Racehorse Ownership
Further details on racehorse ownership may be found on the British Horseracing Authority website and www.welcometoracehorseownership.co.uk
Training Agreement
The ROA has drawn up a training agreement in liaison with the National Trainers' Federation.
The Jockey Club has confirmed that the agreement complies with its rules that require that a signed training agreement exists between owner and trainer.
Both the ROA and the NTF recommend members to use the Training Agreement but this version is not mandatory. An alternative version can be used aslong as it contains the minimum requirement as set out by the Jockey Club in the following rule:
***Every trainer and owner shall ensure that there is a training agreement duly signed in respect of a horse(s) owned by the owner for whom the trainer trains before the horse(s) runs in any race under the Rules of Racing. Failure to comply with their requirement without good reason shall constitute a breach of this rule for which a fine of not less than £100 may be imposed on both the trainer and the owner.
Every training agreement must, as a minimum requirement, set out the terms agreed between the parties in respect of the following matters:
- the basic training fee express as an amount payable by week or by calendar month;
- all regular furtherexpenses such as gallop fees, shoeing costs and the like;
- the extend of the authority of the trainer to incur additional charges of expenses for the account of the owner, eg: veterinary fees, if any;
- provision for variations to the basic training fee and additional charges or expenses and proper notification thereof;
- the time and method of payment by the owner;
- any provision for the trainer's lien;
- such other matters as the stewards of the Jockey Club may require to be set out pursuant to the code of conduct or any instruction issued by them.
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Dispute Mediation
Owners in dispute with their trainers can now resolve their differences out of court through mediation.
The ROA/NTF Training Agreement includes a section on the resolution of disputes (Clause 23).
A voluntary Dispute Resolution Scheme (DRS), backed by the ROA
and NTF, is now in operation, allowing owners and trainers who are
prepared to resolve disputes out of court to go for mediation. In
order to take this route, both parties have to be willing to attend
a half-day or day session in London at 4 New Square.
The mediation process is open to parties who are already seeking
solicitors' advice elsewhere and parties may attend with or without
their own lawyer. Rooms are made available, one for each party and
one for an open discussion. Mediators discuss the strengths and
weaknesses of the situation with the owner and trainer with a view
to offering an acceptable solution. Neither party is bound to accept
the advice given - it will not be imposed upon them.
An upfront fee is payable - based on a sliding scale and depending on the complexity of the individual case - and every case will additionally carry a minimum administration fee of £150. Applicants will be made aware of their financial commitments.
To date, each case dealt with by the DRS has resulted in a successful outcome. In addition, a special ROA/NTF Joint Account has been set up to lodge disputed sums in a neutral bank account.
Owners interested in the DRS should contact the ROA office, while trainers should contact the NTF.
Clause 21 of the ROA/NTF training agreement makes provision for an owner/trainer to pay a disputed sum into a joint account at Weatherbys controlled by the ROA and NTF. The money is held until the dispute is resolved. Payment into the account permits an owner to remove their horses from a trainer's yard whilst giving the trainer comfort that there are cleared funds available to settle the debt or the part of the debt that it is eventually agreed should be paid.
The ROA and NTF have agreed a set of simple terms and conditions as follows:
ROA/NTF Joint Holding Account
Name of Account
1. ROA/NTF Joint Holding Account.
Purpose of Account
2. To provide an account for use pursuant to clause 21 of the ROA/NTF standard training agreement, being an account into which an owner in dispute with a trainer can pay the amount claimed by the trainer, such money to be held on the basis set out below:
Conditions of money being held in Account
3. Money is accepted into the account on the basis that it is cleared funds of the owner concerned.
4. The money will be held in the Account by the ROA and NTF as stakeholder until resolution of the dispute between the trainer and the owner.
5. Any interest shall be credited to the capital but the ROA or the NTF shall be entitled to deduct a reasonable administrative charge from any such interest
6. Details of the rate of interest applicable to the account can be obtained from the ROA or the NTF. There is no obligation upon the ROA or the NTF to monitor the rate of interest payable nor to seek better rates of interest.
Payment of money from the Account
7. Funds can only be withdrawn from the account on the joint signatories of authorised officers of the ROA and the NTF.
8. Funds will only be paid out on the written authority of both parties to the dispute or their legal advisers or in accordance with a court or consent order. The ROA and the NTF reserve the right to ask for further evidence of agreement or authority to instruct if not satisfied with the instructions received.
Liability
9. No liability shall attach to the ROA or the NTF or any officers of either association for any loss occasioned to any party arising out of the use of the ROA/NTF Joint Holding Account.