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First Substitute H.B. 247

Representative Margaret Dayton proposes to substitute the following bill:


             1     
FILING WRONGFUL LIENS OR JUDGEMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Margaret Dayton

             5      This act S [ raises the penalty for refusing to correct a wrongful lien and ] s provides a cross
             6      reference to the wrongful lien statute for guidance in correcting a wrongful lien or judgment
             7      lien.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10      S [     38-9-4, as repealed and reenacted by Chapter 125, Laws of Utah 1997 ] s
             11          78-22-1.5, as last amended by Chapter 327, Laws of Utah 1998
             12      Be it enacted by the Legislature of the state of Utah:
             13           S [ Section 1. Section 38-9-4 is amended to read:
             14          38-9-4. Civil liability for filing wrongful lien -- Damages.
             15          (1) A lien claimant who records or files or causes a wrongful lien as defined in Section
             16      38-9-1 to be recorded or filed in the office of the county recorder against real property is liable to
             17      a record interest holder for any actual damages proximately caused by the wrongful lien.
             18          (2) If the person in violation of this Subsection (1) refuses to release or correct the
             19      wrongful lien within 20 days from the date of written request from a record interest holder of the
             20      real property delivered [personally or mailed] h [by certified mail, return receipt requested,]
             20a      PERSONALLY, MAILED, OR MAILED ELECTRONICALLY h to the
             21      last-known address of the lien claimant, the person is liable to that record interest holder for
             22      h [[] $1,000 []] [$5,000] h or for treble actual damages, whichever is greater, and for reasonable
             22a      attorney fees
             23      and costs.
             24          (3) A person is liable to the record owner of real property for h [[] $3,000 []] [$10,000] h
             24a      or for
             25      treble actual damages, whichever is greater, and for reasonable attorney fees and costs, who
] s
S [


             26      S [ records or files or causes to be recorded or filed a wrongful lien as defined in Section 38-9-1 in the
             27      office of the county recorder against the real property, knowing or having reason to know that the
             28      document:
             29          (a) is a wrongful lien;
             30          (b) is groundless; or
             31          (c) contains a material misstatement or false claim.
] s

             32          Section 2. Section 78-22-1.5 is amended to read:
             33           78-22-1.5. Definitions -- Judgment recorded in Registry of Judgments.
             34          (1) For purposes of this section, "Registry of Judgments" means the index where a
             35      judgment shall be recorded and searchable by the name of the judgment debtor through electronic
             36      means or by tangible document.
             37          (2) On or after July 1, 1997, a judgment rendered or recorded in a district court does not
             38      create a lien upon or affect the title to real property unless the judgment is recorded in the Registry
             39      of Judgments of the office of the clerk of the district court of the county in which the property is
             40      located.
             41          (3) In addition to the requirement of Subsection (2), any judgment that is recorded in the
             42      Registry of Judgments on or after September 1, 1998, shall include a separate information
             43      statement of the judgment creditor that contains:
             44          (a) the correct name and last-known address of each judgment debtor and the address at
             45      which each judgment debtor received service of process;
             46          (b) the name and address of the judgment creditor;
             47          (c) the amount of the judgment as entered in the Registry of Judgments;
             48          (d) if known, the judgment debtor's social security number, date of birth, and driver's
             49      license number if a natural person; and
             50          (e) whether or not a stay of enforcement has been ordered by the court and the date the stay
             51      expires.
             52          (4) For the information required in Subsection (3), the judgment creditor shall:
             53          (a) provide the information on the separate information statement if known or available
             54      to the judgment creditor from its records, its attorney's records, or the court records in the action
             55      in which the judgement was entered; or
             56          (b) state on the separate information statement that the information is unknown or


             57      unavailable.
             58          (5) (a) Any judgment that requires payment of money and is recorded on or after
             59      September 1, 1998, and is not accompanied by the separate information statement as required in
             60      Subsections (3) and (4) may be amended by recording a document entitled "Amendment to
             61      Recorded Judgment" in the Registry of Judgments in compliance with Subsections (3) and (4).
             62          (b) The amendment to the recorded judgment shall state the date of recording the original
             63      judgment in the Registry of Judgments.
             64          (c) Recording an amendment to a recorded judgment has no effect on the computation of
             65      time as provided in Section 78-22-1 .
             66          (6) A judgment that requires payment of money recorded on or after September 1, 1998,
             67      has as its priority the date of compliance with Subsections (3) and (4) h , EXCEPT AS TO PARTIES
             67a      WITH ACTUAL OR CONSTRUCTIVE KNOWLEDGE OF THE JUDGMENT h .
             68          (7) A judgment S OR NOTICE OF JUDGMEN T s wrongfully S [ entered under this section ]
             68a      FILED AGAINST REAL PROPERTY s is subject to Title 38, Chapter 9,
             69      Wrongful Liens.


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