Exam T
OUTCOME: NO GOOD DEED GOES UNPUNISHED
he parties settled. Harriet accepted a partial refund and Mel ended up with both PT and Sam. Even though Mel was not guilty of any wrongdoing, he
withstood the urge to litigate on principle in order to defend himself against Harriet’s unfounded accusations. By not get- ting caught up in the drama, he was able to look at the big picture and be pragmatic about how and why the situation had gotten out of hand. He had PT back at his farm and the horse was sound and
back in work. Mel was sure he could sell PT soon and recoup the money he had refunded to Harriet. His grandkids had been riding Sam, but Mel knew that he could sell Sam too, if he needed to. It was also important to Mel that, for the sake of public perception in his social circle, he not get into a court battle with Harriet and Tom. The social and emotional costs of litigation were simply too high. How could Mel have handled things differently at the
outset? The main thing that could have gotten Mel out of this mess
was paperwork. First, he should have had Harriet and Tom sign some kind of document before letting them take PT. He had never had them sign the original Bill of Sale for Sam, and then he replaced Sam without getting any documentation to memorialize the PT transaction. So he basically sold both horses with just a handshake and a smile. Then when PT came back to him, he really should have gotten something in writ- ing memorializing his and Harriet’s expectations of how that
was going to work. Was he agreeing to sell PT for Harriet? Was he agreeing to exchange PT for another horse? When would Harriet get her money back? How would Mel be reimbursed for his expenses? The total absence of any kind of written agreement left Mel exposed to the possibility of getting sued because any lawyer looking at the case from Harriet’s point of view would see nothing in writing and a seemingly inequitable situation: Mel had $10,000 and two horses, and Harriet and Tom were out $10,000 with no horse to show for it. The reality is that friends do sue friends, and the main
reason is because memories fade faster than ink does. Good contracts can save friendships, but the absence of a contract can break them.
About the author: Krysia Carmel Nelson is an at- torney from Virginia who is a nationally-recognized expert in equine law. Attorney Nelson represents horse owners, train- ers, riders, breeders, equestrian facilities, farms, clubs and associa-
tions across all nationally and internationally recognized disciplines. As a lifelong equestrian, she currently rides and competes her Hanoverian Affirmed on Appeal in the amateur hunters. She can be reached at
eqlaw@aol.com.
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