Tuesday, 22 November 2016

Livery yards and the law

If you keep your horse or pony on a livery yard, you should understand what to expect and who is responsible for what.
Claire Rawsthorn from Cartmell Shepherd Solicitors provides a legal viewpoint, one of a series running in Equine magazine.  This article first appeared in September 2016.

The function of a livery yard
At a basic level, livery yards operate by providing accommodation for horses in return for payment. 
There are different types of livery available, from ‘full’ livery, where the yard will attend to all needs of the horses in its care, including food and even exercise, to ‘DIY’ livery, where the owner retains responsibility for the horse’s welfare and provides feed and bedding, with the livery yard providing only shelter. There are varying degrees of livery in between.

Legal responsibilities of a livery yard owner
Whatever the level of livery, both yard and horse owners are strongly advised to enter into an agreement with each other before the horse arrives at the yard. This ensures that both parties are aware of their obligations. An agreement should deal with key issues such as fees, type of livery offered, insurance, welfare decisions and set out clearly the responsibilities and liabilities of each party.
However, in addition to any contractual obligations owed under a livery agreement, any individual with responsibility for a horse, whether on a permanent or temporary basis, is required, in accordance with The Animal Welfare Act 2006 (‘the AWA’), to ensure that the horse:
•    has a suitable environment to live in;
•    has a healthy diet;
•    is able to behave normally;
•    has appropriate company; and
•    is protected from pain, suffering, injury and disease.
DEFRA has produced a ‘Code of Practice for the Welfare of Horses, Ponies, Donkeys and their Hybrids’. This sets out the action required to ensure compliance with the provisions of the AWA.
If an owner leaves an animal in the care of another person, the Code makes it clear that it is the owner’s duty to ensure the keeper is competent and has the necessary authority to act in an emergency. An owner does not abdicate responsibility by leaving their horse in the care of a livery yard; the responsibility is ongoing.
By the same token, however, it is the duty of a livery yard owner to ensure the safety and security of its horses and those who use their yards, with serious legal implications for failing to do so.

The main pieces of legislation governing the operation of livery yards are as follows:-
The Animals Act 1971
A horse is classed as a ‘Non-Dangerous Species’ under the provisions of The Animals Act 1971. Section 2(2) of the Act provides that the keeper of a non-dangerous species may be strictly liable for damage caused by that species if:
•    the damage is of a kind, which the animal, unless restrained, was likely to cause or which, if caused by the animal, was likely to be severe;
•    the likelihood of the damage or of its being severe was due to the characteristics of the animal, which are not normally found in animals of the same species or are not normally so found except at particular times or in particular circumstances;
•    these characteristics were known to the keeper or were at any time known to a person, who, at that time, had charge of the animal as the keeper’s servant.
For the purposes of the Act, a keeper may be the owner of the animal or the person in possession of it. As a person in possession of a horse, a livery yard owner may therefore be strictly liable for damage caused by a horse under its charge, should the horse stray and cause injury to people or damage to property. Strict liability means that negligence on the part of the yard owner does not need to be proved; that the horse had escaped and caused damage is usually enough for the yard owner to be liable.
In the leading case of Mirvahedy v Henley [2003] UKHL 16, the claimant’s car collided with the defendant’s horse which had escaped from a field and run across a busy road, after being startled by a sudden noise. The claimant, Mr Mirvahedy, suffered serious personal injury. The Henleys, as the owners of the horse and of the paddock where the horses were kept, were held strictly liable, as keepers of the horse, for the claimant’s injuries.

The Occupiers Liability Act 1957
A general duty of care is owed by owners of property to those who come onto their property. The duty owed to visitors is higher than that which is owed to trespassers. For this purpose, visitors are, for example, owners of horses on the yard, farmers, vets and other equine health professionals attending to horses on the yard, delivery personnel as well as grooms and other stable help.
The owner of a livery yards will owe a certain duty of care to lawful visitors to their premises under section 2(2) of The Occupiers Liability Act 1957, known as the ‘common duty of care’, which is :-
“..to take such care as in all the circumstances of the case is reasonable to see that the visitor will be reasonably safe in using the premises for the purposes for which he is invited or permitted by the occupier to be there.”
It may be possible for property to owners to discharge their duty of care by giving a warning of the potential danger; though only if, in all the circumstances, it was enough to enable the visitor to be reasonably safe (s2(4)(a) of the Act). It is also possible to exclude liability for damage to property, by way of a disclaimer. Note though, that an occupier can never exclude liability for personal injury or death.
It is therefore important for a livery yard owner to take reasonable steps to ensure that their property is free from hazards, for example by ensuring that the appropriate fire precautions are taken, that all buildings meet building regulations and are structurally safe; that hay feeds, tack and equipment are safely stored and that the design of floor surfaces and layout of buildings are free from hazard.

Insurance
The legal defences available to livery yard owners are limited. It is therefore highly advisable to obtain some form of insurance cover.
Public liability insurance
An occupier of property that has regular visitors should purchase public liability insurance to guard against negligence claims by members of the public, and those who house their horses at the yard.
‘Care, custody and control’
Depending on the type of livery offered, careful consideration should be given to extending your insurance cover to provide protection for Care, Custody and Control, to insure against liability for loss or injury to the animals themselves.
Employers’ Liability insurance
Employers’ Liability Insurance is compulsory where you employ any individual as part of your business. This insurance must cover liability for injury or disease caused to employees arising out of their employment.
The owners of smaller, often family-run, livery yards should err on the side of caution, because whilst a yard worker might not employed on a formal basis, an owner may still be held to be an employer if a reasonable degree of control is exercised by the owner over their workers’ activities.
Employers and yard owners who engage workers on an informal basis should also be aware of the operation of the Health and Safety at Work Act 1974, which places a duty on every employer “to ensure, so far as is reasonably practicable, the health, safety and welfare of all of his employees”.

Take home message
In an age of litigation, operating a livery yard is a risky business. It is important to think practically and mitigate against as much of this risk as you can through comprehensive insurance cover. Livery Yard owners are also advised to put in place a comprehensive livery agreement to regulate the rights and responsibilities of both parties, and to leave as little room for dispute as possible.
To read about the property law considerations relating to the purchase of property for equine use, please refer to our ‘Property Focus’ article, published in July’s edition of Equine.

About Claire Rawsthorn
Claire grew up in Derbyshire, graduating with a degree in French and German from Sheffield University before taking her postgraduate law studies at Trent Polytechnic (now Nottingham Trent University). She joined Robinsons Solicitors, Derby as a trainee and stayed with them after qualifying, before moving to Cumbria in 1989.
In Cumbria, Claire has worked in the area of property law, specialising in agricultural property transactions and small estate development since 2002. She is a member of the Agricultural Law Association. She joined Cartmell Shepherd in January 2013 and amongst her portfolio of clients, she advises on the sale, purchase and lease of equestrian properties and grazing and livery agreements.
Contact Claire at Cartmell Shepherd's Victoria House office in Carlisle City Centre, Cumbria. Tel: 01228 516666.
www. cartmells.co.uk


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