March 1999 Volune 12 No3 - Utah State Bar

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34 provide a lien claiant with a signifcant remedy for the non- payment of labor and materials used to improve real property. On the other hand, faiure to properly perfect a mechanc's lien will cause the lien to be void. E. HOW DO YOU ENFORCE A MECHAIC'S LIEN? The enforcement of a mechanic's lien is generally referred to as a "foreclosure." A mechanic's lien foreclosure is simar to a mortgage foreclosure in that it is accomplished through a court. In a successful mechanc's lien foreclosure lawsuit, the court wil order the liened real property sold to pay the debt evidenced by the mechanc's lien. The sale is conducted by the county sherif. The real property, however, is subject to the statutory six month right of redemption from the date of the sale. On a residence, the lien claimant must fie a lawsuit to foreclose the mechanic's lien within 180 days "from the date the lien claimant last performed labor and services or last furnished equipment or material."15 On nonresidential construction, the lien claiant must fie a lawsuit to foreclose the mechanic's lien within 12 months "from the date of final completion of the original contract."16 In addition, in both instances, the lien claiant is required, withi the same relevant time period, to record with the county recorder of each county in which the mechanic's lien is recorded a notice of pendency (i.e. a Notice of Lis Pendens) of the lawsuit. 17 Faiure to timely fie the lawsuit wi cause the mechanc's lien to be void. Faiure to timely record the Notice of Lis Pendens shal cause the mechanic's lien to be void, except as to those persons or entities who have been made parties to the lawsuit and as to persons or entities having actual knowledge of the commencement of the lawsuit. Utah's mechanic's lien law is a complicated area of law and contais many nuances. Cases interpreting Utah's mechanc's lien statute tend to be very fact specifc. While this article attempts to provide a brief overview of Utah mechanc's lien law, attorneys involved in, or desiring to become involved in, the preparation, fing, enforcing and defending of mechanc's liens must frequently consult all relevant statutes and case law to ensure al applicable requirements are timely satisfied. lUtah's mechanic lien statue is contained in Utah Code Ann. §§38-1-1 to -270997 & 1998 Supp.). 2In some instances on residential projects, Section 38-1-3 may require subcontractors to release their mechanc's lien and pursue recovery agaist the Residential lien Restriction and lien Recovery Fund Act That Act provides that a lien claiant on a residence, who has not contracted directly with the owner, cannot maintain a mechanic's lien against an owner's real propert if: (1) the owner has a written contract with an oiiginal contractor, (2) the owner assured that the original contractor was properly licensed, (3) the owner assured that all necessaiy bullding permits were obtaied from the applicable local government agency, and (4) the owner paid every- thing due under the written contract with the original contractor. Such a lien claimant must pursue recovery from the Residence Lien Restriction and Lien Recovery Fund and not agaist the owner's residence. 3See Utah Code An. §58-50-11 (997) and§58A-I-16 (997). 4Utah Code Ann. § 38-1-3. 5SeeKing Brothers,Inc. v. Utah Dry Kiln Co., Inc., 374 P.2d 254 (Utah 1962). 6State v. Papanikola, 427 P.2d 749, 751 (Utah 1967). 7UtahCodeAn. §38-1-3. 8Utah Code Ann. § 38-1-17. 9 As a prerequisite to recoveiy of attorney's fees and costs, Section 38-1-7 requires a lien claiant, withi 30 days afer fig a notice of lien, to deliver or mail by certifed mail a copy of the notice of lien to either the reputed owner or record owner of the real propert. I°Utah Code An. §38-1-27(1). llUta Code An. §38-1-7(1) (a) 0998 Supp.). 12Uta Code An. §38-11-102(l7 (997). 13Utah Code Ann. §38-1-70) (b) 0998 Supp.). 14Utah Code An. §38-1-5. 15Utah Code An. §38-1-11(1)(b) (997). 16Utah Code Ann. §38-1-11 0) (a) (997). 17Utah Code An. §38-1-11 (2) (a) (997). · You maybe paying too much for your liabilty coverage. If you're not inured with the Attrneys' Advantae Professiona Liilty fuurance Program... you should object to your curent inurer on the followig grounds: · You may not have the broad coverage you really need. Affinity Insurance Services, Inc. 2180 South 1300 East. Suite 500. Salt Lake City, UT 84106 1-801-488-2550 Fax: 1-801-488-2559 Brought to you by: AON Visit oW' Web Site at htt://w.attrneys-advantae.com e 1998 Aff"inty InurancÐ Set'Vlces, Ino. Attorneys' ~dvanfage.
Young Lawyers Reaching Out to the Community By: Heidi Nestel and ALison Johnson, Co-chairs Young Lawyer's Community Services Committee The Young Lawyers Division of the Utah State Bar is dedicated to addressing the legal needs of Utah's communities. In order to do so, the Division, created the Community Servces Commttee which is co-chaired by Alson Johnson and Heidi Nestel. Although the Committee's general purpose is to address the legal issues afecting Utah's communities, the Committee specifcaly focuses on the legal needs of chidren and the elderly. These populations represent a signicant segment in our society yet are often vulnerable due to the lack of resources or abilties to protect their legal interests. The Community Services Com- mittee is dedicated to encouraging young lawyers to participate in creative projects which will serve these groups and have a positive impact on the community as a whole. Currently, the Community Servces Commttee is participating in and plannng a number of projects which specifcaly serve the mior and elderly populations in Utah. These projects are phe- nomenal opportunities for young lawyers to become involved in their community as well as the Utah State Bar. Below is a brief summar of the Commttee's major undertakings: 1. Helping Seniors Avoid Abuse and Fraud. Durig the month of March, the Community Servce Commttee has developed a project which wi reach out to the elderly at senior servce centers throughout Salt Lake County and offer workshops on elder abuse and fraud. These workshops wil provide helpfu inormation to the elderly and answer specifc questions they may have regardig their legal interests and rights. In order to complete this project, the Committee needs approximately eight (8) young lawyers, preferably those who work in the above-listed legal areas, to volunteer a few hours for traig and conductig the workshops. 2. Protect Your Child. Every year, chidren are abducted and, often times, parents do not have recent photographs or any tye of identig inormation on their chid. This project is intended to provide parents with important and basic information about their chidren which can be used by law enforcement personnel as well as prosecutors. Durig the fist week of May, young lawyers wil be stationed throughout the Wasatch Front where they wi figerprint, take instat photographs and record basic inormation about participating chidren. The inormation, photographs and figerprints will be kept in a folder which parents may keep and maita for their own records. In order to complete ths project, the Commttee needs up to th (30) young lawyers to volunteer time to develop the information packets as well as staf booths. 3. Pro Bono Guardian ad Litem Training. Currently, the Community Servces Committee is helping to sponsor the Pro Bono Guardian ad Litem Traing. Every year, cases involving abused and neglected chidren are assigned to Pro Bono Guardian ad Litems - attorneys appointed by the Court to represent the legal interests of these chidren. Although the Offce of the Guardian ad Litem just recently concluded a traig ses- sion, the Commttee encourages young lawyers to volunteer and partcipate in this worthwhie program. These are the major projects developed for this year and the Commttee is interested in additional ideas. If anyone is interested in servg as a Community Servces Commttee member or would like to volunteer for a project, please contact Heidi Nes- tel at (801) 451-4301 or Alson Johnson at (801) 524-6601. Membership in Walt Disney's Magic Kingdom Club(r is available to you free and brings you the best of Disney with exclusive benefits, special discounts and Vacation Packages at Disneyland(r Resort in California. See your Club representative today to pick up your FREE Magic Kingdom Club(r Membership Card and Guide. ~ lVLr~SÑE¡iS r¡ Magic~~:~:~~~cClubQY Sadie Eyre (f 297-7025 ~tan Bar 35
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March 1999 Volune 12 No3 - Utah State Bar

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