Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 299 (2015GS)

Sponsor

Rep. Hawkes, T.

Final action

Governor Signed 3/25/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• clarifies that an attorney may have an attorney's lien on intangible property;
• modifies the requirements for a notice of lien for an attorney's lien;
• addresses the methods by which an attorney may enforce an attorney's lien; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

ATTORNEYS LIEN AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Timothy D. Hawkes
Senate Sponsor: 
Todd Weiler
LONG TITLE
General Description:
This bill modifies provisions relating to attorney's liens.
Highlighted Provisions:
This bill:
▸ clarifies that an attorney may have an attorney's lien on intangible property;
▸ modifies the requirements for a notice of lien for an attorney's lien;
▸ addresses the methods by which an attorney may enforce an attorney's lien; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
38-2-7
, as renumbered and amended by Laws of Utah 2001, Chapter 4 and repealed and
reenacted by Laws of Utah 2001, Chapter 360
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
38-2-7
 is amended to read:
38-2-7.
Compensation -- Attorney's lien.
(1) The compensation of an attorney is governed by agreement between the attorney
and a client, express or implied, which is not restrained by law.
(2) An attorney shall have a lien for the balance of compensation due from a client on
any money or property owned by the client that is the subject of or connected with work
performed for the client, including[
, but not limited to
]:
(a) any real [
or
]
,
 personal
, or intangible
 property that is the subject of or connected
with the work performed for the client;
(b) any funds held by the attorney for the client, including any amounts paid as a
retainer to the attorney by the client; and
(c) any settlement, verdict, report, decision, or judgment in the client's favor in any
matter or action in which the attorney assisted, including any proceeds derived from the matter
or action, whether or not the attorney is employed by the client at the time the settlement,
verdict, report, decision, or judgment is obtained.
(3) An attorney's lien commences at the time of employment of the attorney by the
client.
(4) 
(a)
 An attorney may enforce a lien under this section by
:
(i)
 moving to intervene in a pending legal action
:
(A)
 in which the attorney has assisted or performed work[
,
]
;
 or
(B) in which the property subject to the attorney's lien may be disposed of or otherwise
encumbered; or
(ii)
 by filing a separate legal action.
(b)
 An attorney may not move to intervene in an action or file a separate legal action to
enforce a lien before 30 days has expired after a demand for payment has been made and not
been complied with.
(5) An attorney may file a notice of lien
:
(a)
 in a pending legal action in which the attorney has assisted or performed work for
which the attorney has a lien under this section[
. In addition, an attorney may file a notice of
lien
]
;
(b)
 with the county recorder of the county in which real property that is subject to a lien
under this section is located[
.
]
; or
(c) with the state or federal government office that receives filings that relate to the
ownership of the property.
(6)
 A notice of lien 
described in Subsection (5)
 shall include the following:
(a) the name, address, and telephone number of the attorney claiming the lien;
(b) the name of the client who is the owner of the property subject to the lien;
(c) a verification that
:
(i)
 the property is the subject of or connected with work performed by the attorney for
the client
;
 and [
that
]
(ii) (A) the attorney made
 a demand for payment of 
the
 amounts owed to the attorney
for the work [
has been made and not been paid
] 
and the client did not pay the amounts owed
within 30 days [
of
] 
after the day on which the attorney made
 the demand; 
or
(B) the attorney is filing the notice of lien in accordance with a written agreement
between the attorney and the client;
(d) the date 
on which
 the attorney first provided services to the client;
(e) a description of the property, sufficient for identification; [
and
]
(f) the signature of the [
lien claimant
] 
attorney claiming the lien;
 and
(g)
 an acknowledgment or certificate as required under Title 57, Chapter 3, Recording
of Documents.
[
(6)
] 
(7)
 Within 30 days after [
filing
] 
the day on which
 the notice of lien 
is filed
, the
attorney shall deliver or mail by certified mail to the client a copy of the notice of lien.
[
(7)
] 
(8)
 Any person who takes an interest in any property, other than real property, that
is subject to an attorney's lien with actual or constructive knowledge of the attorney's lien, takes
[
his or her
] 
the
 interest subject to the attorney's lien.
(9)
 An attorney's lien on real property has as its priority the date and time when a
notice of lien is filed with the county recorder of the county in which real property that is
subject to a lien under this section is located.
[
(8)
] 
(10)
 This section does not alter or diminish in any way an attorney's common law
retaining lien rights.
[
(9)
] 
(11)
 This section does not authorize an attorney to have a lien in the
representation of a client in a criminal matter or domestic relations matter where a final order
of divorce has not been secured unless:
(a) 
(i)
 the criminal matter has been concluded or the domestic relations matter has been
concluded by the securing of a final order of divorce
;
 or
(ii)
 the attorney/client relationship has terminated; and
(b) the client has failed to fulfill the client's financial obligation to the attorney.