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H.B. 336 Enrolled
This bill modifies provisions of the Judicial Code governing pending actions involving
. 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
Monies Appropriated in this Bill:
Other Special Clauses:
Utah Code Sections Affected:
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
(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
(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
(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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