July 1st is usually the date new statutes passed at a regular session of the General Assembly go into effect, unless otherwise specified. See Va. Code § 1-214 (“A.  All laws enacted at a regular session of the General Assembly, including laws which are enacted by reason of actions taken during the reconvened session following a regular session, but excluding general appropriation acts, decennial reapportionment acts, and emergency acts, shall take effect on the first day of July following the adjournment of the regular session at which they were enacted, unless a subsequent date is specified.”).

There were a number of different statutory amendments this year, including to Va. Code 25.1-100 and 25.1-230.1 involving lost profits. If you have a lost profits issue or your work involves or may involve lost profits claims in Virginia, I commend those sections for your close review.

However, the change that may well be brought up most commonly going forward, and which everyone should be aware of, is the addition of two new code sections which create 30 day time periods under both 25.1 and 33.2 with regard to funds from settlements or judgments, as follows:

            Notwithstanding any other provision of this chapter, upon any settlement or final determination resulting in a judgment for the owner, whether funds have been paid into the court or are outstanding, all such funds due and owing shall be payable to the owner or, if the owner consents, to the owner’s attorney within 30 days of the settlement or final determination, unless otherwise subject to § 25.1-240, 25.1-241, 25.1-243, or 25.1-250. Nothing in this section shall be construed to alter the priority of liens or any obligation to satisfy or release any outstanding liens on the property or the funds.

Va. Code § 25.1-247.1

            Notwithstanding any other provision of this chapter, upon any settlement or final determination resulting in a judgment for the owner, whether funds have been paid into the court or are outstanding, all such funds due and owing shall be payable to the owner or, if the owner consents, to the owner’s attorney within 30 days of the settlement or final determination, unless otherwise subject to § 25.1-240, 25.1-241, 25.1-243, or 25.1-250. Nothing in this section shall be construed to alter the priority of liens or any obligation to satisfy or release any outstanding liens on the property or the funds.

Va. Code § 33.2-1027.1

The statutes do not describe what happens if these new time periods are not complied with and do not specify any penalties or enforcement mechanisms for non-compliance. The statutes also do not provide any guidance on when “settlement or final determination” is deemed to occur.