A. Directors and officers of any entity created to ensure the implementation in the Commonwealth of a national tobacco trust established to provide payments to tobacco growers and tobacco quota owners to ameliorate adverse economic consequences resulting from a national settlement of states' claims against tobacco manufacturers shall be immune from civil liability for acts taken in their capacities as officers or directors of such entities.
§ 8.01-220.1:4.Civil immunity for officers and directors of certain nonprofit organizations.
Chapter 3. Actions · Article 21. Miscellaneous Provisions · Last amended 2000 · Last verified July 16, 2026
In one sentenceSection 8.01-220.1:4 gives directors and officers of the Virginia entity implementing the national tobacco settlement trust immunity from civil liability for acts taken in that capacity, unless the officer or director was grossly negligent, engaged in willful misconduct, or knowingly violated the criminal law.
Full Text of § 8.01-220.1:4
B. The liability of an officer or director shall not be limited as provided in this section if the officer or director was grossly negligent or engaged in willful misconduct or a knowing violation of the criminal law.
Plain-English Summary
This section is narrowly targeted at one type of organization: an entity created to carry out, within Virginia, a national tobacco trust set up to compensate tobacco growers and quota owners for the economic fallout of a national settlement between states and tobacco manufacturers. Subsection A immunizes the directors and officers of that entity from civil liability for acts they take as directors or officers.
Subsection B sets the limit on that protection: it does not apply if the director or officer was grossly negligent, engaged in willful misconduct, or knowingly violated the criminal law. Ordinary negligence in administering the trust falls within the immunity; the more serious categories of misconduct do not.
Frequently Asked Questions
What organization does § 8.01-220.1:4 protect?
Directors and officers of an entity created to implement, within Virginia, a national tobacco trust established to compensate tobacco growers and quota owners under a national settlement between states and tobacco manufacturers.
Are the directors of this entity immune for any decision they make?
No. The immunity does not cover gross negligence, willful misconduct, or a knowing violation of the criminal law — only ordinary negligence and other conduct falling short of those categories.
Why does Virginia have a specific immunity statute for tobacco-trust administrators?
Because those directors and officers oversee distribution of settlement funds to growers and quota holders and needed protection from suit over good-faith administrative decisions, similar to immunity statutes for other nonprofit and civic volunteer leadership.
Does this section protect employees of the entity, or only directors and officers?
By its terms, subsections A and B protect directors and officers; the statute does not extend the same immunity to rank-and-file employees.
How does this section relate to the general nonprofit officer immunity in § 8.01-220.1:1?
It works alongside that broader immunity for tax-exempt organization leaders but applies its own tailored standard — a gross-negligence, willful-misconduct, or knowing-criminal-violation carve-out — specifically to tobacco-trust entity directors and officers.
Amendment History
2000, c. 1048.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: tobacco trust virginia immunitytobacco settlement entity director liability virginiavirginia tobacco grower trust officer immunity