Attorney Fees Amendments

10
18-1-4
31A-22-305
31A-22-305.3
31A-22-321
38-1a-308
78B-5-825
78B-10a-108
1
Attorney Fees Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Anthony E. Loubet
Senate Sponsor: Brady Brammer
LONG TITLE
General Description:
This bill addresses attorney fees.
Highlighted Provisions:
This bill:
clarifies the meaning of "bad faith"
throughout the Utah Code with regard to attorney fees;
amends the requirements for awarding reasonable attorney fees in a civil action; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
18-1-4
, as last amended by Laws of Utah 2024, Chapter 158
31A-22-305
, as last amended by Laws of Utah 2025, Chapter 261
31A-22-305.3
, as last amended by Laws of Utah 2025, Chapter 261
31A-22-321
, as last amended by Laws of Utah 2024, Chapter 158
38-1a-308
, as last amended by Laws of Utah 2024, Chapter 158
78B-5-825
, as last amended by Laws of Utah 2022, Chapter 272
78B-10a-108
, as enacted by Laws of Utah 2011, Chapter 197
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
18-1-4
is amended to read:
18-1-4
. Use of arbitration in personal injury from dog attack cases.
(1)
A person injured as a result of a dog attack may elect to submit all third party bodily
injury claims to arbitration by filing a notice of the submission of the claim to binding
arbitration in a court if:
(a)
the claimant or the claimant's representative has:
(i)
previously and timely filed a complaint in a court that includes a third party bodily
injury claim; and
(ii)
filed a notice to submit the claim to arbitration within 14 days after the complaint
has been answered; and
(b)
the notice required under Subsection
(1)(a)(ii)
is filed while the action under
Subsection
(1)(a)(i)
is still pending.
(2)
(a)
If a party submits a bodily injury claim to arbitration under Subsection
(1)
, the
party submitting the claim or the party's representative is limited to an arbitration
award that may not exceed $50,000 in addition to any medical premise benefits and
any claim for property damage.
(b)
A party who elects to proceed against a defendant under this section:
(i)
waives the right to obtain a judgment against the personal assets of the defendant;
and
(ii)
is limited to recovery only against available limits of insurance coverage.
(3)
A claim for punitive damages may not be made in an arbitration proceeding under
Subsection
(1)
or any subsequent proceeding, even if the claim is later resolved through
a trial de novo under Subsection
(11)
.
(4)
(a)
A party who has elected arbitration under this section may rescind the party's
election if the rescission is made within:
(i)
90 days after the election to arbitrate; and
(ii)
no less than 30 days before any scheduled arbitration hearing.
(b)
A party seeking to rescind an election to arbitrate under this Subsection
(4)
shall:
(i)
file a notice of the rescission of the election to arbitrate with the court in which the
matter was filed; and
(ii)
send copies of the notice of the rescission of the election to arbitrate to all counsel
of record to the action.
(c)
All discovery completed in anticipation of the arbitration hearing shall be available
for use by the parties as allowed by the Utah Rules of Civil Procedure and the Utah
Rules of Evidence.
(d)
A party who has elected to arbitrate under this section and then rescinded the
election to arbitrate under this Subsection
(4)
may not elect to arbitrate the claim
under this section again.
(5)
(a)
Unless otherwise agreed to by the parties or by order of the court, an arbitration
process elected under this section is subject to Rule 26, Utah Rules of Civil
Procedure.
(b)
Unless otherwise agreed to by the parties or ordered by the court, discovery shall be
completed within 150 days after the date arbitration is elected under this section or
the date the answer is filed, whichever is longer.
(6)
(a)
Unless otherwise agreed to in writing by the parties, a claim that is submitted to
arbitration under this section shall be resolved by a single arbitrator.
(b)
Unless otherwise agreed to by the parties or ordered by the court, all parties shall
agree on the single arbitrator selected under Subsection
(6)(a)
within 90 days of the
answer of the defendant.
(c)
If the parties are unable to agree on a single arbitrator as required under Subsection
(6)(b)
, the parties shall select a panel of three arbitrators.
(d)
If the parties select a panel of three arbitrators under Subsection
(6)(c)
:
(i)
each side shall select one arbitrator; and
(ii)
the arbitrators selected under Subsection
(6)(d)(i)
shall select one additional
arbitrator to be included in the panel.
(7)
Unless otherwise agreed to in writing:
(a)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(6)(a)
; and
(b)
if an arbitration panel is selected under Subsection
(6)(d)
:
(i)
each party shall pay the fees and costs of the arbitrator selected by that party's
side; and
(ii)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(6)(d)(ii)
.
(8)
Except as otherwise provided in this section and unless otherwise agreed to in writing
by the parties, an arbitration proceeding conducted under this section shall be governed
by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
(9)
(a)
Subject to the provisions of this section, the Utah Rules of Civil Procedure and the
Utah Rules of Evidence apply to the arbitration proceeding.
(b)
The Utah Rules of Civil Procedure and the Utah Rules of Evidence shall be applied
liberally with the intent of concluding the claim in a timely and cost-efficient manner.
(c)
Discovery shall be conducted in accordance with the Utah Rules of Civil Procedure
and shall be subject to the jurisdiction of the court in which the matter is filed.
(d)
Dispositive motions shall be filed, heard, and decided by the court prior to the
arbitration proceeding in accordance with the court's scheduling order.
(10)
A written decision by a single arbitrator or by a majority of the arbitration panel shall
constitute a final decision.
(11)
An arbitration award issued under this section shall be the final resolution of all bodily
injury claims between the parties and may be reduced to judgment by the court upon
motion and notice unless:
(a)
either party, within 20 days after service of the arbitration award:
(i)
files a notice requesting a trial de novo in the court; and
(ii)
serves the nonmoving party with a copy of the notice requesting a trial de novo
under Subsection
(11)(a)(i)
; or
(b)
the arbitration award has been satisfied.
(12)
(a)
Upon filing a notice requesting a trial de novo under Subsection
(11)
:
(i)
unless otherwise stipulated to by the parties or ordered by the court, an additional
90 days shall be allowed for further discovery;
(ii)
the additional discovery time under Subsection
(12)(a)(i)
shall run from the notice
of appeal; and
(iii)
the claim shall proceed through litigation
pursuant to
in accordance with
the
Utah Rules of Civil Procedure and the Utah Rules of Evidence in the court.
(b)
In accordance with the Utah Rules of Civil Procedure, either party may request a jury
trial with a request for trial de novo filed under Subsection
(11)
.
(13)
(a)
If the plaintiff, as the moving party in a trial de novo requested under Subsection
(11)
, does not obtain a verdict that is at least $5,000 and is at least 30% greater than
the arbitration award, the plaintiff is responsible for all of the nonmoving party's
costs.
(b)
Except as provided in Subsection
(13)(c)
, the costs under Subsection
(13)(a)
shall
include:
(i)
any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(ii)
the costs of expert witnesses and depositions.
(c)
An award of costs under this Subsection
(13)
may not exceed $6,000.
(14)
(a)
If a defendant, as the moving party in a trial de novo requested under Subsection
(11)
, does not obtain a verdict that is at least 30% less than the arbitration award, the
defendant is responsible for all of the nonmoving party's costs.
(b)
Except as provided in Subsection
(14)(c)
, the costs under Subsection
(14)(a)
shall
include:
(i)
any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(ii)
the costs of expert witnesses and depositions.
(c)
An award of costs under this Subsection
(14)
may not exceed $6,000.
(15)
For purposes of determining whether a party's verdict is greater or less than the
arbitration award under Subsections
(13)
and
(14)
, a court may not consider any
recovery or other relief granted on a claim for damages if the claim for damages was not
disclosed in:
(a)
writing prior to the arbitration proceeding; or
(b)
response to discovery contrary to the Utah Rules of Civil Procedure.
(16)
If a court determines, upon a motion of the nonmoving party, that the moving party's
use of the trial de novo process was filed in bad faith, as described in Section
78B-5-825
,
the court may award reasonable attorney fees to the nonmoving party.
(16)
Upon a motion of the nonmoving party, the court may award reasonable attorney fees
to the nonmoving party if the court determines that the moving party requested a trial de
novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or
abuse the judicial process.
(17)
Nothing in this section is intended to affect or prevent any first party claim from later
being brought under any first party insurance policy under which the injured person is a
covered person.
(18)
(a)
If a defendant requests a trial de novo under Subsection
(11)
, the total verdict at
trial may not exceed $15,000 above any available limits of insurance coverage and
the total verdict may not exceed $65,000.
(b)
If a plaintiff requests a trial de novo under Subsection
(11)
, the verdict at trial may
not exceed $50,000.
(19)
All arbitration awards issued under this section shall bear postjudgment interest
pursuant to
in accordance with
Section
15-1-4
.
Section 2. Section
31A-22-305
is amended to read:
31A-22-305
. Uninsured motorist coverage.
(1)
As used in this section, "covered persons" includes:
(a)
the named insured;
(b)
for a claim arising on or after May 13, 2014, the named insured's dependent minor
children;
(c)
persons related to the named insured by blood, marriage, adoption, or guardianship,
who are residents of the named insured's household, including those who usually
make their home in the same household but temporarily live elsewhere;
(d)
any person occupying or using a motor vehicle:
(i)
referred to in the policy; or
(ii)
owned by a self-insured; and
(e)
any person who is entitled to recover damages against the owner or operator of the
uninsured or underinsured motor vehicle because of bodily injury to or death of
persons under Subsection
(1)(a)
, (b), (c), or (d).
(2)
As used in this section, "uninsured motor vehicle" includes:
(a)
(i)
a motor vehicle, the operation, maintenance, or use of which is not covered
under a liability policy at the time of an injury-causing occurrence; or
(ii)
(A)
a motor vehicle covered with lower liability limits than required by Section
31A-22-304
; and
(B)
the motor vehicle described in Subsection
(2)(a)(ii)(A)
is uninsured to the
extent of the deficiency;
(b)
an unidentified motor vehicle that left the scene of an accident proximately caused
by the motor vehicle operator;
(c)
a motor vehicle covered by a liability policy, but coverage for an accident is disputed
by the liability insurer for more than 60 days or continues to be disputed for more
than 60 days; or
(d)
(i)
an insured motor vehicle if, before or after the accident, the liability insurer of
the motor vehicle is declared insolvent by a court of competent jurisdiction; and
(ii)
the motor vehicle described in Subsection
(2)(d)(i)
is uninsured only to the extent
that the claim against the insolvent insurer is not paid by a guaranty association or
fund.
(3)
Uninsured motorist coverage under Subsection
31A-22-302(1)(b)
provides coverage for
covered persons who are legally entitled to recover damages from owners or operators
of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
(4)
(a)
For new policies written on or after January 1, 2001, the limits of uninsured
motorist coverage shall be equal to the lesser of the limits of the named insured's
motor vehicle liability coverage or the maximum uninsured motorist coverage limits
available by the insurer under the named insured's motor vehicle policy, unless a
named insured rejects or purchases coverage in a lesser amount by signing an
acknowledgment form that:
(i)
is filed with the department;
(ii)
is provided by the insurer;
(iii)
waives the higher coverage;
(iv)
need only state in this or similar language that uninsured motorist coverage
provides benefits or protection to you and other covered persons for bodily injury
resulting from an accident caused by the fault of another party where the other
party has no liability insurance; and
(v)
discloses the additional premiums required to purchase uninsured motorist
coverage with limits equal to the lesser of the limits of the named insured's motor
vehicle liability coverage or the maximum uninsured motorist coverage limits
available by the insurer under the named insured's motor vehicle policy.
(b)
Any selection or rejection under this Subsection
(4)
continues for that issuer of the
liability coverage until the insured requests, in writing, a change of uninsured
motorist coverage from that liability insurer.
(c)
(i)
Subsections
(4)(a)
and (b) apply retroactively to any claim arising on or after
January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
demand for arbitration or filed a complaint in a court of competent jurisdiction.
(ii)
The Legislature finds that the retroactive application of Subsections
(4)(a)
and
(b)

clarifies the application of law and does not enlarge, eliminate, or destroy vested
rights.
(d)
For purposes of this Subsection
(4)
, "new policy" means:
(i)
any policy that is issued which does not include a renewal or reinstatement of an
existing policy; or
(ii)
a change to an existing policy that results in:
(A)
a named insured being added to or deleted from the policy; or
(B)
a change in the limits of the named insured's motor vehicle liability coverage.
(e)
(i)
As used in this Subsection
(4)(e)
, "additional motor vehicle" means a change
that increases the total number of vehicles insured by the policy, and does not
include replacement, substitute, or temporary vehicles.
(ii)
The adding of an additional motor vehicle to an existing personal lines or
commercial lines policy does not constitute a new policy for purposes of
Subsection
(4)(d)
.
(iii)
If an additional motor vehicle is added to a personal lines policy where uninsured
motorist coverage has been rejected, or where uninsured motorist limits are lower
than the named insured's motor vehicle liability limits, the insurer shall provide a
notice to a named insured within 30 days that:
(A)
in the same manner as described in Subsection
(4)(a)(iv)
, explains the purpose
of uninsured motorist coverage; and
(B)
encourages the named insured to contact the insurance company or insurance
producer for quotes as to the additional premiums required to purchase
uninsured motorist coverage with limits equal to the lesser of the limits of the
named insured's motor vehicle liability coverage or the maximum uninsured
motorist coverage limits available by the insurer under the named insured's
motor vehicle policy.
(f)
A change in policy number resulting from any policy change not identified under
Subsection
(4)(d)(ii)
does not constitute a new policy.
(g)
(i)
Subsection
(4)(d)
applies retroactively to any claim arising on or after January
1, 2001, for which, as of May 1, 2012, an insured has not made a written demand
for arbitration or filed a complaint in a court of competent jurisdiction.
(ii)
The Legislature finds that the retroactive application of
this
Subsection
(4)
:
(A)
does not enlarge, eliminate, or destroy vested rights; and
(B)
clarifies the application of law.
(h)
A self-insured, including a governmental entity, may elect to provide uninsured
motorist coverage in an amount that is less than its maximum self-insured retention
under Subsections
(4)(a)
and
(5)(a)
by issuing a declaratory memorandum or policy
statement from the chief financial officer or chief risk officer that declares the:
(i)
self-insured entity's coverage level; and
(ii)
process for filing an uninsured motorist claim.
(i)
Uninsured motorist coverage may not be sold with limits that are less than the
minimum bodily injury limits for motor vehicle liability policies under Section
31A-22-304
.
(j)
The acknowledgment under Subsection
(4)(a)
continues for that issuer of the
uninsured motorist coverage until the named insured requests, in writing, different
uninsured motorist coverage from the insurer.
(k)
(i)
In conjunction with the first two renewal notices sent after January 1, 2001, for
policies existing on that date, the insurer shall disclose in the same medium as the
premium renewal notice, an explanation of:
(A)
the purpose of uninsured motorist coverage in the same manner as described
in Subsection
(4)(a)(iv)
; and
(B)
a disclosure of the additional premiums required to purchase uninsured
motorist coverage with limits equal to the lesser of the limits of the named
insured's motor vehicle liability coverage or the maximum uninsured motorist
coverage limits available by the insurer under the named insured's motor
vehicle policy.
(ii)
The disclosure required under Subsection
(4)(k)(i)
shall be sent to all named
insureds that carry uninsured motorist coverage limits in an amount less than the
named insured's motor vehicle liability policy limits or the maximum uninsured
motorist coverage limits available by the insurer under the named insured's motor
vehicle policy.
(l)
For purposes of this Subsection
(4)
, a notice or disclosure sent to a named insured in
a household constitutes notice or disclosure to all insureds within the household.
(5)
(a)
(i)
Except as provided in Subsection
(5)(b)
, the named insured may reject
uninsured motorist coverage by an express writing to the insurer that provides
liability coverage under Subsection
31A-22-302(1)(a)
.
(ii)
This rejection shall be on a form provided by the insurer that includes a
reasonable explanation of the purpose of uninsured motorist coverage.
(iii)
This rejection continues for that issuer of the liability coverage until the insured
in writing requests uninsured motorist coverage from that liability insurer.
(b)
(i)
All persons, including governmental entities, that are engaged in the business
of, or that accept payment for, transporting natural persons by motor vehicle, and
all school districts that provide transportation services for their students, shall
provide coverage for all motor vehicles used for that purpose, by purchase of a
policy of insurance or by self-insurance, uninsured motorist coverage of at least
$25,000 per person and $500,000 per accident.
(ii)
This coverage is secondary to any other insurance covering an injured covered
person.
(c)
Uninsured motorist coverage:
(i)
in order to avoid double recovery, does not cover any benefit under Title 34A,
Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah
Occupational Disease Act, provided by the workers' compensation insurance
carrier, uninsured employer, the Uninsured Employers' Fund created in Section
34A-2-704
, or the Employers' Reinsurance Fund created in Section
34A-2-702
,
except that:
(A)
the covered person is credited an amount described in Subsection
34A-2-106(5)
; and
(B)
the benefits described in this Subsection
(5)(c)(i)
do not need to be paid before
an uninsured motorist claim may be pursued and resolved;
(ii)
may not be subrogated by the workers' compensation insurance carrier, uninsured
employer, the Uninsured Employers' Fund created in Section
34A-2-704
, or the
Employers' Reinsurance Fund created in Section
34A-2-702
;
(iii)
may not be reduced by any benefits provided by the workers' compensation
insurance carrier, uninsured employer, the Uninsured Employers' Fund created in
Section
34A-2-704
, or the Employers' Reinsurance Fund created in Section
34A-2-702
;
(iv)
notwithstanding Subsection
31A-1-103(3)(f)
, may be reduced by health
insurance subrogation only after the covered person has been made whole;
(v)
may not be collected for bodily injury or death sustained by a person:
(A)
while committing a violation of Section
41-1a-1314
;
(B)
who, as a passenger in a vehicle, has knowledge that the vehicle is being
operated in violation of Section
41-1a-1314
; or
(C)
while committing a felony; and
(vi)
notwithstanding Subsection
(5)(c)(v)
, may be recovered:
(A)
for a person under 18 years old who is injured within the scope of Subsection
(5)(c)(v)
but limited to medical and funeral expenses; or
(B)
by a law enforcement officer as defined in Section
53-13-103
, who is injured
within the course and scope of the law enforcement officer's duties.
(d)
As used in this Subsection
(5)
, "motor vehicle" means the same as that term is
defined in Section
41-1a-102
.
(6)
When a covered person alleges that an uninsured motor vehicle under Subsection
(2)(b)

proximately caused an accident without touching the covered person or the motor
vehicle occupied by the covered person, the covered person shall show the existence of
the uninsured motor vehicle by clear and convincing evidence consisting of more than
the covered person's testimony.
(7)
(a)
The limit of liability for uninsured motorist coverage for two or more motor
vehicles may not be added together, combined, or stacked to determine the limit of
insurance coverage available to an injured person for any one accident.
(b)
(i)
Subsection
(7)(a)
applies to all persons except a covered person as defined
under Subsection
(8)(b)
.
(ii)
A covered person as defined under Subsection
(8)(b)(ii)
is entitled to the highest
limits of uninsured motorist coverage afforded for any one motor vehicle that the
covered person is the named insured or an insured family member.
(iii)
This coverage shall be in addition to the coverage on the motor vehicle the
covered person is occupying.
(iv)
Neither the primary nor the secondary coverage may be set off against the other.
(c)
Coverage on a motor vehicle occupied at the time of an accident shall be primary
coverage, and the coverage elected by a person described under Subsections
(1)(a)

through
(c)
shall be secondary coverage.
(8)
(a)
Uninsured motorist coverage under this section applies to bodily injury, sickness,
disease, or death of covered persons while occupying or using a motor vehicle only if
the motor vehicle is described in the policy under which a claim is made, or if the
motor vehicle is a newly acquired or replacement motor vehicle covered under the
terms of the policy. Except as provided in Subsection
(7)
or this Subsection
(8)
, a
covered person injured in a motor vehicle described in a policy that includes
uninsured motorist benefits may not elect to collect uninsured motorist coverage
benefits from any other motor vehicle insurance policy under which the person is a
covered person.
(b)
Each of the following persons may also recover uninsured motorist benefits under
any one other policy in which they are described as a "covered person" as defined in
Subsection
(1)
:
(i)
a covered person injured as a pedestrian by an uninsured motor vehicle; and
(ii)
except as provided in Subsection
(8)(c)
, a covered person injured while
occupying or using a motor vehicle that is not owned, leased, or furnished:
(A)
to the covered person;
(B)
to the covered person's spouse; or
(C)
to the covered person's resident parent or resident sibling.
(c)
(i)
A covered person may recover benefits from no more than two additional
policies, one additional policy from each parent's household if the covered person
is:
(A)
a dependent minor of parents who reside in separate households; and
(B)
injured while occupying or using a motor vehicle that is not owned, leased, or
furnished:
(I)
to the covered person;
(II)
to the covered person's resident parent; or
(III)
to the covered person's resident sibling.
(ii)
Each parent's policy under this Subsection
(8)(c)
is liable only for the percentage
of the damages that the limit of liability of each parent's policy of uninsured
motorist coverage bears to the total of both parents' uninsured coverage applicable
to the accident.
(d)
A covered person's recovery under any available policies may not exceed the full
amount of damages.
(e)
A covered person in Subsection
(8)(b)
is not barred against making subsequent
elections if recovery is unavailable under previous elections.
(f)
(i)
As used in this section, "interpolicy stacking" means recovering benefits for a
single incident of loss under more than one insurance policy.
(ii)
Except to the extent permitted by Subsection
(7)
and this Subsection
(8)
,
interpolicy stacking is prohibited for uninsured motorist coverage.
(9)
(a)
When a claim is brought by a named insured or a person described in Subsection
(1)
and is asserted against the covered person's uninsured motorist carrier, the
claimant may elect to resolve the claim:
(i)
by submitting the claim to binding arbitration; or
(ii)
through litigation.
(b)
Unless otherwise provided in the policy under which uninsured benefits are claimed,
the election provided in Subsection
(9)(a)
is available to the claimant only, except
that if the policy under which insured benefits are claimed provides that either an
insured or the insurer may elect arbitration, the insured or the insurer may elect
arbitration and that election to arbitrate shall stay the litigation of the claim under
Subsection
(9)(a)(ii)
.
(c)
Once the claimant has elected to commence litigation under Subsection
(9)(a)(ii)
, the
claimant may not elect to resolve the claim through binding arbitration under this
section without the written consent of the uninsured motorist carrier.
(d)
For purposes of the statute of limitations applicable to a claim described in
Subsection
(9)(a)
, if the claimant does not elect to resolve the claim through
litigation, the claim is considered filed when the claimant submits the claim to
binding arbitration in accordance with this Subsection
(9)
.
(e)
(i)
Unless otherwise agreed to in writing by the parties, a claim that is submitted to
binding arbitration under Subsection
(9)(a)(i)
shall be resolved by a single
arbitrator.
(ii)
All parties shall agree on the single arbitrator selected under Subsection
(9)(e)(i)
.
(iii)
If the parties are unable to agree on a single arbitrator as required under
Subsection
(9)(e)(ii)
, the parties shall select a panel of three arbitrators.
(f)
If the parties select a panel of three arbitrators under Subsection
(9)(e)(iii)
:
(i)
each side shall select one arbitrator; and
(ii)
the arbitrators appointed under Subsection
(9)(f)(i)
shall select one additional
arbitrator to be included in the panel.
(g)
Unless otherwise agreed to in writing:
(i)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(9)(e)(i)
; or
(ii)
if an arbitration panel is selected under Subsection
(9)(e)(iii)
:
(A)
each party shall pay the fees and costs of the arbitrator selected by that party;
and
(B)
each party shall pay an equal share of the fees and costs of the arbitrator
selected under Subsection
(9)(f)(ii)
.
(h)
Except as otherwise provided in this section or unless otherwise agreed to in writing
by the parties, an arbitration proceeding conducted under this section shall be
governed by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
(i)
(i)
The arbitration shall be conducted in accordance with Rules 26(a)(4) through
(f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
requirements of Subsections
(10)(a)
through
(c)
are satisfied.
(ii)
The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil
Procedure shall be determined based on the claimant's specific monetary amount
in the written demand for payment of uninsured motorist coverage benefits as
required in Subsection
(10)(a)(i)(A)
.
(iii)
Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
arbitration claims under this part.
(j)
All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
(k)
A written decision by a single arbitrator or by a majority of the arbitration panel shall
constitute a final decision.
(l)
(i)
Except as provided in Subsection
(10)
, the amount of an arbitration award may
not exceed the uninsured motorist policy limits of all applicable uninsured
motorist policies, including applicable uninsured motorist umbrella policies.
(ii)
If the initial arbitration award exceeds the uninsured motorist policy limits of all
applicable uninsured motorist policies, the arbitration award shall be reduced to an
amount equal to the combined uninsured motorist policy limits of all applicable
uninsured motorist policies.
(m)
The arbitrator or arbitration panel may not decide the issues of coverage or
extra-contractual damages, including:
(i)
whether the claimant is a covered person;
(ii)
whether the policy extends coverage to the loss; or
(iii)
any allegations or claims asserting consequential damages or bad faith liability.
(n)
The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
class-representative basis.
(o)
If the arbitrator or arbitration panel finds that the action was not brought, pursued, or
defended in good faith, the arbitrator or arbitration panel may award reasonable
attorney fees and costs against the party that failed to bring, pursue, or defend the
claim in good faith.
(p)
An arbitration award issued under this section shall be the final resolution of all
claims not excluded by Subsection
(9)(m)
between the parties unless:
(i)
the award was procured by corruption, fraud, or other undue means; and
(ii)
within 20 days after service of the arbitration award, a party:
(A)
files a complaint requesting a trial de novo in a court with jurisdiction under
Title 78A, Judiciary and Judicial Administration
; and
(B)
serves the nonmoving party with a copy of the complaint requesting a trial de
novo under Subsection
(9)(p)(ii)(A)
.
(q)
(i)
Upon filing a complaint for a trial de novo under Subsection
(9)(p)
, the claim
shall proceed through litigation in accordance with the Utah Rules of Civil
Procedure and Utah Rules of Evidence.
(ii)
In accordance with Rule 38, Utah Rules of Civil Procedure, a party may request a
jury trial with a complaint requesting a trial de novo under Subsection
(9)(p)(ii)(A)
.
(r)
(i)
If the claimant, as the moving party in a trial de novo requested under
Subsection
(9)(p)
, does not obtain a verdict that is at least $5,000 and is at least
20% greater than the arbitration award, the claimant is responsible for all of the
nonmoving party's costs.
(ii)
If the uninsured motorist carrier, as the moving party in a trial de novo requested
under Subsection
(9)(p)
, does not obtain a verdict that is at least 20% less than the
arbitration award, the uninsured motorist carrier is responsible for all of the
nonmoving party's costs.
(iii)
Except as provided in Subsection
(9)(r)(iv)
, the costs under this Subsection
(9)(r)

shall include:
(A)
any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(B)
the costs of expert witnesses and depositions.
(iv)
An award of costs under this Subsection
(9)(r)
may not exceed $2,500 unless
Subsection
(10)(h)(iii)
applies.
(s)
For purposes of determining whether a party's verdict is greater or less than the
arbitration award under Subsection
(9)(r)
, a court may not consider any recovery or
other relief granted on a claim for damages if the claim for damages:
(i)
was not fully disclosed in writing prior to the arbitration proceeding; or
(ii)
was not disclosed in response to discovery contrary to the Utah Rules of Civil
Procedure.
(t)
If a court determines, upon a motion of the nonmoving party, that the moving party's
use of the trial de novo process was filed in bad faith in accordance with Section
78B-5-825
, the court may award reasonable attorney fees to the nonmoving party.
(t)
Upon a motion of the nonmoving party, the court may award reasonable attorney fees
to the nonmoving party if the court determines that the moving party requested a trial
de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation,
or abuse the judicial process.
(u)
Nothing in this section is intended to limit any claim under any other portion of an
applicable insurance policy.
(v)
If there are multiple uninsured motorist policies, as set forth in Subsection
(8)
, the
claimant may elect to arbitrate in one hearing the claims against all the uninsured
motorist carriers.
(10)
(a)
Within 30 days after a covered person elects to submit a claim for uninsured
motorist benefits to binding arbitration or files litigation, the covered person shall
provide to the uninsured motorist carrier:
(i)
a written demand for payment of uninsured motorist coverage benefits, setting
forth:
(A)
subject to Subsection
(10)(l)
, the specific monetary amount of the demand,
including a computation of the covered person's claimed past medical
expenses, claimed past lost wages, and the other claimed past economic
damages; and
(B)
the factual and legal basis and any supporting documentation for the demand;
(ii)
a written statement under oath disclosing:
(A)
(I)
the names and last known addresses of all health care providers who
have rendered health care services to the covered person that are material to
the claims for which uninsured motorist benefits are sought for a period of
five years preceding the date of the event giving rise to the claim for
uninsured motorist benefits up to the time the election for arbitration or
litigation has been exercised; and
(II)
the names and last known addresses of the health care providers who have
rendered health care services to the covered person, which the covered
person claims are immaterial to the claims for which uninsured motorist
benefits are sought, for a period of five years preceding the date of the event
giving rise to the claim for uninsured motorist benefits up to the time the
election for arbitration or litigation has been exercised that have not been
disclosed under Subsection
(10)(a)(ii)(A)(I)
;
(B)
(I)
the names and last known addresses of all health insurers or other
entities to whom the covered person has submitted claims for health care
services or benefits material to the claims for which uninsured motorist
benefits are sought, for a period of five years preceding the date of the event
giving rise to the claim for uninsured motorist benefits up to the time the
election for arbitration or litigation has been exercised; and
(II)
the names and last known addresses of the health insurers or other entities
to whom the covered person has submitted claims for health care services or
benefits, which the covered person claims are immaterial to the claims for
which uninsured motorist benefits are sought, for a period of five years
preceding the date of the event giving rise to the claim for uninsured
motorist benefits up to the time the election for arbitration or litigation have
not been disclosed;
(C)
if lost wages, diminished earning capacity, or similar damages are claimed, all
employers of the covered person for a period of five years preceding the date
of the event giving rise to the claim for uninsured motorist benefits up to the
time the election for arbitration or litigation has been exercised;
(D)
other documents to reasonably support the claims being asserted; and
(E)
all state and federal statutory lienholders including a statement as to whether
the covered person is a recipient of Medicare or Medicaid benefits or Utah
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
Utah Children's Health Insurance Program, or if the claim is subject to any
other state or federal statutory liens; and
(iii)
signed authorizations to allow the uninsured motorist carrier to only obtain
records and billings from the individuals or entities disclosed under Subsections
(10)(a)(ii)(A)(I)
, (B)(I), and (C).
(b)
(i)
If the uninsured motorist carrier determines that the disclosure of undisclosed
health care providers or health care insurers under Subsection
(10)(a)(ii)
is
reasonably necessary, the uninsured motorist carrier may:
(A)
make a request for the disclosure of the identity of the health care providers or
health care insurers; and
(B)
make a request for authorizations to allow the uninsured motorist carrier to
only obtain records and billings from the individuals or entities not disclosed.
(ii)
If the covered person does not provide the requested information within 10 days:
(A)
the covered person shall disclose, in writing, the legal or factual basis for the
failure to disclose the health care providers or health care insurers; and
(B)
either the covered person or the uninsured motorist carrier may request the
arbitrator or arbitration panel to resolve the issue of whether the identities or
records are to be provided if the covered person has elected arbitration.
(iii)
The time periods imposed by Subsection
(10)(c)(i)
are tolled pending resolution
of the dispute concerning the disclosure and production of records of the health
care providers or health care insurers.
(c)
(i)
An uninsured motorist carrier that receives an election for arbitration or a notice
of filing litigation and the demand for payment of uninsured motorist benefits
under Subsection
(10)(a)(i)
shall have a reasonable time, not to exceed 60 days
from the date of the demand and receipt of the items specified in Subsections
(10)(a)(i)
through
(iii)
, to:
(A)
provide a written response to the written demand for payment provided for in
Subsection
(10)(a)(i)
;
(B)
except as provided in Subsection
(10)(c)(i)(C)
, tender the amount, if any, of
the uninsured motorist carrier's determination of the amount owed to the
covered person; and
(C)
if the covered person is a recipient of Medicare or Medicaid benefits or Utah
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
Utah Children's Health Insurance Program, or if the claim is subject to any
other state or federal statutory liens, tender the amount, if any, of the uninsured
motorist carrier's determination of the amount owed to the covered person less:
(I)
if the amount of the state or federal statutory lien is established, the amount
of the lien; or
(II)
if the amount of the state or federal statutory lien is not established, two
times the amount of the medical expenses subject to the state or federal
statutory lien until such time as the amount of the state or federal statutory
lien is established.
(ii)
If the amount tendered by the uninsured motorist carrier under Subsection
(10)(c)(i)
is the total amount of the uninsured motorist policy limits, the tendered
amount shall be accepted by the covered person.
(d)
A covered person who receives a written response from an uninsured motorist carrier
as provided for in Subsection
(10)(c)(i)
, may:
(i)
elect to accept the amount tendered in Subsection
(10)(c)(i)
as payment in full of
all uninsured motorist claims; or
(ii)
elect to:
(A)
accept the amount tendered in Subsection
(10)(c)(i)
as partial payment of all
uninsured motorist claims; and
(B)
continue to litigate or arbitrate the remaining claim in accordance with the
election made under Subsections
(9)(a)
through
(c)
.
(e)
If a covered person elects to accept the amount tendered under Subsection
(10)(c)(i)

as partial payment of all uninsured motorist claims, the final award obtained through
arbitration, litigation, or later settlement shall be reduced by any payment made by
the uninsured motorist carrier under Subsection
(10)(c)(i)
.
(f)
In an arbitration proceeding on the remaining uninsured claims:
(i)
the parties may not disclose to the arbitrator or arbitration panel the amount paid
under Subsection
(10)(c)(i)
until after the arbitration award has been rendered; and
(ii)
the parties may not disclose the amount of the limits of uninsured motorist
benefits provided by the policy.
(g)
If the final award obtained through arbitration or litigation is greater than the average
of the covered person's initial written demand for payment provided for in Subsection
(10)(a)(i)
and the uninsured motorist carrier's initial written response provided for in
Subsection
(10)(c)(i)
, the uninsured motorist carrier shall pay:
(i)
the final award obtained through arbitration or litigation, except that if the award
exceeds the policy limits of the subject uninsured motorist policy by more than
$15,000, the amount shall be reduced to an amount equal to the policy limits plus
$15,000; and
(ii)
any of the following applicable costs:
(A)
any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
(B)
the arbitrator or arbitration panel's fee; and
(C)
the reasonable costs of expert witnesses and depositions used in the
presentation of evidence during arbitration or litigation.
(h)
(i)
The covered person shall provide an affidavit of costs within five days of an
arbitration award.
(ii)
(A)
Objection to the affidavit of costs shall specify with particularity the costs
to which the uninsured motorist carrier objects.
(B)
The objection shall be resolved by the arbitrator or arbitration panel.
(iii)
The award of costs by the arbitrator or arbitration panel under Subsection
(10)(g)(ii)
may not exceed $5,000.
(i)
(i)
A covered person shall disclose all material information, other than rebuttal
evidence, within 30 days after a covered person elects to submit a claim for
uninsured motorist coverage benefits to binding arbitration or files litigation as
specified in Subsection
(10)(a)
.
(ii)
If the information under Subsection
(10)(i)(i)
is not disclosed, the covered person
may not recover costs or any amounts in excess of the policy under Subsection
(10)(g)
.
(j)
This Subsection
(10)
does not limit any other cause of action that arose or may arise
against the uninsured motorist carrier from the same dispute.
(k)
The provisions of this Subsection
(10)
only apply to motor vehicle accidents that
occur on or after March 30, 2010.
(l)
(i)
(A)
The written demand requirement in Subsection
(10)(a)(i)(A)
does not
affect the covered person's requirement to provide a computation of any other
economic damages claimed, and the one or more respondents shall have a
reasonable time after the receipt of the computation of any other economic
damages claimed to conduct fact and expert discovery as to any additional
damages claimed.
(B)
The changes made by Laws of Utah 2014, Chapter 290, Section 10, and
Chapter 300, Section 10, to this Subsection
(10)(l)
and Subsection
(10)(a)(i)(A)

apply to a claim submitted to binding arbitration or through litigation on or
after May 13, 2014.
(ii)
The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
300, Section 10, to Subsections
(10)(a)(ii)(A)(II)
and
(B)(II)
apply to any claim
submitted to binding arbitration or through litigation on or after May 13, 2014.
(11)
(a)
A person shall commence an action on a written policy or contract for uninsured
motorist coverage within four years after the inception of loss.
(b)
Subsection
(11)(a)
shall apply to all claims that have not been time barred by
Subsection
31A-21-313(1)(a)
as of May 14, 2019.
Section 3. Section
31A-22-305.3
is amended to read:
31A-22-305.3
. Underinsured motorist coverage.
(1)
As used in this section:
(a)
"Covered person" means the same as that term is defined in Section
31A-22-305
.
(b)
(i)
"Underinsured motor vehicle" includes a motor vehicle, the operation,
maintenance, or use of which is covered under a liability policy at the time of an
injury-causing occurrence, but which has insufficient liability coverage to
compensate fully the injured party for all special and general damages.
(ii)
The term "underinsured motor vehicle" does not include:
(A)
a motor vehicle that is covered under the liability coverage of the same policy
that also contains the underinsured motorist coverage;
(B)
an uninsured motor vehicle as defined in Subsection
31A-22-305(2)
; or
(C)
a motor vehicle owned or leased by:
(I)
a named insured;
(II)
a named insured's spouse; or
(III)
a dependent of a named insured.
(2)
(a)
Underinsured motorist coverage under Subsection
31A-22-302(1)(c)
provides
coverage for a covered person who is legally entitled to recover damages from an
owner or operator of an underinsured motor vehicle because of bodily injury,
sickness, disease, or death.
(b)
A covered person occupying or using a motor vehicle owned, leased, or furnished to
the covered person, the covered person's spouse, or covered person's resident relative
may recover underinsured benefits only if the motor vehicle is:
(i)
described in the policy under which a claim is made; or
(ii)
a newly acquired or replacement motor vehicle covered under the terms of the
policy.
(3)
(a)
For purposes of this Subsection
(3)
, "new policy" means:
(i)
any policy that is issued that does not include a renewal or reinstatement of an
existing policy; or
(ii)
a change to an existing policy that results in:
(A)
a named insured being added to or deleted from the policy; or
(B)
a change in the limits of the named insured's motor vehicle liability coverage.
(b)
For new policies written on or after January 1, 2001, the limits of underinsured
motorist coverage shall be equal to the lesser of the limits of the named insured's
motor vehicle liability coverage or the maximum underinsured motorist coverage
limits available by the insurer under the named insured's motor vehicle policy, unless
a named insured rejects or purchases coverage in a lesser amount by signing an
acknowledgment form that:
(i)
is filed with the department;
(ii)
is provided by the insurer;
(iii)
waives the higher coverage;
(iv)
need only state in this or similar language that "underinsured motorist coverage
provides benefits or protection to you and other covered persons for bodily injury
resulting from an accident caused by the fault of another party where the other
party has insufficient liability insurance"; and
(v)
discloses the additional premiums required to purchase underinsured motorist
coverage with limits equal to the lesser of the limits of the named insured's motor
vehicle liability coverage or the maximum underinsured motorist coverage limits
available by the insurer under the named insured's motor vehicle policy.
(c)
Any selection or rejection under Subsection
(3)(b)
continues for that issuer of the
liability coverage until the insured requests, in writing, a change of underinsured
motorist coverage from that liability insurer.
(d)
(i)
Subsections
(3)(b)
and
(c)
apply retroactively to any claim arising on or after
January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
demand for arbitration or filed a complaint in a court of competent jurisdiction.
(ii)
The Legislature finds that the retroactive application of Subsections
(3)(b)
and
(c)

clarifies the application of law and does not enlarge, eliminate, or destroy vested
rights.
(e)
(i)
As used in this Subsection
(3)(e)
, "additional motor vehicle" means a change
that increases the total number of vehicles insured by the policy, and does not
include replacement, substitute, or temporary vehicles.
(ii)
The adding of an additional motor vehicle to an existing personal lines or
commercial lines policy does not constitute a new policy for purposes of
Subsection
(3)(a)
.
(iii)
If an additional motor vehicle is added to a personal lines policy where
underinsured motorist coverage has been rejected, or where underinsured motorist
limits are lower than the named insured's motor vehicle liability limits, the insurer
shall provide a notice to a named insured within 30 days that:
(A)
in the same manner described in Subsection
(3)(b)(iv)
, explains the purpose of
underinsured motorist coverage; and
(B)
encourages the named insured to contact the insurance company or insurance
producer for quotes as to the additional premiums required to purchase
underinsured motorist coverage with limits equal to the lesser of the limits of
the named insured's motor vehicle liability coverage or the maximum
underinsured motorist coverage limits available by the insurer under the named
insured's motor vehicle policy.
(f)
A change in policy number resulting from any policy change not identified under
Subsection
(3)(a)(ii)
does not constitute a new policy.
(g)
(i)
Subsection
(3)(a)
applies retroactively to any claim arising on or after January
1, 2001 for which, as of May 1, 2012, an insured has not made a written demand
for arbitration or filed a complaint in a court of competent jurisdiction.
(ii)
The Legislature finds that the retroactive application of Subsection
(3)(a)
:
(A)
does not enlarge, eliminate, or destroy vested rights; and
(B)
clarifies legislative intent.
(h)
A self-insured, including a governmental entity, may elect to provide underinsured
motorist coverage in an amount that is less than its maximum self-insured retention
under Subsections
(3)(b)
and
(l)
by issuing a declaratory memorandum or policy
statement from the chief financial officer or chief risk officer that declares the:
(i)
self-insured entity's coverage level; and
(ii)
process for filing an underinsured motorist claim.
(i)
Underinsured motorist coverage may not be sold with limits that are less than:
(i)
$10,000 for one person in any one accident; and
(ii)
at least $20,000 for two or more persons in any one accident.
(j)
An acknowledgment under Subsection
(3)(b)
continues for that issuer of the
underinsured motorist coverage until the named insured, in writing, requests different
underinsured motorist coverage from the insurer.
(k)
(i)
The named insured's underinsured motorist coverage, as described in
Subsection
(2)
, is secondary to the liability coverage of an owner or operator of an
underinsured motor vehicle, as described in Subsection
(1)
.
(ii)
Underinsured motorist coverage may not be set off against the liability coverage
of the owner or operator of an underinsured motor vehicle, but shall be added to,
combined with, or stacked upon the liability coverage of the owner or operator of
the underinsured motor vehicle to determine the limit of coverage available to the
injured person.
(l)
(i)
In conjunction with the first two renewal notices sent after January 1, 2001, for
policies existing on that date, the insurer shall disclose in the same medium as the
premium renewal notice, an explanation of:
(A)
the purpose of underinsured motorist coverage in the same manner as
described in Subsection
(3)(b)(iv)
; and
(B)
a disclosure of the additional premiums required to purchase underinsured
motorist coverage with limits equal to the lesser of the limits of the named
insured's motor vehicle liability coverage or the maximum underinsured
motorist coverage limits available by the insurer under the named insured's
motor vehicle policy.
(ii)
The disclosure required under this Subsection
(3)(l)
shall be sent to all named
insureds that carry underinsured motorist coverage limits in an amount less than
the named insured's motor vehicle liability policy limits or the maximum
underinsured motorist coverage limits available by the insurer under the named
insured's motor vehicle policy.
(m)
For purposes of this Subsection
(3)
, a notice or disclosure sent to a named insured in
a household constitutes notice or disclosure to all insureds within the household.
(4)
(a)
(i)
Except as provided in this Subsection
(4)
, a covered person injured in a
motor vehicle described in a policy that includes underinsured motorist benefits
may not elect to collect underinsured motorist coverage benefits from another
motor vehicle insurance policy.
(ii)
The limit of liability for underinsured motorist coverage for two or more motor
vehicles may not be added together, combined, or stacked to determine the limit
of insurance coverage available to an injured person for any one accident.
(iii)
Subsection
(4)(a)(ii)
applies to all persons except a covered person described
under Subsections
(4)(b)(i)
and
(ii)
.
(b)
(i)
A covered person injured as a pedestrian by an underinsured motor vehicle may
recover underinsured motorist benefits under any one other policy in which they
are described as a covered person.
(ii)
Except as provided in Subsection
(4)(b)(iii)
, a covered person injured while
occupying, using, or maintaining a motor vehicle that is not owned, leased, or
furnished to the covered person, the covered person's spouse, or the covered
person's resident parent or resident sibling, may also recover benefits under any
one other policy under which the covered person is also a covered person.
(iii)
(A)
A covered person may recover benefits from no more than two additional
policies, one additional policy from each parent's household if the covered
person is:
(I)
a dependent minor of parents who reside in separate households; and
(II)
injured while occupying or using a motor vehicle that is not owned, leased,
or furnished to the covered person, the covered person's resident parent, or
the covered person's resident sibling.
(B)
Each parent's policy under this Subsection
(4)(b)(iii)
is liable only for the
percentage of the damages that the limit of liability of each parent's policy of
underinsured motorist coverage bears to the total of both parents' underinsured
coverage applicable to the accident.
(iv)
A covered person's recovery under any available policies may not exceed the full
amount of damages.
(v)
Underinsured coverage on a motor vehicle occupied at the time of an accident is
primary coverage, and the coverage elected by a person described under
Subsections
31A-22-305(1)(a)
, (b), and (c) is secondary coverage.
(vi)
The primary and the secondary coverage may not be set off against the other.
(vii)
A covered person as described under Subsection
(4)(b)(i)
or is entitled to the
highest limits of underinsured motorist coverage under only one additional policy
per household applicable to that covered person as a named insured, spouse, or
relative.
(viii)
A covered injured person is not barred against making subsequent elections if
recovery is unavailable under previous elections.
(ix)
(A)
As used in this section, "interpolicy stacking" means recovering benefits
for a single incident of loss under more than one insurance policy.
(B)
Except to the extent permitted by this Subsection
(4)
, interpolicy stacking is
prohibited for underinsured motorist coverage.
(c)
Underinsured motorist coverage:
(i)
in order to avoid double recovery, does not cover any benefit under Title 34A,
Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah
Occupational Disease Act, provided by the workers' compensation insurance
carrier, uninsured employer, the Uninsured Employers' Fund created in Section
34A-2-704
, or the Employers' Reinsurance Fund created in Section
34A-2-702
,
except that:
(A)
the covered person is credited an amount described in Subsection
34A-2-106(5)
; and
(B)
the benefits described in this Subsection
(4)(c)(i)
do not need to be paid before
an underinsured motorist claim may be pursued and resolved
.
;
(ii)
may not be subrogated by a workers' compensation insurance carrier, uninsured
employer, the Uninsured Employers' Fund created in Section
34A-2-704
, or the
Employers' Reinsurance Fund created in Section
34A-2-702
;
(iii)
may not be reduced by benefits provided by the workers' compensation insurance
carrier, uninsured employer, the Uninsured Employers' Fund created in Section
34A-2-704
, or the Employers' Reinsurance Fund created in Section
34A-2-702
;
(iv)
notwithstanding Subsection
31A-1-103(3)(f)
, may be reduced by health
insurance subrogation only after the covered person is made whole;
(v)
may not be collected for bodily injury or death sustained by a person:
(A)
while committing a violation of Section
41-1a-1314
;
(B)
who, as a passenger in a vehicle, has knowledge that the vehicle is being
operated in violation of Section
41-1a-1314
; or
(C)
while committing a felony; and
(vi)
notwithstanding Subsection
(4)(c)(v)
, may be recovered:
(A)
for a person younger than 18 years old who is injured within the scope of
Subsection
(4)(c)(v)
, but is limited to medical and funeral expenses; or
(B)
by a law enforcement officer as defined in Section
53-13-103
, who is injured
within the course and scope of the law enforcement officer's duties.
(5)
(a)
Notwithstanding Section
31A-21-313
, an action on a written policy or contract for
underinsured motorist coverage shall be commenced within four years after the
inception of loss.
(b)
The inception of the loss under Subsection
31A-21-313(1)
for underinsured motorist
claims occurs upon the date of the settlement check representing the last liability
policy payment.
(6)
An underinsured motorist insurer does not have a right of reimbursement against a
person liable for the damages resulting from an injury-causing occurrence if the person's
liability insurer has tendered the policy limit and the limits have been accepted by the
claimant.
(7)
Except as otherwise provided in this section, a covered person may seek, subject to the
terms and conditions of the policy, additional coverage under any policy:
(a)
that provides coverage for damages resulting from motor vehicle accidents; and
(b)
that is not required to conform to Section
31A-22-302
.
(8)
(a)
When a claim is brought by a named insured or a person described in Subsection
31A-22-305(1)
and is asserted against the covered person's underinsured motorist
carrier, the claimant may elect to resolve the claim:
(i)
by submitting the claim to binding arbitration; or
(ii)
through litigation.
(b)
Unless otherwise provided in the policy under which underinsured benefits are
claimed, the election provided in Subsection
(8)(a)
is available to the claimant only,
except that if the policy under which insured benefits are claimed provides that either
an insured or the insurer may elect arbitration, the insured or the insurer may elect
arbitration and that election to arbitrate shall stay the litigation of the claim under
Subsection
(8)(a)(ii)
.
(c)
Once a claimant elects to commence litigation under Subsection
(8)(a)(ii)
, the
claimant may not elect to resolve the claim through binding arbitration under this
section without the written consent of the underinsured motorist coverage carrier.
(d)
For purposes of the statute of limitations applicable to a claim described in
Subsection
(8)(a)
, if the claimant does not elect to resolve the claim through
litigation, the claim is considered filed when the claimant submits the claim to
binding arbitration in accordance with this Subsection
(8)
.
(e)
(i)
Unless otherwise agreed to in writing by the parties, a claim that is submitted to
binding arbitration under Subsection
(8)(a)(i)
shall be resolved by a single
arbitrator.
(ii)
All parties shall agree on the single arbitrator selected under Subsection
(8)(e)(i)
.
(iii)
If the parties are unable to agree on a single arbitrator as required under
Subsection
(8)(e)(ii)
, the parties shall select a panel of three arbitrators.
(f)
If the parties select a panel of three arbitrators under Subsection
(8)(e)(iii)
:
(i)
each side shall select one arbitrator; and
(ii)
the arbitrators appointed under Subsection
(8)(f)(i)
shall select one additional
arbitrator to be included in the panel.
(g)
Unless otherwise agreed to in writing:
(i)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(8)(e)(i)
; or
(ii)
if an arbitration panel is selected under Subsection
(8)(e)(iii)
:
(A)
each party shall pay the fees and costs of the arbitrator selected by that party;
and
(B)
each party shall pay an equal share of the fees and costs of the arbitrator
selected under Subsection
(8)(f)(ii)
.
(h)
Except as otherwise provided in this section or unless otherwise agreed to in writing
by the parties, an arbitration proceeding conducted under this section is governed by
Title 78B, Chapter 11, Utah Uniform Arbitration Act.
(i)
(i)
The arbitration shall be conducted in accordance with Rules 26(a)(4) through
(f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
requirements of Subsections
(9)(a)
through
(c)
are satisfied.
(ii)
The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil
Procedure shall be determined based on the claimant's specific monetary amount
in the written demand for payment of uninsured motorist coverage benefits as
required in Subsection
(9)(a)(i)(A)
.
(iii)
Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
arbitration claims under this part.
(j)
An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
(k)
A written decision by a single arbitrator or by a majority of the arbitration panel
constitutes a final decision.
(l)
(i)
Except as provided in Subsection
(9)
, the amount of an arbitration award may
not exceed the underinsured motorist policy limits of all applicable underinsured
motorist policies, including applicable underinsured motorist umbrella policies.
(ii)
If the initial arbitration award exceeds the underinsured motorist policy limits of
all applicable underinsured motorist policies, the arbitration award shall be
reduced to an amount equal to the combined underinsured motorist policy limits
of all applicable underinsured motorist policies.
(m)
The arbitrator or arbitration panel may not decide an issue of coverage or
extra-contractual damages, including:
(i)
whether the claimant is a covered person;
(ii)
whether the policy extends coverage to the loss; or
(iii)
an allegation or claim asserting consequential damages or bad faith liability.
(n)
The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
class-representative basis.
(o)
If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
or defended in good faith, the arbitrator or arbitration panel may award reasonable
attorney fees and costs against the party that failed to bring, pursue, or defend the
arbitration in good faith.
(p)
An arbitration award issued under this section shall be the final resolution of all
claims not excluded by Subsection
(8)(m)
between the parties unless:
(i)
the award is procured by corruption, fraud, or other undue means; or
(ii)
either party, within 20 days after service of the arbitration award:
(A)
files a complaint requesting a trial de novo in the a court with jurisdiction
under
Title 78A, Judiciary and Judicial Administration
; and
(B)
serves the nonmoving party with a copy of the complaint requesting a trial de
novo under Subsection
(8)(p)(ii)(A)
.
(q)
(i)
Upon filing a complaint for a trial de novo under Subsection
(8)(p)
, a claim
shall proceed through litigation in accordance with the Utah Rules of Civil
Procedure and Utah Rules of Evidence.
(ii)
In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
request a jury trial with a complaint requesting a trial de novo under Subsection
(8)(p)(ii)(A)
.
(r)
(i)
If the claimant, as the moving party in a trial de novo requested under
Subsection
(8)(p)
, does not obtain a verdict that is at least $5,000 and is at least
20% greater than the arbitration award, the claimant is responsible for all of the
nonmoving party's costs.
(ii)
If the underinsured motorist carrier, as the moving party in a trial de novo
requested under Subsection
(8)(p)
, does not obtain a verdict that is at least 20%
less than the arbitration award, the underinsured motorist carrier is responsible for
all of the nonmoving party's costs.
(iii)
Except as provided in Subsection
(8)(r)(iv)
, the costs under this Subsection
(8)(r)

shall include:
(A)
any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(B)
the costs of expert witnesses and depositions.
(iv)
An award of costs under this Subsection
(8)(r)
may not exceed $2,500 unless
Subsection
(9)(h)(iii)
applies.
(s)
For purposes of determining whether a party's verdict is greater or less than the
arbitration award under Subsection
(8)(r)
, a court may not consider any recovery or
other relief granted on a claim for damages if the claim for damages:
(i)
was not fully disclosed in writing prior to the arbitration proceeding; or
(ii)
was not disclosed in response to discovery contrary to the Utah Rules of Civil
Procedure.
(t)
If a court determines, upon a motion of the nonmoving party, that a moving party's
use of the trial de novo process is filed in bad faith in accordance with Section
78B-5-825
, the court may award reasonable attorney fees to the nonmoving party.
(t)
Upon a motion of the nonmoving party, the court may award reasonable attorney fees
to the nonmoving party if the court determines that the moving party requested a trial
de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation,
or abuse the judicial process.
(u)
Nothing in this section is intended to limit a claim under another portion of an
applicable insurance policy.
(v)
If there are multiple underinsured motorist policies, as set forth in Subsection
(4)
, the
claimant may elect to arbitrate in one hearing the claims against all the underinsured
motorist carriers.
(9)
(a)
Within 30 days after a covered person elects to submit a claim for underinsured
motorist benefits to binding arbitration or files litigation, the covered person shall
provide to the underinsured motorist carrier:
(i)
a written demand for payment of underinsured motorist coverage benefits, setting
forth:
(A)
subject to Subsection
(9)(l)
, the specific monetary amount of the demand,
including a computation of the covered person's claimed past medical
expenses, claimed past lost wages, and all other claimed past economic
damages; and
(B)
the factual and legal basis and any supporting documentation for the demand;
(ii)
a written statement under oath disclosing:
(A)
(I)
the names and last known addresses of all health care providers who
have rendered health care services to the covered person that are material to
the claims for which the underinsured motorist benefits are sought for a
period of five years preceding the date of the event giving rise to the claim
for underinsured motorist benefits up to the time the election for arbitration
or litigation has been exercised; and
(II)
the names and last known addresses of the health care providers who have
rendered health care services to the covered person, which the covered
person claims are immaterial to the claims for which underinsured motorist
benefits are sought, for a period of five years preceding the date of the event
giving rise to the claim for underinsured motorist benefits up to the time the
election for arbitration or litigation has been exercised that have not been
disclosed under Subsection
(9)(a)(ii)(A)(I)
;
(B)
(I)
the names and last known addresses of all health insurers or other
entities to whom the covered person has submitted claims for health care
services or benefits material to the claims for which underinsured motorist
benefits are sought, for a period of five years preceding the date of the event
giving rise to the claim for underinsured motorist benefits up to the time the
election for arbitration or litigation has been exercised; and
(II)
the names and last known addresses of the health insurers or other entities
to whom the covered person has submitted claims for health care services or
benefits, which the covered person claims are immaterial to the claims for
which underinsured motorist benefits are sought, for a period of five years
preceding the date of the event giving rise to the claim for underinsured
motorist benefits up to the time the election for arbitration or litigation have
not been disclosed;
(C)
if lost wages, diminished earning capacity, or similar damages are claimed, all
employers of the covered person for a period of five years preceding the date
of the event giving rise to the claim for underinsured motorist benefits up to the
time the election for arbitration or litigation has been exercised;
(D)
other documents to reasonably support the claims being asserted; and
(E)
all state and federal statutory lienholders including a statement as to whether
the covered person is a recipient of Medicare or Medicaid benefits or Utah
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
Utah Children's Health Insurance Program, or if the claim is subject to any
other state or federal statutory liens; and
(iii)
signed authorizations to allow the underinsured motorist carrier to only obtain
records and billings from the individuals or entities disclosed under Subsections
(9)(a)(ii)(A)(I)
, (B)(I), and (C).
(b)
(i)
If the underinsured motorist carrier determines that the disclosure of
undisclosed health care providers or health care insurers under Subsection
(9)(a)(ii)
is reasonably necessary, the underinsured motorist carrier may:
(A)
make a request for the disclosure of the identity of the health care providers or
health care insurers; and
(B)
make a request for authorizations to allow the underinsured motorist carrier to
only obtain records and billings from the individuals or entities not disclosed.
(ii)
If the covered person does not provide the requested information within 10 days:
(A)
the covered person shall disclose, in writing, the legal or factual basis for the
failure to disclose the health care providers or health care insurers; and
(B)
either the covered person or the underinsured motorist carrier may request the
arbitrator or arbitration panel to resolve the issue of whether the identities or
records are to be provided if the covered person has elected arbitration.
(iii)
The time periods imposed by Subsection
(9)(c)(i)
are tolled pending resolution of
the dispute concerning the disclosure and production of records of the health care
providers or health care insurers.
(c)
(i)
An underinsured motorist carrier that receives an election for arbitration or a
notice of filing litigation and the demand for payment of underinsured motorist
benefits under Subsection
(9)(a)(i)
shall have a reasonable time, not to exceed 60
days from the date of the demand and receipt of the items specified in Subsections
(9)(a)(i)
through
(iii)
, to:
(A)
provide a written response to the written demand for payment provided for in
Subsection
(9)(a)(i)
;
(B)
except as provided in Subsection
(9)(c)(i)(C)
, tender the amount, if any, of the
underinsured motorist carrier's determination of the amount owed to the
covered person; and
(C)
if the covered person is a recipient of Medicare or Medicaid benefits or Utah
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
Utah Children's Health Insurance Program, or if the claim is subject to any
other state or federal statutory liens, tender the amount, if any, of the
underinsured motorist carrier's determination of the amount owed to the
covered person less:
(I)
if the amount of the state or federal statutory lien is established, the amount
of the lien; or
(II)
if the amount of the state or federal statutory lien is not established, two
times the amount of the medical expenses subject to the state or federal
statutory lien until such time as the amount of the state or federal statutory
lien is established.
(ii)
If the amount tendered by the underinsured motorist carrier under Subsection
(9)(c)(i)
is the total amount of the underinsured motorist policy limits, the
tendered amount shall be accepted by the covered person.
(d)
A covered person who receives a written response from an underinsured motorist
carrier as provided for in Subsection
(9)(c)(i)
, may:
(i)
elect to accept the amount tendered in Subsection
(9)(c)(i)
as payment in full of all
underinsured motorist claims; or
(ii)
elect to:
(A)
accept the amount tendered in Subsection
(9)(c)(i)
as partial payment of all
underinsured motorist claims; and
(B)
continue to litigate or arbitrate the remaining claim in accordance with the
election made under Subsections
(8)(a)
through
(c)
.
(e)
If a covered person elects to accept the amount tendered under Subsection
(9)(c)(i)
as
partial payment of all underinsured motorist claims, the final award obtained through
arbitration, litigation, or later settlement shall be reduced by any payment made by
the underinsured motorist carrier under Subsection
(9)(c)(i)
.
(f)
In an arbitration proceeding on the remaining underinsured claims:
(i)
the parties may not disclose to the arbitrator or arbitration panel the amount paid
under Subsection
(9)(c)(i)
until after the arbitration award has been rendered; and
(ii)
the parties may not disclose the amount of the limits of underinsured motorist
benefits provided by the policy.
(g)
If the final award obtained through arbitration or litigation is greater than the average
of the covered person's initial written demand for payment provided for in Subsection
(9)(a)(i)
and the underinsured motorist carrier's initial written response provided for
in Subsection
(9)(c)(i)
, the underinsured motorist carrier shall pay:
(i)
the final award obtained through arbitration or litigation, except that if the award
exceeds the policy limits of the subject underinsured motorist policy by more than
$15,000, the amount shall be reduced to an amount equal to the policy limits plus
$15,000; and
(ii)
any of the following applicable costs:
(A)
any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
(B)
the arbitrator or arbitration panel's fee; and
(C)
the reasonable costs of expert witnesses and depositions used in the
presentation of evidence during arbitration or litigation.
(h)
(i)
The covered person shall provide an affidavit of costs within five days of an
arbitration award.
(ii)
(A)
Objection to the affidavit of costs shall specify with particularity the costs
to which the underinsured motorist carrier objects.
(B)
The objection shall be resolved by the arbitrator or arbitration panel.
(iii)
The award of costs by the arbitrator or arbitration panel under Subsection
(9)(g)(ii)
may not exceed $5,000.
(i)
(i)
A covered person shall disclose all material information, other than rebuttal
evidence, within 30 days after a covered person elects to submit a claim for
underinsured motorist coverage benefits to binding arbitration or files litigation as
specified in Subsection
(9)(a)
.
(ii)
If the information under Subsection
(9)(i)(i)
is not disclosed, the covered person
may not recover costs or any amounts in excess of the policy under Subsection
(9)(g)
.
(j)
This Subsection
(9)
does not limit any other cause of action that arose or may arise
against the underinsured motorist carrier from the same dispute.
(k)
The provisions of this Subsection
(9)
only apply to motor vehicle accidents that
occur on or after March 30, 2010.
(l)
(i)
The written demand requirement in Subsection
(9)(a)(i)(A)
does not affect the
covered person's requirement to provide a computation of any other economic
damages claimed, and the one or more respondents shall have a reasonable time
after the receipt of the computation of any other economic damages claimed to
conduct fact and expert discovery as to any additional damages claimed. The
changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter 300,
Section 11, to this Subsection
(9)(l)
and Subsection
(9)(a)(i)(A)
apply to a claim
submitted to binding arbitration or through litigation on or after May 13, 2014.
(ii)
The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
300, Section 11, under Subsections
(9)(a)(ii)(A)(II)
and
(B)(II)
apply to a claim submitted
to binding arbitration or through litigation on or after May 13, 2014.
Section 4. Section
31A-22-321
is amended to read:
31A-22-321
. Use of arbitration in third party motor vehicle accident cases.
(1)
A person injured as a result of a motor vehicle accident may elect to submit all third
party bodily injury claims to arbitration by filing a notice of the submission of the claim
to binding arbitration in a court with jurisdiction under Title 78A, Judiciary and Judicial
Administration, if:
(a)
the claimant or the claimant's representative has:
(i)
previously and timely filed a complaint in a court that includes a third party bodily
injury claim; and
(ii)
filed a notice to submit the claim to arbitration within 14 days after the complaint
has been answered; and
(b)
the notice required under Subsection
(1)(a)(ii)
is filed while the action under
Subsection
(1)(a)(i)
is still pending.
(2)
(a)
If a party submits a bodily injury claim to arbitration under Subsection
(1)
, the
party submitting the claim or the party's representative is limited to an arbitration
award that does not exceed $75,000 or the defendant's per person limits of third party
bodily insurance, whichever is less, in addition to any available personal injury
protection benefits and any claim for property damage.
(b)
A claim for reimbursement of personal injury protection benefits is to be resolved
between insurers as provided for in Subsection
31A-22-309(6)(a)(ii)
.
(c)
A claim for property damage may not be made in an arbitration proceeding under
Subsection
(1)
unless agreed upon by the parties in writing.
(d)
A party who elects to proceed against a defendant under this section:
(i)
waives the right to obtain a judgment against the personal assets of the defendant;
and
(ii)
is limited to recovery only against available limits of insurance , plus a maximum
$15,000 in excess of policy limits, and available costs if appealed.
(e)
(i)
This section does not prevent a party from pursuing an underinsured motorist
claim as set out in Section
31A-22-305.3
.
(ii)
An underinsured motorist claim described in Subsection
(2)(e)(i)
is not limited to
the defendant's per person limits of third party bodily insurance coverage or the
$75,000 limit.
(iii)
There shall be no right of subrogation on the part of the underinsured motorist
carrier for a claim submitted to arbitration under this section.
(3)
A claim for punitive damages may not be made in an arbitration proceeding under
Subsection
(1)
or any subsequent proceeding, even if the claim is later resolved through
a trial de novo under Subsection
(11)
.
(4)
(a)
A person who has elected arbitration under this section may rescind the person's
election if the rescission is made within:
(i)
90 days after the election to arbitrate; and
(ii)
no less than 30 days before any scheduled arbitration hearing.
(b)
A person seeking to rescind an election to arbitrate under this Subsection
(4)
shall:
(i)
file a notice of the rescission of the election to arbitrate with the court in which the
matter was filed; and
(ii)
send copies of the notice of the rescission of the election to arbitrate to all counsel
of record to the action.
(c)
All discovery completed in anticipation of the arbitration hearing shall be available
for use by the parties as allowed by the Utah Rules of Civil Procedure and Utah
Rules of Evidence.
(d)
A party who has elected to arbitrate under this section and then rescinded the
election to arbitrate under this Subsection
(4)
may not elect to arbitrate the claim
under this section again.
(5)
(a)
Unless otherwise agreed to by the parties or by order of the court, an arbitration
process elected under this section is subject to Rule 26, Utah Rules of Civil
Procedure.
(b)
Unless otherwise agreed to by the parties or ordered by the court, discovery shall be
completed within 150 days after the date arbitration is elected under this section or
the date the answer is filed, whichever is longer.
(6)
(a)
Unless otherwise agreed to in writing by the parties, a claim that is submitted to
arbitration under this section shall be resolved by a single arbitrator.
(b)
Unless otherwise agreed to by the parties or ordered by the court, all parties shall
agree on the single arbitrator selected under Subsection
(6)(a)
within 90 days of the
answer of the defendant.
(c)
If the parties are unable to agree on a single arbitrator as required under Subsection
(6)(b)
, the parties shall select a panel of three arbitrators.
(d)
If the parties select a panel of three arbitrators under Subsection
(6)(c)
:
(i)
each side shall select one arbitrator; and
(ii)
the arbitrators appointed under Subsection
(6)(d)(i)
shall select one additional
arbitrator to be included in the panel.
(7)
Unless otherwise agreed to in writing:
(a)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(6)(a)
; and
(b)
if an arbitration panel is selected under Subsection
(6)(d)
:
(i)
each party shall pay the fees and costs of the arbitrator selected by that party's
side; and
(ii)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(6)(d)(ii)
.
(8)
Except as otherwise provided in this section and unless otherwise agreed to in writing
by the parties, an arbitration proceeding conducted under this section shall be governed
by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
(9)
(a)
Subject to the provisions of this section, the Utah Rules of Civil Procedure and
Utah Rules of Evidence apply to the arbitration proceeding.
(b)
The Utah Rules of Civil Procedure and Utah Rules of Evidence shall be applied
liberally with the intent of concluding the claim in a timely and cost-efficient manner.
(c)
Discovery shall be conducted in accordance with Rules 26 through 37 of the Utah
Rules of Civil Procedure and shall be subject to the jurisdiction of the court in which
the matter is filed.
(d)
Dispositive motions shall be filed, heard, and decided by the court prior to the
arbitration proceeding in accordance with the court's scheduling order.
(10)
A written decision by a single arbitrator or by a majority of the arbitration panel shall
constitute a final decision.
(11)
An arbitration award issued under this section shall be the final resolution of all bodily
injury claims between the parties and may be reduced to judgment by the court upon
motion and notice unless:
(a)
either party, within 20 days after service of the arbitration award:
(i)
files a notice requesting a trial de novo in the court; and
(ii)
serves the nonmoving party with a copy of the notice requesting a trial de novo
under Subsection
(11)(a)(i)
; or
(b)
the arbitration award has been satisfied.
(12)
(a)
Upon filing a notice requesting a trial de novo under Subsection
(11)
:
(i)
unless otherwise stipulated to by the parties or ordered by the court, an additional
120 days shall be allowed for further discovery;
(ii)
the additional discovery time under Subsection
(12)(a)(i)
shall run from the notice
of appeal; and
(iii)
the claim shall proceed through litigation in accordance with the Utah Rules of
Civil Procedure and Utah Rules of Evidence.
(b)
In accordance with Rule 38, Utah Rules of Civil Procedure, either party may request
a jury trial with a request for trial de novo filed under Subsection
(11)(a)(i)
.
(13)
(a)
If the plaintiff, as the moving party in a trial de novo requested under Subsection
(11)
, does not obtain a verdict that is at least $5,000 and is at least 30% greater than
the damages awarded in arbitration, excluding the items listed in Subsection
(19)
, the
plaintiff is responsible for all of the nonmoving party's costs.
(b)
The costs described in Subsection
(13)(a)
include:
(i)
any costs set forth in Rule 54(d), Utah Rules of Civil Procedure;
(ii)
the costs of expert witnesses and depositions;
(iii)
the arbitration costs paid by the prevailing party under Subsection
(7)
;
(iv)
prejudgment interest described in Section
78B-5-824
; and
(v)
postjudgment interest described in Section
15-1-4
.
(14)
(a)
If a defendant, as the moving party in a trial de novo requested under Subsection
(11)
, does not obtain a verdict that is at least 30% less than the damages awarded in
arbitration, excluding the items described in Subsection
(19)
, the defendant is
responsible for all of the nonmoving party's costs.
(b)
The costs described in Subsection
(14)(a)
include:
(i)
costs described in Rule 54(d), Utah Rules of Civil Procedure;
(ii)
the costs of expert witnesses and depositions;
(iii)
the arbitration costs paid by the prevailing party under Subsection
(7)
;
(iv)
prejudgment interest described in Section
78B-5-824
; and
(v)
postjudgment interest described in Section
15-1-4
.
(15)
For purposes of determining whether a party's verdict is greater or less than the
arbitration award under Subsections
(13)
and
(14)
, a court may not consider any
recovery or other relief granted on a claim for damages if the claim for damages:
(a)
was not fully disclosed in writing prior to the arbitration proceeding; or
(b)
was not disclosed in response to discovery contrary to the Utah Rules of Civil
Procedure.
(16)
If a court determines, upon a motion of the nonmoving party, that the moving party's
use of the trial de novo process was filed in bad faith as defined in Section
78B-5-825
,
the court may award reasonable attorney fees to the nonmoving party.
(16)
Upon a motion of the nonmoving party, the court may award reasonable attorney fees
to the nonmoving party if the court determines that the moving party requested a trial de
novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or
abuse the judicial process.
(17)
Nothing in this section is intended to affect or prevent any first party claim from later
being brought under any first party insurance policy under which the injured person is a
covered person.
(18)
(a)
If a defendant requests a trial de novo under Subsection
(11)
, the total damages
award at trial may not exceed $15,000 above any available per person limits of
insurance coverage, not including the costs described in Subsection
(14)(b)
.
(b)
If a plaintiff requests a trial de novo under Subsection
(11)
, the verdict at trial may
not exceed $75,000, or the per person limits of insurance coverage, whichever is less.
(19)
All arbitration awards issued under this section shall include:
(a)
the costs described in Rule 54(d), Utah Rules of Civil Procedure;
(b)
the arbitration costs paid by the prevailing party under Subsection
(7)
;
(c)
prejudgment interest described in Section
78B-5-824
; and
(d)
postjudgment interest described in Section
15-1-4
.
(20)
If a party requests a trial de novo under Subsection
(11)
, the party shall file a copy of
the notice requesting a trial de novo with the commissioner notifying the commissioner
of the party's request for a trial de novo under Subsection
(11)
.
Section 5. Section
38-1a-308
is amended to read:
38-1a-308
. Intentional submission of excessive lien notice -- Criminal and civil
liability.
(1)
As used in this section, "residential project" means a project on real property:
(a)
for which a preconstruction service or construction work is provided; and
(b)
that consists of:
(i)
one single-family residence; or
(ii)
one multi-family residence that contains no more than four units.
(2)
A person is guilty of a class B misdemeanor if:
(a)
the person intentionally submits for recording a notice of preconstruction lien or
notice of construction lien against any property containing a greater demand than the
sum due; and
(b)
by submitting the notice, the person intends:
(i)
to cloud the title;
(ii)
to exact from the owner or person liable by means of the excessive notice of
preconstruction or construction lien more than is due; or
(iii)
to procure any unjustified advantage or benefit.
(3)
(a)
As used in this Subsection
(3)
, "third party" means an owner, original contractor,
or subcontractor.
(b)
In addition to any criminal penalty under Subsection
(2)
, a person who submits a
notice of preconstruction lien or notice of construction lien as described in
Subsection
(2)
is liable to a third party who is affected by the notice of
preconstruction lien or the notice of construction lien for twice the amount by which
the lien notice exceeds the amount actually due or the actual damages incurred by the
owner, original contractor, or subcontractor, whichever is greater.
(4)
The parties to a claim described in Subsection
(3)(b)
who agree to arbitrate the claim
shall arbitrate in accordance with Subsections
(5)
through
(15)
if the notice of
preconstruction lien, or the notice of construction lien, that is the subject of the claim is:
(a)
for a residential project; and
(b)
for $50,000 or less.
(5)
(a)
Unless otherwise agreed to by the parties, a claim that is submitted to arbitration
under this section shall be resolved by a single arbitrator.
(b)
All parties shall agree on the single arbitrator described in Subsection
(5)(a)
within
60 days after the day on which an answer is filed.
(c)
If the parties are unable to agree on a single arbitrator as required under Subsection
(5)(b)
, the parties shall select a panel of three arbitrators.
(d)
If the parties select a panel of three arbitrators under Subsection
(5)(c)
:
(i)
each side shall select one arbitrator; and
(ii)
the arbitrators selected under Subsection
(5)(d)(i)
shall select one additional
arbitrator to be included in the panel.
(6)
Unless otherwise agreed to in writing:
(a)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(5)(b)
; or
(b)
if an arbitration panel is selected under Subsection
(5)(d)
:
(i)
each party shall pay the fees and costs of that party's selected arbitrator; and
(ii)
each party shall pay an equal share of the fees and costs of the arbitrator selected
under Subsection
(5)(d)(ii)
.
(7)
Except as otherwise provided in this section or otherwise agreed to by the parties, an
arbitration proceeding conducted under this section shall be governed by Title 78B,
Chapter 11, Utah Uniform Arbitration Act.
(8)
(a)
Subject to the provisions of this section, the Utah Rules of Civil Procedure and the
Utah Rules of Evidence shall apply to an arbitration proceeding under this section.
(b)
The Utah Rules of Civil Procedure and the Utah Rules of Evidence shall be applied
liberally with the intent of resolving the claim in a timely and cost-efficient manner.
(c)
Subject to the provisions of this section, the parties shall conduct discovery in
accordance with Rules 26 through 37 of the Utah Rules of Civil Procedure.
(d)
Unless otherwise agreed to by the parties or ordered by the court, discovery in an
arbitration proceeding under this section shall be limited to the discovery available in
a tier 1 case under Rule 26 of the Utah Rules of Civil Procedure.
(9)
A written decision by a single arbitrator or by a majority of the arbitration panel shall
constitute a final decision.
(10)
An arbitration award issued under this section:
(a)
shall be the final resolution of all excessive notice claims described in Subsection
(3)(b)
that are:
(i)
between the parties;
(ii)
for a residential project; and
(iii)
for $50,000 or less; and
(b)
may be reduced to judgment by the court upon motion and notice, unless:
(i)
any party, within 20 days after the day on which the arbitration award is served,
files a notice requesting a trial de novo in a court with jurisdiction under
Title
78A, Judiciary and Judicial Administration
; or
(ii)
the arbitration award has been satisfied.
(11)
(a)
Upon filing a notice requesting a trial de novo under Subsection
(10)(b)(i)
:
(i)
unless otherwise stipulated to by the parties or ordered by the court, the parties are
allowed an additional 60 days for discovery; and
(ii)
the claim shall proceed through litigation in accordance with the Utah Rules of
Civil Procedure and the Utah Rules of Evidence.
(b)
The additional discovery time described in Subsection
(11)(a)(i)
shall run from the
day on which the notice requesting a trial de novo is filed.
(12)
If the plaintiff, as the moving party in a trial de novo requested under Subsection
(10)(b)(i)
, does not obtain a verdict that is at least 10% greater than the arbitration
award, the plaintiff is responsible for all of the nonmoving party's costs, including expert
witness fees.
(13)
If a defendant, as the moving party in a trial de novo requested under Subsection
(10)(b)(i)
, does not obtain a verdict that is at least 10% less than the arbitration award,
the defendant is responsible for all of the nonmoving party's costs, including expert
witness fees.
(14)
If a court determines, upon a motion of the nonmoving party, that the moving party's
use of the trial de novo process was filed in bad faith, as defined in Section
78B-5-825
,
the court may award reasonable attorney fees to the nonmoving party.
(14)
Upon a motion of the nonmoving party, the court may award reasonable attorney fees
to the nonmoving party if the court determines that the moving party requested a trial de
novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or
abuse the judicial process.
(15)
All arbitration awards issued under this section shall bear postjudgment interest
pursuant to
in accordance with
Section
15-1-4
.
Section 6. Section
78B-5-825
is amended to read:
78B-5-825
. Award of reasonable attorney fees in civil action -- Exceptions.
(1)
In civil actions, the court shall award reasonable attorney fees to a prevailing party if
the court determines that the action or defense to the action was without merit and not
brought or asserted in good faith, except under Subsection
(2)
.
(1)
Except as provided in Subsection
(3)
, the court shall award reasonable attorney fees to a
prevailing party in a civil action if the court determines that:
(a)
the nonprevailing party's civil action, or defense to the civil action, is frivolous or has
no reasonable basis in law or fact; and
(b)
the nonprevailing party brought the civil action, or defense to the civil action, to
harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse
the judicial process.
(2)
Except as provided in Subsection
(3)
, the court shall award reasonable attorney fees to a
party in a civil action if:
(a)
the party incurred attorney fees in defense of a motion brought by the opposing
party; and
(b)
the court determines that:
(i)
the opposing party's motion is frivolous or has no reasonable basis in law or fact;
and
(ii)
the opposing party brought the motion to harass, cause unreasonable delay,
needlessly increase the cost of litigation, or abuse the judicial process.
(2)
(3)
The court, in the court's discretion, may award no fees or limited fees against a
party under Subsection
(1)
, but only if the court
or (2) if the court
:
(a)
finds the party has filed an affidavit of indigency under Section
78A-2-302
in the
action before the court; or
(b)
the court
enters in the record the reason for not awarding fees under the provisions
of Subsection
(1)
or (2)
.
Section 7. Section
78B-10a-108
is amended to read:
78B-10a-108
. Trial de novo.
(1)
(a)
Upon filing a notice requesting a trial de novo in accordance with Subsection
78B-10a-107(2)
:
(i)
unless otherwise stipulated to by the parties or ordered by the court, an additional
90 days shall be allowed for further discovery;
(ii)
the additional discovery time under Subsection
(1)(a)(i)
shall run from the notice
of the request for a trial de novo; and
(iii)
the claim shall proceed through litigation
pursuant to
in accordance with
the
Utah Rules of Civil Procedure and Utah Rules of Evidence in the district court.
(b)
In accordance with Rule 38, Utah Rules of Civil Procedure, either party may request
a jury trial with a request for trial de novo filed in accordance with Subsection
78B-10a-107(2)(a)(i)
.
(2)
(a)
If the plaintiff, as the moving party in a trial de novo requested under Subsection
78B-10a-107(2)
, does not obtain a verdict that is at least $5,000 and 30% greater than
the arbitration award, the plaintiff is responsible for all of the nonmoving party's
costs.
(b)
Except as provided in Subsection
(2)(c)
, the costs under Subsection
(2)(a)
shall
include:
(i)
any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(ii)
the costs of expert witnesses and depositions.
(c)
An award of costs under this Subsection
(2)
may not exceed $6,000.
(3)
(a)
If a defendant, as the moving party in a trial de novo requested in accordance with
Subsection
78B-10a-107(2)
, does not obtain a verdict that is at least 30% less than
the arbitration award, the defendant is responsible for all of the nonmoving party's
costs.
(b)
Except as provided in Subsection
(3)(c)
, the costs under Subsection
(3)(a)
shall
include:
(i)
any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(ii)
the costs of expert witnesses and depositions.
(c)
An award of costs in accordance with this Subsection
(3)
may not exceed $6,000.
(4)
For purposes of determining whether a party's verdict is greater or less than the
arbitration award under Subsections
(2)
and
(3)
, a court may not consider any recovery
or other relief granted on a claim for damages if the claim for damages:
(a)
was not fully disclosed in writing prior to the arbitration proceeding; or
(b)
was not disclosed in response to discovery contrary to the Utah Rules of Civil
Procedure.
(5)
If a district court determines, upon a motion of the nonmoving party, that the moving
party's use of the trial de novo process was filed in bad faith as defined in Section
78B-5-825
, the district court may award reasonable attorney fees to the nonmoving party.
(5)
Upon a motion of the nonmoving party, the district court may award reasonable attorney
fees to the nonmoving party if the district court determines that the moving party
requested a trial de novo to harass, cause unreasonable delay, needlessly increase the
cost of litigation, or abuse the judicial process.
(6)
(a)
If a defendant requests a trial de novo under Subsection
78B-10a-107(2)
, the total
verdict at trial may not exceed $15,000 above any available limits of insurance
coverage and the total verdict may not exceed $65,000.
(b)
If a plaintiff requests a trial de novo under Subsection
78B-10a-107(2)
, the verdict at
trial may not exceed $50,000.
Section 8.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-4-26 8:51 AM