Va: Hearing Required Absent Waiver

Dispute Resolution Journal, Aug-Oct 2005

On June 9, 2005, the Virginia Supreme Court held that "unless the parties otherwise agree," an arbitration hearing is essential to arbitration under Virginia law. Thus, a hearing must be held for an award to be enforceable. Bates v. John B. McQueen d/b/a Cypress Springs Logging (Nos. 0452228 & 042639) puts arbitrators on notice that not holding a hearing in a Virginia arbitration is "tantamount to no arbitration." In ruling that the award was unenforceable, the court said the challenger did not have to prove that his rights were substantially prejudiced due to the lack of a hearing because the statute provides exclusive remedies for vacatur: if an arbitrator refused to postpone a hearing, refused to hear evidence, or conducted a hearing in such a way as to prejudice a party.

But because no hearing was held, the court sent the case back to the trial court for arbitration before the original panel of arbitrators or their successors.