Jihan Murad, Esq.

COMPANION CLAIMSBreach of ContractNegligent MisrepresentationBreach of Fiduciary DutyBreach of Warranty

COMPANION CLAIMS

DAMAGES

YEAH – BUT WHY DOES IT MATTER?

BREACH OF CONTRACT Arises: failure to perform obligation

promised to be performed Example: trainer fails to properly care for

horse in his/her care, custody or control Application: breach of tort based duty

versus breach of a contractual based duty

NEGLIGENTMISREPRESENTATION Arises: a party detrimentally relies on an

untrue statement made by defendant that defendant believes to be true

Example: the horse has no prior injuries Application: in sale or lease of horse or

statement about horse’s suitability for a certain type of rider

Anyone could ride this horse around the grand prix

NEGLIGENTMISREPRESENTATION Selleck v. Cuenca

Plaintiffs brought action against seller, trainer and veterinarians

Alleged failure to disclose a pre-existing deep digital tendon injury and injections given 30 days prior to pre-purchase exam

FIDUCIARY DUTY Arises: a special trust relationship giving

rise to the duty of loyalty and duty of care Example: selection and purchase of a

horse for a client Application: mixed

AGENCY Arises: a fiduciary relationship when a

principal agrees to have an agent act on principal's behalf

Example: agent for sale or lease of horse Application: agent is subject to liability to

a principal and/or third party harmed by agent’s tortious conduct

NO FIDUCIARY DUTY Welk v. Simpkins

5 year owner/trainer relationship Trainer injected stifles without authorization

resulting in permanent damage Pugliese v. Mondello

Oral partnership to purchase, train and race Trainer had authority to enter horse valued at

$250,000 in a $50,000 claiming race

FIDUCIARY DUTY INFERRED Gussin v. Shockey

Trainer advised inexperienced owners to purchase horses for amounts in excess of actual value without disclosing secret kickbacks

Intent to defraud inferred based on false representation of purchase price

No RICO violation

DUAL AGENCY Arises: representation of buyer and seller in

same transaction Example: in-barn sale of horse Application: in many states dual agency is

unlawful absent written consent imposition of additional duties to dual agent who

has obtained written consent to act for two principals

BREACH OF WARRANTY Arises: generally in the context of sales, but

has been raised in the context of professional services

Example: guarantee of outcome of services Application: generally does not apply to

those who provide professional services

But my trainer said he would qualify for pony finals

BREACH OF WARRANTY Archibald v. ACT III Arabians

Breach of implied warranty of good and workman like performance of training program

Jury found breach of good and workmanlike training was a producing cause of death

Court entered judgment NOV – no implied warranty for services

Jihan Murad, Esq.jmurad@weildrage.com

Arizona California Nevada