What does it mean to co-own an animal? This is a question that is not asked enough before the decision to co-own an animal is made and much more difficult to resolve after a disagreement with a co-owner. In most states, animals are considered property of the owner and are held in ownership in much the same way other personal property is owned. Two of the most common ways property can be owned with another is joint tenancy and tenants in common. The difference refers to what happens to the property upon the death of one of the owners. In a joint tenancy, each party owns an undivided equal interest in the whole and upon death of an owner their interest in the property transfers to the remaining owner or owners. When property is held as tenants in common, each owner owns an undivided equal interest in the whole and upon the death of one owner, their interest is left to the heirs. Unless there is some indication at the time the property is acquired by the owners that the property is intended to be held in joint tenancy, the default ownership is as tenants in common. Regardless of whether or not the property is held as joint tenants or as tenants in common, unless there is an agreement, preferably in writing to the contrary, each owner has an equal right to possess the property, use the property and in some cases transfer the property to others. This is typically not a problem when people are getting along and have mutual goals and interests in the property. When there is a dispute, this can become a huge problem. This is typically when I get the phone calls. The most common one is when a co-owner in possession of a female dog breeds her without the consent of the co-owner. A misconception among many is that the requirement that all owners sign the puppies’ registration paperwork will prevent this from happening. In reality, just like at law, the AKC acknowledges the rights of a co-owner in possession to do as they want with the animal. Unless there is a written agreement to withhold signature on registration documents, the AKC will typically require the other the co-owner’s signature permitting the sale of the puppies with AKC registration. If one owner sells or gives away property that is co-owned to an innocent third party, the remaining owners have little ability to recover the asset from the innocent person who either bought or received the property as a gift. They accepted the property on the basis of assumed authority to transfer the asset. This assumption can be challenged if the buyer or recipient had actual knowledge of the co-ownership status and the lack of consent by co-owners. Otherwise, the remaining owners are left with a civil claim against the aggrieving party who sold or transferred the asset through a civil equity claim called ouster. Ouster is when one owner effectively damages or interferes with other owner’s rights in the property. It is limited to the value of the interest in the asset. Recovery of a minimal financial amount is often of little consolation to someone who may lost their interest in property that has more sentimental value than monetary value. When disputes among owners occur during the period of ownership, or when a third party purchaser or recipient of the property as a gift takes the property with knowledge of the remaining owner’s interest and lack of consent by the remaining owners, the property may be recovered in an either an action for replevin or an action to partition the asset. Replevin is an action where a court will determine who has a priority ownership interest in the property and award the property to that person. Partition is when one or more owners decide they wish to sever their undivided equal ownership in the whole and take their share of the interest as a sole owner. When an assent can’t be physically divided, the asset is sold in public sale and the proceeds are divided. Neither of these options are inexpensive and if you find yourself involved in one of them, either as a petitioner or respondent, it can be a very unpleasant experience. Take the time to think about the possibilities before deciding to co-own something. Put your plans in writing in the form of a contract. It will control the relative rights and responsibilities of the co-owners. You don’t want to find yourself dealing with a partition action by a co-owner or heirs that have no knowledge or interest in the protection of bloodlines, make sure you opt out of that option in the contract. Decide when you are getting along with the co-owner or co-owners what will happen to the dog if you no longer want or are unable to co-own it. Decide who gets the dog, under what circumstances and what compensation the other co-owner(s) are entitled to for their interests in the animal. Even if you are forced into a courtroom, when the agreement is clear and in written form signed by all the parties, it is much easier to prove the original intent of the parties if there is a disagreement later or one of the parties is no longer able to testify. I’m sure you have heard the adage, “It’s all fun and games until someone gets hurt”. In ownership disputes, everyone gets hurt.
Posted on: Fri, 08 Aug 2014 18:25:32 +0000
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