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Jihan Murad, Esq.
COMPANION CLAIMS
 Breach of Contract
 Negligent Misrepresentation
 Breach of Fiduciary Duty
 Breach of Warranty
COMPANION CLAIMS
YEAH – BUT WHY DOES IT MATTER?
DAMAGES
BREACH OF CONTRACT

Arises: failure to perform obligation
promised to be performed

Example: trainer fails to properly care for
horse in his/her care, custody or control

Application: breach of tort based duty
versus breach of a contractual based duty
NEGLIGENT
MISREPRESENTATION

Arises: a party detrimentally relies on an
untrue statement made by defendant that
defendant believes to be true

Example: the horse has no prior injuries

Application: in sale or lease of horse or
statement about horse’s suitability for a
certain type of rider
Anyone could ride this horse
around the grand prix
NEGLIGENT
MISREPRESENTATION

Selleck v. Cuenca

Plaintiffs brought action against seller,
trainer and veterinarians

Alleged failure to disclose a pre-existing
deep digital tendon injury and injections
given 30 days prior to pre-purchase
exam
FIDUCIARY DUTY

Arises: a special trust relationship giving
rise to the duty of loyalty and duty of care

Example: selection and purchase of a
horse for a client

Application: mixed
AGENCY

Arises: a fiduciary relationship when a
principal agrees to have an agent act on
principal's behalf

Example: agent for sale or lease of horse

Application: agent is subject to liability to
a principal and/or third party harmed by
agent’s tortious conduct
NO FIDUCIARY DUTY


Welk v. Simpkins

5 year owner/trainer relationship

Trainer injected stifles without authorization
resulting in permanent damage
Pugliese v. Mondello

Oral partnership to purchase, train and race

Trainer had authority to enter horse valued at
$250,000 in a $50,000 claiming race
FIDUCIARY DUTY INFERRED

Gussin v. Shockey

Trainer advised inexperienced owners to
purchase horses for amounts in excess of
actual value without disclosing secret
kickbacks

Intent to defraud inferred based on false
representation of purchase price

No RICO violation
DUAL AGENCY

Arises: representation of buyer and seller in
same transaction

Example: in-barn sale of horse

Application: in many states dual agency is
unlawful absent written consent

imposition of additional duties to dual agent who
has obtained written consent to act for two
principals
BREACH OF WARRANTY

Arises: generally in the context of sales, but
has been raised in the context of
professional services

Example: guarantee of outcome of services

Application: generally does not apply to
those who provide professional services
But my trainer said he would
qualify for pony finals
BREACH OF WARRANTY

Archibald v. ACT III Arabians

Breach of implied warranty of good and workman
like performance of training program

Jury found breach of good and workmanlike
training was a producing cause of death

Court entered judgment NOV – no implied
warranty for services
Jihan Murad, Esq.
[email protected]
Arizona  California  Nevada
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