for additional damages including vet fees, agistment fees and feed.
Sellers should also take care to ensure that the horse is accurately described in the advertisement and in conversations throughout the purchasing process.
In the case of Weekley v Swinkels [2022] VCAT 523, Ms Weekley (Buyer) purchased “Merlin” for $8,000 sight unseen from Ms Swinkels (Seller). Merlin was described as having a “very kind and willing nature” with a “laid back, no fuss” attitude. The advertisement also stated that Merlin had been spelled for over 12 months but “now is working nicely with obstacles and poles etc”. Shortly after the sale, Merlin began to display dangerous and difficult behaviours, including bucking under saddle. The Buyer had him examined by a veterinarian and engaged a professional trainer. The vet and trainer agreed that Merlin was dangerous.
The Buyer sued the Seller. The Seller claimed that she never had a problem riding Merlin. She suggested that Merlin may have attempted to buck because he needed a wider gullet or massage. Further, he was advertised as needing constant work, and was not described as being bombproof. The Seller also suggested that Merlin needed time to settle into his new home, and could also have been reacting to an injury that occurred after purchase.
The Tribunal found in favour of the Buyer. There was no evidence that Merlin was injured as he had been examined by a vet. He had also been at the trainer’s property for several days before being ridden. Ultimately, the Tribunal preferred the evidence of the Buyer and the professional trainers that she had engaged to give evidence – that Merlin did not have a willing nature, was not working nicely and therefore did not correspond with the description in the advertisement. The Seller was ordered to pay the buyer $8,792.70, comprising the purchase price, transport cost and VCAT fees.
Key takeaways
For sellers
When selling a horse, preventative steps can be taken to reduce the risk of disputes post-purchase. Be sure to accurately describe the horse in the advertisement and during communications with the purchaser. Sellers can document the horse's health, soundness, behavioural issues or vices in a well drafted contract, which can later be used as evidence if required. Consider seeking legal advice in advance of the sale if you are regularly selling horses or have concerns about the sale of a particular horse, as additional measures may be advised.
For buyers
A well drafted contract can provide buyers with comfort that pre-existing conditions have been disclosed by the seller. If you’ve purchased a horse and encounter an issue, it’s best to contact your lawyer for advice sooner rather than later to understand your legal position and the way forward.
PURE Equine Law regularly assists clients with the resolution of sale and purchase disputes. For lower value claims, we may also be able to provide you with information on the small claims process in your jurisdiction. The small claims jurisdiction is typically more affordable and accessible for self-represented individuals, providing a simplified and cost-effective legal avenue for resolving lower value disputes.
*Information is general and not legal advice.
This article first appeared in Hoofbeats magazine Vol 45-3 October/November 2023.
