Exam M
Test your knowledge of equine law. by Attorney Krysia Nelson
You Be the Judge: Who’s tricking whom?
att and Sally Jones own a horse farm in New England. Sally was born on the farm and it has been in her fam-
ily for many generations. Sadly, both she and Matt are getting older and both have health problems, and none of their chil- dren are interested in running the farm. It is time to sell. Matt is at the local trac-
tor supply store, sharing his and Sally’s tale of woe with one of the friendly cashiers. Listening surreptitiously is Connor Crook, a local real estate developer. He was inno- cently standing near the check- out line buying batteries, and his ears perked when he heard Matt talking about needing to sell. Connor is familiar with the property because it is a large, well located tract that has not been placed under any kind of conserva- tion easement. As soon as he exits the store, Connor calls his good buddy Lou Czar. Lou is a retired attorney who is always looking for investment oppor- tunities. Connor proposes to Lou that the two form a partnership and buy the Jones farm for commercial redevelopment. They’ll make a for- tune! Lou agrees enthusiastically. Lou and Con- nor form an LLC and call it Trickster Farm, LLC. But when Connor contacts Matt and Sally, he
hits a hurdle: Matt and Sally only want to sell to someone who will continue to operate the farm. “We hate developers! We would never sell to a developer!” they exclaimed. So Connor changes gears. He tells Matt and
Sally that his friend Lou wants to buy the farm as a family retreat. Lou comes to visit the farm and in chatting up Matt and Sally, enthusiasti- cally tells them how much it means to him that he’ll be able to watch his grandkids grow up on such a farm. Matt and Sally are hooked. How
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great that a guy like Lou has just come along and wants to buy their farm! Lou prepares a purchase contract that says nothing about keeping the property operat- ing as a farm, and it doesn’t put any kind of restrictions or easements on the property. But Matt and Sally get cold feet, and so no one signs the purchase con- tract. Instead, they sign an option contract giving Trickster Farm, LLC a right of first refusal on the farm for 60 days. A month later, Matt and Sally
send Lou a letter saying they de- cided not to sell. In fact, they had decided they didn’t want to sell to Lou, suspecting he was a con-man who was mixed up in some “funny business” with Connor Crook. Another month goes by and Matt
and Sally sell the property to a young couple, Paul and Mandy Farmer, who intend to raise their five children on the farm. Lou and Connor find out about the sale, and when Lou runs into Matt at the gas station, he threatens him saying, “Fix this right now or I’m gonna sue! That farm is mine!” Trickster Farm, LLC files suit against the Jone- ses and the Farmers, for breach of contract and tortious interference with contract. The Joneses and the Farmers counter-sue, alleging violations of the state’s Consumer Protection Act, which authorizes awards of compensatory and puni- tive damages and attorney’s fees for fraud.
Can Trickster get its hands on the Jones’ farm?
Did the Farmers “tortiously interfere” with the contract the Tricksters had with Matt and Sally?
Did Trickster Farm, LLC, through the actions of Connor and Lou, commit a fraud?
☛ Turn the page for the answers
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