Utah Code

Utah Code § 15-4-5 (2026)

Release of co-obligor -- Effect of knowledge of obligee

✓ current as of May 2026

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If an obligee releasing or discharging an obligor without express reservation of rights against a co-obligor then knows or has reason to know that the obligor released or discharged did not pay as much of the claim as that obligor was bound by that obligor's contract or relation with that co-obligor to pay, the obligee's claim against that co-obligor shall be satisfied to the amount which the obligee knew or had reason to know that the released or discharged obligor was bound to such co-obligor to pay.

If an obligee so releasing or discharging an obligor has not then such knowledge or reason to know, the obligee's claim against the co-obligor shall be satisfied to the extent of the lesser of two amounts, namely:

the amount of the fractional share of the obligor released or discharged; or

the amount that such obligor was bound by that obligor's contract or relation with the co-obligor to pay.

Notes of Decisions

Cited in 7 cases (1 in the last 5 years), 1958–2023 · leading case: Horman v. Gordon, 740 P.2d 1346 (Utah Ct. App. 1987).

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Horman v. Gordon, 740 P.2d 1346 (Utah Ct. App. 1987). · cites it 10× “” They contend that Utah Code Ann. § 15-4-5 (1986) 2 is applicable to Kingston, even though he did not sign the $120,895.”

Peterson v. Coca-Cola USA, 2002 UT 42 (Utah 2002). · cites it 2× “transaction as the release or discharge expressly reserves his rights; and in the absence of such a reservation of rights shall discharge co-obligors only to the extent provided in Section 15-4-5. Utah Code Ann. § 15-4-4 (1999).”

Nelson Ex Rel. Hirschfeld v. Corp. of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints, 935 P.2d 512 (Utah 1997). · cites it 4× “discharge of one or more of several obligors, or of one or more of joint or of joint and several obligors, shall not discharge co-obligors against whom the obligee in writing and as part of the same transaction as the release or discharge expressly reserves his rights; and in…”

Cattani v. Drake, 2018 UT App 77 (Utah Ct. App. 2018). · cites it 4× “¶52 On appeal the Trust asserts that the district court erroneously granted summary judgment by concluding that the Trust waived its claims against Maynard by way of the settlement and that the settlement agreement operated as a release of Maynard under Utah Code section 15-4-5.…”

Billings v. Zions First Nat'l Bank, N.A. (In re Granada, Inc.), 110 B.R. 548 (Bankr. D. Utah 1990). · cites it 3× “Utah Code § 15-4-5 grounds the co-obligor’s release on the knowledge of the obligee of the obligor’s responsibilities to the co-obligor when it made the release of the obligor.”

Zurich Am. Ins. Co. & Fid. & Deposit Co. of Maryland v. Ascent Constr. (D. Utah 2023). · cites it 4× “shall discharge co-obligors only to the extent provided in Section 15-4-5.”67 But § 15-4-5 merely allows for the liability of a non-released co-obligor to be reduced in some circumstances when a released obligor has not paid as much of the claim as that obligor was obligated to…”

Plateau Uranium Inv. Corp. v. Sugar & Ulmer, 326 P.2d 1022 (Utah 1958). · cites it 4× “discharge of one or more of several obli-gors, or of one or more of joint or of joint and several obligors, shall not discharge coobligors against whom the obligee in writing and as part of the same transaction as the release or discharge expressly reserves his rights; and in…”

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