Navigating Equine Law with Daniel Morgan
Few nations on earth stop for a horse race; but every November Australia does just that. Billed as the “race that stops the nation”, the Melbourne Cup is a national – perhaps even international – icon. But our national love for horses goes far beyond just racing.
The Light Horse Brigades are an important part of Australia’s wartime history, the brumby is a controversial but beloved modern symbol of the Australian Alps, and did you know the Mounted Unit of the NSW Police is the oldest continually operating mounted unit in the world? It’s no surprise then that our national love of horses crosses into legal practice. What may not have crossed your mind is the complex way in which horses are owned, stabled, raced, and even bred is the subject of webs of legal arrangements often requiring specialist legal knowledge to understand and construct.
Morgan + English Partner Daniel Morgan joins David Turner on Hearsay the Legal Podcast to fire the starting gun on the intersection of the legal world with the world of horses as he dives into complexities of equine law.
The insights below are derived from Daniel’s CPD episode: Trooping the Colour: Horses, Racing and the Law. Sign up for a trial to listen now for free on Hearsay the Legal Podcast.
The Role of the Personal Property Securities Act (PPSA)
As Daniel explains, equine law is not just about horses; it’s about how they fit into broader legal frameworks, such as corporate law, property law, and even insolvency. The evolution of the thoroughbred industry from informal, handshake-based agreements to a sophisticated, multi-million-dollar global business has necessitated rigorous legal bulwarks to protect stakeholders and ensure ethical practices.
One of the key legal frameworks impacting equine law in Australia is the Personal Property Securities Act 2009 (Cth) (PPSA). Section 86 of the PPSA is particularly relevant as it grants priority interests to those who feed or develop livestock over other creditors. By providing clarity and security for practices in an industry where horses can be worth millions, this provision has revolutionised how equine transactions are managed.
However, there remains a curious challenge in equine law. Daniel raises the example of vessels like an aeroplane or a motor vehicle, both of which have their own specific identification numbers. Similarly for horses, they have their individual ID and their DNA, which is tested at birth to ensure correct reporting of their lineage and that the mother and the father match. However, horses are not yet classified as serial-numbered property under the PPSA, meaning that they would have to be registered against the owner of the horse. This raises another issue, as it can be a bit difficult to determine exactly how many owners there are as you can have up to 20 registered owners with the stud book and with Racing Australia. On its site in relation to horse racing, the RSPCA calls for “the development of a national identification and traceability system for racehorses”.
Contracts and Agreements in Equine Law
Equine law encompasses a variety of contracts unique to the industry, such as:
- Stallion Service Agreements
This is a formal contract between the owner of a stallion (the stallion owner or manager) and the owner of a mare (the mare owner). This agreement outlines the terms and conditions under which the stallion will “cover”, or breed the mare, either through natural mating or artificial insemination.
- Agistment Agreements
This is a legal contract where an – ideally qualified – landowner will take care of livestock owned by someone else for a specified period in exchange for payment. These arrangements can be more intricate than just feed and shelter, and can potentially include breeding services. Livestock owners sometimes turn to agistment agreements when their own property cannot adequately support their animals.
- Foal Share Agreement
This is a legal agreement which allows a mare owner with valuable breeding stock, such as a mare with black-type or group race wins, to partner with a stallion owner. Instead of paying the stallion’s service fee—often upwards of $200,000 to $300,000—the mare is bred to the stallion, and the resultant foal is shared between the parties. The mare owner typically cares for the mare and foal until the foal is sold, usually about 18 months later. This arrangement enables participation in high-end breeding without upfront stallion fees.
Horse Welfare and Industry Regulation
The welfare of horses is another critical aspect of equine law that is governed by both industry rules and broader animal welfare legislation. While Racing Australia oversees the welfare of ownership and management of horses, local Principal Racing Authorities also enforce their local rules of racing to ensure that horses are cared for responsibly, with strict sanctions such as long-term race disqualifications for individuals who breach these rules. The rules imposed by these organisations work in tandem with the state legislation regulating the treatment of animals, which would be the Prevention of Cruelty to Animals Act 1979 in New South Wales.
Racing Australia has also introduced welfare programs and racing initiatives such as Equimillions, where retired race horses are taken on by equestrian enthusiasts and are retrained to be dressage horses or show jumping horses to demonstrate the industry’s commitment to ethical practices.
Practical Takeaways for Aspiring Equine Lawyers
For those considering a career in equine law, Daniel stresses the importance of a passion for horses and hands-on experience in horse farms or working with horses. Growing up in the Hunter Valley, a hub for thoroughbred breeding, Daniel developed for himself a lifelong passion for horses. This passion, combined with legal expertise, enabled him to carve out a successful career in this niche field. For those with a love for horses and a talent for the law, equine law offers a rewarding and dynamic career path. As Daniel puts it, “If you’ve got the passion for it, there is a capacity to carve out a career in the industry”
Daniel believes that building strong networks and seeking mentorship is crucial for those pursuing a career in equine law. He advises aspiring professionals to find a mentor within the industry who can provide guidance, introduce them to key connections, and support their career development. Reflecting on his own experience, he acknowledges the significant role mentorship played in helping him navigate his path as a young student.
Conclusion
Equine law is a fascinating and multifaceted field that blends legal expertise with a deep appreciation for the thoroughbred industry. As Daniel’s insights reveal, it’s a field that requires passion, precision, and a commitment to ethical practices. Whether dealing with contracts, navigating the PPSA, or advancing welfare standards, equine lawyers play a vital role in ensuring the industry’s integrity and success.