Chapter 24. Injunctions · Last amended 1991 · Last verified July 16, 2026
In one sentenceSection 8.01-631.1 requires a defendant enjoined by the Commonwealth to abate an environmental threat, or to develop a closure plan when a business ceases operation amid such a threat, to demonstrate financial capability to comply, which the court may accept in the form of an escrow account, trust fund, bond, or other instrument.
Full Text of § 8.01-631.1
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A court awarding a temporary or permanent injunction to the Commonwealth, or any of its officers or agencies, requiring any party to (i) abate, control, prevent, remove, or contain any substantial or imminent threat to public health or the environment, or (ii) develop a closure plan to address any substantial or imminent threat to public health or the environment that may result when a business ceases operation, shall require the defendant to demonstrate its financial capability to comply with the injunction. Financial capability may be demonstrated, at the court's discretion, by the establishment of an escrow account, the creation of a trust fund, the submission of a bond, or such other instruments as the court may deem appropriate.
For the purposes of this section "ceases operation" means to cease conducting the normal operation of a business in the Commonwealth where it would be reasonable to expect that such operation will not be resumed by the owner. The term shall not include the ordinary sale or transfer of a business.
Plain-English Summary
This section layers an added requirement onto injunctions the Commonwealth or its agencies obtain to address environmental or public-health danger. When the injunction orders a party to abate, control, prevent, remove, or contain a substantial or imminent threat to public health or the environment, or to develop a closure plan addressing such a threat when a business ceases operation, the court has to require the defendant to show it can pay for compliance.
The statute leaves the mechanics to the court’s discretion: financial capability can be demonstrated through an escrow account, a trust fund, a bond, or another instrument the court deems appropriate. The point is not to prescribe one form but to make sure whatever form is chosen backs up the promise to comply.
The section closes with a defined term aimed squarely at businesses walking away from contamination rather than ordinary commercial life: “ceases operation” means ending normal business operations in Virginia where it is reasonable to expect the owner will not resume them, and the definition expressly excludes an ordinary sale or transfer of the business.
Frequently Asked Questions
What kinds of injunctions trigger the financial-capability requirement?
One requiring a party to abate, control, prevent, remove, or contain a substantial or imminent threat to public health or the environment, and one requiring a closure plan for such a threat when a business ceases operation.
Who must demonstrate financial capability?
The defendant against whom the injunction is awarded.
What instruments can satisfy the financial-capability showing?
An escrow account, a trust fund, a bond, or such other instrument as the court deems appropriate.
What does “ceases operation” mean under this section?
Ceasing the normal operation of a business in Virginia where it would be reasonable to expect the owner will not resume it.
Does selling or transferring a business count as ceasing operation?
No — the term expressly does not include the ordinary sale or transfer of a business.
Amendment History
1991, c. 236.
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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