(HB2351)

GOVERNOR'S VETO

Pursuant to Article V, Section 6 of the Constitution of Virginia, I veto House Bill 2351, which increases the total allowable amount of a suspending bond from $25 million to $200 million.

The financial barrier to appellate review would be significantly raised by this legislation, disproportionately impacting small and mid-sized businesses that may lack the financial ability to post such a large bond.

Virginia is home to manufacturers and other businesses that support critical operations. Some of these firms work with hazardous materials and could be exposed to extraordinarily high products liability judgments. Raising the appeal bond cap would put these businesses at risk of financial ruin if they are unable to appeal adverse judgments. Virginia's judicial system is one of the best in the nation thanks in part to our strong appellate bench. The right to appeal is meaningless if a party faces an artificially high barrier blocking important judicial review of judgments from trial court juries. In my view, a $200 million bond limit would be such a barrier.

Virginia is currently one of 15 states with a $25 million appeal bond cap, including economic competitors such as North Carolina, South Carolina, Tennessee, Texas, and Georgia. This bill would make Virginia less competitive for job creators and less fair to those seeking access to appellate courts.

Accordingly, I veto this bill.