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Significant Developments in U.S. State Arbitration Law: the Virginia Arbitration Fairness Act

May 8th, 2026 American Arbitration Association, Anti-Arbitration Statutes, Applicability of Federal Arbitration Act, Application to Appoint Arbitrator, Application to Stay Arbitration, Arbitrability, Arbitration Agreements, Arbitration as a Matter of Consent, Arbitration Fees, Arbitration Law, Arbitration Practice and Procedure, Arbitration Provider Rules, Arbitration Providers, Arbitrator Duty to Disclose, Arbitrator Selection and Qualification Provisions, Attorney Fees and Sanctions, Awards, Challenging Arbitration Agreements, Challenging Arbitration Awards, Choice-of-Law Provisions, Class and Collective Proceedings, Commonwealth of Virginia Courts, Conflict of Laws, Conflict-of-Law Rules, Consumer Arbitration, Default in Proceeding with Arbitration, Disinterestedness, Employment Arbitration, Evident Partiality, Exceeding Powers, FAA Chapter 1, FAA Preemption of State Law, FAA Section 2, Federal Arbitration Act Section 10, Federal Arbitration Act Section 2, First Principle - Consent not Coercion, Independence, Judicial Review of Arbitration Awards, Mass Arbitration, Party-Appointed Arbitrators, Petition to Vacate Award, Post-Award Federal Arbitration Act Litigation, Post-Dispute Arbitration Agreements, Practice and Procedure, Predispute Arbitration Agreements, Rights and Obligations of Nonsignatories, Section 2, Section 3 Default, State Arbitration Law, State Arbitration Statutes, State Courts, Statute of Limitations, Stay of Arbitration, Vacate, Vacate Award | 10(a)(2), Vacate Award | 10(a)(4), Vacate Award | Evident Partiality, Vacate Award | Exceeding Powers, Virginia Arbitration Law No Comments »

Virginia Arbitration Fairness Act: Part I of a Two-Part Post

Virginia Arbitration Fairness Act

Virginia has enacted a targeted arbitration statute that is likely to generate FAA preemption litigation. Chapter 490, Senate Bill 227 (“SB 227”), signed into law on April 8, 2026, amends Virginia’s arbitration statute and adds a new Article 3 to Chapter 21 of Title 8.01, titled the “Arbitration Fairness Act.” 2026 Va. Acts ch. 490; Va. Code §§ 8.01-581.017-.021 (effective July 1, 2026). The Act “shall apply to all arbitration agreements entered into on or after July 1, 2026.” 2026 Va. Acts ch. 490, § 2.

The Act does not purport to prohibit consumer or employment arbitration. Nor does it seek to invalidate categorically pre-dispute arbitration agreements. It instead regulates “high-volume arbitration service providers,” prescribes arbitrator-selection procedures, imposes detailed disclosure obligations, restricts certain provider relationships, regulates invoices and fee payment, creates tolling rules, and authorizes civil remedies and State Corporation Commission penalties. It also adds a new state-law vacatur ground for an award “rendered by an arbitrator selected in violation of” the Act. Va. Code §§ 8.01-581.010(6), 8.01-581.017-.021. That last provision, combined with the disclosure requirements, is a significant consideration in, among other things, evident partiality disputes, and exceeding-powers challenges based on violation of the Act’s provisions concerning  arbitrator selection. Continue Reading »