Posted On: March 24, 2009 by Lori J. Searcy

Virginia Employment Law: Virginia Business Conspiracy Act, VA Code §§ 18.2-499 - 18.2-500

As a courtesy to Virginia employment lawyers and employers, The Employment Law Chronicle provides summaries and links to key business and employment law statutes. While the Virginia Conspiracy Act does not protect employment interests, it is often invoked in Virginia business litigation on allegations that a former employee conspired with a subsequent employer or others to injure the former employer's business interests.

Specifically, the Virginia Conspiracy Act provides for civil actions based on a conspiracy by two or more persons to injure a person or entity's business interests (not employment interests). In addition to injunctive relief, a prevailing plaintiff may recover treble damages (three-times the amount of damages), plus attorneys' fees and costs.

Key provisions of the Virginia Business Conspiracy Act follow:

§ 18.2-499. Combinations to injure others in their reputation, trade, business or profession; rights of employees

A. Any two or more persons who combine, associate, agree, mutually undertake or concert together for the purpose of (i) willfully and maliciously injuring another in his reputation, trade, business or profession by any means whatever or (ii) willfully and maliciously compelling another to do or perform any act against his will, or preventing or hindering another from doing or performing any lawful act, shall be jointly and severally guilty of a Class 1 misdemeanor. Such punishment shall be in addition to any civil relief recoverable under § 18.2-500.
B. Any person who attempts to procure the participation, cooperation, agreement or other assistance of any one or more persons to enter into any combination, association, agreement, mutual understanding or concert prohibited in subsection A of this section shall be guilty of a violation of this section and subject to the same penalties set out in subsection A.
C. This section shall not affect the right of employees lawfully to organize and bargain concerning wages and conditions of employment, and take other steps to protect their rights as provided under state and federal laws.

§ 18.2-500. Same; civil relief; damages and counsel fees; injunctions

A. Any person who shall be injured in his reputation, trade, business or profession by reason of a violation of § 18.2-499, may sue therefor and recover three-fold the damages by him sustained, and the costs of suit, including a reasonable fee to plaintiff's counsel, and without limiting the generality of the term, "damages" shall include loss of profits.
B. Whenever a person shall duly file a civil action in the circuit court of any county or city against any person alleging violations of the provisions of § 18.2-499 and praying that such party defendant be restrained and enjoined from continuing the acts complained of, such court shall have jurisdiction to hear and determine the issues involved, to issue injunctions pendente lite and permanent injunctions and to decree damages and costs of suit, including reasonable counsel fees to complainants' and defendants' counsel.

The preceding is effective as of the posting date. For updates on the Virginia Business Conspiracy Act, check the Virginia Code on-line.