multi-jurisdictional comparison of equine liens
DESCRIPTION
Compares scope and enforcement of equine-related statutory liens in TX, KY, and FL. Addresses applicability of UCC self-help procedures. Covers various types of liens that might attach to horses.TRANSCRIPT
![Page 1: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/1.jpg)
Alison Rowe Bryan, Texas
![Page 2: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/2.jpg)
“Possession is 9/10 of the law”
![Page 3: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/3.jpg)
A right to take hold or sell property of a debtor to secure the payment of a debt
What is a Lien?
![Page 4: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/4.jpg)
1) Statute2) Contract3) Vested by the Constitution of certain states
Creating a Lien
![Page 5: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/5.jpg)
Stableman’s/ Agister’s Liens
Breeder’s Liens
Veterinarian’s Liens
Statutory Liens
![Page 6: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/6.jpg)
![Page 7: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/7.jpg)
Stableman’s/Agister’s Lien• Attaches to horses when one
party leaves her horse(s) in the care of another for boarding or grazing.
• Lien holder may hold horses and sell horses to collect amount owed.
• Only applies to horse, not applicable to other personal property belonging to debtor
![Page 8: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/8.jpg)
Texas Stableman/Agister’s Lien
Possession Necessary?
• Yes
Enforcement
• Self-Help Sale• Not required
to file lien
Scope
• Charges for “care” only
![Page 9: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/9.jpg)
Possession Necessary?
• No within 1 year• Yes if using “Self-
Help” public sale option
Enforcement
• Affidavit/Warrant• Self-Help Sale• Lawsuit
Scope
• “Reasonable charges for keeping, caring for and grazing animal”
Kentucky Stableman/Agister’s Lien
![Page 10: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/10.jpg)
Possession Necessary?
• No• Yes if using
“Self-Help” public sale option
Enforcement
• Self-Help Sale• Lawsuit• Injunction &
Attachment
Scope
• Charges for “feeding or taking care” of horse
FloridaStableman/Agister’s Lien
![Page 11: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/11.jpg)
![Page 12: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/12.jpg)
Stock Breeder’s Lien• Statutory Lien available
to owners or managers of stallions to secure unpaid stud fees.
• Alternative- Most breeders hold the breeder’s certificate necessary to register foal until all stallion service fees are paid.
![Page 13: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/13.jpg)
Texas Breeder’s Lien
Scope
• Stallion owner has lien on resulting foal (NOT mare) for unpaid breeding fees
When Enforceable
• 5 to 10 months after foaling date
Enforcement
• “Self-Help” according to Statutory Landlord’s Lien rules
• Filing recommended
![Page 14: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/14.jpg)
Scope
• “Licensed” keeper of stallion has lien on offspring (NOT mare) for unpaid service fees
When Enforceable
• Up to 1 year after foaling date
Enforcement
• Filing lawsuit• Affidavit/Warrant
Priority
• Subordinate to agister’s lien regardless of filing order
Kentucky Breeder’s Lien
![Page 15: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/15.jpg)
FloridaBreeder’s Lien
Scope
• Stallion owners have lien on the foal and the mare for unpaid stallion service
Perfection
• Stallion owner must perfect lien within 18 months after the service in mare’s county
When Enforceable
• Any time after mare conceives
Enforcement
• Same manner as Florida Stableman’s lien
![Page 16: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/16.jpg)
![Page 17: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/17.jpg)
Veterinarian’s Lien
Statutory Lienavailable to vets tosecure unpaidveterinary services
![Page 18: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/18.jpg)
State with Veterinarian’s Lien
States with a Veterinarian’s Lien
![Page 19: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/19.jpg)
Texas Veterinarian’s Lien
Scope
• Vet services provided to “large animals” (including horses)
When Enforceable
• 20th day after date vet first provided care
• Lien enforceable even if vet does not retain possession of horse
Priority
• Takes priority over all other liens if vet retains possession
• Otherwise, UCC Rules dictate priority
Enforcement
• Maintains possession: same as stableman’s lien
• No possession: same as residential landlord’s lien
![Page 20: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/20.jpg)
Scope
• Vet has lien if horse’s owner contracted vet for services or gave written consent for services
When Enforceable
• Statement of amount due must be filed with clerk within 6 months of service
• Action to enforce lien must be brought within 12 months after filing with clerk
Enforcement
• Vet files petition with clerk who serves Defendant
• Clerk refers case to master commissioner
Priority
• Priority based on order of filing
Kentucky Veterinarian’s Lien
![Page 21: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/21.jpg)
FloridaVeterinarian’s Lien
Scope
• Vet has lien if provided services at the request of owner, owner’s agent, or a bailee, lessee, or custodian
• Does not require vet to be “licensed”
When Enforceable
• Period of 1 year after vet services rendered
Enforcement
• Same manner as Florida Stableman’s lien
![Page 22: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/22.jpg)
![Page 23: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/23.jpg)
Are holders of statutory liens secured creditors under the UCC?
• The debtor was engaged in the horse business
• Statutory lien does not require possession
• Services provided in creditors “ordinary course of business”
YES, IF…
![Page 24: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/24.jpg)
“Agricultural Lien”The 2001 “Agricultural Lien” Amendment to
the UCC gives rise to the argument that:
Permitted to foreclose said liens according to UCC self-help provisions
Holders of statutory stableman’s, breeder’s and veterinarian’s liens hold UCC agricultural liens and thus are:
![Page 25: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/25.jpg)
What’s so Great About UCC Self-Help Provisions?
1) Allow for private sale of horses
2) Are a known-entity to most judges
![Page 26: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/26.jpg)
Under UCC adopted in Texas and Florida
It is clear that…
For UCC agricultural lien to apply, debtor must be engaged in “Farming Operation”
![Page 27: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/27.jpg)
UCC adopted in Kentucky includes a special
“Equine Interests” provision in its definition of
1) Livestock, born and unborn
2) Equine interests (interests in horses, mares, yearlings, foals, weanlings, stallions), whether or not debtor is engaged in farming operations
“Farm Products”
![Page 28: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/28.jpg)
Texas Stableman’s Lien
Cannot be an agricultural lien under the UCC because the statute requires possession
![Page 29: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/29.jpg)
UCC self-help remedies are best not enforced against hobbyists who are not clearly in the horse business of raising, breeding, boarding, or grazing horses, absent a written agreement that the UCC enforcement provisions will apply.
Conclusions:
![Page 30: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/30.jpg)
![Page 31: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/31.jpg)
Other Types of Liens
Contractual Liens
Judgment Liens
Auctioneer’s Liens
![Page 32: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/32.jpg)
Contractual Liens
• Most commonly associated with a bank’s security interest in the horses
• Bank obtains promissory note and security agreement with debtor and files a UCC-1 financing statement
![Page 33: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/33.jpg)
Contractual Liens• Another context is in the written
contract of a boarding stable, a veterinarian, or a breeder
• Can contract with horse owners to create a lien by agreement on terms different than those provided by statutes
![Page 34: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/34.jpg)
Judgment Liens
• Judgment creditors may attempt to execute on horses as assets of a debtor
• State personal property exemption statutes determine whether a horse is exempt from execution.
![Page 35: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/35.jpg)
Texas and Floridaare notorious forbeing “debtors’ havens”
Judgment Liens
Texas law provides that a debtormay potentially hold as exemptup to $60,000 worth of horses.
![Page 36: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/36.jpg)
Auctioneer’s Liens Florida, Texas and Kentucky do not
provide auctioneers a statutory lien on horses put through public auction
HOWEVER… Most auction companies provide a security agreement in their conditions of sale covering each horse put through sale.
![Page 37: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/37.jpg)
Registration Transfer HoldsA lien holder may request a “transfer hold” with the breed registry with whom the horse is registered to strengthen their lien.
Very effective- many potential buyers do not do a lien search, but will not finalize sale if cannot transfer the registration with the breed registry.
![Page 38: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/38.jpg)
Questions?
Alison Rowe Equine Legal Services
1716 Briarcrest Drive, Suite 300Bryan, Texas 77802
Phone: (979) 691-7333Email: [email protected]
![Page 39: Multi-Jurisdictional Comparison of Equine Liens](https://reader036.vdocuments.net/reader036/viewer/2022062418/554c2d36b4c9050d1b8b4e83/html5/thumbnails/39.jpg)
Time for Cocktails!