I could not find details for Laravel 4, but the Laravel 5.4 documentation implies that all validation rules are run in order without short-circuit evaluation.
In Laravel 5, you can force short-circuit evaluation by prefixing 'bail' to the validation rule.
$this->validate($request, [
'title' => 'bail|required|unique:posts|max:255',
'body' => 'required',
]);
I came here looking for why short-circuiting would be off by default, I think James is correct in his reasoning that it is for receiving multiple validation errors on the same field.