Press Release

Virginia Earns “Lawsuit Inferno” Label as Lawmakers Pass Anti-Business Bills

Today, the American Tort Reform Association named Virginia’s legislature a “Lawsuit Inferno” in its latest Legislative HeatCheck report after state lawmakers advanced two major liability-expanding bills — one signed into law, the other vetoed.

“Despite the governor stopping one of these bills, the overall direction of Virginia’s legislature poses a serious risk to the integrity of a balanced civil justice system,” said Tiger Joyce, president of ATRA. “Lawmakers in Richmond are unfortunately turning Virginia into a ‘Lawsuit Inferno.’” 

Liability Expansion

Senate Bill 894 was approved by the governor and took effect July 1. The new law holds employers legally responsible for their employee’s misconduct or wrongdoing toward “vulnerable individuals” — even if the employer didn’t directly cause any harm. ATRA warns that the law’s vague definition of “vulnerable victim” and the low standard of proof will encourage a wave of lawsuits, drive-up legal costs and ultimately increase costs for consumers. It was sponsored by Sen. Russet Perry (D).

House Bill 2351 was vetoed by Gov. Glenn Youngkin (R) and sought to increase the maximum amount a party must pay to appeal a civil court decision by 700%. ATRA urged the governor to veto H.B. 2351, noting without a reasonable limit, defendants facing high-dollar judgments would be required to post bonds in the full amount — a financially impossible prospect for many, especially small businesses. It was sponsored by Del. Phil M. Hernandez (D).

“While we’re grateful that Gov. Youngkin listened to reason and vetoed H.B. 2351, it’s unfortunate that it was necessary at all,” Joyce said. “The fact that it passed both chambers reveals how far Virginia’s legislature is willing to go to undermine legal fairness. This bill could have forced defendants into an impossible choice: go bankrupt or forfeit their right to appeal. That’s not how justice should operate.”

Since 2015, the Virginia Trial Lawyers Association has donated $2,597,785 to candidates for Virginia’s General Assembly.

Economic Squeeze on Families and Businesses

The consequences of expanding opportunities to sue are not just theoretical. Virginia residents pay more than $1,735 per person annually in “tort tax” — that’s nearly $6,942.04 for a family of four. Additionally, these costs result in nearly 130,000 jobs lost in Virginia each year along with $776.1 million in lost state revenue.

“If job creators and entrepreneurs are burdened with excessive legal risks, we cannot expect the economy to thrive,” Joyce said. “It is essential for Virginia’s state lawmakers to foster trust with the business community to protect jobs and ensure economic stability for families.”

ATRA’s Legislative HeatCheck report evaluates a select group of states’ progress — or lack thereof — in enacting meaningful tort reform measures during their most recent legislative sessions.

Virginia lawmakers join the Florida House of Representatives, West Virginia’s Senate Judiciary Committee, and the state legislatures of Illinois, New York and Colorado as 2025 “Lawsuit Infernos.” The full Legislative HeatCheck report is available at heatcheck.atra.org.

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About the Legislative HeatCheck: The Legislative HeatCheck is an annual analysis, started in 2024 by the American Tort Reform Association, that assesses which states are making strides to improve their civil justice systems through tort reform and which states remain in dire need of legal reform. The report categorizes a select group of states into three groups:

  • Tort Reform Trailblazers: States that have recently enacted key tort reform measures to rein in lawsuit abuse and improve their legal climates.
  • Lawsuit Infernos: States whose legislatures are actively expanding liability and worsening their civil justice systems or failed to pass any meaningful legal reforms during their latest legislative sessions, leaving their civil justice systems mired in a litigious status quo.
  • Heat Watch: States whose legislatures still are in session and are considering either positive or negative legislation. These states are placed on “Heat Watch” due to inaction on tort reform or the potential for liability-expanding legislation that could worsen their legal climates.

The Legislative HeatCheck provides an overview of tort reform battles waged in statehouses nationwide and serves as a guide for where reform efforts should be focused in the year ahead.

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The American Tort Reform Association is the nation’s first organization dedicated exclusively to reforming the civil justice system through education and legislative enactment.

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