{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.01-424.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.01-424.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.01-424.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.01-424.html"}],"law_id":78976,"edition_id":1,"section_id":78976,"structure_id":15689,"section_number":"8.01-424","catch_line":"Approval of compromises on behalf of persons under a disability in suits or actions to which they are parties","history":"Code 1950, \u00a7\u00a7 8-169, 8-170; 1956, c. 575; 1960, cc. 301, 302; 1964, c. 500; 1970, c. 10; 1977, c. 617; 1985, c. 499; 1988, c. 409; 1991, cc. 97, 257; 1993, c. 945; 1994, c. 39; 1998, cc. 584, 607, 610; 2009, c. 688; 2022, c. 535; 2024, c. 217.","full_text":"A\n\nIn any action or suit wherein a person under a disability is a party, the court in which the matter is pending shall have the power to approve and confirm a compromise of the matters in controversy on behalf of such party, including claims under the provisions of any liability insurance policy, if such compromise is deemed to be to the interest of the party. Any order or decree approving and confirming the compromise shall be binding upon such party, except that the same may be set aside for fraud.B\n\nIn case of damage to the person or property of a person under a disability, caused by the wrongful act, neglect, or default of any person, when death did not ensue therefrom, any person or insurer interested in compromise of any claim for such damages, including any claim under the provisions of any liability insurance policy, may, upon motion to the court in which the action is pending for the recovery of damages on account of such injury, or if no such action is pending, then to any circuit court, move the court to approve the compromise. The court shall require the movant to give reasonable notice of such motion to all parties and to any person found by the court to be interested in the compromise.C\n\nA compromise action involving a claim for wrongful death shall be in accordance with the applicable provisions of § 8.01-55. Nothing in this section shall be construed to affect the provisions of § 8.01-76.D\n\nIn any compromise action, the court shall direct the payment of the proceeds of the compromise agreement, when approved, as follows:1\n\nPayment of the sum into court as provided by § 8.01-600 or to the general receiver of such court;2\n\nIn the case of damage to the person or property of a minor, by investment in a college savings trust account for which the minor is the beneficiary pursuant to a college savings trust agreement with the Commonwealth Savers Plan as set forth in subsection B of § 23.1-707, provided that (i) the investment options pursuant to such agreement are restricted to target enrollment portfolios; (ii) the order or decree approving and confirming the compromise requires the minor beneficiary’s parent, as that term is defined in § 22.1-1, to act as the custodian of the account; and (iii) except in the case of a distribution from the account to be applied toward the minor beneficiary’s qualified higher education expenses, as that term is defined in § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, the order or decree approving and confirming the compromise prohibits the minor beneficiary’s parent from making any transfer, withdrawal, termination, or other account transaction unless the court provides prior approval pursuant to a written order;3\n\nTo a duly qualified fiduciary of the person under a disability, after due inquiry as to the adequacy of the bond of such fiduciary;4\n\nAs provided in § 8.01-606; or5\n\nWhere the agreement of settlement provides for payments to be made over a period of time in the future, whether such payments are lump sum, periodic, or a combination of both, the court shall approve the settlement only if it finds that all payments which are due to be made are (i) secured by a bond issued by an insurance company authorized to write such bonds in this Commonwealth or (ii) to be made or irrevocably guaranteed by an insurance company or companies authorized to do business in this Commonwealth and rated “A plus” (A+) or better by Best’s Insurance Reports. Payments made under this subdivision totaling not more than $4,000 in any calendar year may be paid in accordance with § 8.01-606. Payments made under this subdivision totaling more than $4,000 in any calendar year while the recipient is under a disability shall be paid to a duly qualified fiduciary after due inquiry as to adequacy of the bond of such fiduciary.E\n\nPayments made under this section, in the case of damage to the person or property of a minor, may be made payable in the discretion of the court to the parent or guardian of the minor to be held in trust for the benefit of the minor. Any such trust shall be subject to court approval and the court may provide for the termination of such trust at any time following attainment of majority which the court deems to be in the best interest of the minor. In an order authorizing the trust or additions to an existing trust, the court may order that the trustee thereof be subject to the same duty to qualify in the clerk’s office and to file an inventory and annual accountings with the commissioner of accounts as would apply to a testamentary trustee.","order_by":null,"text":{"0":{"id":282845,"text":"In any action or suit wherein a person under a disability is a party, the court in which the matter is pending shall have the power to approve and confirm a compromise of the matters in controversy on behalf of such party, including claims under the provisions of any liability insurance policy, if such compromise is deemed to be to the interest of the party. Any order or decree approving and confirming the compromise shall be binding upon such party, except that the same may be set aside for fraud.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":282846,"text":"In case of damage to the person or property of a person under a disability, caused by the wrongful act, neglect, or default of any person, when death did not ensue therefrom, any person or insurer interested in compromise of any claim for such damages, including any claim under the provisions of any liability insurance policy, may, upon motion to the court in which the action is pending for the recovery of damages on account of such injury, or if no such action is pending, then to any circuit court, move the court to approve the compromise. The court shall require the movant to give reasonable notice of such motion to all parties and to any person found by the court to be interested in the compromise.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":282847,"text":"A compromise action involving a claim for wrongful death shall be in accordance with the applicable provisions of § 8.01-55. Nothing in this section shall be construed to affect the provisions of § 8.01-76.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":282848,"text":"In any compromise action, the court shall direct the payment of the proceeds of the compromise agreement, when approved, as follows:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"4":{"id":282849,"text":"Payment of the sum into court as provided by § 8.01-600 or to the general receiver of such court;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"5":{"id":282850,"text":"In the case of damage to the person or property of a minor, by investment in a college savings trust account for which the minor is the beneficiary pursuant to a college savings trust agreement with the Commonwealth Savers Plan as set forth in subsection B of § 23.1-707, provided that (i) the investment options pursuant to such agreement are restricted to target enrollment portfolios; (ii) the order or decree approving and confirming the compromise requires the minor beneficiary’s parent, as that term is defined in § 22.1-1, to act as the custodian of the account; and (iii) except in the case of a distribution from the account to be applied toward the minor beneficiary’s qualified higher education expenses, as that term is defined in § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, the order or decree approving and confirming the compromise prohibits the minor beneficiary’s parent from making any transfer, withdrawal, termination, or other account transaction unless the court provides prior approval pursuant to a written order;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"6":{"id":282851,"text":"To a duly qualified fiduciary of the person under a disability, after due inquiry as to the adequacy of the bond of such fiduciary;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"7":{"id":282852,"text":"As provided in § 8.01-606; or","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"8":{"id":282853,"text":"Where the agreement of settlement provides for payments to be made over a period of time in the future, whether such payments are lump sum, periodic, or a combination of both, the court shall approve the settlement only if it finds that all payments which are due to be made are (i) secured by a bond issued by an insurance company authorized to write such bonds in this Commonwealth or (ii) to be made or irrevocably guaranteed by an insurance company or companies authorized to do business in this Commonwealth and rated “A plus” (A+) or better by Best’s Insurance Reports. Payments made under this subdivision totaling not more than $4,000 in any calendar year may be paid in accordance with § 8.01-606. Payments made under this subdivision totaling more than $4,000 in any calendar year while the recipient is under a disability shall be paid to a duly qualified fiduciary after due inquiry as to adequacy of the bond of such fiduciary.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"E"},"9":{"id":282854,"text":"Payments made under this section, in the case of damage to the person or property of a minor, may be made payable in the discretion of the court to the parent or guardian of the minor to be held in trust for the benefit of the minor. Any such trust shall be subject to court approval and the court may provide for the termination of such trust at any time following attainment of majority which the court deems to be in the best interest of the minor. In an order authorizing the trust or additions to an existing trust, the court may order that the trustee thereof be subject to the same duty to qualify in the clerk’s office and to file an inventory and annual accountings with the commissioner of accounts as would apply to a testamentary trustee.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D5"}},"ancestry":[{"id":15689,"edition_id":1,"name":"Compromises","identifier":"16","label":"chapter","depth":2,"order_by":1,"parent_id":12747,"metadata":{},"date_created":"2026-06-26 03:57:57","date_modified":"2026-06-26 03:57:57","permalink":{"id":277731,"object_type":"structure","relational_id":15689,"identifier":"16","token":"8.01\/16","url":"\/8.01\/16\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12747,"edition_id":1,"name":"Civil Remedies and Procedure","identifier":"8.01","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":277029,"object_type":"structure","relational_id":12747,"identifier":"8.01","token":"8.01","url":"\/8.01\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78976,"structure_id":15689,"section_number":"8.01-424","catch_line":"Approval of compromises on behalf of persons under a disability in suits or actions to which they are parties","url":"\/8.01-424\/","token":"8.01\/16\/8.01-424","metadata":false},{"id":86882,"structure_id":15689,"section_number":"8.01-424.1","catch_line":"Settlement of third-party action; deemed consent by employer","url":"\/8.01-424.1\/","token":"8.01\/16\/8.01-424.1","metadata":false},{"id":60092,"structure_id":15689,"section_number":"8.01-425","catch_line":"How fiduciaries may compromise liabilities due to or from them","url":"\/8.01-425\/","token":"8.01\/16\/8.01-425","metadata":false},{"id":74165,"structure_id":15689,"section_number":"8.01-425.1","catch_line":"Release of liability; right of rescission","url":"\/8.01-425.1\/","token":"8.01\/16\/8.01-425.1","metadata":false}],"next_section":{"id":86882,"structure_id":15689,"section_number":"8.01-424.1","catch_line":"Settlement of third-party action; deemed consent by employer","url":"\/8.01-424.1\/","token":"8.01\/16\/8.01-424.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.01-424\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 14 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1956, chapter 575; in 1960, chapters 301 and 302; in 1964, chapter 500; in 1970, chapter 10; in 1977, chapter 617; in 1985, chapter 499; in 1988, chapter 409; in 1991, chapters 97 and 257; in 1993, chapter 945; in 1994, chapter 39<\/a>; in 1998, chapters 584<\/a>, 607<\/a>, and 610<\/a>; in 2009, chapter 688<\/a>; in 2022, chapter 535<\/a>; in 2024, chapter 217<\/a>.<\/p>","references":[{"id":76965,"section_number":"38.2-2206","catch_line":"Uninsured motorist insurance coverage","order_by":null,"url":"\/38.2-2206\/"}],"refers_to":[{"id":74111,"section_number":"22.1-1","catch_line":"(Effective July 1, 2026) Definitions","order_by":null,"url":"\/22.1-1\/"},{"id":57132,"section_number":"23.1-707","catch_line":"Prepaid tuition contracts and college and ABLE savings trust agreements","order_by":null,"url":"\/23.1-707\/"},{"id":58794,"section_number":"8.01-55","catch_line":"Compromise of claim for death by wrongful act","order_by":null,"url":"\/8.01-55\/"},{"id":85240,"section_number":"8.01-600","catch_line":"How money under control of court deposited; record kept; liability of clerk","order_by":null,"url":"\/8.01-600\/"},{"id":80415,"section_number":"8.01-606","catch_line":"Payment of small amounts to certain persons through court without intervention of fiduciary; authority of commissioners of accounts; certain fiduciaries exempt from accountings","order_by":null,"url":"\/8.01-606\/"}],"permalink":{"id":277733,"object_type":"law","relational_id":78976,"identifier":"8.01-424","token":"8.01\/16\/8.01-424","url":"\/8.01-424\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.01-424\/","token":"8.01\/16\/8.01-424","dublin_core":{"Title":"Approval of compromises on behalf of persons under a disability in suits or actions to which they are parties","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.01-424","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In any action<\/span> or suit<\/span> wherein a person<\/span> under a disability is a party<\/span>, the court<\/span> in which the matter is pending shall have the power to approve and confirm a compromise of the matters in controversy on behalf of such party<\/span>, including claims under the provisions of any liability insurance policy, if such compromise is deemed to be to the interest of the party<\/span>. Any order<\/span> or decree<\/span> approving and confirming the compromise shall be binding upon such party<\/span>, except that the same may be set aside for fraud<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In case of damage to the person<\/span> or property of a person<\/span> under a disability, caused by the wrongful act, neglect, or default<\/span> of any person<\/span>, when death did not ensue therefrom, any person<\/span> or insurer interested in compromise of any claim for such damages<\/span>, including any claim under the provisions of any liability insurance policy, may, upon motion<\/span> to the court<\/span> in which the action<\/span> is pending for the recovery of damages<\/span> on account of such injury, or if no such action<\/span> is pending, then to any circuit<\/span> court<\/span>, move the court<\/span> to approve the compromise. The court<\/span> shall require the movant to give reasonable notice of such motion<\/span> to all parties and to any person<\/span> found by the court<\/span> to be interested in the compromise. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A compromise action<\/span> involving a claim for wrongful death shall be in accordance with the applicable provisions of § 8.01-55<\/a>. Nothing in this section shall be construed to affect the provisions of § 8.01-76<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In any compromise action<\/span>, the court<\/span> shall direct the payment of the proceeds of the compromise agreement, when approved, as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Payment of the sum into court<\/span> as provided by § 8.01-600<\/a> or to the general receiver of such court<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In the case of damage to the person<\/span> or property of a minor<\/span>, by investment in a college savings trust account for which the minor<\/span> is the beneficiary pursuant to a college savings trust agreement with the Commonwealth Savers Plan as set forth in subsection B of § 23.1-707<\/a>, provided that (i) the investment options pursuant to such agreement are restricted to target enrollment portfolios; (ii) the order<\/span> or decree<\/span> approving and confirming the compromise requires the minor<\/span> beneficiary’s parent, as that term is defined in § 22.1-1<\/a>, to act as the custodian of the account; and (iii) except in the case of a distribution from the account to be applied toward the minor<\/span> beneficiary’s qualified higher education expenses, as that term is defined in § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law<\/span>, the order<\/span> or decree<\/span> approving and confirming the compromise prohibits the minor<\/span> beneficiary’s parent from making any transfer, withdrawal, termination, or other account transaction unless the court<\/span> provides prior approval pursuant to a written order<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To a duly qualified fiduciary<\/span> of the person<\/span> under a disability, after due inquiry as to the adequacy of the bond<\/span> of such fiduciary<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> As provided in § 8.01-606<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Where the agreement of settlement<\/span> provides for payments to be made over a period of time in the future, whether such payments are lump sum, periodic, or a combination of both, the court<\/span> shall approve the settlement<\/span> only if it finds that all payments which are due to be made are (i) secured by a bond<\/span> issued by an insurance company authorized to write such bonds<\/span> in this Commonwealth or (ii) to be made or irrevocably guaranteed by an insurance company or companies authorized to do business in this Commonwealth and rated “A plus” (A+) or better by Best’s Insurance Reports. Payments made under this subdivision totaling not more than $4,000 in any calendar year may be paid in accordance with § 8.01-606<\/a>. Payments made under this subdivision totaling more than $4,000 in any calendar year while the recipient is under a disability shall be paid to a duly qualified fiduciary<\/span> after due inquiry as to adequacy of the bond<\/span> of such fiduciary<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Payments made under this section, in the case of damage to the person<\/span> or property of a minor<\/span>, may be made payable in the discretion of the court<\/span> to the parent or guardian of the minor<\/span> to be held in trust for the benefit of the minor<\/span>. Any such trust shall be subject to court<\/span> approval and the court<\/span> may provide for the termination of such trust at any time following attainment of majority which the court<\/span> deems to be in the best interest of the minor<\/span>. In an order<\/span> authorizing the trust or additions to an existing trust, the court<\/span> may order<\/span> that the trustee thereof be subject to the same duty to qualify in the clerk’s office and to file an inventory and annual accountings with the commissioner of accounts as would apply to a testamentary trustee. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPROVAL OF COMPROMISES ON BEHALF OF PERSONS UNDER A DISABILITY IN SUITS OR\nACTIONS TO WHICH THEY ARE PARTIES (\u00a7 8.01-424)\n\nA. In any action or suit wherein a person under a disability is a party, the\ncourt in which the matter is pending shall have the power to approve and confirm\na compromise of the matters in controversy on behalf of such party, including\nclaims under the provisions of any liability insurance policy, if such\ncompromise is deemed to be to the interest of the party. Any order or decree\napproving and confirming the compromise shall be binding upon such party, except\nthat the same may be set aside for fraud.\n\nB. In case of damage to the person or property of a person under a disability,\ncaused by the wrongful act, neglect, or default of any person, when death did\nnot ensue therefrom, any person or insurer interested in compromise of any claim\nfor such damages, including any claim under the provisions of any liability\ninsurance policy, may, upon motion to the court in which the action is pending\nfor the recovery of damages on account of such injury, or if no such action is\npending, then to any circuit court, move the court to approve the compromise.\nThe court shall require the movant to give reasonable notice of such motion to\nall parties and to any person found by the court to be interested in the\ncompromise.\n\nC. A compromise action involving a claim for wrongful death shall be in\naccordance with the applicable provisions of § 8.01-55. Nothing in this\nsection shall be construed to affect the provisions of § 8.01-76.\n\nD. In any compromise action, the court shall direct the payment of the proceeds\nof the compromise agreement, when approved, as follows:\n\n 1. Payment of the sum into court as provided by § 8.01-600 or to the\n general receiver of such court;\n\n 2. In the case of damage to the person or property of a minor, by investment\n in a college savings trust account for which the minor is the beneficiary\n pursuant to a college savings trust agreement with the Commonwealth Savers\n Plan as set forth in subsection B of § 23.1-707, provided that (i) the\n investment options pursuant to such agreement are restricted to target\n enrollment portfolios; (ii) the order or decree approving and confirming the\n compromise requires the minor beneficiary’s parent, as that term is\n defined in § 22.1-1, to act as the custodian of the account; and (iii)\n except in the case of a distribution from the account to be applied toward the\n minor beneficiary’s qualified higher education expenses, as that term is\n defined in § 529 of the Internal Revenue Code of 1986, as amended, or\n other applicable federal law, the order or decree approving and confirming the\n compromise prohibits the minor beneficiary’s parent from making any\n transfer, withdrawal, termination, or other account transaction unless the\n court provides prior approval pursuant to a written order;\n\n 3. To a duly qualified fiduciary of the person under a disability, after due\n inquiry as to the adequacy of the bond of such fiduciary;\n\n 4. As provided in § 8.01-606; or\n\n 5. Where the agreement of settlement provides for payments to be made over a\n period of time in the future, whether such payments are lump sum, periodic, or\n a combination of both, the court shall approve the settlement only if it finds\n that all payments which are due to be made are (i) secured by a bond issued by\n an insurance company authorized to write such bonds in this Commonwealth or\n (ii) to be made or irrevocably guaranteed by an insurance company or companies\n authorized to do business in this Commonwealth and rated “A plus”\n (A+) or better by Best’s Insurance Reports. Payments made under this\n subdivision totaling not more than $4,000 in any calendar year may be paid in\n accordance with § 8.01-606. Payments made under this subdivision totaling\n more than $4,000 in any calendar year while the recipient is under a\n disability shall be paid to a duly qualified fiduciary after due inquiry as to\n adequacy of the bond of such fiduciary.\n\nE. Payments made under this section, in the case of damage to the person or\nproperty of a minor, may be made payable in the discretion of the court to the\nparent or guardian of the minor to be held in trust for the benefit of the\nminor. Any such trust shall be subject to court approval and the court may\nprovide for the termination of such trust at any time following attainment of\nmajority which the court deems to be in the best interest of the minor. In an\norder authorizing the trust or additions to an existing trust, the court may\norder that the trustee thereof be subject to the same duty to qualify in the\nclerk’s office and to file an inventory and annual accountings with the\ncommissioner of accounts as would apply to a testamentary trustee.\n\nHISTORY: Code 1950, \u00a7\u00a7 8-169, 8-170; 1956, c. 575; 1960, cc. 301, 302; 1964,\nc. 500; 1970, c. 10; 1977, c. 617; 1985, c. 499; 1988, c. 409; 1991, cc. 97,\n257; 1993, c. 945; 1994, c. 39; 1998, cc. 584, 607, 610; 2009, c. 688; 2022, c.\n535; 2024, c. 217.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}