Virginia Law

A. Where an arbitration in a Virginia-connected transaction requires, either expressly or through application of state or federal law or the rules of the arbitration provider, that the drafting party pay certain fees and costs before the arbitration can proceed, such drafting party shall (i) be in material breach of the arbitration agreement; (ii) be in default of the arbitration; and (iii) be deemed to have waived the right to compel such arbitration if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date.

B. After a consumer meets the filing requirements necessary to initiate an arbitration with a high-volume arbitration service provider, the arbitration provider shall immediately provide an invoice for any fees and costs required before the arbitration can proceed to all parties to the arbitration. The invoice shall (i) be provided in its entirety; (ii) state the full amount owed and the date that payment is due; (iii) include estimated future charges through the completion of the arbitration; and (iv) be sent to all parties by the same method of delivery on the same day. Absent an express provision in the arbitration agreement stating the number of days within which the parties to the arbitration must pay any required fees or costs, the arbitration provider shall issue all invoices to the parties as due upon receipt.

C. If the drafting party materially breaches the arbitration agreement and is in default under subsection A, the employee or consumer may do either of the following:

1. Withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction; or

2. Compel arbitration in which the drafting party shall pay reasonable attorney fees and costs related to the arbitration.

If the consumer proceeds with an action in a court of appropriate jurisdiction, the court shall impose sanctions on the drafting party.

D. Any statute of limitations as to a claim regarding or relating to a Virginia-connected transaction shall be tolled as of the date a party sends an arbitration service provider a written demand to arbitrate and shall remain tolled until 90 days after the termination or completion of the arbitration.

If the non-drafting party withdraws the claim from arbitration and proceeds with an action in a court of appropriate jurisdiction pursuant to subdivision C 1, the statute of limitations with regard to all claims brought or that relate back to any claim brought in arbitration shall be tolled as of the date of the first filing of a claim in a court, arbitration forum, or other dispute resolution forum.

If an arbitration agreement requires that arbitration of a controversy be demanded or initiated by a party to the arbitration agreement within a certain period of time, the commencement of a civil action by that party based upon that controversy within such period of time shall toll the applicable time limitations contained in the arbitration agreement with respect to that controversy from the earlier of (i) the date the civil action is commenced until 30 days after a final determination by the court that the party is required to arbitrate the controversy or (ii) 30 days after the final termination of the civil action that was commenced and initiated the tolling.

2026, c. 490.