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First Substitute H.B. 196

This document includes House Committee Amendments incorporated into the bill on Wed, Mar 6, 2013 at 2:55 PM by jeyring. -->

Representative Earl D. Tanner proposes the following substitute bill:


             1     
JUDGMENT BY CONFESSION AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Earl D. Tanner

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill prohibits entry of judgment by confession without notice or opportunity for
             10      hearing in legal proceedings.
             11      Highlighted Provisions:
             12          This bill:
             13          .    prohibits entry of judgment by confession without notice or opportunity for hearing
             14      in legal proceedings.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      REPEALS AND REENACTS:
             21          78B-5-205, as renumbered and amended by Laws of Utah 2008, Chapter 3
             22     
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 78B-5-205 is repealed and reenacted to read:
             25          78B-5-205. Judgment by confession without action and notice prohibited.


             26          (1) A judgment by confession may not be entered without filing an action and giving
             27      notice and the opportunity for hearing whether based on admission, confession of judgment,
             28      warrant of attorney, or other waiver of the right to notice and the opportunity to be heard in the
             29      event of suit or similar process described in this section.
             30          (2) At the hearing provided by this section, any party may raise any claim or defense
             31      relating to the obligation underlying the confession of judgment. The court shall render
             32      judgment on the underlying obligation as the facts and law warrant. This subsection may be
             33      waived by a debtor through a waiver signed by debtor and debtor's counsel.
             34          (3) Notice required by this section, including but not limited to process, shall be served
             35      upon the debtor at the debtor's last known address and at every address for physical and
             36      electronic communication identified in the agreement authorizing entry of judgment. The
             37      agreement authorizing entry of judgment may include an agreement for service in any manner
             38      authorized by court rule for the service of process and, if it includes an agreed address for
             39      physical or electronic communication, may waive any requirement for a document indicating
             40      receipt by debtor or debtor's agent.
             41          (4) Notice required by this section shall include:
             42          (a) process as required by court rule for the initiation of an action;
             43          (b) an affidavit that contains an accounting of the original judgment authorized by the
             44      agreement and all payments, credits, and other adjustments made after entry of the original
             45      judgment; and
             46          (c) a proposed form of judgment.
             47          (5) Notice required by this section may not require a response from the debtor prior to
             48      H. [ 30 ] 20 .H days following completion of service of the notice.
             49          (6) In the event that notice is served as required in this section and a timely response
             50      contesting the proposed judgment is not made by the debtor, the court may enter judgment
             51      against the debtor.
             52          (7) This section does not authorize entry of judgment by means otherwise prohibited by
             53      law.


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