State Codes and Statutes

Statutes > Virginia > Title-54-1 > Chapter-11 > 54-1-1120

§ 54.1-1120. Recovery from Fund generally.

A. Whenever any person is awarded a judgment in a court of competentjurisdiction in the Commonwealth of Virginia against any individual or entitywhich involves improper or dishonest conduct occurring (i) during a periodwhen such individual or entity was a regulant and (ii) in connection with atransaction involving contracting, the claimant may file a verified claimwith the Director to obtain a directive ordering payment from the Fund of theamount unpaid upon the judgment, subject to the following conditions:

1. If any action is instituted against a regulant by any person, such personshall serve a copy of the process upon the Board in the manner prescribed bylaw. Included in such service shall be an affidavit stating all actsconstituting improper or dishonest conduct. The provisions of § 8.01-288shall not be applicable to the service of process required by thissubdivision.

2. A copy of any pleading or document filed subsequent to the initial serviceof process in the action against a regulant shall be provided to the Board.The claimant shall submit such copies to the Board by certified mail, or theequivalent, upon his receipt of the pleading or document.

3. For judgments entered on or after July 1, 1996, a verified claim shall befiled with the Director no later than twelve months after the judgment becamefinal. Such verified claim shall be accompanied by the copies of the orderfor the underlying judgment, and evidence of compliance with subdivisions 6and 7 below.

4. The claimant shall be (i) an individual whose contract with the regulantinvolved contracting for the claimant's residence(s) located in theCommonwealth or (ii) a property owners' association as defined in § 55-509whose contract with the regulant involved contracting for improvements to thecommon area owned by such association.

5. The claimant shall not himself be (i) an employee of such judgment debtor,(ii) a vendor of such judgment debtor, (iii) another licensee, (iv) thespouse or child of such judgment debtor nor the employee of such spouse orchild, or (v) any financial or lending institution nor anyone whose businessinvolves the construction or development of real property.

6. No directive ordering payment from the Fund shall be entered unless anduntil the claimant has filed with the Director a verified claim containingthe following statements:

a. That the claimant has conducted debtor's interrogatories to determinewhether the judgment debtor has any assets which may be sold or applied insatisfaction of the judgment.

b. A description of the assets disclosed by such interrogatories.

c. That all legally available actions have been taken for the sale, orapplication of the disclosed assets and the amount realized therefrom.

d. The balance remaining due the claimant after the sale or application ofsuch assets.

7. A claimant shall not be denied recovery from the Fund due to the fact theorder for the judgment filed with the verified claim does not contain aspecific finding of "improper or dishonest conduct." Any language in theorder which supports the conclusion that the court found that the conduct ofthe regulant involved improper or dishonest conduct may be used by the Boardto determine eligibility for recovery from the Fund.

B. If the regulant has filed bankruptcy, the claimant shall file a claim withthe proper bankruptcy court. If no distribution is made, the claimant maythen file a claim with the Board. The Board shall determine (i) whether theconduct that gave rise to the claim was improper or dishonest and (ii) whatamount, if any, such claimant is entitled to recover from the Fund.

(1980, c. 635, § 54-145.3:3; 1984, c. 270; 1987, c. 555; 1988, cc. 393, 765;1990, cc. 215, 437, 911; 1995, c. 784; 1996, c. 96; 1997, c. 885; 1999, cc.55, 261.)

State Codes and Statutes

Statutes > Virginia > Title-54-1 > Chapter-11 > 54-1-1120

§ 54.1-1120. Recovery from Fund generally.

A. Whenever any person is awarded a judgment in a court of competentjurisdiction in the Commonwealth of Virginia against any individual or entitywhich involves improper or dishonest conduct occurring (i) during a periodwhen such individual or entity was a regulant and (ii) in connection with atransaction involving contracting, the claimant may file a verified claimwith the Director to obtain a directive ordering payment from the Fund of theamount unpaid upon the judgment, subject to the following conditions:

1. If any action is instituted against a regulant by any person, such personshall serve a copy of the process upon the Board in the manner prescribed bylaw. Included in such service shall be an affidavit stating all actsconstituting improper or dishonest conduct. The provisions of § 8.01-288shall not be applicable to the service of process required by thissubdivision.

2. A copy of any pleading or document filed subsequent to the initial serviceof process in the action against a regulant shall be provided to the Board.The claimant shall submit such copies to the Board by certified mail, or theequivalent, upon his receipt of the pleading or document.

3. For judgments entered on or after July 1, 1996, a verified claim shall befiled with the Director no later than twelve months after the judgment becamefinal. Such verified claim shall be accompanied by the copies of the orderfor the underlying judgment, and evidence of compliance with subdivisions 6and 7 below.

4. The claimant shall be (i) an individual whose contract with the regulantinvolved contracting for the claimant's residence(s) located in theCommonwealth or (ii) a property owners' association as defined in § 55-509whose contract with the regulant involved contracting for improvements to thecommon area owned by such association.

5. The claimant shall not himself be (i) an employee of such judgment debtor,(ii) a vendor of such judgment debtor, (iii) another licensee, (iv) thespouse or child of such judgment debtor nor the employee of such spouse orchild, or (v) any financial or lending institution nor anyone whose businessinvolves the construction or development of real property.

6. No directive ordering payment from the Fund shall be entered unless anduntil the claimant has filed with the Director a verified claim containingthe following statements:

a. That the claimant has conducted debtor's interrogatories to determinewhether the judgment debtor has any assets which may be sold or applied insatisfaction of the judgment.

b. A description of the assets disclosed by such interrogatories.

c. That all legally available actions have been taken for the sale, orapplication of the disclosed assets and the amount realized therefrom.

d. The balance remaining due the claimant after the sale or application ofsuch assets.

7. A claimant shall not be denied recovery from the Fund due to the fact theorder for the judgment filed with the verified claim does not contain aspecific finding of "improper or dishonest conduct." Any language in theorder which supports the conclusion that the court found that the conduct ofthe regulant involved improper or dishonest conduct may be used by the Boardto determine eligibility for recovery from the Fund.

B. If the regulant has filed bankruptcy, the claimant shall file a claim withthe proper bankruptcy court. If no distribution is made, the claimant maythen file a claim with the Board. The Board shall determine (i) whether theconduct that gave rise to the claim was improper or dishonest and (ii) whatamount, if any, such claimant is entitled to recover from the Fund.

(1980, c. 635, § 54-145.3:3; 1984, c. 270; 1987, c. 555; 1988, cc. 393, 765;1990, cc. 215, 437, 911; 1995, c. 784; 1996, c. 96; 1997, c. 885; 1999, cc.55, 261.)


State Codes and Statutes

State Codes and Statutes

Statutes > Virginia > Title-54-1 > Chapter-11 > 54-1-1120

§ 54.1-1120. Recovery from Fund generally.

A. Whenever any person is awarded a judgment in a court of competentjurisdiction in the Commonwealth of Virginia against any individual or entitywhich involves improper or dishonest conduct occurring (i) during a periodwhen such individual or entity was a regulant and (ii) in connection with atransaction involving contracting, the claimant may file a verified claimwith the Director to obtain a directive ordering payment from the Fund of theamount unpaid upon the judgment, subject to the following conditions:

1. If any action is instituted against a regulant by any person, such personshall serve a copy of the process upon the Board in the manner prescribed bylaw. Included in such service shall be an affidavit stating all actsconstituting improper or dishonest conduct. The provisions of § 8.01-288shall not be applicable to the service of process required by thissubdivision.

2. A copy of any pleading or document filed subsequent to the initial serviceof process in the action against a regulant shall be provided to the Board.The claimant shall submit such copies to the Board by certified mail, or theequivalent, upon his receipt of the pleading or document.

3. For judgments entered on or after July 1, 1996, a verified claim shall befiled with the Director no later than twelve months after the judgment becamefinal. Such verified claim shall be accompanied by the copies of the orderfor the underlying judgment, and evidence of compliance with subdivisions 6and 7 below.

4. The claimant shall be (i) an individual whose contract with the regulantinvolved contracting for the claimant's residence(s) located in theCommonwealth or (ii) a property owners' association as defined in § 55-509whose contract with the regulant involved contracting for improvements to thecommon area owned by such association.

5. The claimant shall not himself be (i) an employee of such judgment debtor,(ii) a vendor of such judgment debtor, (iii) another licensee, (iv) thespouse or child of such judgment debtor nor the employee of such spouse orchild, or (v) any financial or lending institution nor anyone whose businessinvolves the construction or development of real property.

6. No directive ordering payment from the Fund shall be entered unless anduntil the claimant has filed with the Director a verified claim containingthe following statements:

a. That the claimant has conducted debtor's interrogatories to determinewhether the judgment debtor has any assets which may be sold or applied insatisfaction of the judgment.

b. A description of the assets disclosed by such interrogatories.

c. That all legally available actions have been taken for the sale, orapplication of the disclosed assets and the amount realized therefrom.

d. The balance remaining due the claimant after the sale or application ofsuch assets.

7. A claimant shall not be denied recovery from the Fund due to the fact theorder for the judgment filed with the verified claim does not contain aspecific finding of "improper or dishonest conduct." Any language in theorder which supports the conclusion that the court found that the conduct ofthe regulant involved improper or dishonest conduct may be used by the Boardto determine eligibility for recovery from the Fund.

B. If the regulant has filed bankruptcy, the claimant shall file a claim withthe proper bankruptcy court. If no distribution is made, the claimant maythen file a claim with the Board. The Board shall determine (i) whether theconduct that gave rise to the claim was improper or dishonest and (ii) whatamount, if any, such claimant is entitled to recover from the Fund.

(1980, c. 635, § 54-145.3:3; 1984, c. 270; 1987, c. 555; 1988, cc. 393, 765;1990, cc. 215, 437, 911; 1995, c. 784; 1996, c. 96; 1997, c. 885; 1999, cc.55, 261.)