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§ 8.01-581.021.Enforcement; civil remedies.

Chapter 21. Arbitration and Award · Article 3. Arbitration Fairness Act · Last amended 2026 · Last verified July 16, 2026

In one sentenceA party harmed by an arbitrator selection violation can sue for injunctive or other civil relief in the arbitration’s home circuit court or in Richmond, or move to vacate a tainted award, while the State Corporation Commission can fine a noncompliant provider up to $10,000 per violation, without displacing federal arbitration law.

Full Text of § 8.01-581.021

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A. A party subjected to an arbitrator selection procedure that violates the provisions of this article may seek injunctive relief or other appropriate civil remedy in the circuit court of the city or county in which the arbitration shall be held or in the circuit court for the City of Richmond. If a hearing has been held and an award has been made pursuant to Article 2 (§ 8.01-581.01 et seq.), a party alleging that such award was determined by an arbitrator selected in violation of the provisions of this article may make an application with the court to vacate the award, and the court shall proceed in accordance with § 8.01-581.010.
B. Upon a determination that a high-volume arbitration service provider has failed to comply with the provisions of this article, the State Corporation Commission may impose a civil penalty in an amount not to exceed $10,000 per violation.
C. The requirements of this article shall be incorporated as material terms of any pre-dispute arbitration agreement transacted pursuant to Virginia contract law.
D. Nothing in this article shall be construed to preempt federal law governing arbitration but shall be construed to be consistent with such law to the maximum extent permitted. If any provision of this section is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Plain-English Summary

This section gives the Arbitration Fairness Act teeth on three fronts. First, an individual remedy: a party subjected to an arbitrator selection process that violates the article can go to court for injunctive relief or another appropriate civil remedy, filing in the circuit court of the city or county where the arbitration will be held, or in the Richmond circuit court. If the arbitration already went forward and produced an award, the party is not without a remedy after the fact — they can apply to vacate the award under § 8.01-581.010 on the ground that the arbitrator was selected in violation of this article, which is one of the six grounds that statute recognizes.

Second, a regulatory penalty: when the State Corporation Commission determines that a high-volume arbitration service provider has failed to comply with the article, it can impose a civil penalty of up to $10,000 for each violation.

Third, the section locks its own requirements into every covered contract — the article’s requirements are treated as material terms of any pre-dispute arbitration agreement governed by Virginia contract law, so violating them is not a mere technicality but a breach of the agreement itself.

Finally, the section is careful not to pick a fight with federal law. It disclaims any intent to preempt federal arbitration law, directs that it be read consistently with federal law wherever possible, and includes a severability clause so that if one provision is struck down, the rest of the section still stands.

Frequently Asked Questions

Where can a party sue over an arbitrator selection violation?

In the circuit court of the city or county where the arbitration will be held, or in the circuit court for the City of Richmond.

Can a party challenge an award after it has already been made?

Yes, if a hearing was held and an award made, a party alleging the arbitrator was selected in violation of this article can apply to vacate the award, and the court proceeds under § 8.01-581.010.

What penalty can the State Corporation Commission impose on a noncompliant provider?

A civil penalty not to exceed $10,000 per violation.

Are the article’s requirements considered part of the arbitration contract itself?

Yes, the requirements of the article are incorporated as material terms of any pre-dispute arbitration agreement transacted under Virginia contract law.

Does this article override federal arbitration law?

No, the section states it is not to be construed to preempt federal law governing arbitration, and should be read consistently with federal law to the maximum extent permitted.

Amendment History

2026, c. 490.

Source & verification. Section text and amendment history are reproduced verbatim from the Code of Virginia, published by the Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026. · Official source
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