Unpaid livery fees: How to take the reins

Running a livery yard can be enjoyable and stressful at the same time, from trying to meet the individual needs of liveries to scheduling field rotations to keeping on top of business paperwork. One thing that should be manageable for a livery yard owner is being paid for the stabling, supplies, and services provided. Unfortunately, sometimes liveries default on their livery payments, but there are options to avoid this and to recover the unpaid livery fees.

Livery Agreements

It is always best to be prepared for situations such as non-payment of livery fees. This can be done by having a written livery agreement drafted by an equine solicitor, which incorporates terms of payment, what happens when a livery defaults on payment, and notice of termination. You may wish to include clauses which allow you to charge interest on late payments. By having a livery agreement in place, there will be little room for uncertainty about the payment terms and the mechanisms the parties can exercise should the relationship between the parties break down.

Initial default of payment

Should a livery start to default on livery payments, if appropriate, it is sensible to talk to them as soon as possible to see whether there is a genuine reason for non-payment and whether you can reach a resolution without taking any further action.

If the parties cannot resolve matters, then a notice could be served on the livery for the livery to leave the yard and remove their horse and belongings in accordance with the livery agreement terms (if there is one in place). This way, the yard owner can replace the livery and start to receive payments from the new livery for that stable.

If the livery proceeds to leave the yard without removing their horse and belongings and there is not a livery agreement in place incorporating terms for these circumstances, there are statutory rights the yard owner may exercise. However, the livery yard owner has various legal responsibilities, which they must be conscious of if a horse is left on their land.

Recovery of unpaid livery fees

Should payment not be forthcoming for the unpaid livery fees after speaking to the livery, the yard owner may wish to consider court proceedings. They will need to comply with any relevant pre-action protocol before issuing proceedings, such as sending a letter of claim (also known as a letter before action) demanding payment of the unpaid livery fees.

If payment is not received after the expiry of the relevant timeframe provided in the letter of claim, they may proceed to issue a claim against the livery for the unpaid livery fees, together with interest and legal costs. Alternatively, dependent on the value of the unpaid livery fees, they could serve a statutory demand on the livery and proceed with a bankruptcy petition.

Having an effective livery agreement in place is invaluable. By having an effective agreement in place, parties are fully aware of their obligations, and it can provide a mechanism for resolving disputes such as unpaid livery fees.

Should you find yourself in a situation where your liveries are defaulting on payment, and you require advice and assistance from an equine solicitor, please get in touch. I can be contacted on 01245 453844 or via email at charlotte.burkert@birkettlong.co.uk.