38-9-4 - Civil liability for recording wrongful lien -- Damages.
38-9-4. Civil liability for recording wrongful lien -- Damages.
(1) A lien claimant who records or causes a wrongful lien as defined in Section 38-9-1 tobe recorded in the office of the county recorder against real property is liable to a record interestholder for any actual damages proximately caused by the wrongful lien.
(2) If the person in violation of Subsection (1) refuses to release or correct the wrongfullien within 10 days from the date of written request from a record interest holder of the realproperty delivered personally or mailed to the last-known address of the lien claimant, the personis liable to that record interest holder for $3,000 or for treble actual damages, whichever isgreater, and for reasonable attorney fees and costs.
(3) A person is liable to the record owner of real property for $10,000 or for treble actualdamages, whichever is greater, and for reasonable attorney fees and costs, who records or causesto be recorded a wrongful lien as defined in Section 38-9-1 in the office of the county recorderagainst the real property, knowing or having reason to know that the document:
(a) is a wrongful lien;
(b) is groundless; or
(c) contains a material misstatement or false claim.
Amended by Chapter 381, 2010 General Session