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H.B. 336 Enrolled

                 

CLAIMS ON REAL PROPERTY

                 
2004 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Gregory H. Hughes

                 
                  LONG TITLE
                  General Description:
                      This bill modifies provisions of the Judicial Code governing pending actions involving
                  real property.
                  Highlighted Provisions:
                      This bill:
                      .    allows a notice of the pendency of an action involving real property to be released
                  under certain circumstances; and
                      .    allows, under certain circumstances, a person with an interest in real property that is
                  the subject of a notice of the pendency of an action to recover damages, costs, and
                  attorney fees.
                  Monies Appropriated in this Bill:
                      None
                  Other Special Clauses:
                      None
                  Utah Code Sections Affected:
                  ENACTS:
                      78-40-2.5, Utah Code Annotated 1953
                 
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 78-40-2.5 is enacted to read:
                      78-40-2.5. Motions related to a notice of the pendency of an action.
                      (1) As used in this section:
                      (a) "Claimant" means a person who files a notice.


                      (b) "Guarantee" means an agreement by a claimant to pay an amount of damages:
                      (i) specified by the court;
                      (ii) suffered as a result of the maintenance of a notice;
                      (iii) to a person with an interest in the real property that is the subject of the notice; and
                      (iv) if the requirements of Subsection (6) are met.
                      (c) "Notice" means a notice of the pendency of an action filed under Section 78-40-2 .
                      (2) Any time after a notice has been recorded pursuant to Section 78-40-2 , any of the
                  following may make a motion to the court in which the action is pending to release the notice:
                      (a) a party to the action; or
                      (b) a person with an interest in the real property affected by the notice.
                      (3) A court shall order a notice released if:
                      (a) the court receives a motion to release under Subsection (2); and
                      (b) the court finds that the claimant has not established by a preponderance of the
                  evidence the probable validity of the real property claim that is the subject of the notice.
                      (4) If a court releases a notice pursuant to this section, the claimant may not record
                  another notice with respect to the same property without approval of the court in which the action
                  is pending.
                      (5) Upon a motion by any person with an interest in the real property that is the subject of
                  a notice, a court may require the claimant to give the moving party a guarantee as a condition of
                  maintaining the notice:
                      (a) any time after a notice has been recorded; and
                      (b) regardless of whether the court has received an application to release under
                  Subsection (2).
                      (6) A person who receives a guarantee under Subsection (5) may recover an amount not
                  to exceed the amount of the guarantee upon a showing that:
                      (a) the claimant did not prevail on the real property claim; and
                      (b) the person seeking the guarantee suffered damages as a result of the maintenance of
                  the notice.

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                      (7) A court shall award costs and attorney fees to a prevailing party on any motion under
                  this section unless the court finds that:
                      (a) the nonprevailing party acted with substantial justification; or
                      (b) other circumstances make the imposition of attorney fees and costs unjust.

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