38-7-2.5. Failure to notify -- Effect -- Penalty.

213 words·~1 min read·/ut/title-38/chapter-7/38-7-2-5

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A person who fails to meet the notice requirements of Subsections 38-7-2(1) and

(2)is precluded from receiving an award of costs and attorneys' fees from the person against whom a notice of lien has been filed in an action to enforce the lien if costs and attorneys' fees are authorized by contract or statute.

(b)Subsection (1)(a) does not create a right to costs and attorneys' fees.

(2)In addition to the penalties provided in Subsection (1)(a) , a lien claimant who, within 20 days from the date of receiving notice of noncompliance with the notice requirements of Subsection 38-7-2(1) or

(2), willfully refuses to release the notice of lien or record the lien in compliance with Section 38-7-2 is liable to the person against whom the notice of lien was filed for $1,000 or for treble damages, whichever is greater.

(3)Failure to meet the notice requirements of Subsections 38-7-2(1) and

(2)does not:

(a)invalidate any lien arising at common law or in equity or by any statute of this state; or

(b)affect the rules of priority provided in Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions .

Amended by Chapter 252 , 2000 General Session