Can revocable trust property be subject to judgment liens in Utah? Mulligan v. Alum Rock Riverside Explained

In Mulligan v. Alum Rock Riverside, 2024 UT 22, the Utah Supreme Court addressed whether property held in a revocable trust can be subject to judgment liens against the trust’s settlor and what procedures are required to create valid judgment liens in Utah.

Background and Facts

Alum Rock Riverside obtained a $4 million judgment against Brett Del Valle in California state court. After domesticating the judgment in Utah’s Third District Court, Alum Rock recorded it with the Weber County Recorder’s Office because the Del Valle Family Trust owned property there. Brett and his wife Traci had established this revocable trust, naming themselves as trustees with broad powers to revoke, amend, and transfer trust property. After Alum Rock recorded its judgment, the trust conveyed the property to the Mulligans, who later challenged Alum Rock’s writ of execution.

Key Legal Issues

The Mulligans raised three challenges: (1) Alum Rock failed to create a valid judgment lien because it didn’t file the judgment in the registry of judgments as required by Utah Code § 78B-5-201(2); (2) the writ was improper because Brett never owned the property—the trust did; and (3) the Third District Court lacked jurisdiction to issue a writ for property located in Weber County.

Court’s Analysis and Holding

The Court held that subsections (2) and (3)(a) of Utah Code § 78B-5-201 create sequential, not cumulative, requirements for judgment lien creation. Since July 1, 2002, creditors need only record with the county recorder—filing in the registry of judgments is no longer required. The Court endorsed the Court of Appeals’ holding in Kitches & Zorn, L.L.C. v. Yong Woo Kim, which had been controlling law for nearly two decades. Regarding the trust property, the Court concluded that Brett “owned” the property for Judgment Act purposes because as settlor of a revocable trust, he retained “the functional equivalent of ownership.” Under Utah Code § 75-7-505(1), revocable trust property remains subject to the settlor’s creditors’ claims. Finally, the Court found no jurisdictional limitation preventing the Third District Court from issuing the writ.

Practice Implications

This decision clarifies that Utah’s judgment lien procedures were simplified in 2002, requiring only county recorder filing. Practitioners should note that revocable trusts do not shield assets from the settlor’s creditors, as the settlor retains sufficient control to constitute ownership. The ruling also confirms that district courts have broad authority to issue writs of execution for property located outside their judicial districts.