{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/13.1-1023.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/13.1-1023.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/13.1-1023.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/13.1-1023.1.html"}],"law_id":346319,"edition_id":2,"section_id":346319,"structure_id":49733,"section_number":"13.1-1023.1","catch_line":"Remedies for breach of operating agreement by member or manager","history":"2003, c. 340; 2004, c. 601.","full_text":"A\n\nAn operating agreement may provide that:\n\n1\n\nA member or manager who fails to perform in accordance with, or to comply with terms and conditions of, the operating agreement shall be subject to specified penalties or specified consequences; and\n\n2\n\nAt the time or upon the happening of events specified in the operating agreement, a member or manager shall be subject to specified penalties or specified consequences.\n\t\t\t\tThe specified penalties or specified consequences may include and take the form of any penalty or consequence set forth in subsection D of § 13.1-1027.\n\nB\n\nIn the articles of organization, in writing in an operating agreement or in another writing, a member or manager may consent to or be subject to the nonexclusive jurisdiction of the courts of, or arbitration in, a specified jurisdiction, or the exclusive jurisdiction of the courts of the Commonwealth, or the exclusivity of arbitration in a specified jurisdiction of the Commonwealth, and to be served with legal process in a manner prescribed in the articles of organization, an operating agreement, or other writing.\n\n","order_by":null,"text":{"0":{"id":1290973,"text":"An operating agreement may provide that:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":1290974,"text":"A member or manager who fails to perform in accordance with, or to comply with terms and conditions of, the operating agreement shall be subject to specified penalties or specified consequences; and","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":1290975,"text":"At the time or upon the happening of events specified in the operating agreement, a member or manager shall be subject to specified penalties or specified consequences.\n\t\t\t\tThe specified penalties or specified consequences may include and take the form of any penalty or consequence set forth in subsection D of § 13.1-1027.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":1290976,"text":"In the articles of organization, in writing in an operating agreement or in another writing, a member or manager may consent to or be subject to the nonexclusive jurisdiction of the courts of, or arbitration in, a specified jurisdiction, or the exclusive jurisdiction of the courts of the Commonwealth, or the exclusivity of arbitration in a specified jurisdiction of the Commonwealth, and to be served with legal process in a manner prescribed in the articles of organization, an operating agreement, or other writing.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2"}},"ancestry":[{"id":49733,"edition_id":2,"name":"Relationship of Members to Each Other","identifier":"5","label":"article","depth":3,"order_by":5,"parent_id":49728,"metadata":{"child_laws":9,"child_structures":0},"date_created":"2026-08-02 02:14:05","date_modified":"2026-08-02 12:29:19","permalink":{"id":1375825,"object_type":"structure","relational_id":49733,"identifier":"5","token":"13.1\/12\/5","url":"\/13.1\/12\/5\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49728,"edition_id":2,"name":"Virginia Limited Liability Company Act","identifier":"12","label":"chapter","depth":2,"order_by":15,"parent_id":49726,"metadata":{"child_laws":156,"child_structures":16},"date_created":"2026-08-02 02:14:01","date_modified":"2026-08-02 12:29:18","permalink":{"id":1375353,"object_type":"structure","relational_id":49728,"identifier":"12","token":"13.1\/12","url":"\/13.1\/12\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49726,"edition_id":2,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":44,"parent_id":null,"metadata":{"child_laws":894,"child_structures":104},"date_created":"2026-08-02 02:14:01","date_modified":"2026-08-02 12:29:04","permalink":{"id":1374495,"object_type":"structure","relational_id":49726,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":346318,"structure_id":49733,"section_number":"13.1-1022","catch_line":"Management of limited liability company","url":"\/13.1-1022\/","token":"13.1\/12\/5\/13.1-1022","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Official Committee of Unsecured Creditors v. Virginia .\u202f.\u202f. ","case_number":"No. 12-62535","citation":"498 B.R. 90","date":"2013-09-09","url":"https:\/\/www.courtlistener.com\/opinion\/8523822\/official-committee-of-unsecured-creditors-v-virginia-broadband-llc-in-re\/","abstract":" .\u202f.\u202f. MEMORANDUM OPINION DENYING CREDITORS\u2019 COMMITTEE\u2019S MOTION TO DISMISS UNDER 11 U.S.C. \u00a7 1112(b) .\u202f.\u202f. ","court_html":"United States Bankruptcy Court, W.D. Virginia"},"1":{"name":"Williams v. White","case_number":"14-70057","citation":"412 B.R. 860","date":"2009-08-05","url":"https:\/\/www.courtlistener.com\/opinion\/1551791\/williams-v-white\/","abstract":" .\u202f.\u202f. 412 B.R. 860 (2009) .\u202f.\u202f. ","court_html":"United States Bankruptcy Court, W.D. Virginia"},"2":{"name":"Spain v. Williams (In Re Williams)","case_number":"19-30666","citation":"455 B.R. 485","date":"2011-05-19","url":"https:\/\/www.courtlistener.com\/opinion\/2195040\/spain-v-williams-in-re-williams\/","abstract":" .\u202f.\u202f. 455 B.R. 485 (2011) .\u202f.\u202f. ","court_html":"United States Bankruptcy Court, E.D. Virginia"},"3":{"name":"In Re Garrison-Ashburn L.C.","case_number":"15-30156","citation":"253 B.R. 700","date":"2000-08-25","url":"https:\/\/www.courtlistener.com\/opinion\/1967311\/in-re-garrison-ashburn-lc\/","abstract":" .\u202f.\u202f. 253 B.R. 700 (2000) .\u202f.\u202f. ","court_html":"United States Bankruptcy Court, E.D. Virginia"},"4":{"name":"In Re DeLuca","case_number":"19-10684","citation":"194 B.R. 79","date":"1996-02-08","url":"https:\/\/www.courtlistener.com\/opinion\/1992968\/in-re-deluca\/","abstract":" .\u202f.\u202f. 194 B.R. 79 (1996) .\u202f.\u202f. ","court_html":"United States Bankruptcy Court, E.D. Virginia"},"5":{"name":"JTB Enterprises, L.C. v. D & B Venture, L.C. (In re DeLUCA)","case_number":"Bankruptcy No. 95-11924-AM; Adv. No. 95-1182","citation":"194 B.R. 79","date":"1996-02-08","url":"https:\/\/www.courtlistener.com\/opinion\/8519845\/jtb-enterprises-lc-v-d-b-venture-lc-in-re-deluca\/","abstract":" .\u202f.\u202f. MEMORANDUM OPINION .\u202f.\u202f. ","court_html":"United States Bankruptcy Court, E.D. Virginia"},"6":{"name":"Gowin v. Granite Depot, LLC","case_number":"Record 052240.","citation":"634 S.E.2d 714","date":"2006-09-15","url":"https:\/\/www.courtlistener.com\/opinion\/1058789\/gowin-v-granite-depot-llc\/","abstract":" .\u202f.\u202f. 634 S.E.2d 714 (2006) .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"7":{"name":"Logan Antigone v. Jay C. Taustin","case_number":"0364254","citation":null,"date":"2026-06-16","url":"https:\/\/www.courtlistener.com\/opinion\/10875776\/logan-antigone-v-jay-c-taustin\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"COA<\/abbr>"},"8":{"name":"Ospta v. Summit Group Properties","case_number":"110849","citation":"724 S.E.2d 718","date":"2012-04-20","url":"https:\/\/www.courtlistener.com\/opinion\/1057891\/ospta-v-summit-group-properties\/","abstract":" .\u202f.\u202f. 724 S.E.2d 718 (2012) .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"9":{"name":"Jeb Stuart Auction Services, LLC v. West American Insurance","case_number":"Case No. 4:14-cv-00047","citation":"122 F. Supp. 3d 479","date":"2015-08-13","url":"https:\/\/www.courtlistener.com\/opinion\/7314986\/jeb-stuart-auction-services-llc-v-west-american-insurance\/","abstract":" .\u202f.\u202f. MEMORANDUM OPINION .\u202f.\u202f. ","court_html":"District Court, W.D. Virginia"}}}},{"id":346320,"structure_id":49733,"section_number":"13.1-1023","catch_line":"Operating agreement","url":"\/13.1-1023\/","token":"13.1\/12\/5\/13.1-1023","metadata":false},{"id":346319,"structure_id":49733,"section_number":"13.1-1023.1","catch_line":"Remedies for breach of operating agreement by member or manager","url":"\/13.1-1023.1\/","token":"13.1\/12\/5\/13.1-1023.1","metadata":false},{"id":346322,"structure_id":49733,"section_number":"13.1-1024","catch_line":"Management of a limited liability company by a manager or managers","url":"\/13.1-1024\/","token":"13.1\/12\/5\/13.1-1024","metadata":false},{"id":346321,"structure_id":49733,"section_number":"13.1-1024.1","catch_line":"General standards of conduct for a manager","url":"\/13.1-1024.1\/","token":"13.1\/12\/5\/13.1-1024.1","metadata":false},{"id":346323,"structure_id":49733,"section_number":"13.1-1025","catch_line":"Limitation of liability of members and managers; exception","url":"\/13.1-1025\/","token":"13.1\/12\/5\/13.1-1025","metadata":false},{"id":346324,"structure_id":49733,"section_number":"13.1-1026","catch_line":"Business transactions of members or managers with the limited liability company","url":"\/13.1-1026\/","token":"13.1\/12\/5\/13.1-1026","metadata":false},{"id":346325,"structure_id":49733,"section_number":"13.1-1027","catch_line":"Contributions","url":"\/13.1-1027\/","token":"13.1\/12\/5\/13.1-1027","metadata":false},{"id":346326,"structure_id":49733,"section_number":"13.1-1028","catch_line":"Information and records","url":"\/13.1-1028\/","token":"13.1\/12\/5\/13.1-1028","metadata":false}],"previous_section":{"id":346320,"structure_id":49733,"section_number":"13.1-1023","catch_line":"Operating agreement","url":"\/13.1-1023\/","token":"13.1\/12\/5\/13.1-1023","metadata":false},"next_section":{"id":346322,"structure_id":49733,"section_number":"13.1-1024","catch_line":"Management of a limited liability company by a manager or managers","url":"\/13.1-1024\/","token":"13.1\/12\/5\/13.1-1024","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-1023.1\/","history_text":"

This law was first created in 2003. The record of its establishment is cataloged in chapter 340<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2004, chapter 601<\/a>.<\/p>","references":false,"refers_to":[{"id":346325,"section_number":"13.1-1027","catch_line":"Contributions","order_by":null,"url":"\/13.1-1027\/"}],"permalink":{"id":1375835,"object_type":"law","relational_id":346319,"identifier":"13.1-1023.1","token":"13.1\/12\/5\/13.1-1023.1","url":"\/13.1-1023.1\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/13.1-1023.1\/","token":"13.1\/12\/5\/13.1-1023.1","dublin_core":{"Title":"Remedies for breach of operating agreement by member or manager","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-1023.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> An operating agreement<\/span> may provide that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A member<\/span> or manager<\/span> who fails to perform in accordance with, or to comply with terms and conditions of, the operating agreement<\/span> shall be subject to specified penalties or specified consequences; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> At the time or upon the happening of events specified in the operating agreement<\/span>, a member<\/span> or manager<\/span> shall be subject to specified penalties or specified consequences.\n\t\t\t\tThe specified penalties or specified consequences may include and take the form of any penalty<\/span> or consequence set forth in subsection D of § 13.1-1027<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In the articles of organization<\/span>, in writing in an operating agreement<\/span> or in another writing, a member<\/span> or manager<\/span> may consent to or be subject to the nonexclusive jurisdiction<\/span> of the courts<\/span> of, or arbitration in, a specified jurisdiction<\/span>, or the exclusive jurisdiction<\/span> of the courts<\/span> of the Commonwealth, or the exclusivity of arbitration in a specified jurisdiction<\/span> of the Commonwealth, and to be served with legal process in a manner prescribed in the articles of organization<\/span>, an operating agreement<\/span>, or other writing. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREMEDIES FOR BREACH OF OPERATING AGREEMENT BY MEMBER OR MANAGER (\u00a7 13.1-1023.1)\n\nA. An operating agreement may provide that:\n\n 1. A member or manager who fails to perform in accordance with, or to comply\n with terms and conditions of, the operating agreement shall be subject to\n specified penalties or specified consequences; and\n\n 2. At the time or upon the happening of events specified in the operating\n agreement, a member or manager shall be subject to specified penalties or\n specified consequences.\n \t\t\t\tThe specified penalties or specified consequences may include and take the\n form of any penalty or consequence set forth in subsection D of §\n 13.1-1027.\n\nB. In the articles of organization, in writing in an operating agreement or in\nanother writing, a member or manager may consent to or be subject to the\nnonexclusive jurisdiction of the courts of, or arbitration in, a specified\njurisdiction, or the exclusive jurisdiction of the courts of the Commonwealth,\nor the exclusivity of arbitration in a specified jurisdiction of the\nCommonwealth, and to be served with legal process in a manner prescribed in the\narticles of organization, an operating agreement, or other writing.\n\nHISTORY: 2003, c. 340; 2004, c. 601.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}