Jihan Murad, Esq.
COMPANION CLAIMS Breach of Contract Negligent Misrepresentation Breach of Fiduciary Duty Breach of Warranty
COMPANION CLAIMS YEAH – BUT WHY DOES IT MATTER?
DAMAGES
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
NEGLIGENT MISREPRESENTATION
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
NEGLIGENT MISREPRESENTATION
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.
[email protected] Arizona California Nevada
