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H.B. 486

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Wed, Mar 5, 2008 at 11:29 PM by rday. --> PLEASE NOTE:
THIS DOCUMENT INCLUDES BOTH THE BILL AND ALSO A TRANSMITTAL LETTER THAT CONTAINS PASSED AMENDMENTS BUT NOT INCORPORATED INTO THE BILL.


March 5, 2008 (11:27pm)



Mr. Speaker:

    The Senate passed, upon reconsideration, H.B. 486, WRONGFUL LIENS AND WRONGFUL JUDGEMENT LIENS, by Representative J. Gowans, with the following amendments:
1. Page 3, Lines 60 through 64
    House Committee Amendments
    2-26-2008

             60          (1) (a) The provisions of Sections 38-9-1, 38-9-3, 38-9-4, and 38-9-6 apply to any
             61      recording or filing or any rejected recording or filing of a lien   or notice of interest   pursuant to
             62      this chapter on or after May 5, H.   [   1997   ]     2008   .H .
             63          (b) The provisions of Sections 38-9-1 and 38-9-7 apply to all liens of record regardless
             64      of the date the lien   or notice of interest   was recorded or filed.
       (c) Notwithstanding Subsections (1)(a) and (b), the provisions of this chapter applicable to the filing of a notice of interest do not apply to a notice of interest filed before May 5, 2008.  

and it is transmitted to the House for further consideration.

        Respectfully,



        Annette B. Moore
        Secretary of the Senate


17 hb0486.wpd 11:27 pm CRP/rday


This document includes House Committee Amendments incorporated into the bill on Tue, Feb 26, 2008 at 10:32 AM by ddonat. -->              1     
WRONGFUL LIENS AND WRONGFUL

             2     
JUDGEMENT LIENS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: James R. Gowans

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill addresses the filing of, and an action against, a wrongful lien.
             11      Highlighted Provisions:
             12          This bill:
             13          .    includes a notice of interest and other encumbrances within the definition of
             14      "wrongful lien";
             15          .    addresses the impact of various wrongful lien provisions on a notice of interest and
             16      other encumbrance;
             17          .    increases the statutory amount that may be recovered by a person against whom a
             18      wrongful lien is recorded; and
             19          .    makes technical changes.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          38-9-1, as repealed and reenacted by Laws of Utah 1997, Chapter 125
             27          38-9-2, as last amended by Laws of Utah 2005, Chapter 93


             28          38-9-4, as last amended by Laws of Utah 2006, Chapter 297
             29          38-9a-201, as enacted by Laws of Utah 2005, Chapter 93
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 38-9-1 is amended to read:
             33           38-9-1. Definitions.
             34          As used in this chapter:
             35          (1) "Interest holder" means a person who holds or possesses a present, lawful property
             36      interest in certain real property, including an owner, title holder, mortgagee, trustee, or
             37      beneficial owner.
             38          (2) "Lien claimant" means a person claiming an interest in real property who offers a
             39      document for recording or filing with any county recorder in the state asserting a lien, or notice
             40      of interest, or other claim of interest in certain real property.
             41          (3) "Owner" means a person who has a vested ownership interest in certain real
             42      property.
             43          (4) "Record interest holder" means a person who holds or possesses a present, lawful
             44      property interest in certain real property, including an owner, titleholder, mortgagee, trustee, or
             45      beneficial owner, and whose name and interest in that real property appears in the county
             46      recorder's records for the county in which the property is located.
             47          (5) "Record owner" means an owner whose name and ownership interest in certain real
             48      property is recorded or filed in the county recorder's records for the county in which the
             49      property is located.
             50          (6) "Wrongful lien" means any document that purports to create a lien, notice of
             51      interest, or encumbrance on an owner's interest in certain real property and at the time it is
             52      recorded or filed is not:
             53          (a) expressly authorized by this chapter or another state or federal statute;
             54          (b) authorized by or contained in an order or judgment of a court of competent
             55      jurisdiction in the state; or
             56          (c) signed by or authorized pursuant to a document signed by the owner of the real
             57      property.
             58          Section 2. Section 38-9-2 is amended to read:


             59           38-9-2. Scope.
             60          (1) (a) The provisions of Sections 38-9-1 , 38-9-3 , 38-9-4 , and 38-9-6 apply to any
             61      recording or filing or any rejected recording or filing of a lien or notice of interest pursuant to
             62      this chapter on or after May 5, H. [ 1997 ] 2008 .H .
             63          (b) The provisions of Sections 38-9-1 and 38-9-7 apply to all liens of record regardless
             64      of the date the lien or notice of interest was recorded or filed.
             65          (2) The provisions of this chapter shall not prevent a person from filing a lis pendens in
             66      accordance with Section [ 78-40-2 ] 78B-6-1303 or seeking any other relief permitted by law.
             67          (3) This chapter does not apply to a person entitled to a lien under Section 38-1-3 who
             68      files a lien pursuant to Title 38, Chapter 1, Mechanics' Liens.
             69          Section 3. Section 38-9-4 is amended to read:
             70           38-9-4. Civil liability for filing wrongful lien -- Damages.
             71          (1) A lien claimant who records or files or causes a wrongful lien as defined in Section
             72      38-9-1 to be recorded or filed in the office of the county recorder against real property is liable
             73      to a record interest holder for any actual damages proximately caused by the wrongful lien.
             74          (2) If the person in violation of [this] Subsection (1) refuses to release or correct the
             75      wrongful lien within ten days from the date of written request from a record interest holder of
             76      the real property delivered personally or mailed to the last-known address of the lien claimant,
             77      the person is liable to that record interest holder for [$1,000] $3,000 or for treble actual
             78      damages, whichever is greater, and for reasonable attorney fees and costs.
             79          (3) A person is liable to the record owner of real property for [$3,000] $10,000 or for
             80      treble actual damages, whichever is greater, and for reasonable attorney fees and costs, who
             81      records or files or causes to be recorded or filed a wrongful lien as defined in Section 38-9-1 in
             82      the office of the county recorder against the real property, knowing or having reason to know
             83      that the document:
             84          (a) is a wrongful lien;
             85          (b) is groundless; or
             86          (c) contains a material misstatement or false claim.
             87          Section 4. Section 38-9a-201 is amended to read:
             88           38-9a-201. Wrongful lien injunction -- Forms.
             89          (1) (a) Any person who believes that he or she is the victim of a wrongful lien may file


             90      a verified written petition for a civil wrongful lien injunction against the person filing, making,
             91      or uttering the lien, notice of interest, or other encumbrance in the district court in the district in
             92      which the petitioner or respondent resides or in which any of the events occurred.
             93          (b) A minor accompanied by his or her parent or guardian may file a petition on his or
             94      her own behalf, or a parent, guardian, or custodian may file a petition on the minor's behalf.
             95          (2) (a) (i) The Administrative Office of the Courts shall develop and adopt forms for
             96      petitions, ex parte civil wrongful lien injunctions, civil wrongful lien injunctions, service, and
             97      any other necessary forms in accordance with the provisions of this chapter on or before May 2,
             98      2005.
             99          (ii) The office shall provide the forms adopted under Subsection (2)(a)(i) to the clerk of
             100      each district court.
             101          (b) The court clerks shall provide the forms to persons seeking to proceed under this
             102      chapter.
             103          (c) The district courts shall issue all petitions, injunctions, ex parte injunctions, and any
             104      other necessary forms in the form prescribed by the Administrative Office of the Courts.




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    as of 2-15-08 10:17 AM


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