Download Zipped Amended WordPerfect SB0047.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 47

This document includes House Floor Amendments incorporated into the bill on Wed, Feb 16, 2005 at 11:02 AM by chopkin. -->              1     

WRONGFUL LIEN OFFENSES

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Beverly Ann Evans

             5     

             6      LONG TITLE
             7      General Description:
             8          This bill amends the Criminal Code and Title 38, Liens, to provide for filing civil
             9      injunctions against wrongful liens made against a person's interest in real or personal
             10      property. The bill establishes felony penalties for making a wrongful lien. The bill also
             11      makes a felony offense of fraudulent handling of recordable writings.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines civil wrongful lien;
             15          .    establishes felony penalties for making a wrongful lien and increased penalties for
             16      subsequent violations;
             17          .    establishes felony penalties for the fraudulent handling of recordable writings,
             18      which includes falsifying or destroying a will, deed, lien, or other similar writing;
             19          .    allows an individual to petition for an ex parte injunction against the person making
             20      the wrongful lien, which prohibits the maker of the lien from making further liens
             21      against the petitioner without specific permission of the court;
             22          .    provides that the ex parte injunction nullifies the wrongful lien and gives the person
             23      making the wrongful lien the right to a hearing regarding the nullification;
             24          .    provides that if the maker of the lien does not respond, or if there is a hearing and
             25      the court determines that the lien is wrongful, the lien is nullified and the lien
             26      injunction stays in effect for three years unless the petitioner requests that the
             27      injunction be dissolved earlier;




Text Box

- 2 -
             28
         .    provides for attorney fees in actions regarding the wrongful lien and injunction; and
             29          .    makes cross reference changes in accordance with the provisions of this bill.
             30      Monies Appropriated in this Bill:
             31          None
             32      Other Special Clauses:
             33          None
             34      Utah Code Sections Affected:
             35      AMENDS:
             36          38-9-2, as last amended by Chapter 122, Laws of Utah 1999
             37          76-3-203.1, as last amended by Chapter 209, Laws of Utah 2001
             38          76-6-504, as enacted by Chapter 196, Laws of Utah 1973
             39      ENACTS:
             40          38-9a-101, Utah Code Annotated 1953
             41          38-9a-102, Utah Code Annotated 1953
             42          38-9a-201, Utah Code Annotated 1953
             43          38-9a-202, Utah Code Annotated 1953
             44          38-9a-203, Utah Code Annotated 1953
             45          38-9a-204, Utah Code Annotated 1953
             46          38-9a-205, Utah Code Annotated 1953
             47          76-6-503.5, Utah Code Annotated 1953
             48      REPEALS:
             49          38-9-5, as enacted by Chapter 125, Laws of Utah 1997
             50          76-6-503, as enacted by Chapter 196, Laws of Utah 1973
             51     

             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 38-9-2 is amended to read:
             54           38-9-2. Scope.
             55          (1) (a) The provisions of Sections 38-9-1 , 38-9-3 , 38-9-4 , [38-9-5 ,] and 38-9-6 apply to
             56      any recording or filing or any rejected recording or filing of a lien pursuant to this chapter on or
             57      after May 5, 1997.
             58          (b) The provisions of Sections 38-9-1 and 38-9-7 apply to all liens of record regardless



Text Box

- 3 -
House Floor Amendments 2-16-2005 ch/sca
             59
     of the date the lien was recorded or filed.
             60          (2) The provisions of this chapter shall not prevent a person from filing a lis pendens in
             61      accordance with Section 78-40-2 or seeking any other relief permitted by law.
             62          (3) This chapter does not apply to a person entitled to a lien under Section 38-1-3 who
             63      files a lien pursuant to Title 38, Chapter 1, Mechanics' Liens.
             64          Section 2. Section 38-9a-101 is enacted to read:
             65     
CHAPTER 9a. WRONGFUL LIEN INJUNCTIONS

             66     
Part 1. General Provisions

             67          38-9a-101. Title.
             68          This chapter is known as "Wrongful Lien Injunctions."
             69          Section 3. Section 38-9a-102 is enacted to read:
             70          38-9a-102. Definitions.
             71          As used in this chapter, "wrongful lien" refers to a lien made in violation of Section
             72      76-6-503.5 H. , and includes an instrument or document as defined in Section 38-9-1 .H .
             73          Section 4. Section 38-9a-201 is enacted to read:
             74     
Part 2. Petition, Notice, Injunction, Hearings

             75          38-9a-201. Wrongful lien injunction -- Forms.
             76          (1) (a) Any person who believes that he or she is the victim of a wrongful lien may file
             77      a verified written petition for a civil wrongful lien injunction against the person filing, making,
             78      or uttering the lien in the district court in the district in which the petitioner or respondent
             79      resides or in which any of the events occurred.
             80          (b) A minor accompanied by his or her parent or guardian may file a petition on his or
             81      her own behalf, or a parent, guardian, or custodian may file a petition on the minor's behalf.
             82          (2) (a) The Administrative Office of the Courts shall develop and adopt forms for
             83      petitions, ex parte civil wrongful lien injunctions, civil wrongful lien injunctions, service, and
             84      any other necessary forms in accordance with the provisions of this chapter on or before May 2,
             85      2005. The office shall provide the forms to the clerk of each district court.
             86          (b) The court clerks shall provide the forms to persons seeking to proceed under this
             87      chapter.
             88          (c) The district courts shall issue all petitions, injunctions, ex parte injunctions, and any
             89      other necessary forms in the form prescribed by the Administrative Office of the Courts.



Text Box

- 4 -
             90
         Section 5. Section 38-9a-202 is enacted to read:
             91          38-9a-202. Petition for wrongful lien injunction -- Ex parte injunction.
             92          (1) The petition for a civil wrongful lien injunction shall include:
             93          (a) the name of the petitioner, except that at the petitioner's request his or her address
             94      shall be disclosed to the court for purposes of service, but may not be listed on the petition, and
             95      shall be maintained in a separate document or automated database, not subject to release,
             96      disclosure, or any form of public access except as ordered by the court for good cause shown;
             97          (b) the name and address, if known, of the respondent;
             98          (c) specific actions and dates of the actions constituting the alleged wrongful lien;
             99          (d) if there is a prior court order concerning the same conduct, the name of the court in
             100      which the order was rendered; and
             101          (e) corroborating evidence of a wrongful lien, which may be in the form of a police
             102      report, affidavit, record, statement, item, letter, copy of the lien, or any other evidence which
             103      tends to prove the allegation of wrongful lien.
             104          (2) If the court determines there is reason to believe that a wrongful lien has been
             105      made, uttered, recorded, or filed, the court may issue an ex parte civil wrongful lien injunction
             106      that includes any of the following:
             107          (a) enjoining the respondent from making, uttering, recording, or filing any further
             108      liens without specific permission of the court;
             109          (b) ordering that the lien be nullified; and
             110          (c) any other relief necessary or convenient for the protection of the petitioner and
             111      other specifically designated persons under the circumstances.
             112          (3) An ex parte civil wrongful lien injunction issued under this section shall state on its
             113      face:
             114          (a) that the respondent is entitled to a hearing, upon written request filed with the court
             115      within ten days of the service of the injunction;
             116          (b) the name and address of the district court where the request may be filed;
             117          (c) that if the respondent fails to request a hearing within ten days of service, the ex
             118      parte civil wrongful lien injunction is automatically modified to a civil wrongful lien injunction
             119      without further notice to the respondent and that the civil wrongful lien injunction expires three
             120      years after service on the respondent;



Text Box

- 5 -
             121
         (d) the following statement: "Attention. This is an official court order. If you disobey
             122      this order, the court may find you in contempt. You may also be arrested and prosecuted for
             123      the crime of making a wrongful lien and any other crime you may have committed in
             124      disobeying this order."; and
             125          (e) that if the respondent requests, in writing, a hearing after the ten-day period
             126      specified in Subsection (3)(a) the court shall set a hearing within a reasonable time from the
             127      date the hearing is requested.
             128          (4) The ex parte civil wrongful lien injunction shall be served on the respondent within
             129      90 days after the date it is signed, and is effective upon service.
             130          Section 6. Section 38-9a-203 is enacted to read:
             131          38-9a-203. Hearing -- Court action.
             132          (1) (a) A hearing requested by the respondent as allowed under Section 38-9a-202 shall
             133      be held within ten days from the date the request is filed with the court, except as provided
             134      under Subsection (3).
             135          (b) If the court finds compelling reasons to continue the hearing date, the hearing shall
             136      then be held at the earliest possible time.
             137          (2) At the hearing the court may modify, revoke, or continue the injunction. The
             138      burden is on the petitioner to show by a preponderance of the evidence that the respondent has
             139      made, uttered, recorded, or filed a wrongful lien against the petitioner or the petitioner's
             140      property.
             141          (3) (a) If the respondent requests a hearing subsequent to the ten-day period after
             142      service, the court shall set a hearing within a reasonable time from the date requested.
             143          (b) At the hearing, the burden is on the respondent to show good cause why the civil
             144      wrongful lien injunction should be nullified.
             145          Section 7. Section 38-9a-204 is enacted to read:
             146          38-9a-204. Civil wrongful lien injunction -- Validity of injunctions -- Changes to
             147      injunctions -- Dissolution of injunction.
             148          (1) If the respondent does not request a hearing in writing within ten days of service of
             149      the ex parte civil wrongful lien injunction under Section 38-9a-203 , the injunction
             150      automatically becomes a civil wrongful lien injunction without further notice to the respondent
             151      and expires three years from the date of service.



Text Box

- 6 -
             152
         (2) The civil wrongful lien injunction issued by the court shall include the following
             153      statement: "Attention. This is an official court order. If you disobey this order, the court may
             154      find you in contempt. You may also be arrested and prosecuted for the crime of making a
             155      wrongful lien and any other crime you may have committed in disobeying this order."
             156          (3) A certified copy of an ex parte civil wrongful lien injunction or civil wrongful lien
             157      injunction is presumed to be a valid existing order of the court for a period of three years from
             158      the date of service of the ex parte civil wrongful lien injunction on the respondent.
             159          (4) (a) Any changes or modifications of the ex parte civil wrongful lien injunction are
             160      effective upon service on the respondent. The original ex parte civil wrongful lien injunction
             161      continues in effect until service of the changed or modified civil wrongful lien injunction on
             162      the respondent.
             163          (b) The validity of the injunction under this Subsection (4) is determined in the same
             164      manner as prescribed in Subsection (3).
             165          (5) The ex parte civil wrongful lien injunction or civil wrongful lien injunction may be
             166      dissolved at any time upon written application by the petitioner to the issuing court.
             167          (6) (a) The court clerk shall provide, without charge, to the petitioner one certified
             168      copy of the injunction issued by the court and one certified copy of the proof of service of the
             169      injunction on the respondent.
             170          (b) Charges may be imposed by the clerk's office for any additional copies, whether or
             171      not certified, under the Utah Code of Judicial Administration, Rule 4-202.08.
             172          Section 8. Section 38-9a-205 is enacted to read:
             173          38-9a-205. Remedies -- Actions arising from injunctions -- Attorney fees.
             174          (1) The remedies provided in this chapter for enforcement of the orders of the court are
             175      in addition to any other civil and criminal remedies available.
             176          (2) The district court shall hear and decide all matters arising pursuant to this chapter.
             177          (3) After a hearing with notice to the affected party, the court may enter an order
             178      requiring any party to pay the costs of the action, including reasonable attorney's fees.
             179          Section 9. Section 76-3-203.1 is amended to read:
             180           76-3-203.1. Offenses committed in concert with two or more persons -- Notice --
             181      Enhanced penalties.
             182          (1) (a) A person who commits any offense listed in Subsection (4) is subject to an



Text Box

- 7 -
             183
     enhanced penalty for the offense as provided in Subsection (3) if the trier of fact finds beyond a
             184      reasonable doubt that the person acted in concert with two or more persons.
             185          (b) "In concert with two or more persons" as used in this section means the defendant
             186      was aided or encouraged by at least two other persons in committing the offense and was aware
             187      that he was so aided or encouraged, and each of the other persons:
             188          (i) was physically present; or
             189          (ii) participated as a party to any offense listed in Subsection (4).
             190          (c) For purposes of Subsection (1)(b)(ii):
             191          (i) other persons participating as parties need not have the intent to engage in the same
             192      offense or degree of offense as the defendant; and
             193          (ii) a minor is a party if the minor's actions would cause him to be a party if he were an
             194      adult.
             195          (2) The prosecuting attorney, or grand jury if an indictment is returned, shall cause to
             196      be subscribed upon the information or indictment notice that the defendant is subject to the
             197      enhanced penalties provided under this section.
             198          (3) The enhanced penalty for a:
             199          (a) class B misdemeanor is a class A misdemeanor;
             200          (b) class A misdemeanor is a third degree felony;
             201          (c) third degree felony is a second degree felony;
             202          (d) second degree felony is a first degree felony; and
             203          (e) first degree felony is an indeterminate prison term of not less than nine years and
             204      which may be for life.
             205          (4) Offenses referred to in Subsection (1) are:
             206          (a) any criminal violation of Title 58, Chapter 37, 37a, 37b, or 37c, regarding
             207      drug-related offenses;
             208          (b) assault and related offenses under Title 76, Chapter 5, Part 1;
             209          (c) any criminal homicide offense under Title 76, Chapter 5, Part 2;
             210          (d) kidnapping and related offenses under Title 76, Chapter 5, Part 3;
             211          (e) any felony sexual offense under Title 76, Chapter 5, Part 4;
             212          (f) sexual exploitation of a minor as defined in Section 76-5a-3 ;
             213          (g) any property destruction offense under Title 76, Chapter 6, Part 1;



Text Box

- 8 -
House Floor Amendments 2-16-2005 ch/sca
             214
         (h) burglary, criminal trespass, and related offenses under Title 76, Chapter 6, Part 2;
             215          (i) robbery and aggravated robbery under Title 76, Chapter 6, Part 3;
             216          (j) theft and related offenses under Title 76, Chapter 6, Part 4;
             217          (k) any fraud offense under Title 76, Chapter 6, Part 5, except Sections [ 76-6-503 ,]
             218      76-6-504 , 76-6-505 , 76-6-507 , 76-6-508 , 76-6-509 , 76-6-510 , 76-6-511 , 76-6-512 , 76-6-513 ,
             219      76-6-514 , 76-6-516 , 76-6-517 , 76-6-518 , and 76-6-520 ;
             220          (l) any offense of obstructing government operations under Title 76, Chapter 8, Part 3,
             221      except Sections 76-8-302 , 76-8-303 , 76-8-304 , 76-8-307 , 76-8-308 , and 76-8-312 ;
             222          (m) tampering with a witness or other violation of Section 76-8-508 ;
             223          (n) extortion or bribery to dismiss criminal proceeding as defined in Section 76-8-509 ;
             224          (o) any explosives offense under Title 76, Chapter 10, Part 3;
             225          (p) any weapons offense under Title 76, Chapter 10, Part 5;
             226          (q) pornographic and harmful materials and performances offenses under Title 76,
             227      Chapter 10, Part 12;
             228          (r) prostitution and related offenses under Title 76, Chapter 10, Part 13;
             229          (s) any violation of Title 76, Chapter 10, Part 15, Bus Passenger Safety Act;
             230          (t) any violation of Title 76, Chapter 10, Part 16, Pattern of Unlawful Activity Act;
             231          (u) communications fraud as defined in Section 76-10-1801 ;
             232          (v) any violation of Title 76, Chapter 10, Part 19, Money Laundering and Currency
             233      Transaction Reporting Act; and
             234          (w) burglary of a research facility as defined in Section 76-10-2002 .
             235          (5) It is not a bar to imposing the enhanced penalties under this section that the persons
             236      with whom the actor is alleged to have acted in concert are not identified, apprehended,
             237      charged, or convicted, or that any of those persons are charged with or convicted of a different
             238      or lesser offense.
             239          Section 10. Section 76-6-503.5 is enacted to read:
             240          76-6-503.5. Wrongful liens and fraudulent handling of recordable writings --
             241      Penalties.
             242          (1) "Lien" means:
             243          (a) an instrument or document filed pursuant to Section 70A-9a-516 ;
             244          (b) an instrument or document H. [ filed pursuant to or authorized by Title 38, Chapter 9 ]
             244a      described in Subsection 38-9-1(6) .H ,



Text Box

- 9 -
House Floor Amendments 2-16-2005 ch/sca
             245
     Wrongful Liens and Wrongful Judgment Liens; and
             246          (c) any H. instrument or .H document that creates or purports to create a lien
             246a      or encumbrance on an owner's
             247      interest in real or personal property or a claim on another's assets.
             248          (2) A person is guilty of the crime of H. [ making a ] .H wrongful lien if that
             248a      person knowingly
             249      makes, utters, records, or files a lien:
             250          (a) having no objectively reasonable basis to believe he has a present and lawful
             251      property interest in the property or a claim on the assets; or
             252          (b) if the person files the lien in violation of a civil wrongful lien injunction pursuant to
             253      Title 38, Chapter 9a, Wrongful Lien Injunctions.
             254          (3) A violation of this section is a third degree felony unless the person has been
             255      previously convicted of an offense under this section, in which case the violation is a second
             256      degree felony.
             257          (4) (a) Any person who with intent to deceive or injure anyone falsifies, destroys,
             258      removes, records, or conceals any will, deed, mortgage, security instrument, lien, or other
             259      writing for which the law provides public recording is guilty of fraudulent handling of
             260      recordable writings.
             261          (b) H. [ Fraudulent handling of recordable writings ] A violation of Subsection (4)(a) .H
             261a      is a third degree felony unless the
             262      person has been previously convicted of an offense under this section, in which case the
             263      violation is a second degree felony.
             264          (5) This section does not prohibit prosecution for any act in violation of Section
             265      76-8-414 or for any offense greater than an offense under this section.
             266          Section 11. Section 76-6-504 is amended to read:
             267           76-6-504. Tampering with records -- Penalty.
             268          (1) Any person who, having no privilege to do so, knowingly falsifies, destroys,
             269      removes, or conceals any writing H. [ [ ] , other than the writings enumerated in Section [ ] ]
             269a      [ 76-6-503 , or ] 76-6-503.5 .H
             270      for which the law provides public recording or any record, public or private, with intent to
             271      deceive or injure any person or to conceal any wrongdoing is guilty of tampering with records.
             272          (2) Tampering with records is a class B misdemeanor.
             273          Section 12. Repealer.
             274          This bill repeals:
             275          Section 38-9-5, Criminal liability for filing a wrongful lien -- Penalties.




Text Box

- 10 -
             276
         Section 76-6-503, Fraudulent handling of recordable writings.





Legislative Review Note
    as of 1-12-05 1:49 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]