Virginia will remain as one of only two states where courts do not allow class actions.
Gov. Abigail Spanberger, a Democrat, has vetoed a measure that would have initiated a procedure to allow class actions in state courts.
The legislature passed bills (House Bill 449 and Senate Bill 229) earlier this year but Spanberger returned them with suggestions for amendments that included limiting the courts where class actions could be brought and making it easier for courts to dismiss such cases sooner in the process.
Democratic Senate Majority Leader Scott A. Surovell and Democratic Delegate Marcus B. Simon were the main sponsors.
Surovell said at the time that he wished the governor had let lawmakers know her concerns during the legislative session so they could have been debated.
Spanberger Weighs Legislation to Allow Class Action Lawsuits in Virginia Courts
Lawmakers ended up rejecting her amendments and sending her the original version of the legislation for her signature.
She has now issued a veto, explaining that she supports the concept but not the way the bills go about introducing class actions.
“I support the General Assembly’s goal of providing a class action mechanism that can be used by plaintiffs in Virginia courts,” Spanberger said in her veto message. “I offered amendments to ensure that when Virginia adopts its first-ever class action procedure, we do so in a tailored and judicious way — building on longstanding, federal precedent while providing regional circuit courts an opportunity to develop expertise. The General Assembly did not accept these amendments.”
Delegate Simon criticized Spanberger’s veto but said he appreciates that she acknowledged the need for allowing class actions. He indicated a desire to work with her to craft a new bill.
“This legislation was about leveling the playing field between Virginia consumers and large corporations when widespread harm occurs but no single individual has the resources to fight back alone,” Simon stated. “Virginians should not have fewer tools to seek justice than consumers in every other state but Mississippi.”
He said that judges in 48 other states have managed class actions and he has “complete faith” in the ability of Virginia’s judges to do the dame.
The American Tort Reform Association had urged Spanberger to veto the bills, arguing that opening the door to class actions would expose businesses to unprecedented liability and disproportionately benefit trial lawyers.
The ATRA letter was a signed by the American Property Casualty Insurance Association, Independent Insurance Agents of Virginia, the National Association of Insurance and Financial Advisors, the National Association of Mutual Insurance Companies, the U.S. Chamber of Commerce Institute for Legal Reform, and the Virginia Manufacturers Association.
Topics
Lawsuits
Virginia
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