Exam B
“It’s Just Money”
obbie Banker lives in Boston with his wife and two daughters. Like many bankers, Bobbie has accumulated more wealth than he really knows
what to do with. He and his family maintain an unsur- prisingly lavish lifestyle that includes the usual assort- ment of homes, vehicles and frivolous toys. In connection with his recent acquisition of a cer-
tain luxury SUV, Bobbie is invited to attend a lavish social event at a lavish horse show. He is mesmerized by the horse and human athletes and the equestrian lifestyle. He decides he wants to buy a horse farm and own horses and be a part of what he is experiencing as a horse show “VIP.” Bobbie meets Judy Jockey. Judy is a professional
trainer—a middle-aged rider who was (in her younger days) a successful competitor who achieved national accolades and a top reputation in the sport. Judy is (like many professional equestrians) attractive, per- sonable, single and not wealthy. She works hard, but when she is lacking for a sponsor or wealthy customer, she scrapes by financially on what is left of her mea- ger inheritance. She doesn’t have health insurance, disability insurance, or any kind of financial safety net. She may have been at this for a long time, but she is still “hungry.” Bobbie’s success cannot be chalked up to pure
luck. Bobbie understands human nature and he knows how to inspire loyalty in his employees. He sees in Judy the potential for an ideal partner to help him realize his newfound dream of making a splash in the horse world. He offers Judy a position as his “Trainer,” to help him locate and acquire a top-notch equestrian facility and competition horses. He prom- ises Judy a sizeable salary, profit sharing, employment benefits including health insurance, and housing. Judy can’t say no—this is her long awaited dream- come-true. Bobbie is good to his word. He buys the farm and
a string of show horses and in no time at all, Judy is back at the top of her game and Bobbie’s venture is all the talk of the town. Judy gets Bobbie’s wife and daughters in the saddle, and soon they too are not only enjoying the new family “hobby,” but have em- braced Judy as a member of the family.
68 November/December 2017
Now that Judy has been made to feel like a member of the family, her status as an “employee” is becoming blurred. Some of her bonuses and com- missions are not being paid and reported as “income,” but rather treated as “gifts” and “loans.” Bobbie is quick to pull out his checkbook and has paid off Judy’s car loan, her credit cards, bought her new cars, new sad- dles, redecorated and furnished the house she is living in, and arranged for her to have a generous line of credit with “his” bank. Judy is not so savvy in the ways of the business world, and she trusts Bobbie when he tells her that he doesn’t want her to have to pay any more in taxes and that he wants to make sure that he meets all her financial needs. He assures her that he doesn’t expect her to ever “pay him back.” His favorite motto is, “It’s just money.” After more than a ten-year run, Bobbie’s enthusi-
asm for the equestrian lifestyle is waning. His daugh- ters are off at college and have turned their attentions to other interests. His wife had a few falls and broke too many nails and likewise has lost interest in the horses. And, while Judy has done an admirable job with the horses, she is moving past “middle-age” and rapidly approaching seniority. Bobbie decides it is time to close up shop. He went to a yacht race in the Caribbean a few months back and sailing has piqued his interest—time for a new hobby. Judy is shocked when Bobbie tells her the news.
She has considered herself a member of the Banker family for years and has enjoyed the financial security of steady employment and Bobbie’s seemingly end- less generosity. How can she be fired? That’s it? Of course, Bobbie assures her that she will always be a cherished member of the family and they will stay in touch and he will pay her a hefty severance bonus. Shocked and saddened, Judy realizes that she will have to move on. She dutifully sells off the horses and winds up the horse operation. When the farm sells, she packs her bags and moves into a rental apart- ment while trying to envision her future. Particularly distressing to Judy now is the realization that despite all the money she had been making, she really hadn’t saved for a future of unemployment. She had as- sumed the Bankers would take care of her “for life.”
Test your knowledge of equine law. by Attorney Krysia Nelson
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