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Virginia Senate Bill 545 Takes Effect on July 1, 2018

April 2, 2018 By Jennifer L. Rowlett

Over the last several years, we have seen a trend where insurance carriers and third party administrators are entering into preferred/exclusive vendor deals with court reporting agencies.  It is important to note that beginning July 1, 2018, Virginia will no longer allow that practice.  On April 6, 2018, Virginia’s Governor signed a Senate Bill into law that prohibits insurance companies and other third party entities from having contractual relationships with court reporting agencies.  As a result, insurance carriers and other entities cannot require law firms to use specific or preferred court reporting companies for depositions, hearings, and trials.  The new law provides civil monetary penalties ranging from $500 – $1,000 depending on the number of violations.