Spanberger
RICHMOND, Va. - New Virginia Gov. Abigail Spanberger faces a test as the Democrat-controlled legislature has teed up two plaintiff-friendly bills that her Republican predecessor Glenn Youngkin vetoed as dangerous to the state’s business climate.
One bill would establish the class action procedure in Virginia state courts for the first time, while another would hike the bonds defendants must post to appeal civil judgments. Combined, they would reshape Virginia’s litigation landscape by dramatically increasing the pressure on businesses to settle cases rather than fighting them out in court - leading the Wall Street Journal to wonder about the future of the state.
“We are concerned,” said Tiger Joyce, president of the American Tort Reform Association, who testified against the bond bill when it was before the Virginia legislature last year. “It undermines the ability of defendants to look for justice. If a bond is unavailable or beyond financial reach, that becomes the deciding factor.”
House Bill 1111, pending in committee, would raise the appeal bond from $25 million to $200 million, adjusted for inflation after 2029. The sponsor is Rep. Phil M. Hernandez, a lawyer and former Obama administration official. He sponsored a similar bill last year, initially featuring an unlimited cap, which Gov. Youngkin vetoed in 2025.
Senate Bill 229, sponsored by Majority Leader Scott Surovell, would establish class actions and allow lawyers to seek statutory damages under the Virginia Consumer Protection Act. Youngkin vetoed a similar bill in 2024 amid concerns plaintiff lawyers could leverage statutory damages of $500 per violation to force businesses into huge settlements to avoid bankruptcy.
The bill must be amended to eliminate statutory damages or Virginia’s business climate could deteriorate, said Thomas Waskom, co-head of product liability and mass tort litigation at Hunton. If it remains in some form, the state could become like New York, where federal courts have interpreted New York class action law to allow statutory damages even though state courts themselves do not.
“Class actions in Virginia state courts today are totally unnecessary,” Waskom said.
Gov. Spanberger, a Democrat and former Central Intelligence Agency officer, won the governor’s race last year with a broad base of support including some prominent business executives. She received $14 million from Democratic Party organizations, but also drew $205,000 from Thomas J. McInerney, president of Genworth, an insurance company; $200,000 from real estate developer Christopher Clemente; and $143,000 from cigarette manufacturer Altria, according to the Virginia Public Access Project.
“The real question will be ‘how does new Gov. Spanberger approach this?’” said Joyce. “Does she seek compromise on these measures, or go along with Democratic Party priorities?”
Unlike some “hellhole” jurisdictions like South Carolina, where trial lawyers from both parties dominate the legislature and elected judiciary, Virginia has a reputation for a more balanced court system. Increasing the appeal bond would change that dramatically, forcing businesses to balance the cost of paying a large judgment with the risk of bankruptcy if they appeal.
Virginia Speaker of the House Don Scott controls the flow of legislation and may have his own interest in seeing the bond increase. Scott also is a partner with Breit Biniazan Trial Lawyers, which won a $360 million sex-abuse lawsuit against Cumberland Hospital, a unit of Universal Health Services.
That verdict is on appeal, and UHS acknowledges in its most recent financial report it faces suits by at least 40 more plaintiffs and if it is forced to post higher appeal bonds its finances “would be materially adversely impacted.”
The class action bill has what looks like a partial concession to business, allowing defendants to appeal class certification to the Court of Appeals, although plaintiffs could also appeal denial of certification. Bill sponsor Sen. Scott Surovell is a founding partner of a 10-lawyer firm in Fairfax.
When the appeal bond bill came to a vote last year, ATRA provided statistics suggesting appeal bonds are generally capped at $25-50 million.
“To go to $200 million would place it way on the outside of the mainstream,” Joyce said. Gov. Spanberger, who may have higher political aspirations than governor, would also be putting a major precedent on her resume, he said: While states have placed caps on appeal bonds in recent years, none has gone the other way.
