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In September 1988, a Utah State court rendered judgment in
favor of Citizens and against the debtors in the amount of
$634,426.53, which included principal, interest, attorney's fees,
taxes, and court costs. The judgment recognized the mortgage,
lien, and privilege on the subject real estate and ordered the
sale of the property and application of the proceeds toward
satisfaction of the judgment. Pursuant to the judgment, the
local county sheriff seized, advertised, and sold the property at
public auction on November 23, 1988. The property was sold and
adjudicated to Citizens for $450,155.05. After retaining $155.05
for his expenses, the sheriff remitted $450,000 as the net
proceeds from the sale as to which he prepared a written return
that stated that, after application of the $450,000 on the
judgment, there remained "a deficiency balance in the amount of
$184,426.53" ($634,426.53, the total amount due under the
judgment, less $450,000, the net proceeds from the sale).
Utah Code Ann. sec. 78-37-2 (1992) provides:
If it appears from the return of the officer making the
sale that the proceeds are insufficient and a balance still
remains due, judgment therefor must then be docketed by the
clerk and execution may be issued for such balance as in
other cases; but no general execution shall issue until
after the sale of the mortgaged property and the application
of the amount realized as aforesaid.
The parties agree that the clerk of the Utah court failed to
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