HORSE MANAGEMENT ARTICLES
In the Courts: North Carolina Cases Affecting Horse Owners By - R.L. Adams, Attorney at Law
The published decisions of North Carolina's Appellate Courts - called "opinions" - often restate, clarify, or change the State's laws or how those laws are to be interpreted by the trial courts. Only a small percentage of the horse related cases that are filed ever result in an appeal, so opinions setting out specific principles of equine law are rare. However, many opinions from other types of cases do affect how trial courts are likely to apply the law in horse related cases.
Enforcement of Liability Releases No reported opinion from a North Carolina Court has addressed the enforceability of a release of liability for personal injuries or death occurring during equine activities. However a recent reported opinion examined that issue in the context of a release signed by a novice motorcycle rider prior to a safety clinic. Fortson v. McClellan, 131 N.C. App 635.
The document attempted to release the clinic instructor (and others) from all liability, even if they were negligent. The student was injured during the lesson, when the throttle of the motorcycle she was assigned to ride, stuck open and she crashed. The student alleged that the instructor knew that the throttle had a history of sticking open and that the instructor was negligent assigning it to her.
The Court of Appeals stated that under North Carolina law, liability releases were "not favored," but would be enforced unless it "violated a statute, is gained through inequality of bargaining power, or is contrary to a substantial public interest." It then held that the trial court was wrong to enforce the release, and dismiss the student's claim without a trial, because of the strong public interest in minimizing the well known risks of motorcycle use to the motorcyclist and the general
traveling population.
The Fortson opinion provides support for the general enforceability of releases, with certain limitations. Key factors against enforcement of the instructor's release were that (1) the activity was a safety clinic and (2) motorcyclists who are negligently taught about safety may place the general
traveling public at risk. Few equine activities have these factors present; possibly a training class for using horses for crowd control or other law enforcement functions, or a clinic on carriage driving on public streets.
Virtually all equine operations could receive some degree of liability protection from a properly written and signed release, but the most effective protection is to run your facility or activity in a manner which limits the potential for accidents and injuries. Safety first! From the legal liability perspective, consider doing business as a corporation or limited liability company (LLC) to limit risk to your personal assets. Post Equine Liability Act signs. Inform riders of the risks of riding, and document that they have knowingly and voluntarily assumed those risks.
Most importantly, carry equine liability insurance which covers the payment of claims and judgments and the cost of defending against claims. But read the insurance policy yourself to make certain that it covers all the horse related risks you think it does. You can't rely on the representations of your insurance agent as to what the policy covers. At least that is what the Court of Appeals has said in a life insurance case.
*** R.L. Adams is an experienced litigator who concentrates his practice in the equine industry. He is also a frequent speaker on legal issues affecting the equine industry. He can be contacted at 919-366-9888.
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