Taking notice of Florida's antiquated equine lien laws.

• Author: Luby, Amanda Simmons

Many attorneys are familiar with the construction lien laws found in F.S. Ch. 713, Part I, which are fairly well-developed by case law. However, liens are not just available for those who provide labor and materials to construction projects. Liens are also available for a broad spectrum of other service providers in other industries pursuant to F.S. Ch. 713, Part II, but many such service providers (and their attorneys) may be unaware of these lien rights. Given the varied array of personal property liens available, this article does not intend to explore in-depth each kind of lien recognized by F.S. Ch. 713, Part II, but rather provide an overview of the types of liens available and how such liens are perfected and enforced within Florida's equine industry.

The equine industry in Florida is big business. Florida ranks only behind Texas and California with respect to the total number of horses (500,000). Approximately 440,000 Floridians are involved in the industry as horse owners, service providers, employees, and volunteers. Even more participate as spectators at equine-related events. The horse racing industry alone has a greater overall economic impact than baseball's spring training. (1) All equine activities generate approximately $5 billion for Florida's economy. People from all walks of life are involved in Florida's total equine industry, from the wealthiest families (e.g., the Bloomberg, Steinbrenner, Gates, and Onassis families) to your regular Joe farmers, horse trainers, children and retirees. (2) Florida's equine lien laws impact all of them.

Miscellaneous personal property lien laws are recognized in Part II of F.S. Ch. 713. Like Part I, courts must strictly construe Part II statutes. (3) Fortunately, at least for lien-holders, Part II is a diverse collection of broadly worded statutes that establish liens, often with less stringent perfection requirements than those required in Part I. Thus, the need to strictly construe the statutes is routinely tempered by the lack of strict perfection requirements.

Many of the personal property lien laws (4) have not been amended since they were enacted decades ago, and are rooted in Florida's agricultural or industrial history. Some have remained substantively unchanged since they were first enacted in the 19th century. Specifically regarding the equine industry, Part II includes personal property liens available to those who provide care and maintenance for horses; (5) provide veterinary services; (6) provide feeding and caring for racehorses and polo ponies; (7) and stallion owners who provide the service of their stallions for breeding purposes. (8)

These liens take priority over all other after-acquired liens, but they may not exceed the value of the services performed or goods supplied. (9) In some circumstances, personal property liens can also take priority over a prior secured party if the lienor is still in possession of the property. (10) Additionally, a lien only attaches to the horse that was improved by the service provider, but it also imposes personal liability on the property owner. (11)

Lienors in Privity--Perfection

Generally, for those equine industry providers in privity with the owner, there is no global requirement in Part II to provide notice of the lien to the owner in order to perfect a lien as the owner is presumed to have notice that the horse is being provided services. (12) A lien goes into effect upon the provision of services; and, unlike what is found with construction liens, there is no global requirement to record a claim of lien. (13)

For those in privity with the owner, irrespective of whether such privity was created through oral or written agreement, the statutes do not mandate that a claim of lien arising from the care of a horse be recorded because it is presumed the owner is aware services are being rendered to the animal. (14) For those who provide feed to racehorses and polo ponies, irrespective of privity, the lien attaches at the time of delivery of such feed and is presumed consumed by the horses at the delivery site at the time of delivery. (15) Veterinarians also have a lien on horses from the date services were rendered to the animal. (16)

Stallion owners, who can generate substantial income from standing their stallions at stud, are the only lienors in the horse business who are required to actually record a claim of lien in order to perfect it. A claim of lien arising from a stallion servicing a mare must be recorded in the county in which the mare resides within 18 months from the last time the stallion serviced the mare.

Lienors Not In Privity--Perfection

For those equine industry service providers not in privity with the owner, a lienor can typically perfect his or her lien on the horse in an easier fashion than what is required of construction liens. In most cases, to perfect a lien, the lienor in the horse business need only mail to the owner a "notice of lien." (17) There is no specific deadline as to when this notice of lien is required to be delivered, nor are there requisites as to how this notice of lien is required to be served. (18) The case law interpreting F.S...