Episode 159: Legal Basics, Pt. 2

For this week’s episode we dive into part 2 of legal basics for dog breeders. Learn about co-ownerships, showing rights, stud dogs, registration rights, and health guarantees!

Podcast Transcript:

Nicole Engelman  00:04

Welcome to the Good Dog Pod. Join us every other Wednesday when we discuss all things dogs, from health and veterinary care, to training and behavior science, as well as the ins and outs of Good Dog and how our platform can help you successfully run your breeding program. Follow us and join Good Dog’s mission to build a better world for our dogs and the people who love them.  

Nicole Engelman  00:28

Hi, everyone, and welcome back to another episode of The Good Dog Pod where we discuss all things related to canine health, research, how Good Dog helps breeders run their breeding programs, and so much more. I'm Nicole, the Breeder Community Lead here at Good Dog and your host for this week's episode. For this week's episode, we're going to be following up on last month's podcast with part two of legal basics for dog breeders. And today we're going to be talking about co-ownership showing rights, stud dogs registration rights and health guarantees. So before we get into all of that, just a quick call out that this episode is provided for general information purposes only and should not be construed as legal advice on any subject matter. We recommend connecting with a lawyer in your state if you're able to as legal advice is dependent upon the specific circumstances of each situation, and the law may vary from state to state. So while information in this episode is educational, it may not be correct for your state or your specific circumstances.  

Nicole Engelman  01:25

So we'll kick things off talking about co-ownerships. That is definitely one of the most unique aspects to being a dog breeder. And they can get a little bit messy to say the least. So we wanted to share some practical points to think about co-ownerships, as you might be considering getting into one or you might already be in one, but you can keep these points in mind as you just start thinking about co-ownerships generally, that will hopefully be helpful to you, whoever you're entering the co-ownership with and keep you both and your dogs protected. So a co ownership is when two or more people have their names on a dog's registration papers, it's a really popular arrangement with breeders who want to retain some control over the showing or the breeding of the puppies they produce. But I would say a lot of people, and even a lot of clubs sort of shy away from co-ownership. Because, as I mentioned, there are a lot of legal disputes that can arise from these types of relationships, it's more than just an arrangement between you and your co owner, it really needs to be a contract that is in writing signed by both parties, I can't stress that enough. It really needs to be a contract in writing that is signed by both of you. And it should really dictate the terms for the entire life of the co-ownership, including when the co-ownership will end. So it's important to really think of this co-ownership as a lifetime agreement and add those things to a contract accordingly. So when it's going to end, what the terms are that dictate the entire life of this co-ownership. So really be thinking not just in the short term when you're agreeing to something like this, but very far down the line in the long term as well. It's usually advised that the contract Be as detailed as possible, so nothing is left to chance and that there are no misunderstandings about what you and your co owner owe each other. You're really free to decide among you and your co owner how to divide up the various rights and responsibilities. So things like housing the dog, financing, the dog's health care, maybe their show career, choosing breeding partners, placing the letters, all of those things really should be thought through and included in your contract.  

Nicole Engelman  03:36

A big thing to keep in mind is dealing with disputes that may arise if one of the co-owners decides they no longer want to comply with the contract. I sort of like to think of a co ownership agreement. It's kind of like a prenup. So when you get married, you're like, oh, this is gonna be great. I'm never gonna need this prenup. And then, you know, if things go terribly, you're like, wow, I'm so glad I had this. That's how you should be thinking about your co ownership agreements as well. If you want to think of them as a prenup, go ahead. It's there in case things go terribly. And you need to refer to exactly what the agreement was in writing between the two of you. It's also important to really specify how disputes will be resolved and how some kind of mediation mechanism is included. Including some kind of language that shows how you're going to solve disputes that come up between the two of you can be very helpful in the long run. So again, even if you don't first see anything happening between you and your co owner, any issues. It's just good to have these protections there in case and it's good for you. It's good for the co owner, it's good for both of you. You should also be really specific about where the dog will live if the co-owners no longer want to retain a relationship or sort of how things like expenses and stud fees would be handled and how those things would be split up even after the co-ownership relationship ends. So if you want to get into one of these co ownerships with somebody else, please think about all of these different details that I just mentioned before you do. So just to again, make sure that you, your co owner and the dog are protected in every way possible. So just make sure you are thinking through all of it and really getting those details into any contracts that the both of you sign.  

Nicole Engelman  05:21

Similar to this is registration rights. So not too much to say on this topic. But I know again, this is a really unique aspect of being a dog breeder. So there are typically two types of registration, limited and full. Limited just implies that the dog is registered, but the litters produced by that dog are not eligible for registration. This really helps breeders protect their breeding programs and prevent the buyer from having any breeding rights, if you as the breeder don't want them to have them. Full registration is for owners who will breed dogs or may be actively participating in dog shows who might have breeding rights. If your puppy owner is not planning on being a breeder or entering into shows they probably won't require these kinds of rights. So really what you can do, and the most important thing to think about with registration rights is just being as straightforward as possible. When you are agreeing with a buyer to a certain puppy that you're going to sell them just to make sure that they understand the registration rights that that puppy comes with. And just be clear about it. But those are pretty straightforward ways of thinking about registration rights, and whether you would like them to be limited or full. And it is totally up to you and your preferences. Just make sure your buyer understands them as well.  

Nicole Engelman  06:36

Showing rights. So this is sort of related to the registration rights that we just spoke about. With showing rights, it's really similar to breeding rights, you'll want to protect yourself in the same way that you do by just being really careful about promising too much in your contract. You want to consider adding a disclaimer that says the showing is contemplating but that the puppy is sold merely as a prospect for that purpose, and that there are no guarantees that will actually happen. So an example would be the puppy is being sold as a show prospect at the time of the sale, the puppy is free from any major faults. Although the puppy appears to be show quality that can change if the puppy matures. So there's no guarantee that the puppy will complete a championship. And you'll also want to include any expectations of the buyer like if the buyer needs to take special care of the dog who will be responsible for the expense of the shows, things like that. And again, just be as clear as possible with anything that has to do with the showing rights. If that's something that you're going to include. 

Nicole Engelman  07:38

Health guarantees, this is a big one. And I see so many breeders in our community have questions about that. So we're going to dive into how you should think about putting together your health guarantees. And what is the best way to also make sure your buyers fully understand what they mean. So last month, we talked about the warranty of merchantability, which if you remember just means that the dog is fit for the purpose for which the dog will be used, which in most cases will be as a companion. Good health is generally considered to be a part of that warranty of merchantability because courts feel like a dog can't be a good companion if it's in bad health seems fairly obvious. A breeder can usually ensure that an animal leaves their premises healthy. Many breeders do extend this health guarantee. Some will make the guarantee contingent on the buyer obtaining a vet exam within a short time of purchase, maybe within 72 hours of the buyer bringing the dog home that is fairly common to see in health guarantees. But you can't foresee the animal's health throughout their lifetime, right, we wish we could look into the future and know exactly what would happen to the puppies that we raise and what they'll be like as dogs. But unfortunately, we can't. So your disclaimer and your health guarantee should really address specific health conditions that you acknowledge the puppy may have in the future. But it should state if you're comfortable that you don't promise that the puppy is forever free of that condition. So again, this is really just a way of protecting yourselves because, like I said, you can't see into the future, no one can fully predict what will happen to their dogs. And of course responsible breeders breed dogs who will have the best outcomes. But again, you cannot fully predict what can happen to your dog throughout the course of their life, we wish we could. So it's really good to protect yourselves in your health guarantee by including language similar to that in your healthcare guarantee. You'll want to decide things like how long the guarantee will last. Whether or not you'll require proof from that to confirm the condition, what kind of remedies the buyer will be given things like that. The buyer must supply records that show that the condition is existing and the seller also has the opportunity to take the dog to the seller's own vet to confirm, but if the dog does have a disorder, the buyer has three options. One is to return the dog and receive a replacement dog. Another is returning the dog and being reimbursed. And the third is keeping the dog and having some vet expenses covered. The genetic diseases that are going to be common are going to be breed specific. So just make sure that you understand how these diseases are inherited because it will impact what you can and cannot guarantee. So for example, a simple autosomal recessive gene, if the dog doesn't have a copy of it, or even if they have only one copy of it, it's likely that they're never going to come down with that disease, you can pretty much guarantee that, but for some things like incomplete dominance, or diseases that are more complex, that we've only identified one of the genes that's involved in it, it's going to be more complicated than that, of course. Understanding the genetics and maybe getting some genetic counseling about what you will and will not guarantee the dogs will be free from can be very helpful for you as a breeder in the long run.  

Nicole Engelman  10:55

And then for some other diseases that we screened for like hip dysplasia, elbow dysplasia, a lot of those phenotypic diseases, they're very multifactorial. So you do your part by guaranteeing that you screen the parent dogs, of course, and that you are breeding dogs that are more likely to produce puppies that have good hips, or elbows or good heart conditions. But again, it's also up to the puppy buyers, and how they care for those dogs. Because other factors will play into whether or not they get those diseases. So environmental factors, diet, exercise, if they're overweight, those types of things that, as a breeder are unfortunately out of your control once the puppy leaves your property, and they go live with your buyer. So you just want to be really careful about that and think through what you are and are not guaranteeing and make sure you're comfortable with the decisions that you make, and how it's going to be remedied.  

Nicole Engelman  11:50

Again, a health guarantee is something that we would recommend is really leaning on your breeder community. So whether it's our private Facebook group, or your local club, your national club, a mentor that you have, whatever it may be, it's really helpful to look at health guarantees of breeders who have been using them for a while, and it's worked for them and it's kept them protected just to see what kind of things that other breeders, especially breeders within the same breed as you, are thinking about as they're putting together their guarantee. So really leaning on the experience of your community can be super helpful when thinking through your guarantee, especially as you're thinking about the needs of your breed specifically and their health history.  

Nicole Engelman  12:34

Next thing we wanted to touch on and the final thing for this episode is stud dogs. This is also very, very important in the dog breeding world and very unique to the dog breeding world. So there are a lot of friction points that can come around with stud dogs. So we want to talk about how you can ensure that you and your studs are protected. So I like to think that stud dog contracts are often really ignored when we talk about the importance of contracts when it comes to breeding, but they are super important. And before even thinking about a contract, and I'm sure a lot of you already know this, there are a few things to consider about the dog that you're going to be using as a stud in your program. And a few of those things that you want to consider are, are you using a dog that has a good pedigree? Are you making sure that the dog has been health tested for all of the genetic conditions that are common for the breed? And you want to be sure that the dog is of the correct age, every breed is going to have its own guidelines, we at Good Dog have ours and you can always reference those on our website. You want to check your stud against the breed standard, make sure that there are no faults that might be passed down. You'll want the studs to be in good physical and mental health. You'll maybe want to consider whether the study is titled. You want to ensure that the dog has the appropriate temperament, maybe this will also vary depending on the breed, but it should be temperament that's described in the breed standard. You'll also want to think about whether you're choosing between natural breeding or artificial insemination.  

Nicole Engelman  14:07

When you've decided on studying out your dog, you'll then want to make sure that your contract includes all of the important points.  First you'll want to focus on whether there'll be a natural breeding or artificial insemination, like I mentioned. If you're planning on only offering natural breeding, you should be aware that there's a chance you're sort of limiting your stud dogs that you're stud to dogs that are only in your general location, but there are some things you should consider, like proper vaccinations. Your contract should state that if a female dog is coming to your kennel, the dog should be properly vaccinated, of course. You might also add information in your contract about what happens in the event of refusal of stud service. For larger breeding programs a secondary stud might be offered but if you're just starting out, you could have at least a contingency plan in place that says maybe you'll try artificial insemination with your vet if there's a refusal of stud service. You'll also want to note who is traveling to whom and who will cover the costs vary practically speaking. Generally, if you're bringing the stud to the female, you will cover your own travel costs and the price of the studding. But if she's traveling to stay with you, you might want to think about additional costs in the contract. So things like kennel fees if she'll be there for an extended stay.  

Nicole Engelman  15:19

For artificial insemination, which obviously includes a different process, you'll probably want your contract to include what kinds of expenses are associated with that. And you'll want to be really clear about how the semen will be stored and the different pricing along with that. You want to include detailed information about the stud dog and the female dog along with information about both breeders. It's really important it identifies which dogs they're breeding, it identifies who the contract is between. I know that can seem fairly obvious, but that is such a small and important thing to make sure that you are including detailed information about, just who this contract applies to both human and dog. You might want to include things like the registered name of both dogs, the date of birth of both dogs, microchip numbers, contact information and the dates of the breeding. Really, you can just never have too much information and you can never be too careful. So yes, it might seem like overkill to include microchip numbers, the dates of the breeding, the birthdays of both the dogs, but you won't regret including that information. So overload on information wherever you can. You'll also want to outline both the stud dog owner and the female dog owners responsibilities and you should be really, really clear about those. So with the stud dogs, some things you might think of including who's responsible for the care and the housing of the female dog. If the female is going to the stud dog's kennel. You want to think about how she'll be kenneled, how she'll be exercised, fed, how she'll be kept safe from other dogs. You might also want to include things like how the actual meeting will be supervised and how the dogs will be kept safe during and after the meeting.  

Nicole Engelman  16:56

So lots of things to think about as you are putting together a stud dog contract. You'll want to have again, as we already mentioned, alternative plans, things like including vet intervention in case the dogs do not breed. You'll also want to include the parameters of the registration paper. So that will include things like when you as the stud dog owner will sign. As a general rule, registration is not signed until payment for the breeding is made in full. That's just a good point to protect yourself. When you're outlining the female dog owner's responsibilities, you might want to see things like the dog's health tests and vaccination records, you might want to know about her breeding history, you want to discuss the fees. Usually the breeding fees incurred or the responsibility of the female dog owner, but that doesn't include things like testing semen or the studs vaccinations, but it usually does cover the collection and shipping of the semen in the event of an artificial insemination. I think mainly with all of this, you're just trying to establish a healthy relationship and partnership between the two of you. Part of that is just having a really clear and detailed contract so that each of you know your responsibilities, and you honor them, which is in a perfect world what both of you would do. I think maybe the last really important thing is the fee provision. Part of discussing the fee, you'll want to decide exactly what constitutes a litter. For some breeders this is three or more puppies, but it's going to differ for any breeder, but you want to decide what this is in order to determine the fee and what you'll do in the event that there isn't a litter produced. In the event that there's not a litter or there's a small litter that doesn't constitute a litter you'll need to have in the contract your plan. So some ideas are refunding the stud fee, maybe reducing the fee in the event that there is a smaller litter or repeating the breeding up to a maximum number of times before the stud dog owner is entitled to just keep the fee. Generally the price of the stud fee is determined in two ways. One is a set amount which is often the price of one puppy or the choice of a puppy from the litter. Stud dog owners, as we've mentioned, are usually not obligated to pay for any of the costs of breeding or getting the female to the stud dog. They usually don't pay any of that costs, or costs to raise and register the puppies, but you'll want to make sure that your contract includes whatever the agreement is between you and the other party. 

Nicole Engelman  19:19

You'll also lastly want to think about when the stud fee will be collected. Some stud owners will take a non refundable deposit at the time of the breeding, which is really meant to cover your time, your expenses, and then you'll collect your remaining amount when the litter is born. Again, just to reiterate this one more time, a really smart way to protect yourself as a stud owner is to not sign the registration papers until the fee is paid in full. So just something to keep in mind again as you are entering into these kinds of partnerships and agreements involving stud dogs breeding dogs generally, and just ways to think about making sure that you are both protecting yourselves.  

Nicole Engelman  19:56

So that is the last legal Basic that we wanted to touch on today. Thank you so much for taking the time to tune in to part two of our legal basics for dog breeders. Now that we've really been able to dive into the basics across these two episodes, we hope you're really feeling empowered to be your own advocates and know that you have the right tools at your disposal to keep your programs protected in all aspects. If you really liked the content of this episode, then I'll close with a final plug for Good Dog’s legal Resource Center, which is built for dog breeders. The legal Resource Center contains sample dog contract templates drafted by our team of lawyers, webinars answering commonly asked legal questions and even a list of breeder recommended lawyers in each state. All of these resources are completely free for members of our community. So if you're interested in accessing them, please sign up today to join Good Dog at gooddog.com/join which you can always find in our show notes. Thank you again for tuning in to another episode of The Good Dog Pod and we will see you right back here on March 27 For our next episode.  

Nicole Engelman  21:02

Thank you for listening to the Good Dog Pod. We'll be back in two weeks with another episode so be sure to subscribe to the Good Dog Pod on your favorite podcast platform.