HB 307

     Enrolled Copy  H.B. 307
1Attorney Fees Amendments
                                     2026 GENERAL SESSION
                                          STATE OF UTAH
                               Chief Sponsor: Anthony E. Loubet
                                  Senate Sponsor: Brady Brammer
2
3  LONG TITLE
4  General Description:
5      This bill addresses attorney fees.
6  Highlighted Provisions:
7      This bill:
8      ▸ clarifies the meaning of "bad faith" throughout the Utah Code with regard to attorney fees;
9      ▸ amends the requirements for awarding reasonable attorney fees in a civil action; and
10      ▸ makes technical and conforming changes.
11  Money Appropriated in this Bill:
12      None
13  Other Special Clauses:
14      None
15  Utah Code Sections Affected:
16  AMENDS:
17      18-1-4, as last amended by Laws of Utah 2024, Chapter 158
18      31A-22-305, as last amended by Laws of Utah 2025, Chapter 261
19      31A-22-305.3, as last amended by Laws of Utah 2025, Chapter 261
20      31A-22-321, as last amended by Laws of Utah 2024, Chapter 158
21      38-1a-308, as last amended by Laws of Utah 2024, Chapter 158
22      78B-5-825, as last amended by Laws of Utah 2022, Chapter 272
23      78B-10a-108, as enacted by Laws of Utah 2011, Chapter 197
24
25  Be it enacted by the Legislature of the state of Utah:
26Section 1. Section 18-1-4 is amended to read:
2718-1-4 . Use of arbitration in personal injury from dog attack cases.
28  (1) A person injured as a result of a dog attack may elect to submit all third party bodily
     H.B. 307  Enrolled Copy
29injury claims to arbitration by filing a notice of the submission of the claim to binding
30arbitration in a court if:
31(a) the claimant or the claimant's representative has:
32(i) previously and timely filed a complaint in a court that includes a third party bodily
33injury claim; and
34(ii) filed a notice to submit the claim to arbitration within 14 days after the complaint
35has been answered; and
36(b) the notice required under Subsection (1)(a)(ii) is filed while the action under
37Subsection (1)(a)(i) is still pending.
38   (2)(a) If a party submits a bodily injury claim to arbitration under Subsection (1), the
39party submitting the claim or the party's representative is limited to an arbitration
40award that may not exceed $50,000 in addition to any medical premise benefits and
41any claim for property damage.
42(b) A party who elects to proceed against a defendant under this section:
43(i) waives the right to obtain a judgment against the personal assets of the defendant;
44and
45(ii) is limited to recovery only against available limits of insurance coverage.
46   (3) A claim for punitive damages may not be made in an arbitration proceeding under
47Subsection (1) or any subsequent proceeding, even if the claim is later resolved through
48a trial de novo under Subsection (11).
49   (4)(a) A party who has elected arbitration under this section may rescind the party's
50election if the rescission is made within:
51(i) 90 days after the election to arbitrate; and
52(ii) no less than 30 days before any scheduled arbitration hearing.
53(b) A party seeking to rescind an election to arbitrate under this Subsection (4) shall:
54(i) file a notice of the rescission of the election to arbitrate with the court in which the
55matter was filed; and
56(ii) send copies of the notice of the rescission of the election to arbitrate to all counsel
57of record to the action.
58(c) All discovery completed in anticipation of the arbitration hearing shall be available
59for use by the parties as allowed by the Utah Rules of Civil Procedure and the Utah
60Rules of Evidence.
61(d) A party who has elected to arbitrate under this section and then rescinded the
62election to arbitrate under this Subsection (4) may not elect to arbitrate the claim
                                                   -2-
     Enrolled Copy  H.B. 307
63under this section again.
64  (5)(a) Unless otherwise agreed to by the parties or by order of the court, an arbitration
65      process elected under this section is subject to Rule 26, Utah Rules of Civil
66      Procedure.
67      (b) Unless otherwise agreed to by the parties or ordered by the court, discovery shall be
68completed within 150 days after the date arbitration is elected under this section or
69the date the answer is filed, whichever is longer.
70  (6)(a) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
71      arbitration under this section shall be resolved by a single arbitrator.
72      (b) Unless otherwise agreed to by the parties or ordered by the court, all parties shall
73agree on the single arbitrator selected under Subsection (6)(a) within 90 days of the
74answer of the defendant.
75      (c) If the parties are unable to agree on a single arbitrator as required under Subsection
76(6)(b), the parties shall select a panel of three arbitrators.
77      (d) If the parties select a panel of three arbitrators under Subsection (6)(c):
78(i) each side shall select one arbitrator; and
79(ii) the arbitrators selected under Subsection (6)(d)(i) shall select one additional
80arbitrator to be included in the panel.
81  (7) Unless otherwise agreed to in writing:
82      (a) each party shall pay an equal share of the fees and costs of the arbitrator selected
83under Subsection (6)(a); and
84      (b) if an arbitration panel is selected under Subsection (6)(d):
85(i) each party shall pay the fees and costs of the arbitrator selected by that party's
86side; and
87(ii) each party shall pay an equal share of the fees and costs of the arbitrator selected
88under Subsection (6)(d)(ii).
89  (8) Except as otherwise provided in this section and unless otherwise agreed to in writing
90      by the parties, an arbitration proceeding conducted under this section shall be governed
91      by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
92  (9)(a) Subject to the provisions of this section, the Utah Rules of Civil Procedure and the
93      Utah Rules of Evidence apply to the arbitration proceeding.
94      (b) The Utah Rules of Civil Procedure and the Utah Rules of Evidence shall be applied
95liberally with the intent of concluding the claim in a timely and cost-efficient manner.
96      (c) Discovery shall be conducted in accordance with the Utah Rules of Civil Procedure
                                                -3-
H.B. 307  Enrolled Copy
97and shall be subject to the jurisdiction of the court in which the matter is filed.
98(d) Dispositive motions shall be filed, heard, and decided by the court prior to the
99arbitration proceeding in accordance with the court's scheduling order.
100   (10) A written decision by a single arbitrator or by a majority of the arbitration panel shall
101constitute a final decision.
102   (11) An arbitration award issued under this section shall be the final resolution of all bodily
103injury claims between the parties and may be reduced to judgment by the court upon
104motion and notice unless:
105(a) either party, within 20 days after service of the arbitration award:
106(i) files a notice requesting a trial de novo in the court; and
107(ii) serves the nonmoving party with a copy of the notice requesting a trial de novo
108under Subsection (11)(a)(i); or
109(b) the arbitration award has been satisfied.
110   (12)(a) Upon filing a notice requesting a trial de novo under Subsection (11):
111(i) unless otherwise stipulated to by the parties or ordered by the court, an additional
11290 days shall be allowed for further discovery;
113(ii) the additional discovery time under Subsection (12)(a)(i) shall run from the notice
114of appeal; and
115(iii) the claim shall proceed through litigation [pursuant to] in accordance with the
116Utah Rules of Civil Procedure and the Utah Rules of Evidence in the court.
117(b) In accordance with the Utah Rules of Civil Procedure, either party may request a jury
118trial with a request for trial de novo filed under Subsection (11).
119   (13)(a) If the plaintiff, as the moving party in a trial de novo requested under Subsection
120(11), does not obtain a verdict that is at least $5,000 and is at least 30% greater than
121the arbitration award, the plaintiff is responsible for all of the nonmoving party's
122costs.
123(b) Except as provided in Subsection (13)(c), the costs under Subsection (13)(a) shall
124include:
125(i) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
126(ii) the costs of expert witnesses and depositions.
127(c) An award of costs under this Subsection (13) may not exceed $6,000.
128   (14)(a) If a defendant, as the moving party in a trial de novo requested under Subsection
129(11), does not obtain a verdict that is at least 30% less than the arbitration award, the
130defendant is responsible for all of the nonmoving party's costs.
                                                  -4-
Enrolled Copy  H.B. 307
131      (b) Except as provided in Subsection (14)(c), the costs under Subsection (14)(a) shall
132include:
133(i) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
134(ii) the costs of expert witnesses and depositions.
135      (c) An award of costs under this Subsection (14) may not exceed $6,000.
136  (15) For purposes of determining whether a party's verdict is greater or less than the
137      arbitration award under Subsections (13) and (14), a court may not consider any
138      recovery or other relief granted on a claim for damages if the claim for damages was not
139      disclosed in:
140      (a) writing prior to the arbitration proceeding; or
141      (b) response to discovery contrary to the Utah Rules of Civil Procedure.
142  [(16) If a court determines, upon a motion of the nonmoving party, that the moving party's
143      use of the trial de novo process was filed in bad faith, as described in Section 78B-5-825,
144      the court may award reasonable attorney fees to the nonmoving party.]
145  (16) Upon a motion of the nonmoving party, the court may award reasonable attorney fees
146      to the nonmoving party if the court determines that the moving party requested a trial de
147      novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or
148      abuse the judicial process.
149  (17) Nothing in this section is intended to affect or prevent any first party claim from later
150      being brought under any first party insurance policy under which the injured person is a
151      covered person.
152  (18)(a) If a defendant requests a trial de novo under Subsection (11), the total verdict at
153      trial may not exceed $15,000 above any available limits of insurance coverage and
154      the total verdict may not exceed $65,000.
155      (b) If a plaintiff requests a trial de novo under Subsection (11), the verdict at trial may
156not exceed $50,000.
157  (19) All arbitration awards issued under this section shall bear postjudgment interest [
158      pursuant to] in accordance with Section 15-1-4.
159Section 2. Section 31A-22-305 is amended to read:
16031A-22-305 . Uninsured motorist coverage.
161  (1) As used in this section, "covered persons" includes:
162      (a) the named insured;
163      (b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
164children;
                                                -5-
H.B. 307  Enrolled Copy
165(c) persons related to the named insured by blood, marriage, adoption, or guardianship,
166who are residents of the named insured's household, including those who usually
167make their home in the same household but temporarily live elsewhere;
168(d) any person occupying or using a motor vehicle:
169(i) referred to in the policy; or
170(ii) owned by a self-insured; and
171(e) any person who is entitled to recover damages against the owner or operator of the
172uninsured or underinsured motor vehicle because of bodily injury to or death of
173persons under Subsection (1)(a), (b), (c), or (d).
174   (2) As used in this section, "uninsured motor vehicle" includes:
175(a)(i) a motor vehicle, the operation, maintenance, or use of which is not covered
176under a liability policy at the time of an injury-causing occurrence; or
177(ii)(A) a motor vehicle covered with lower liability limits than required by Section
17831A-22-304; and
179(B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the
180extent of the deficiency;
181(b) an unidentified motor vehicle that left the scene of an accident proximately caused
182by the motor vehicle operator;
183(c) a motor vehicle covered by a liability policy, but coverage for an accident is disputed
184by the liability insurer for more than 60 days or continues to be disputed for more
185than 60 days; or
186(d)(i) an insured motor vehicle if, before or after the accident, the liability insurer of
187the motor vehicle is declared insolvent by a court of competent jurisdiction; and
188(ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
189that the claim against the insolvent insurer is not paid by a guaranty association or
190fund.
191   (3) Uninsured motorist coverage under Subsection 31A-22-302(1)(b) provides coverage for
192covered persons who are legally entitled to recover damages from owners or operators
193of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
194   (4)(a) For new policies written on or after January 1, 2001, the limits of uninsured
195motorist coverage shall be equal to the lesser of the limits of the named insured's
196motor vehicle liability coverage or the maximum uninsured motorist coverage limits
197available by the insurer under the named insured's motor vehicle policy, unless a
198named insured rejects or purchases coverage in a lesser amount by signing an
                                                 -6-
Enrolled Copy  H.B. 307
199      acknowledgment form that:
200(i) is filed with the department;
201(ii) is provided by the insurer;
202(iii) waives the higher coverage;
203(iv) need only state in this or similar language that uninsured motorist coverage
204provides benefits or protection to you and other covered persons for bodily injury
205resulting from an accident caused by the fault of another party where the other
206party has no liability insurance; and
207(v) discloses the additional premiums required to purchase uninsured motorist
208coverage with limits equal to the lesser of the limits of the named insured's motor
209vehicle liability coverage or the maximum uninsured motorist coverage limits
210available by the insurer under the named insured's motor vehicle policy.
211      (b) Any selection or rejection under this Subsection (4) continues for that issuer of the
212liability coverage until the insured requests, in writing, a change of uninsured
213motorist coverage from that liability insurer.
214      (c)(i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
215January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
216demand for arbitration or filed a complaint in a court of competent jurisdiction.
217(ii) The Legislature finds that the retroactive application of Subsections (4)(a) and (b)
218clarifies the application of law and does not enlarge, eliminate, or destroy vested
219rights.
220      (d) For purposes of this Subsection (4), "new policy" means:
221(i) any policy that is issued which does not include a renewal or reinstatement of an
222existing policy; or
223(ii) a change to an existing policy that results in:
224(A) a named insured being added to or deleted from the policy; or
225(B) a change in the limits of the named insured's motor vehicle liability coverage.
226      (e)(i) As used in this Subsection (4)(e), "additional motor vehicle" means a change
227that increases the total number of vehicles insured by the policy, and does not
228include replacement, substitute, or temporary vehicles.
229(ii) The adding of an additional motor vehicle to an existing personal lines or
230commercial lines policy does not constitute a new policy for purposes of
231Subsection (4)(d).
232(iii) If an additional motor vehicle is added to a personal lines policy where uninsured
                                                -7-
H.B. 307  Enrolled Copy
233motorist coverage has been rejected, or where uninsured motorist limits are lower
234than the named insured's motor vehicle liability limits, the insurer shall provide a
235notice to a named insured within 30 days that:
236(A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose
237of uninsured motorist coverage; and
238(B) encourages the named insured to contact the insurance company or insurance
239producer for quotes as to the additional premiums required to purchase
240uninsured motorist coverage with limits equal to the lesser of the limits of the
241named insured's motor vehicle liability coverage or the maximum uninsured
242motorist coverage limits available by the insurer under the named insured's
243motor vehicle policy.
244      (f) A change in policy number resulting from any policy change not identified under
245Subsection (4)(d)(ii) does not constitute a new policy.
246      (g)(i) Subsection (4)(d) applies retroactively to any claim arising on or after January
2471, 2001, for which, as of May 1, 2012, an insured has not made a written demand
248for arbitration or filed a complaint in a court of competent jurisdiction.
249(ii) The Legislature finds that the retroactive application of this Subsection (4):
250(A) does not enlarge, eliminate, or destroy vested rights; and
251(B) clarifies the application of law.
252      (h) A self-insured, including a governmental entity, may elect to provide uninsured
253motorist coverage in an amount that is less than its maximum self-insured retention
254under Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy
255statement from the chief financial officer or chief risk officer that declares the:
256(i) self-insured entity's coverage level; and
257(ii) process for filing an uninsured motorist claim.
258      (i) Uninsured motorist coverage may not be sold with limits that are less than the
259minimum bodily injury limits for motor vehicle liability policies under Section
26031A-22-304.
261      (j) The acknowledgment under Subsection (4)(a) continues for that issuer of the
262uninsured motorist coverage until the named insured requests, in writing, different
263uninsured motorist coverage from the insurer.
264      (k)(i) In conjunction with the first two renewal notices sent after January 1, 2001, for
265policies existing on that date, the insurer shall disclose in the same medium as the
266premium renewal notice, an explanation of:
                                                  -8-
Enrolled Copy  H.B. 307
267(A) the purpose of uninsured motorist coverage in the same manner as described
268in Subsection (4)(a)(iv); and
269(B) a disclosure of the additional premiums required to purchase uninsured
270motorist coverage with limits equal to the lesser of the limits of the named
271insured's motor vehicle liability coverage or the maximum uninsured motorist
272coverage limits available by the insurer under the named insured's motor
273vehicle policy.
274(ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
275insureds that carry uninsured motorist coverage limits in an amount less than the
276named insured's motor vehicle liability policy limits or the maximum uninsured
277motorist coverage limits available by the insurer under the named insured's motor
278vehicle policy.
279      (l) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
280a household constitutes notice or disclosure to all insureds within the household.
281  (5)(a)(i) Except as provided in Subsection (5)(b), the named insured may reject
282      uninsured motorist coverage by an express writing to the insurer that provides
283      liability coverage under Subsection 31A-22-302(1)(a).
284(ii) This rejection shall be on a form provided by the insurer that includes a
285reasonable explanation of the purpose of uninsured motorist coverage.
286(iii) This rejection continues for that issuer of the liability coverage until the insured
287in writing requests uninsured motorist coverage from that liability insurer.
288      (b)(i) All persons, including governmental entities, that are engaged in the business
289of, or that accept payment for, transporting natural persons by motor vehicle, and
290all school districts that provide transportation services for their students, shall
291provide coverage for all motor vehicles used for that purpose, by purchase of a
292policy of insurance or by self-insurance, uninsured motorist coverage of at least
293$25,000 per person and $500,000 per accident.
294(ii) This coverage is secondary to any other insurance covering an injured covered
295person.
296      (c) Uninsured motorist coverage:
297(i) in order to avoid double recovery, does not cover any benefit under Title 34A,
298Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah
299Occupational Disease Act, provided by the workers' compensation insurance
300carrier, uninsured employer, the Uninsured Employers' Fund created in Section
                                                 -9-
H.B. 307  Enrolled Copy
30134A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702,
302except that:
303(A) the covered person is credited an amount described in Subsection
30434A-2-106(5); and
305(B) the benefits described in this Subsection (5)(c)(i) do not need to be paid before
306an uninsured motorist claim may be pursued and resolved;
307(ii) may not be subrogated by the workers' compensation insurance carrier, uninsured
308employer, the Uninsured Employers' Fund created in Section 34A-2-704, or the
309Employers' Reinsurance Fund created in Section 34A-2-702;
310(iii) may not be reduced by any benefits provided by the workers' compensation
311insurance carrier, uninsured employer, the Uninsured Employers' Fund created in
312Section 34A-2-704, or the Employers' Reinsurance Fund created in Section
31334A-2-702;
314(iv) notwithstanding Subsection 31A-1-103(3)(f), may be reduced by health
315insurance subrogation only after the covered person has been made whole;
316(v) may not be collected for bodily injury or death sustained by a person:
317(A) while committing a violation of Section 41-1a-1314;
318(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being
319operated in violation of Section 41-1a-1314; or
320(C) while committing a felony; and
321(vi) notwithstanding Subsection (5)(c)(v), may be recovered:
322(A) for a person under 18 years old who is injured within the scope of Subsection
323(5)(c)(v) but limited to medical and funeral expenses; or
324(B) by a law enforcement officer as defined in Section 53-13-103, who is injured
325within the course and scope of the law enforcement officer's duties.
326(d) As used in this Subsection (5), "motor vehicle" means the same as that term is
327defined in Section 41-1a-102.
328   (6) When a covered person alleges that an uninsured motor vehicle under Subsection (2)(b)
329proximately caused an accident without touching the covered person or the motor
330vehicle occupied by the covered person, the covered person shall show the existence of
331the uninsured motor vehicle by clear and convincing evidence consisting of more than
332the covered person's testimony.
333   (7)(a) The limit of liability for uninsured motorist coverage for two or more motor
334vehicles may not be added together, combined, or stacked to determine the limit of
                                               - 10 -
Enrolled Copy  H.B. 307
335      insurance coverage available to an injured person for any one accident.
336      (b)(i) Subsection (7)(a) applies to all persons except a covered person as defined
337under Subsection (8)(b).
338(ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
339limits of uninsured motorist coverage afforded for any one motor vehicle that the
340covered person is the named insured or an insured family member.
341(iii) This coverage shall be in addition to the coverage on the motor vehicle the
342covered person is occupying.
343(iv) Neither the primary nor the secondary coverage may be set off against the other.
344      (c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
345coverage, and the coverage elected by a person described under Subsections (1)(a)
346through (c) shall be secondary coverage.
347  (8)(a) Uninsured motorist coverage under this section applies to bodily injury, sickness,
348      disease, or death of covered persons while occupying or using a motor vehicle only if
349      the motor vehicle is described in the policy under which a claim is made, or if the
350      motor vehicle is a newly acquired or replacement motor vehicle covered under the
351      terms of the policy. Except as provided in Subsection (7) or this Subsection (8), a
352      covered person injured in a motor vehicle described in a policy that includes
353      uninsured motorist benefits may not elect to collect uninsured motorist coverage
354      benefits from any other motor vehicle insurance policy under which the person is a
355      covered person.
356      (b) Each of the following persons may also recover uninsured motorist benefits under
357any one other policy in which they are described as a "covered person" as defined in
358Subsection (1):
359(i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
360(ii) except as provided in Subsection (8)(c), a covered person injured while
361occupying or using a motor vehicle that is not owned, leased, or furnished:
362(A) to the covered person;
363(B) to the covered person's spouse; or
364(C) to the covered person's resident parent or resident sibling.
365      (c)(i) A covered person may recover benefits from no more than two additional
366policies, one additional policy from each parent's household if the covered person
367is:
368(A) a dependent minor of parents who reside in separate households; and
                                                - 11 -
H.B. 307  Enrolled Copy
369(B) injured while occupying or using a motor vehicle that is not owned, leased, or
370furnished:
371(I) to the covered person;
372(II) to the covered person's resident parent; or
373(III) to the covered person's resident sibling.
374(ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage
375of the damages that the limit of liability of each parent's policy of uninsured
376motorist coverage bears to the total of both parents' uninsured coverage applicable
377to the accident.
378(d) A covered person's recovery under any available policies may not exceed the full
379amount of damages.
380(e) A covered person in Subsection (8)(b) is not barred against making subsequent
381elections if recovery is unavailable under previous elections.
382(f)(i) As used in this section, "interpolicy stacking" means recovering benefits for a
383single incident of loss under more than one insurance policy.
384(ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
385interpolicy stacking is prohibited for uninsured motorist coverage.
386   (9)(a) When a claim is brought by a named insured or a person described in Subsection
387(1) and is asserted against the covered person's uninsured motorist carrier, the
388claimant may elect to resolve the claim:
389(i) by submitting the claim to binding arbitration; or
390(ii) through litigation.
391(b) Unless otherwise provided in the policy under which uninsured benefits are claimed,
392the election provided in Subsection (9)(a) is available to the claimant only, except
393that if the policy under which insured benefits are claimed provides that either an
394insured or the insurer may elect arbitration, the insured or the insurer may elect
395arbitration and that election to arbitrate shall stay the litigation of the claim under
396Subsection (9)(a)(ii).
397(c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii), the
398claimant may not elect to resolve the claim through binding arbitration under this
399section without the written consent of the uninsured motorist carrier.
400(d) For purposes of the statute of limitations applicable to a claim described in
401Subsection (9)(a), if the claimant does not elect to resolve the claim through
402litigation, the claim is considered filed when the claimant submits the claim to
                                                  - 12 -
Enrolled Copy  H.B. 307
403binding arbitration in accordance with this Subsection (9).
404      (e)(i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
405binding arbitration under Subsection (9)(a)(i) shall be resolved by a single
406arbitrator.
407(ii) All parties shall agree on the single arbitrator selected under Subsection (9)(e)(i).
408(iii) If the parties are unable to agree on a single arbitrator as required under
409Subsection (9)(e)(ii), the parties shall select a panel of three arbitrators.
410      (f) If the parties select a panel of three arbitrators under Subsection (9)(e)(iii):
411(i) each side shall select one arbitrator; and
412(ii) the arbitrators appointed under Subsection (9)(f)(i) shall select one additional
413arbitrator to be included in the panel.
414      (g) Unless otherwise agreed to in writing:
415(i) each party shall pay an equal share of the fees and costs of the arbitrator selected
416under Subsection (9)(e)(i); or
417(ii) if an arbitration panel is selected under Subsection (9)(e)(iii):
418(A) each party shall pay the fees and costs of the arbitrator selected by that party;
419and
420(B) each party shall pay an equal share of the fees and costs of the arbitrator
421selected under Subsection (9)(f)(ii).
422      (h) Except as otherwise provided in this section or unless otherwise agreed to in writing
423by the parties, an arbitration proceeding conducted under this section shall be
424governed by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
425      (i)(i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through
426(f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
427requirements of Subsections (10)(a) through (c) are satisfied.
428(ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil
429Procedure shall be determined based on the claimant's specific monetary amount
430in the written demand for payment of uninsured motorist coverage benefits as
431required in Subsection (10)(a)(i)(A).
432(iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
433arbitration claims under this part.
434      (j) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
435      (k) A written decision by a single arbitrator or by a majority of the arbitration panel shall
436constitute a final decision.
                                                - 13 -
H.B. 307  Enrolled Copy
437      (l)(i) Except as provided in Subsection (10), the amount of an arbitration award may
438not exceed the uninsured motorist policy limits of all applicable uninsured
439motorist policies, including applicable uninsured motorist umbrella policies.
440(ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
441applicable uninsured motorist policies, the arbitration award shall be reduced to an
442amount equal to the combined uninsured motorist policy limits of all applicable
443uninsured motorist policies.
444      (m) The arbitrator or arbitration panel may not decide the issues of coverage or
445extra-contractual damages, including:
446(i) whether the claimant is a covered person;
447(ii) whether the policy extends coverage to the loss; or
448(iii) any allegations or claims asserting consequential damages or bad faith liability.
449      (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
450class-representative basis.
451      (o) If the arbitrator or arbitration panel finds that the action was not brought, pursued, or
452defended in good faith, the arbitrator or arbitration panel may award reasonable
453attorney fees and costs against the party that failed to bring, pursue, or defend the
454claim in good faith.
455      (p) An arbitration award issued under this section shall be the final resolution of all
456claims not excluded by Subsection (9)(m) between the parties unless:
457(i) the award was procured by corruption, fraud, or other undue means; and
458(ii) within 20 days after service of the arbitration award, a party:
459(A) files a complaint requesting a trial de novo in a court with jurisdiction under
460Title 78A, Judiciary and Judicial Administration; and
461(B) serves the nonmoving party with a copy of the complaint requesting a trial de
462novo under Subsection (9)(p)(ii)(A).
463      (q)(i) Upon filing a complaint for a trial de novo under Subsection (9)(p), the claim
464shall proceed through litigation in accordance with the Utah Rules of Civil
465Procedure and Utah Rules of Evidence.
466(ii) In accordance with Rule 38, Utah Rules of Civil Procedure, a party may request a
467jury trial with a complaint requesting a trial de novo under Subsection (9)(p)(ii)(A).
468      (r)(i) If the claimant, as the moving party in a trial de novo requested under
469Subsection (9)(p), does not obtain a verdict that is at least $5,000 and is at least
47020% greater than the arbitration award, the claimant is responsible for all of the
                                                 - 14 -
Enrolled Copy  H.B. 307
471nonmoving party's costs.
472(ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
473under Subsection (9)(p), does not obtain a verdict that is at least 20% less than the
474arbitration award, the uninsured motorist carrier is responsible for all of the
475nonmoving party's costs.
476(iii) Except as provided in Subsection (9)(r)(iv), the costs under this Subsection (9)(r)
477shall include:
478(A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
479(B) the costs of expert witnesses and depositions.
480(iv) An award of costs under this Subsection (9)(r) may not exceed $2,500 unless
481Subsection (10)(h)(iii) applies.
482      (s) For purposes of determining whether a party's verdict is greater or less than the
483arbitration award under Subsection (9)(r), a court may not consider any recovery or
484other relief granted on a claim for damages if the claim for damages:
485(i) was not fully disclosed in writing prior to the arbitration proceeding; or
486(ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
487Procedure.
488      [(t) If a court determines, upon a motion of the nonmoving party, that the moving party's
489use of the trial de novo process was filed in bad faith in accordance with Section
49078B-5-825, the court may award reasonable attorney fees to the nonmoving party.]
491      (t) Upon a motion of the nonmoving party, the court may award reasonable attorney fees
492to the nonmoving party if the court determines that the moving party requested a trial
493de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation,
494or abuse the judicial process.
495      (u) Nothing in this section is intended to limit any claim under any other portion of an
496applicable insurance policy.
497      (v) If there are multiple uninsured motorist policies, as set forth in Subsection (8), the
498claimant may elect to arbitrate in one hearing the claims against all the uninsured
499motorist carriers.
500  (10)(a) Within 30 days after a covered person elects to submit a claim for uninsured
501      motorist benefits to binding arbitration or files litigation, the covered person shall
502      provide to the uninsured motorist carrier:
503(i) a written demand for payment of uninsured motorist coverage benefits, setting
504forth:
                                                - 15 -
H.B. 307  Enrolled Copy
505(A) subject to Subsection (10)(l), the specific monetary amount of the demand,
506including a computation of the covered person's claimed past medical
507expenses, claimed past lost wages, and the other claimed past economic
508damages; and
509(B) the factual and legal basis and any supporting documentation for the demand;
510(ii) a written statement under oath disclosing:
511(A)(I) the names and last known addresses of all health care providers who
512have rendered health care services to the covered person that are material to
513the claims for which uninsured motorist benefits are sought for a period of
514five years preceding the date of the event giving rise to the claim for
515uninsured motorist benefits up to the time the election for arbitration or
516litigation has been exercised; and
517(II) the names and last known addresses of the health care providers who have
518rendered health care services to the covered person, which the covered
519person claims are immaterial to the claims for which uninsured motorist
520benefits are sought, for a period of five years preceding the date of the event
521giving rise to the claim for uninsured motorist benefits up to the time the
522election for arbitration or litigation has been exercised that have not been
523disclosed under Subsection (10)(a)(ii)(A)(I);
524(B)(I) the names and last known addresses of all health insurers or other
525entities to whom the covered person has submitted claims for health care
526services or benefits material to the claims for which uninsured motorist
527benefits are sought, for a period of five years preceding the date of the event
528giving rise to the claim for uninsured motorist benefits up to the time the
529election for arbitration or litigation has been exercised; and
530(II) the names and last known addresses of the health insurers or other entities
531to whom the covered person has submitted claims for health care services or
532benefits, which the covered person claims are immaterial to the claims for
533which uninsured motorist benefits are sought, for a period of five years
534preceding the date of the event giving rise to the claim for uninsured
535motorist benefits up to the time the election for arbitration or litigation have
536not been disclosed;
537(C) if lost wages, diminished earning capacity, or similar damages are claimed, all
538employers of the covered person for a period of five years preceding the date
                                                - 16 -
Enrolled Copy  H.B. 307
539of the event giving rise to the claim for uninsured motorist benefits up to the
540time the election for arbitration or litigation has been exercised;
541(D) other documents to reasonably support the claims being asserted; and
542(E) all state and federal statutory lienholders including a statement as to whether
543the covered person is a recipient of Medicare or Medicaid benefits or Utah
544Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
545Utah Children's Health Insurance Program, or if the claim is subject to any
546other state or federal statutory liens; and
547(iii) signed authorizations to allow the uninsured motorist carrier to only obtain
548records and billings from the individuals or entities disclosed under Subsections
549(10)(a)(ii)(A)(I), (B)(I), and (C).
550      (b)(i) If the uninsured motorist carrier determines that the disclosure of undisclosed
551health care providers or health care insurers under Subsection (10)(a)(ii) is
552reasonably necessary, the uninsured motorist carrier may:
553(A) make a request for the disclosure of the identity of the health care providers or
554health care insurers; and
555(B) make a request for authorizations to allow the uninsured motorist carrier to
556only obtain records and billings from the individuals or entities not disclosed.
557(ii) If the covered person does not provide the requested information within 10 days:
558(A) the covered person shall disclose, in writing, the legal or factual basis for the
559failure to disclose the health care providers or health care insurers; and
560(B) either the covered person or the uninsured motorist carrier may request the
561arbitrator or arbitration panel to resolve the issue of whether the identities or
562records are to be provided if the covered person has elected arbitration.
563(iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution
564of the dispute concerning the disclosure and production of records of the health
565care providers or health care insurers.
566      (c)(i) An uninsured motorist carrier that receives an election for arbitration or a notice
567of filing litigation and the demand for payment of uninsured motorist benefits
568under Subsection (10)(a)(i) shall have a reasonable time, not to exceed 60 days
569from the date of the demand and receipt of the items specified in Subsections
570(10)(a)(i) through (iii), to:
571(A) provide a written response to the written demand for payment provided for in
572Subsection (10)(a)(i);
                                                - 17 -
H.B. 307  Enrolled Copy
573(B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of
574the uninsured motorist carrier's determination of the amount owed to the
575covered person; and
576(C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
577Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
578Utah Children's Health Insurance Program, or if the claim is subject to any
579other state or federal statutory liens, tender the amount, if any, of the uninsured
580motorist carrier's determination of the amount owed to the covered person less:
581(I) if the amount of the state or federal statutory lien is established, the amount
582of the lien; or
583(II) if the amount of the state or federal statutory lien is not established, two
584times the amount of the medical expenses subject to the state or federal
585statutory lien until such time as the amount of the state or federal statutory
586lien is established.
587(ii) If the amount tendered by the uninsured motorist carrier under Subsection
588(10)(c)(i) is the total amount of the uninsured motorist policy limits, the tendered
589amount shall be accepted by the covered person.
590      (d) A covered person who receives a written response from an uninsured motorist carrier
591as provided for in Subsection (10)(c)(i), may:
592(i) elect to accept the amount tendered in Subsection (10)(c)(i) as payment in full of
593all uninsured motorist claims; or
594(ii) elect to:
595(A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
596uninsured motorist claims; and
597(B) continue to litigate or arbitrate the remaining claim in accordance with the
598election made under Subsections (9)(a) through (c).
599      (e) If a covered person elects to accept the amount tendered under Subsection (10)(c)(i)
600as partial payment of all uninsured motorist claims, the final award obtained through
601arbitration, litigation, or later settlement shall be reduced by any payment made by
602the uninsured motorist carrier under Subsection (10)(c)(i).
603      (f) In an arbitration proceeding on the remaining uninsured claims:
604(i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
605under Subsection (10)(c)(i) until after the arbitration award has been rendered; and
606(ii) the parties may not disclose the amount of the limits of uninsured motorist
                                                     - 18 -
Enrolled Copy  H.B. 307
607benefits provided by the policy.
608      (g) If the final award obtained through arbitration or litigation is greater than the average
609of the covered person's initial written demand for payment provided for in Subsection
610(10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
611Subsection (10)(c)(i), the uninsured motorist carrier shall pay:
612(i) the final award obtained through arbitration or litigation, except that if the award
613exceeds the policy limits of the subject uninsured motorist policy by more than
614$15,000, the amount shall be reduced to an amount equal to the policy limits plus
615$15,000; and
616(ii) any of the following applicable costs:
617(A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
618(B) the arbitrator or arbitration panel's fee; and
619(C) the reasonable costs of expert witnesses and depositions used in the
620presentation of evidence during arbitration or litigation.
621      (h)(i) The covered person shall provide an affidavit of costs within five days of an
622arbitration award.
623(ii)(A) Objection to the affidavit of costs shall specify with particularity the costs
624to which the uninsured motorist carrier objects.
625(B) The objection shall be resolved by the arbitrator or arbitration panel.
626(iii) The award of costs by the arbitrator or arbitration panel under Subsection
627(10)(g)(ii) may not exceed $5,000.
628      (i)(i) A covered person shall disclose all material information, other than rebuttal
629evidence, within 30 days after a covered person elects to submit a claim for
630uninsured motorist coverage benefits to binding arbitration or files litigation as
631specified in Subsection (10)(a).
632(ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
633may not recover costs or any amounts in excess of the policy under Subsection
634(10)(g).
635      (j) This Subsection (10) does not limit any other cause of action that arose or may arise
636against the uninsured motorist carrier from the same dispute.
637      (k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
638occur on or after March 30, 2010.
639      (l)(i)(A) The written demand requirement in Subsection (10)(a)(i)(A) does not
640affect the covered person's requirement to provide a computation of any other
                                                - 19 -
H.B. 307  Enrolled Copy
641economic damages claimed, and the one or more respondents shall have a
642reasonable time after the receipt of the computation of any other economic
643damages claimed to conduct fact and expert discovery as to any additional
644damages claimed.
645(B) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and
646Chapter 300, Section 10, to this Subsection (10)(l) and Subsection (10)(a)(i)(A)
647apply to a claim submitted to binding arbitration or through litigation on or
648after May 13, 2014.
649(ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
650300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim
651submitted to binding arbitration or through litigation on or after May 13, 2014.
652   (11)(a) A person shall commence an action on a written policy or contract for uninsured
653motorist coverage within four years after the inception of loss.
654(b) Subsection (11)(a) shall apply to all claims that have not been time barred by
655Subsection 31A-21-313(1)(a) as of May 14, 2019.
656Section 3. Section 31A-22-305.3 is amended to read:
65731A-22-305.3 . Underinsured motorist coverage.
658   (1) As used in this section:
659(a) "Covered person" means the same as that term is defined in Section 31A-22-305.
660(b)(i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
661maintenance, or use of which is covered under a liability policy at the time of an
662injury-causing occurrence, but which has insufficient liability coverage to
663compensate fully the injured party for all special and general damages.
664(ii) The term "underinsured motor vehicle" does not include:
665(A) a motor vehicle that is covered under the liability coverage of the same policy
666that also contains the underinsured motorist coverage;
667(B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); or
668(C) a motor vehicle owned or leased by:
669(I) a named insured;
670(II) a named insured's spouse; or
671(III) a dependent of a named insured.
672   (2)(a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
673coverage for a covered person who is legally entitled to recover damages from an
674owner or operator of an underinsured motor vehicle because of bodily injury,
                                                - 20 -
Enrolled Copy  H.B. 307
675      sickness, disease, or death.
676      (b) A covered person occupying or using a motor vehicle owned, leased, or furnished to
677the covered person, the covered person's spouse, or covered person's resident relative
678may recover underinsured benefits only if the motor vehicle is:
679(i) described in the policy under which a claim is made; or
680(ii) a newly acquired or replacement motor vehicle covered under the terms of the
681policy.
682  (3)(a) For purposes of this Subsection (3), "new policy" means:
683(i) any policy that is issued that does not include a renewal or reinstatement of an
684existing policy; or
685(ii) a change to an existing policy that results in:
686(A) a named insured being added to or deleted from the policy; or
687(B) a change in the limits of the named insured's motor vehicle liability coverage.
688      (b) For new policies written on or after January 1, 2001, the limits of underinsured
689motorist coverage shall be equal to the lesser of the limits of the named insured's
690motor vehicle liability coverage or the maximum underinsured motorist coverage
691limits available by the insurer under the named insured's motor vehicle policy, unless
692a named insured rejects or purchases coverage in a lesser amount by signing an
693acknowledgment form that:
694(i) is filed with the department;
695(ii) is provided by the insurer;
696(iii) waives the higher coverage;
697(iv) need only state in this or similar language that "underinsured motorist coverage
698provides benefits or protection to you and other covered persons for bodily injury
699resulting from an accident caused by the fault of another party where the other
700party has insufficient liability insurance"; and
701(v) discloses the additional premiums required to purchase underinsured motorist
702coverage with limits equal to the lesser of the limits of the named insured's motor
703vehicle liability coverage or the maximum underinsured motorist coverage limits
704available by the insurer under the named insured's motor vehicle policy.
705      (c) Any selection or rejection under Subsection (3)(b) continues for that issuer of the
706liability coverage until the insured requests, in writing, a change of underinsured
707motorist coverage from that liability insurer.
708      (d)(i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after
                                               - 21 -
H.B. 307  Enrolled Copy
709January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
710demand for arbitration or filed a complaint in a court of competent jurisdiction.
711(ii) The Legislature finds that the retroactive application of Subsections (3)(b) and (c)
712clarifies the application of law and does not enlarge, eliminate, or destroy vested
713rights.
714      (e)(i) As used in this Subsection (3)(e), "additional motor vehicle" means a change
715that increases the total number of vehicles insured by the policy, and does not
716include replacement, substitute, or temporary vehicles.
717(ii) The adding of an additional motor vehicle to an existing personal lines or
718commercial lines policy does not constitute a new policy for purposes of
719Subsection (3)(a).
720(iii) If an additional motor vehicle is added to a personal lines policy where
721underinsured motorist coverage has been rejected, or where underinsured motorist
722limits are lower than the named insured's motor vehicle liability limits, the insurer
723shall provide a notice to a named insured within 30 days that:
724(A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
725underinsured motorist coverage; and
726(B) encourages the named insured to contact the insurance company or insurance
727producer for quotes as to the additional premiums required to purchase
728underinsured motorist coverage with limits equal to the lesser of the limits of
729the named insured's motor vehicle liability coverage or the maximum
730underinsured motorist coverage limits available by the insurer under the named
731insured's motor vehicle policy.
732      (f) A change in policy number resulting from any policy change not identified under
733Subsection (3)(a)(ii) does not constitute a new policy.
734      (g)(i) Subsection (3)(a) applies retroactively to any claim arising on or after January
7351, 2001 for which, as of May 1, 2012, an insured has not made a written demand
736for arbitration or filed a complaint in a court of competent jurisdiction.
737(ii) The Legislature finds that the retroactive application of Subsection (3)(a):
738(A) does not enlarge, eliminate, or destroy vested rights; and
739(B) clarifies legislative intent.
740      (h) A self-insured, including a governmental entity, may elect to provide underinsured
741motorist coverage in an amount that is less than its maximum self-insured retention
742under Subsections (3)(b) and (l) by issuing a declaratory memorandum or policy
                                                   - 22 -
Enrolled Copy  H.B. 307
743statement from the chief financial officer or chief risk officer that declares the:
744(i) self-insured entity's coverage level; and
745(ii) process for filing an underinsured motorist claim.
746      (i) Underinsured motorist coverage may not be sold with limits that are less than:
747(i) $10,000 for one person in any one accident; and
748(ii) at least $20,000 for two or more persons in any one accident.
749      (j) An acknowledgment under Subsection (3)(b) continues for that issuer of the
750underinsured motorist coverage until the named insured, in writing, requests different
751underinsured motorist coverage from the insurer.
752      (k)(i) The named insured's underinsured motorist coverage, as described in
753Subsection (2), is secondary to the liability coverage of an owner or operator of an
754underinsured motor vehicle, as described in Subsection (1).
755(ii) Underinsured motorist coverage may not be set off against the liability coverage
756of the owner or operator of an underinsured motor vehicle, but shall be added to,
757combined with, or stacked upon the liability coverage of the owner or operator of
758the underinsured motor vehicle to determine the limit of coverage available to the
759injured person.
760      (l)(i) In conjunction with the first two renewal notices sent after January 1, 2001, for
761policies existing on that date, the insurer shall disclose in the same medium as the
762premium renewal notice, an explanation of:
763(A) the purpose of underinsured motorist coverage in the same manner as
764described in Subsection (3)(b)(iv); and
765(B) a disclosure of the additional premiums required to purchase underinsured
766motorist coverage with limits equal to the lesser of the limits of the named
767insured's motor vehicle liability coverage or the maximum underinsured
768motorist coverage limits available by the insurer under the named insured's
769motor vehicle policy.
770(ii) The disclosure required under this Subsection (3)(l) shall be sent to all named
771insureds that carry underinsured motorist coverage limits in an amount less than
772the named insured's motor vehicle liability policy limits or the maximum
773underinsured motorist coverage limits available by the insurer under the named
774insured's motor vehicle policy.
775      (m) For purposes of this Subsection (3), a notice or disclosure sent to a named insured in
776a household constitutes notice or disclosure to all insureds within the household.
                                               - 23 -
H.B. 307  Enrolled Copy
777   (4)(a)(i) Except as provided in this Subsection (4), a covered person injured in a
778motor vehicle described in a policy that includes underinsured motorist benefits
779may not elect to collect underinsured motorist coverage benefits from another
780motor vehicle insurance policy.
781(ii) The limit of liability for underinsured motorist coverage for two or more motor
782vehicles may not be added together, combined, or stacked to determine the limit
783of insurance coverage available to an injured person for any one accident.
784(iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
785under Subsections (4)(b)(i) and (ii).
786(b)(i) A covered person injured as a pedestrian by an underinsured motor vehicle may
787recover underinsured motorist benefits under any one other policy in which they
788are described as a covered person.
789(ii) Except as provided in Subsection (4)(b)(iii), a covered person injured while
790occupying, using, or maintaining a motor vehicle that is not owned, leased, or
791furnished to the covered person, the covered person's spouse, or the covered
792person's resident parent or resident sibling, may also recover benefits under any
793one other policy under which the covered person is also a covered person.
794(iii)(A) A covered person may recover benefits from no more than two additional
795policies, one additional policy from each parent's household if the covered
796person is:
797(I) a dependent minor of parents who reside in separate households; and
798(II) injured while occupying or using a motor vehicle that is not owned, leased,
799or furnished to the covered person, the covered person's resident parent, or
800the covered person's resident sibling.
801(B) Each parent's policy under this Subsection (4)(b)(iii) is liable only for the
802percentage of the damages that the limit of liability of each parent's policy of
803underinsured motorist coverage bears to the total of both parents' underinsured
804coverage applicable to the accident.
805(iv) A covered person's recovery under any available policies may not exceed the full
806amount of damages.
807(v) Underinsured coverage on a motor vehicle occupied at the time of an accident is
808primary coverage, and the coverage elected by a person described under
809Subsections 31A-22-305(1)(a), (b), and (c) is secondary coverage.
810(vi) The primary and the secondary coverage may not be set off against the other.
                                                - 24 -
Enrolled Copy  H.B. 307
811(vii) A covered person as described under Subsection (4)(b)(i) or is entitled to the
812highest limits of underinsured motorist coverage under only one additional policy
813per household applicable to that covered person as a named insured, spouse, or
814relative.
815(viii) A covered injured person is not barred against making subsequent elections if
816recovery is unavailable under previous elections.
817(ix)(A) As used in this section, "interpolicy stacking" means recovering benefits
818for a single incident of loss under more than one insurance policy.
819(B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
820prohibited for underinsured motorist coverage.
821      (c) Underinsured motorist coverage:
822(i) in order to avoid double recovery, does not cover any benefit under Title 34A,
823Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah
824Occupational Disease Act, provided by the workers' compensation insurance
825carrier, uninsured employer, the Uninsured Employers' Fund created in Section
82634A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702,
827except that:
828(A) the covered person is credited an amount described in Subsection
82934A-2-106(5); and
830(B) the benefits described in this Subsection (4)(c)(i) do not need to be paid before
831an underinsured motorist claim may be pursued and resolved[.] ;
832(ii) may not be subrogated by a workers' compensation insurance carrier, uninsured
833employer, the Uninsured Employers' Fund created in Section 34A-2-704, or the
834Employers' Reinsurance Fund created in Section 34A-2-702;
835(iii) may not be reduced by benefits provided by the workers' compensation insurance
836carrier, uninsured employer, the Uninsured Employers' Fund created in Section
83734A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702;
838(iv) notwithstanding Subsection 31A-1-103(3)(f), may be reduced by health
839insurance subrogation only after the covered person is made whole;
840(v) may not be collected for bodily injury or death sustained by a person:
841(A) while committing a violation of Section 41-1a-1314;
842(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being
843operated in violation of Section 41-1a-1314; or
844(C) while committing a felony; and
                                             - 25 -
H.B. 307  Enrolled Copy
845(vi) notwithstanding Subsection (4)(c)(v), may be recovered:
846(A) for a person younger than 18 years old who is injured within the scope of
847Subsection (4)(c)(v), but is limited to medical and funeral expenses; or
848(B) by a law enforcement officer as defined in Section 53-13-103, who is injured
849within the course and scope of the law enforcement officer's duties.
850   (5)(a) Notwithstanding Section 31A-21-313, an action on a written policy or contract for
851underinsured motorist coverage shall be commenced within four years after the
852inception of loss.
853(b) The inception of the loss under Subsection 31A-21-313(1) for underinsured motorist
854claims occurs upon the date of the settlement check representing the last liability
855policy payment.
856   (6) An underinsured motorist insurer does not have a right of reimbursement against a
857person liable for the damages resulting from an injury-causing occurrence if the person's
858liability insurer has tendered the policy limit and the limits have been accepted by the
859claimant.
860   (7) Except as otherwise provided in this section, a covered person may seek, subject to the
861terms and conditions of the policy, additional coverage under any policy:
862(a) that provides coverage for damages resulting from motor vehicle accidents; and
863(b) that is not required to conform to Section 31A-22-302.
864   (8)(a) When a claim is brought by a named insured or a person described in Subsection
86531A-22-305(1) and is asserted against the covered person's underinsured motorist
866carrier, the claimant may elect to resolve the claim:
867(i) by submitting the claim to binding arbitration; or
868(ii) through litigation.
869(b) Unless otherwise provided in the policy under which underinsured benefits are
870claimed, the election provided in Subsection (8)(a) is available to the claimant only,
871except that if the policy under which insured benefits are claimed provides that either
872an insured or the insurer may elect arbitration, the insured or the insurer may elect
873arbitration and that election to arbitrate shall stay the litigation of the claim under
874Subsection (8)(a)(ii).
875(c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
876claimant may not elect to resolve the claim through binding arbitration under this
877section without the written consent of the underinsured motorist coverage carrier.
878(d) For purposes of the statute of limitations applicable to a claim described in
                                                  - 26 -
Enrolled Copy  H.B. 307
879Subsection (8)(a), if the claimant does not elect to resolve the claim through
880litigation, the claim is considered filed when the claimant submits the claim to
881binding arbitration in accordance with this Subsection (8).
882      (e)(i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
883binding arbitration under Subsection (8)(a)(i) shall be resolved by a single
884arbitrator.
885(ii) All parties shall agree on the single arbitrator selected under Subsection (8)(e)(i).
886(iii) If the parties are unable to agree on a single arbitrator as required under
887Subsection (8)(e)(ii), the parties shall select a panel of three arbitrators.
888      (f) If the parties select a panel of three arbitrators under Subsection (8)(e)(iii):
889(i) each side shall select one arbitrator; and
890(ii) the arbitrators appointed under Subsection (8)(f)(i) shall select one additional
891arbitrator to be included in the panel.
892      (g) Unless otherwise agreed to in writing:
893(i) each party shall pay an equal share of the fees and costs of the arbitrator selected
894under Subsection (8)(e)(i); or
895(ii) if an arbitration panel is selected under Subsection (8)(e)(iii):
896(A) each party shall pay the fees and costs of the arbitrator selected by that party;
897and
898(B) each party shall pay an equal share of the fees and costs of the arbitrator
899selected under Subsection (8)(f)(ii).
900      (h) Except as otherwise provided in this section or unless otherwise agreed to in writing
901by the parties, an arbitration proceeding conducted under this section is governed by
902Title 78B, Chapter 11, Utah Uniform Arbitration Act.
903      (i)(i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through
904(f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
905requirements of Subsections (9)(a) through (c) are satisfied.
906(ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil
907Procedure shall be determined based on the claimant's specific monetary amount
908in the written demand for payment of uninsured motorist coverage benefits as
909required in Subsection (9)(a)(i)(A).
910(iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
911arbitration claims under this part.
912      (j) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
                                                - 27 -
H.B. 307  Enrolled Copy
913      (k) A written decision by a single arbitrator or by a majority of the arbitration panel
914constitutes a final decision.
915      (l)(i) Except as provided in Subsection (9), the amount of an arbitration award may
916not exceed the underinsured motorist policy limits of all applicable underinsured
917motorist policies, including applicable underinsured motorist umbrella policies.
918(ii) If the initial arbitration award exceeds the underinsured motorist policy limits of
919all applicable underinsured motorist policies, the arbitration award shall be
920reduced to an amount equal to the combined underinsured motorist policy limits
921of all applicable underinsured motorist policies.
922      (m) The arbitrator or arbitration panel may not decide an issue of coverage or
923extra-contractual damages, including:
924(i) whether the claimant is a covered person;
925(ii) whether the policy extends coverage to the loss; or
926(iii) an allegation or claim asserting consequential damages or bad faith liability.
927      (n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
928class-representative basis.
929      (o) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
930or defended in good faith, the arbitrator or arbitration panel may award reasonable
931attorney fees and costs against the party that failed to bring, pursue, or defend the
932arbitration in good faith.
933      (p) An arbitration award issued under this section shall be the final resolution of all
934claims not excluded by Subsection (8)(m) between the parties unless:
935(i) the award is procured by corruption, fraud, or other undue means; or
936(ii) either party, within 20 days after service of the arbitration award:
937(A) files a complaint requesting a trial de novo in the a court with jurisdiction
938under Title 78A, Judiciary and Judicial Administration; and
939(B) serves the nonmoving party with a copy of the complaint requesting a trial de
940novo under Subsection (8)(p)(ii)(A).
941      (q)(i) Upon filing a complaint for a trial de novo under Subsection (8)(p), a claim
942shall proceed through litigation in accordance with the Utah Rules of Civil
943Procedure and Utah Rules of Evidence.
944(ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
945request a jury trial with a complaint requesting a trial de novo under Subsection
946(8)(p)(ii)(A).
                                                 - 28 -
Enrolled Copy  H.B. 307
947      (r)(i) If the claimant, as the moving party in a trial de novo requested under
948Subsection (8)(p), does not obtain a verdict that is at least $5,000 and is at least
94920% greater than the arbitration award, the claimant is responsible for all of the
950nonmoving party's costs.
951(ii) If the underinsured motorist carrier, as the moving party in a trial de novo
952requested under Subsection (8)(p), does not obtain a verdict that is at least 20%
953less than the arbitration award, the underinsured motorist carrier is responsible for
954all of the nonmoving party's costs.
955(iii) Except as provided in Subsection (8)(r)(iv), the costs under this Subsection (8)(r)
956shall include:
957(A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
958(B) the costs of expert witnesses and depositions.
959(iv) An award of costs under this Subsection (8)(r) may not exceed $2,500 unless
960Subsection (9)(h)(iii) applies.
961      (s) For purposes of determining whether a party's verdict is greater or less than the
962arbitration award under Subsection (8)(r), a court may not consider any recovery or
963other relief granted on a claim for damages if the claim for damages:
964(i) was not fully disclosed in writing prior to the arbitration proceeding; or
965(ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
966Procedure.
967      [(t) If a court determines, upon a motion of the nonmoving party, that a moving party's
968use of the trial de novo process is filed in bad faith in accordance with Section
96978B-5-825, the court may award reasonable attorney fees to the nonmoving party.]
970      (t) Upon a motion of the nonmoving party, the court may award reasonable attorney fees
971to the nonmoving party if the court determines that the moving party requested a trial
972de novo to harass, cause unreasonable delay, needlessly increase the cost of litigation,
973or abuse the judicial process.
974      (u) Nothing in this section is intended to limit a claim under another portion of an
975applicable insurance policy.
976      (v) If there are multiple underinsured motorist policies, as set forth in Subsection (4), the
977claimant may elect to arbitrate in one hearing the claims against all the underinsured
978motorist carriers.
979  (9)(a) Within 30 days after a covered person elects to submit a claim for underinsured
980      motorist benefits to binding arbitration or files litigation, the covered person shall
                                               - 29 -
 H.B. 307  Enrolled Copy
981      provide to the underinsured motorist carrier:
982(i) a written demand for payment of underinsured motorist coverage benefits, setting
983forth:
984(A) subject to Subsection (9)(l), the specific monetary amount of the demand,
985including a computation of the covered person's claimed past medical
986expenses, claimed past lost wages, and all other claimed past economic
987damages; and
988(B) the factual and legal basis and any supporting documentation for the demand;
989(ii) a written statement under oath disclosing:
990(A)(I) the names and last known addresses of all health care providers who
991have rendered health care services to the covered person that are material to
992the claims for which the underinsured motorist benefits are sought for a
993period of five years preceding the date of the event giving rise to the claim
994for underinsured motorist benefits up to the time the election for arbitration
995or litigation has been exercised; and
996(II) the names and last known addresses of the health care providers who have
997rendered health care services to the covered person, which the covered
998person claims are immaterial to the claims for which underinsured motorist
999benefits are sought, for a period of five years preceding the date of the event
1000  giving rise to the claim for underinsured motorist benefits up to the time the
1001  election for arbitration or litigation has been exercised that have not been
1002  disclosed under Subsection (9)(a)(ii)(A)(I);
1003  (B)(I) the names and last known addresses of all health insurers or other
1004  entities to whom the covered person has submitted claims for health care
1005  services or benefits material to the claims for which underinsured motorist
1006  benefits are sought, for a period of five years preceding the date of the event
1007  giving rise to the claim for underinsured motorist benefits up to the time the
1008  election for arbitration or litigation has been exercised; and
1009  (II) the names and last known addresses of the health insurers or other entities
1010  to whom the covered person has submitted claims for health care services or
1011  benefits, which the covered person claims are immaterial to the claims for
1012  which underinsured motorist benefits are sought, for a period of five years
1013  preceding the date of the event giving rise to the claim for underinsured
1014  motorist benefits up to the time the election for arbitration or litigation have
                                                  - 30 -
 Enrolled Copy  H.B. 307
1015  not been disclosed;
1016  (C) if lost wages, diminished earning capacity, or similar damages are claimed, all
1017  employers of the covered person for a period of five years preceding the date
1018  of the event giving rise to the claim for underinsured motorist benefits up to the
1019  time the election for arbitration or litigation has been exercised;
1020  (D) other documents to reasonably support the claims being asserted; and
1021  (E) all state and federal statutory lienholders including a statement as to whether
1022  the covered person is a recipient of Medicare or Medicaid benefits or Utah
1023  Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
1024  Utah Children's Health Insurance Program, or if the claim is subject to any
1025  other state or federal statutory liens; and
1026  (iii) signed authorizations to allow the underinsured motorist carrier to only obtain
1027  records and billings from the individuals or entities disclosed under Subsections
1028  (9)(a)(ii)(A)(I), (B)(I), and (C).
1029        (b)(i) If the underinsured motorist carrier determines that the disclosure of
1030  undisclosed health care providers or health care insurers under Subsection
1031  (9)(a)(ii) is reasonably necessary, the underinsured motorist carrier may:
1032  (A) make a request for the disclosure of the identity of the health care providers or
1033  health care insurers; and
1034  (B) make a request for authorizations to allow the underinsured motorist carrier to
1035  only obtain records and billings from the individuals or entities not disclosed.
1036  (ii) If the covered person does not provide the requested information within 10 days:
1037  (A) the covered person shall disclose, in writing, the legal or factual basis for the
1038  failure to disclose the health care providers or health care insurers; and
1039  (B) either the covered person or the underinsured motorist carrier may request the
1040  arbitrator or arbitration panel to resolve the issue of whether the identities or
1041  records are to be provided if the covered person has elected arbitration.
1042  (iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
1043  the dispute concerning the disclosure and production of records of the health care
1044  providers or health care insurers.
1045        (c)(i) An underinsured motorist carrier that receives an election for arbitration or a
1046  notice of filing litigation and the demand for payment of underinsured motorist
1047  benefits under Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60
1048  days from the date of the demand and receipt of the items specified in Subsections
                                                   - 31 -
 H.B. 307  Enrolled Copy
1049  (9)(a)(i) through (iii), to:
1050  (A) provide a written response to the written demand for payment provided for in
1051  Subsection (9)(a)(i);
1052  (B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
1053  underinsured motorist carrier's determination of the amount owed to the
1054  covered person; and
1055  (C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
1056  Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part 9,
1057  Utah Children's Health Insurance Program, or if the claim is subject to any
1058  other state or federal statutory liens, tender the amount, if any, of the
1059  underinsured motorist carrier's determination of the amount owed to the
1060  covered person less:
1061  (I) if the amount of the state or federal statutory lien is established, the amount
1062  of the lien; or
1063  (II) if the amount of the state or federal statutory lien is not established, two
1064  times the amount of the medical expenses subject to the state or federal
1065  statutory lien until such time as the amount of the state or federal statutory
1066  lien is established.
1067  (ii) If the amount tendered by the underinsured motorist carrier under Subsection
1068  (9)(c)(i) is the total amount of the underinsured motorist policy limits, the
1069  tendered amount shall be accepted by the covered person.
1070        (d) A covered person who receives a written response from an underinsured motorist
1071  carrier as provided for in Subsection (9)(c)(i), may:
1072  (i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
1073  underinsured motorist claims; or
1074  (ii) elect to:
1075  (A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
1076  underinsured motorist claims; and
1077  (B) continue to litigate or arbitrate the remaining claim in accordance with the
1078  election made under Subsections (8)(a) through (c).
1079        (e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i) as
1080  partial payment of all underinsured motorist claims, the final award obtained through
1081  arbitration, litigation, or later settlement shall be reduced by any payment made by
1082  the underinsured motorist carrier under Subsection (9)(c)(i).
                                                      - 32 -
 Enrolled Copy  H.B. 307
1083        (f) In an arbitration proceeding on the remaining underinsured claims:
1084  (i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
1085  under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
1086  (ii) the parties may not disclose the amount of the limits of underinsured motorist
1087  benefits provided by the policy.
1088        (g) If the final award obtained through arbitration or litigation is greater than the average
1089  of the covered person's initial written demand for payment provided for in Subsection
1090  (9)(a)(i) and the underinsured motorist carrier's initial written response provided for
1091  in Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
1092  (i) the final award obtained through arbitration or litigation, except that if the award
1093  exceeds the policy limits of the subject underinsured motorist policy by more than
1094  $15,000, the amount shall be reduced to an amount equal to the policy limits plus
1095  $15,000; and
1096  (ii) any of the following applicable costs:
1097  (A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
1098  (B) the arbitrator or arbitration panel's fee; and
1099  (C) the reasonable costs of expert witnesses and depositions used in the
1100  presentation of evidence during arbitration or litigation.
1101        (h)(i) The covered person shall provide an affidavit of costs within five days of an
1102  arbitration award.
1103  (ii)(A) Objection to the affidavit of costs shall specify with particularity the costs
1104  to which the underinsured motorist carrier objects.
1105  (B) The objection shall be resolved by the arbitrator or arbitration panel.
1106  (iii) The award of costs by the arbitrator or arbitration panel under Subsection
1107  (9)(g)(ii) may not exceed $5,000.
1108        (i)(i) A covered person shall disclose all material information, other than rebuttal
1109  evidence, within 30 days after a covered person elects to submit a claim for
1110  underinsured motorist coverage benefits to binding arbitration or files litigation as
1111  specified in Subsection (9)(a).
1112  (ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
1113  may not recover costs or any amounts in excess of the policy under Subsection
1114  (9)(g).
1115        (j) This Subsection (9) does not limit any other cause of action that arose or may arise
1116  against the underinsured motorist carrier from the same dispute.
                                                 - 33 -
 H.B. 307  Enrolled Copy
1117  (k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
1118  occur on or after March 30, 2010.
1119  (l)(i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
1120  covered person's requirement to provide a computation of any other economic
1121  damages claimed, and the one or more respondents shall have a reasonable time
1122  after the receipt of the computation of any other economic damages claimed to
1123  conduct fact and expert discovery as to any additional damages claimed. The
1124  changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter 300,
1125  Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A) apply to a claim
1126  submitted to binding arbitration or through litigation on or after May 13, 2014.
1127     (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
1128  300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted
1129  to binding arbitration or through litigation on or after May 13, 2014.
1130  Section 4. Section 31A-22-321 is amended to read:
1131  31A-22-321 . Use of arbitration in third party motor vehicle accident cases.
1132     (1) A person injured as a result of a motor vehicle accident may elect to submit all third
1133  party bodily injury claims to arbitration by filing a notice of the submission of the claim
1134  to binding arbitration in a court with jurisdiction under Title 78A, Judiciary and Judicial
1135  Administration, if:
1136  (a) the claimant or the claimant's representative has:
1137  (i) previously and timely filed a complaint in a court that includes a third party bodily
1138  injury claim; and
1139  (ii) filed a notice to submit the claim to arbitration within 14 days after the complaint
1140  has been answered; and
1141  (b) the notice required under Subsection (1)(a)(ii) is filed while the action under
1142  Subsection (1)(a)(i) is still pending.
1143     (2)(a) If a party submits a bodily injury claim to arbitration under Subsection (1), the
1144  party submitting the claim or the party's representative is limited to an arbitration
1145  award that does not exceed $75,000 or the defendant's per person limits of third party
1146  bodily insurance, whichever is less, in addition to any available personal injury
1147  protection benefits and any claim for property damage.
1148  (b) A claim for reimbursement of personal injury protection benefits is to be resolved
1149  between insurers as provided for in Subsection 31A-22-309(6)(a)(ii).
1150  (c) A claim for property damage may not be made in an arbitration proceeding under
                                                     - 34 -
 Enrolled Copy  H.B. 307
1151  Subsection (1) unless agreed upon by the parties in writing.
1152        (d) A party who elects to proceed against a defendant under this section:
1153  (i) waives the right to obtain a judgment against the personal assets of the defendant;
1154  and
1155  (ii) is limited to recovery only against available limits of insurance , plus a maximum
1156  $15,000 in excess of policy limits, and available costs if appealed.
1157        (e)(i) This section does not prevent a party from pursuing an underinsured motorist
1158  claim as set out in Section 31A-22-305.3.
1159  (ii) An underinsured motorist claim described in Subsection (2)(e)(i) is not limited to
1160  the defendant's per person limits of third party bodily insurance coverage or the
1161  $75,000 limit.
1162  (iii) There shall be no right of subrogation on the part of the underinsured motorist
1163  carrier for a claim submitted to arbitration under this section.
1164    (3) A claim for punitive damages may not be made in an arbitration proceeding under
1165        Subsection (1) or any subsequent proceeding, even if the claim is later resolved through
1166        a trial de novo under Subsection (11).
1167    (4)(a) A person who has elected arbitration under this section may rescind the person's
1168        election if the rescission is made within:
1169  (i) 90 days after the election to arbitrate; and
1170  (ii) no less than 30 days before any scheduled arbitration hearing.
1171        (b) A person seeking to rescind an election to arbitrate under this Subsection (4) shall:
1172  (i) file a notice of the rescission of the election to arbitrate with the court in which the
1173  matter was filed; and
1174  (ii) send copies of the notice of the rescission of the election to arbitrate to all counsel
1175  of record to the action.
1176        (c) All discovery completed in anticipation of the arbitration hearing shall be available
1177  for use by the parties as allowed by the Utah Rules of Civil Procedure and Utah
1178  Rules of Evidence.
1179        (d) A party who has elected to arbitrate under this section and then rescinded the
1180  election to arbitrate under this Subsection (4) may not elect to arbitrate the claim
1181  under this section again.
1182    (5)(a) Unless otherwise agreed to by the parties or by order of the court, an arbitration
1183        process elected under this section is subject to Rule 26, Utah Rules of Civil
1184        Procedure.
                                                   - 35 -
 H.B. 307  Enrolled Copy
1185  (b) Unless otherwise agreed to by the parties or ordered by the court, discovery shall be
1186  completed within 150 days after the date arbitration is elected under this section or
1187  the date the answer is filed, whichever is longer.
1188     (6)(a) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
1189  arbitration under this section shall be resolved by a single arbitrator.
1190  (b) Unless otherwise agreed to by the parties or ordered by the court, all parties shall
1191  agree on the single arbitrator selected under Subsection (6)(a) within 90 days of the
1192  answer of the defendant.
1193  (c) If the parties are unable to agree on a single arbitrator as required under Subsection
1194  (6)(b), the parties shall select a panel of three arbitrators.
1195  (d) If the parties select a panel of three arbitrators under Subsection (6)(c):
1196  (i) each side shall select one arbitrator; and
1197  (ii) the arbitrators appointed under Subsection (6)(d)(i) shall select one additional
1198  arbitrator to be included in the panel.
1199     (7) Unless otherwise agreed to in writing:
1200  (a) each party shall pay an equal share of the fees and costs of the arbitrator selected
1201  under Subsection (6)(a); and
1202  (b) if an arbitration panel is selected under Subsection (6)(d):
1203  (i) each party shall pay the fees and costs of the arbitrator selected by that party's
1204  side; and
1205  (ii) each party shall pay an equal share of the fees and costs of the arbitrator selected
1206  under Subsection (6)(d)(ii).
1207     (8) Except as otherwise provided in this section and unless otherwise agreed to in writing
1208  by the parties, an arbitration proceeding conducted under this section shall be governed
1209  by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
1210     (9)(a) Subject to the provisions of this section, the Utah Rules of Civil Procedure and
1211  Utah Rules of Evidence apply to the arbitration proceeding.
1212  (b) The Utah Rules of Civil Procedure and Utah Rules of Evidence shall be applied
1213  liberally with the intent of concluding the claim in a timely and cost-efficient manner.
1214  (c) Discovery shall be conducted in accordance with Rules 26 through 37 of the Utah
1215  Rules of Civil Procedure and shall be subject to the jurisdiction of the court in which
1216  the matter is filed.
1217  (d) Dispositive motions shall be filed, heard, and decided by the court prior to the
1218  arbitration proceeding in accordance with the court's scheduling order.
                                                   - 36 -
 Enrolled Copy  H.B. 307
1219    (10) A written decision by a single arbitrator or by a majority of the arbitration panel shall
1220        constitute a final decision.
1221    (11) An arbitration award issued under this section shall be the final resolution of all bodily
1222        injury claims between the parties and may be reduced to judgment by the court upon
1223        motion and notice unless:
1224        (a) either party, within 20 days after service of the arbitration award:
1225  (i) files a notice requesting a trial de novo in the court; and
1226  (ii) serves the nonmoving party with a copy of the notice requesting a trial de novo
1227  under Subsection (11)(a)(i); or
1228        (b) the arbitration award has been satisfied.
1229    (12)(a) Upon filing a notice requesting a trial de novo under Subsection (11):
1230  (i) unless otherwise stipulated to by the parties or ordered by the court, an additional
1231  120 days shall be allowed for further discovery;
1232  (ii) the additional discovery time under Subsection (12)(a)(i) shall run from the notice
1233  of appeal; and
1234  (iii) the claim shall proceed through litigation in accordance with the Utah Rules of
1235  Civil Procedure and Utah Rules of Evidence.
1236        (b) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may request
1237  a jury trial with a request for trial de novo filed under Subsection (11)(a)(i).
1238    (13)(a) If the plaintiff, as the moving party in a trial de novo requested under Subsection
1239        (11), does not obtain a verdict that is at least $5,000 and is at least 30% greater than
1240        the damages awarded in arbitration, excluding the items listed in Subsection (19), the
1241        plaintiff is responsible for all of the nonmoving party's costs.
1242        (b) The costs described in Subsection (13)(a) include:
1243  (i) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure;
1244  (ii) the costs of expert witnesses and depositions;
1245  (iii) the arbitration costs paid by the prevailing party under Subsection (7);
1246  (iv) prejudgment interest described in Section 78B-5-824; and
1247  (v) postjudgment interest described in Section 15-1-4.
1248    (14)(a) If a defendant, as the moving party in a trial de novo requested under Subsection
1249        (11), does not obtain a verdict that is at least 30% less than the damages awarded in
1250        arbitration, excluding the items described in Subsection (19), the defendant is
1251        responsible for all of the nonmoving party's costs.
1252        (b) The costs described in Subsection (14)(a) include:
                                                - 37 -
 H.B. 307  Enrolled Copy
1253  (i) costs described in Rule 54(d), Utah Rules of Civil Procedure;
1254  (ii) the costs of expert witnesses and depositions;
1255  (iii) the arbitration costs paid by the prevailing party under Subsection (7);
1256  (iv) prejudgment interest described in Section 78B-5-824; and
1257  (v) postjudgment interest described in Section 15-1-4.
1258     (15) For purposes of determining whether a party's verdict is greater or less than the
1259  arbitration award under Subsections (13) and (14), a court may not consider any
1260  recovery or other relief granted on a claim for damages if the claim for damages:
1261  (a) was not fully disclosed in writing prior to the arbitration proceeding; or
1262  (b) was not disclosed in response to discovery contrary to the Utah Rules of Civil
1263  Procedure.
1264     [(16) If a court determines, upon a motion of the nonmoving party, that the moving party's
1265  use of the trial de novo process was filed in bad faith as defined in Section 78B-5-825,
1266  the court may award reasonable attorney fees to the nonmoving party.]
1267     (16) Upon a motion of the nonmoving party, the court may award reasonable attorney fees
1268  to the nonmoving party if the court determines that the moving party requested a trial de
1269  novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or
1270  abuse the judicial process.
1271     (17) Nothing in this section is intended to affect or prevent any first party claim from later
1272  being brought under any first party insurance policy under which the injured person is a
1273  covered person.
1274     (18)(a) If a defendant requests a trial de novo under Subsection (11), the total damages
1275  award at trial may not exceed $15,000 above any available per person limits of
1276  insurance coverage, not including the costs described in Subsection (14)(b).
1277  (b) If a plaintiff requests a trial de novo under Subsection (11), the verdict at trial may
1278  not exceed $75,000, or the per person limits of insurance coverage, whichever is less.
1279     (19) All arbitration awards issued under this section shall include:
1280  (a) the costs described in Rule 54(d), Utah Rules of Civil Procedure;
1281  (b) the arbitration costs paid by the prevailing party under Subsection (7);
1282  (c) prejudgment interest described in Section 78B-5-824; and
1283  (d) postjudgment interest described in Section 15-1-4.
1284     (20) If a party requests a trial de novo under Subsection (11), the party shall file a copy of
1285  the notice requesting a trial de novo with the commissioner notifying the commissioner
1286  of the party's request for a trial de novo under Subsection (11).
                                                 - 38 -
 Enrolled Copy  H.B. 307
1287  Section 5. Section 38-1a-308 is amended to read:
1288  38-1a-308 . Intentional submission of excessive lien notice -- Criminal and civil
1289    liability.
1290    (1) As used in this section, "residential project" means a project on real property:
1291        (a) for which a preconstruction service or construction work is provided; and
1292        (b) that consists of:
1293  (i) one single-family residence; or
1294  (ii) one multi-family residence that contains no more than four units.
1295    (2) A person is guilty of a class B misdemeanor if:
1296        (a) the person intentionally submits for recording a notice of preconstruction lien or
1297  notice of construction lien against any property containing a greater demand than the
1298  sum due; and
1299        (b) by submitting the notice, the person intends:
1300  (i) to cloud the title;
1301  (ii) to exact from the owner or person liable by means of the excessive notice of
1302  preconstruction or construction lien more than is due; or
1303  (iii) to procure any unjustified advantage or benefit.
1304    (3)(a) As used in this Subsection (3), "third party" means an owner, original contractor,
1305        or subcontractor.
1306        (b) In addition to any criminal penalty under Subsection (2), a person who submits a
1307  notice of preconstruction lien or notice of construction lien as described in
1308  Subsection (2) is liable to a third party who is affected by the notice of
1309  preconstruction lien or the notice of construction lien for twice the amount by which
1310  the lien notice exceeds the amount actually due or the actual damages incurred by the
1311  owner, original contractor, or subcontractor, whichever is greater.
1312    (4) The parties to a claim described in Subsection (3)(b) who agree to arbitrate the claim
1313        shall arbitrate in accordance with Subsections (5) through (15) if the notice of
1314        preconstruction lien, or the notice of construction lien, that is the subject of the claim is:
1315        (a) for a residential project; and
1316        (b) for $50,000 or less.
1317    (5)(a) Unless otherwise agreed to by the parties, a claim that is submitted to arbitration
1318        under this section shall be resolved by a single arbitrator.
1319        (b) All parties shall agree on the single arbitrator described in Subsection (5)(a) within
1320  60 days after the day on which an answer is filed.
                                                 - 39 -
 H.B. 307  Enrolled Copy
1321  (c) If the parties are unable to agree on a single arbitrator as required under Subsection
1322  (5)(b), the parties shall select a panel of three arbitrators.
1323  (d) If the parties select a panel of three arbitrators under Subsection (5)(c):
1324  (i) each side shall select one arbitrator; and
1325  (ii) the arbitrators selected under Subsection (5)(d)(i) shall select one additional
1326  arbitrator to be included in the panel.
1327     (6) Unless otherwise agreed to in writing:
1328  (a) each party shall pay an equal share of the fees and costs of the arbitrator selected
1329  under Subsection (5)(b); or
1330  (b) if an arbitration panel is selected under Subsection (5)(d):
1331  (i) each party shall pay the fees and costs of that party's selected arbitrator; and
1332  (ii) each party shall pay an equal share of the fees and costs of the arbitrator selected
1333  under Subsection (5)(d)(ii).
1334     (7) Except as otherwise provided in this section or otherwise agreed to by the parties, an
1335  arbitration proceeding conducted under this section shall be governed by Title 78B,
1336  Chapter 11, Utah Uniform Arbitration Act.
1337     (8)(a) Subject to the provisions of this section, the Utah Rules of Civil Procedure and the
1338  Utah Rules of Evidence shall apply to an arbitration proceeding under this section.
1339  (b) The Utah Rules of Civil Procedure and the Utah Rules of Evidence shall be applied
1340  liberally with the intent of resolving the claim in a timely and cost-efficient manner.
1341  (c) Subject to the provisions of this section, the parties shall conduct discovery in
1342  accordance with Rules 26 through 37 of the Utah Rules of Civil Procedure.
1343  (d) Unless otherwise agreed to by the parties or ordered by the court, discovery in an
1344  arbitration proceeding under this section shall be limited to the discovery available in
1345  a tier 1 case under Rule 26 of the Utah Rules of Civil Procedure.
1346     (9) A written decision by a single arbitrator or by a majority of the arbitration panel shall
1347  constitute a final decision.
1348     (10) An arbitration award issued under this section:
1349  (a) shall be the final resolution of all excessive notice claims described in Subsection
1350  (3)(b) that are:
1351  (i) between the parties;
1352  (ii) for a residential project; and
1353  (iii) for $50,000 or less; and
1354  (b) may be reduced to judgment by the court upon motion and notice, unless:
                                                   - 40 -
 Enrolled Copy  H.B. 307
1355  (i) any party, within 20 days after the day on which the arbitration award is served,
1356  files a notice requesting a trial de novo in a court with jurisdiction under Title
1357  78A, Judiciary and Judicial Administration; or
1358  (ii) the arbitration award has been satisfied.
1359    (11)(a) Upon filing a notice requesting a trial de novo under Subsection (10)(b)(i):
1360  (i) unless otherwise stipulated to by the parties or ordered by the court, the parties are
1361  allowed an additional 60 days for discovery; and
1362  (ii) the claim shall proceed through litigation in accordance with the Utah Rules of
1363  Civil Procedure and the Utah Rules of Evidence.
1364        (b) The additional discovery time described in Subsection (11)(a)(i) shall run from the
1365  day on which the notice requesting a trial de novo is filed.
1366    (12) If the plaintiff, as the moving party in a trial de novo requested under Subsection
1367        (10)(b)(i), does not obtain a verdict that is at least 10% greater than the arbitration
1368        award, the plaintiff is responsible for all of the nonmoving party's costs, including expert
1369        witness fees.
1370    (13) If a defendant, as the moving party in a trial de novo requested under Subsection
1371        (10)(b)(i), does not obtain a verdict that is at least 10% less than the arbitration award,
1372        the defendant is responsible for all of the nonmoving party's costs, including expert
1373        witness fees.
1374    [(14) If a court determines, upon a motion of the nonmoving party, that the moving party's
1375        use of the trial de novo process was filed in bad faith, as defined in Section 78B-5-825,
1376        the court may award reasonable attorney fees to the nonmoving party.]
1377    (14) Upon a motion of the nonmoving party, the court may award reasonable attorney fees
1378        to the nonmoving party if the court determines that the moving party requested a trial de
1379        novo to harass, cause unreasonable delay, needlessly increase the cost of litigation, or
1380        abuse the judicial process.
1381    (15) All arbitration awards issued under this section shall bear postjudgment interest [
1382        pursuant to] in accordance with Section 15-1-4.
1383  Section 6. Section 78B-5-825 is amended to read:
1384  78B-5-825 . Award of reasonable attorney fees in civil action -- Exceptions.
1385    [(1) In civil actions, the court shall award reasonable attorney fees to a prevailing party if
1386        the court determines that the action or defense to the action was without merit and not
1387        brought or asserted in good faith, except under Subsection (2).]
1388    (1) Except as provided in Subsection (3), the court shall award reasonable attorney fees to a
                                                 - 41 -
 H.B. 307  Enrolled Copy
1389  prevailing party in a civil action if the court determines that:
1390  (a) the nonprevailing party's civil action, or defense to the civil action, is frivolous or has
1391  no reasonable basis in law or fact; and
1392  (b) the nonprevailing party brought the civil action, or defense to the civil action, to
1393  harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse
1394  the judicial process.
1395     (2) Except as provided in Subsection (3), the court shall award reasonable attorney fees to a
1396  party in a civil action if:
1397  (a) the party incurred attorney fees in defense of a motion brought by the opposing
1398  party; and
1399  (b) the court determines that:
1400  (i) the opposing party's motion is frivolous or has no reasonable basis in law or fact;
1401  and
1402  (ii) the opposing party brought the motion to harass, cause unreasonable delay,
1403  needlessly increase the cost of litigation, or abuse the judicial process.
1404     [(2)] (3) The court, in the court's discretion, may award no fees or limited fees against a
1405  party under Subsection (1)[, but only if the court] or (2) if the court:
1406  (a) finds the party has filed an affidavit of indigency under Section 78A-2-302 in the
1407  action before the court; or
1408  (b) [the court ]enters in the record the reason for not awarding fees under the provisions
1409  of Subsection (1) or (2).
1410  Section 7. Section 78B-10a-108 is amended to read:
1411  78B-10a-108 . Trial de novo.
1412     (1)(a) Upon filing a notice requesting a trial de novo in accordance with Subsection
1413  78B-10a-107(2):
1414  (i) unless otherwise stipulated to by the parties or ordered by the court, an additional
1415  90 days shall be allowed for further discovery;
1416  (ii) the additional discovery time under Subsection (1)(a)(i) shall run from the notice
1417  of the request for a trial de novo; and
1418  (iii) the claim shall proceed through litigation [pursuant to] in accordance with the
1419  Utah Rules of Civil Procedure and Utah Rules of Evidence in the district court.
1420  (b) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may request
1421  a jury trial with a request for trial de novo filed in accordance with Subsection
1422  78B-10a-107(2)(a)(i).
                                                  - 42 -
 Enrolled Copy  H.B. 307
1423    (2)(a) If the plaintiff, as the moving party in a trial de novo requested under Subsection
1424        78B-10a-107(2), does not obtain a verdict that is at least $5,000 and 30% greater than
1425        the arbitration award, the plaintiff is responsible for all of the nonmoving party's
1426        costs.
1427        (b) Except as provided in Subsection (2)(c), the costs under Subsection (2)(a) shall
1428  include:
1429  (i) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
1430  (ii) the costs of expert witnesses and depositions.
1431        (c) An award of costs under this Subsection (2) may not exceed $6,000.
1432    (3)(a) If a defendant, as the moving party in a trial de novo requested in accordance with
1433        Subsection 78B-10a-107(2), does not obtain a verdict that is at least 30% less than
1434        the arbitration award, the defendant is responsible for all of the nonmoving party's
1435        costs.
1436        (b) Except as provided in Subsection (3)(c), the costs under Subsection (3)(a) shall
1437  include:
1438  (i) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
1439  (ii) the costs of expert witnesses and depositions.
1440        (c) An award of costs in accordance with this Subsection (3) may not exceed $6,000.
1441    (4) For purposes of determining whether a party's verdict is greater or less than the
1442        arbitration award under Subsections (2) and (3), a court may not consider any recovery
1443        or other relief granted on a claim for damages if the claim for damages:
1444        (a) was not fully disclosed in writing prior to the arbitration proceeding; or
1445        (b) was not disclosed in response to discovery contrary to the Utah Rules of Civil
1446  Procedure.
1447    [(5) If a district court determines, upon a motion of the nonmoving party, that the moving
1448        party's use of the trial de novo process was filed in bad faith as defined in Section
1449        78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.]
1450    (5) Upon a motion of the nonmoving party, the district court may award reasonable attorney
1451        fees to the nonmoving party if the district court determines that the moving party
1452        requested a trial de novo to harass, cause unreasonable delay, needlessly increase the
1453        cost of litigation, or abuse the judicial process.
1454    (6)(a) If a defendant requests a trial de novo under Subsection 78B-10a-107(2), the total
1455        verdict at trial may not exceed $15,000 above any available limits of insurance
1456        coverage and the total verdict may not exceed $65,000.
                                                 - 43 -
 H.B. 307  Enrolled Copy
1457  (b) If a plaintiff requests a trial de novo under Subsection 78B-10a-107(2), the verdict at
1458  trial may not exceed $50,000.
1459  Section 8. Effective Date.
1460     This bill takes effect on May 6, 2026.
                                                - 44 -