cosignor from sale trying to stiff me

[Tom]

The cosignor that I used for the Jan sale at OBS is trying to stiff me for my part of the proceeds from the sale of my two yearlings. She told OBS that she owned 50% of the horses so they took more than half to pay the cosignors prior debts with OBS.Anybody have this problem and what do I do.

[Shannon]

Can you prove that they were not 50% hers Shouldn't it say somewhere on the papers or something? I would hold the OBS sales office responsible for the maisteke. They shouldn't have paid her without contcting you first?

[LSB]

I'd go straight to OBS with proof that she doesn't own 50% of the horses.

If she doesn't own any part of them, her name won't appear on the JC papers (which probably went to OBS pre-sale?). If she owns a share of them, hopefully you have a contract specifying how large a share. The first thing you need to do is convince OBS that they can't withold your money to pay her debts.

[Tom]

I own 100% but the consignor told them that I agreed to 50% commission on the sale which is a lie...who would be that stupid

[Michael]

I suggest collecting all documents you have with the sales agent and OBS and taking them to an attorney. If OBS has already paid out sales proceeds it will take a little strong arming to reverse the error. An attorney is the best person for this ugly job. You didn't mention the amounts involved, but anything over a couple thousand dollars should be legally contested.

[Tom]

Thanks Michael, I plan to get an attorney...looking for a good horse attorney in the Ocala area...the proceeds have already been paid except a small portion of which OBS is holding since I notified them of this dispute

[fernhollow]

At least the money was kept in the coffers of OBS. This should make it easier. I would first (quickly) try and work with them (proving ownership) and THEN, if that fails, consult an attorney. You don't want to spend profits from the sales on attorney fees if you don't have to.

Good luck...and is this the Tom that purchased 'Prescious'? If so, how is she doing?

[fernhollow]

Tom...I replied before seeing your last post. I thought that her debts were to OBS and that they did not pay them to a third party.

Terrible that they would just take her word for this and not consult you or require proof.

[steve]

Isn't there a form that you fill out before the sale saying you the owner want all the proceeds after the sale. And you will pay the agent after you get paid. That is what I always do.

[FOS]

hi Tom

I am confident that OBS did not take someone's (in this case your agent's) verbal word-for-it as to who to disburse funds to.

But if you signed an authorized agent's form (which you most likely did)...that will empower your agent to handle various matters (some of which you may not be aware etc). Certainly though...you did not empower your agent to lie (if in fact that's what you're alleging). That's another issue...and may require legal counsel

If you read your original OBS Consignor's Contract (aka entry form) it outlines (among many other things) representations and warranties (including title) that you as an owner (or your authorized agent) are making (under penalty of perjury)...and further indicates the role of OBS...and what you agree to and authorize them to do. The Consignor's Contract will be accepted by the sales company whether signed by an Owner or the Authorized Agent.

The Consignor's Contract also requests "Owner of Record" information (among other things)....and indicates various document requirements which may include...Jockey Club Registration Certificate(s)...Coggins...EVA...stallion service certs....breeding status reports etc etc etc.

The properly executed authorized agent form (which OBS requires) can be a powerful (and hopefully enlightening) document pertaining to the process...including disbursement.

It is my experience that sales companies are extremely cautious (particularly when it comes to disbursements)...and I suggest that a verbal communication between your agent (or even you the owner) and the sales company (re: disbursements) would not be enough to convince them to disburse funds in some fashion other than outlined in written documents.

It sounds like your issues and/or problems are probably and primarily (if not completely) related to the agent (if the properly executed Authorized Agent form is on file at OBS...along with the entry forms etc petaining to the horses in question).

For starters...I recommend that you obtain a copy of every document (that OBS relied upon) relating to the sale of your horses and disbursement of funds. If you believe it's prudent...retain legal counsel to accomplish this (and whatever else is necessary to resolve this matter) on your behalf.

I'd be surprised if OBS did anything (including disburse monies) that they were not properly authorized to do...but I guess anything is possible.

The first question I would ask is...did you sign an OBS Authorized Agent form ?

Best to you.

Respectfully

[Michael]

Tom,

I don't know any attorneys first hand in Ocala, but if you call my old friend Donna Wormser she will be happy to assist you. Good luck!

[BJ]

I own 100% but the consignor told them that I agreed to 50% commission on the sale which is a lie...who would be that stupid

Do you have a written agreement? Is this a reputable consignor?

[BJ]

I agree with FOS, there MUST be a written form on file. The ONLY thing that makes any sense here at all would be IF the agent/consignor changed 5% to 50%....OR you accidently filled out something incorrectly. Seems to me, OBS would be in constant hot water IF it allowed verbal commission percentage agreements from ONE party to dictate cash disbursements.

[Joe]

FOS's advice is right on. Most sales companies are very cautious now because of some publicized incidents over the last few years. They have a good business going and don't need the taint of shady deals. They need their buyers and sellers both.

[Tom]

Thanks for all the replys.....yes I did have a contract authorizing this consignor to be my consignor submitted to OBS but no where did it specify a commission amount nor that the sale of my horses would be used to settle the cosignors debt with OBS... the consignor 's flyer given to me said 4% but she told OBS that it was 50% and they took her word till I got wind of it.This consignor presented herself as my "friend" in the beginning and said I didnt have to worry about a day rate just pay for feed/hay and vet bills. Then when she knew I came into some cash thru a private sale she hit me with a day rate and many other expences just before the sale. I paid the day rate and all expences on the bill. They hadnt paid OBS for a horse in the past but they went to KY recently and bought more horses. I suppose they are scrambing for cash and are trying to take my money. Alot of our agreements were verbal(my biggest mistake)but like I said they were doing this as a 'friend'