VADOC Pays $2.7 Million to Settle Wrongful-Death Claim Over Michael Hailey’s Death at Red Onion State Prison

The Virginia Department of Corrections (VADOC) has agreed to pay $2.7 million to resolve all claims brought by the estate of Michael Joseph Hailey Jr., who died at Red Onion State Prison in Wise County, Virginia, in November 2025. Hailey, 32, identified as a transgender woman and went by Lilith Marcotte.

WRIC ABC 8News reported the settlement on October 14, 2026, citing Chesterfield County Circuit Court documents and a VADOC statement. According to that reporting, VADOC settled without admitting any liability.

This is a private wrongful-death settlement for one estate. It is not a class action, and there is no public claim form, administrator or deadline for other families.

Quick Facts: VADOC and Michael Hailey Wrongful-Death Settlement

Detail	Information
Settlement amount	$2,700,000
Paying party	Commonwealth of Virginia, on behalf of the Virginia Department of Corrections
Deceased	Michael Joseph Hailey Jr., also known as Lilith Marcotte, age 32
Facility	Red Onion State Prison, Wise County, Virginia
Date of death	Evening of November 25, 2025, per the Office of the Chief Medical Examiner of Virginia, as reported
Cause and manner of death	Asphyxia due to chest compression; homicide, per the medical examiner as reported
Court	Chesterfield County Circuit Court, per published reporting
Settlement date	September 1, 2026, per court documents reported by WRIC
Admission of liability	None; VADOC settled “without admitting any liability”
Reported use of funds	Funeral and cremation costs, a share to the Krudys Law Firm, and funds to Hailey’s father and brother
Case number and signed agreement	Not independently confirmed from a public court portal
Public claim process	None
Criminal charges	No public charging decision confirmed

Verification note: The amount, date, court and distribution details above come from WRIC ABC 8News reporting and the VADOC statement. The signed settlement agreement, the court’s approval order and the case number were not independently retrieved. Some earlier coverage gave November 26, 2025 as the date of death; this article uses November 25, the date attributed to the medical examiner’s office.

What Happened at Red Onion State Prison in the Michael Hailey Case?

Michael Joseph Hailey Jr. died at Red Onion State Prison on the evening of November 25, 2025. The Office of the Chief Medical Examiner of Virginia ruled the cause asphyxia due to chest compression and the manner of death homicide.

According to court documents cited in news reporting, Hailey was placed on a five-point restraint table that included a chest strap. VADOC later agreed to pay $2.7 million to resolve all claims the estate brought or could have brought against the department.

VADOC’s statement, as quoted by WRIC, reads: “The Commonwealth of Virginia has agreed to pay $2.7 million in full settlement of all claims that Mr. Hailey’s estate brought or could have brought against the Virginia Department of Corrections.”

Wise County Commonwealth’s Attorney Brett Hall’s office has been investigating following an internal review by VADOC’s Office of Law Enforcement Services. On October 2, 2026, an advocacy group publicly called for local prosecutors to recuse themselves, citing potential conflicts. Those calls do not change the civil settlement.

Reporting also cited Virginia Department of Health data showing two confirmed homicides among 105 deaths in Virginia state prisons in 2025.

This article does not describe disputed details of the restraint as proven fact, and it does not attribute conduct to named employees. An allegation, a medical examiner’s finding, a criminal charge and a court judgment are four different things.

How Is the VADOC Settlement Different From the Thorpe v. VADOC Class Action?

The Hailey settlement is separate from Thorpe et al. v. VADOC, a long-running federal class action about long-term solitary confinement at Red Onion and Wallens Ridge State Prisons. That case involves a class of incarcerated people and different claims. Readers should not confuse the two.

What Does Virginia Code § 8.01-50 Require for a Wrongful-Death Claim?

Virginia Code § 8.01-50 allows a damages action when a death results from a wrongful act, neglect or default that would have supported a personal-injury action had the person lived.

Who Can Bring a Wrongful-Death Action Under Virginia Law?

The action must generally be brought by the decedent’s personal representative. That person acts in a legal capacity for the claim, but the proceeds are not necessarily estate property to be distributed under a will.

Virginia Code § 8.01-53 and § 8.01-54 set who may receive a recovery and how it is distributed. Depending on the facts, beneficiaries can include a surviving spouse, children, certain parents, and in specified circumstances siblings or other qualifying relatives. The statutory order matters, and being related to the deceased does not guarantee a share.

Reporting says the funds in the Hailey matter went to his father and brother. The exact legal basis for that distribution would appear in the court-approved settlement papers.

What Damages Does Virginia Code § 8.01-52 Allow?

Under Virginia Code § 8.01-52, recoverable damages may include:

• Sorrow, mental anguish, and loss of companionship, comfort, guidance and support.
• Reasonably expected loss of income and services.
• Qualifying medical and hospital expenses tied to the injury that led to death.
• Reasonable funeral expenses.
• Punitive damages where the statutory standard for willful or wanton conduct is met.

These are the categories the statute allows. They do not show which were claimed or paid in the Hailey case.

Why Does a Virginia Wrongful-Death Settlement Need Court Approval Under Virginia Code § 8.01-55?

Virginia Code § 8.01-55 allows a personal representative to compromise a wrongful-death claim with court approval. If no action has been filed, a circuit court may consent to the compromise. The statute also addresses notice to interested parties and the court’s role in deciding distribution when beneficiaries cannot agree.

Court approval matters because a settlement can affect the rights of family members who did not negotiate it. The reported settlement date is not, by itself, proof of approval. The approval order is the document that confirms it.

How Does the Virginia Tort Claims Act Apply to a Claim Against VADOC?

The Virginia Tort Claims Act, Virginia Code §§ 8.01-195.1 through 8.01-195.8, governs when the Commonwealth can be held liable for the negligent acts of its employees.

Under Virginia Code § 8.01-195.3, the Commonwealth can be liable for personal injury or death caused by a state employee’s negligent or wrongful act within the scope of employment. The statute also contains exceptions and limits on recovery. For claims accruing on or after July 1, 1993, it states a $100,000 cap, or the limits of an applicable liability policy if higher.

A $2.7 million settlement is well above that figure. The amount alone does not show which legal theory, policy or authority supported it, and the settlement documents would be needed to say.

What Notice Deadlines Apply to Claims Against the Commonwealth of Virginia?

Virginia Code § 8.01-195.6 generally requires written notice of a claim against the Commonwealth within one year after the claim accrues, subject to a statutory actual-knowledge exception. Virginia Code § 8.01-195.7 covers when such claims are barred and when an action may be filed.

These requirements are separate from the ordinary wrongful-death filing deadline.

What Approval Does a $2.7 Million Commonwealth Settlement Require Under Virginia Code § 2.2-514?

Virginia Code § 2.2-514 governs the Attorney General’s authority to compromise disputes involving the Commonwealth. It generally requires the proposed compromise and its reasons to be submitted in writing to the Governor for approval, with the relevant agency head also involved. Exceptions apply to certain matters at or below $250,000.

The reported settlement exceeds that threshold. That does not mean a required approval was missing. It means the approval record should be checked rather than assumed.

Could Michael Hailey’s Death Raise Eighth Amendment and 42 U.S.C. § 1983 Issues?

A death in state custody can raise federal civil-rights questions. The Eighth Amendment bars cruel and unusual punishment, and in prison cases the questions can include excessive force and deliberate indifference to a serious medical need or substantial risk of harm.

42 U.S.C. § 1983 provides a civil remedy against a person who, acting under color of state law, deprives someone of constitutional rights. It has its own requirements for defendants, causation, immunity defenses and damages.

The reporting reviewed does not say the settlement resolved a § 1983 lawsuit. It should not be described as one. The Prison Litigation Reform Act, 42 U.S.C. § 1997e, requires administrative exhaustion in many prisoner suits about prison conditions, and a family should have a lawyer assess whether it applies.

Does the VADOC Settlement Mean Criminal Charges Will or Won’t Follow?

No. A civil settlement and a criminal case are separate.

	Civil wrongful-death claim	Criminal case
Purpose	Compensation for beneficiaries	Punishment of a crime
Standard of proof	Preponderance of the evidence	Beyond a reasonable doubt
Who decides	Parties, court approval	Prosecutor, grand jury, court
Effect of settlement	Ends the civil claims covered	None on criminal liability

The settlement does not grant immunity to anyone, and it is not a finding of guilt. Wise County authorities have confirmed an investigation. No public charging decision related to the November 2025 death was confirmed in the sources reviewed.

What Is the Deadline for a Virginia Wrongful-Death Lawsuit Under Virginia Code § 8.01-244?

Virginia Code § 8.01-244 generally requires a wrongful-death action under § 8.01-50 to be filed by the personal representative within two years after the death, with additional rules for certain dismissals and abatements.

This is not a universal deadline. Claims against the Commonwealth carry separate notice rules, and federal civil-rights claims follow their own limitation rules. A Virginia attorney should review every date.

Can Other Red Onion State Prison Families Claim Money From the VADOC Settlement?

No. Families cannot claim a share of this $2.7 million, and the settlement does not establish liability in any other case. Another family would need its own legal basis, proper claimant, evidence and timely notice, and would face sovereign-immunity and damages questions.

How Can Families Get Records After a Death in VADOC Custody?

Depending on the circumstances and confidentiality rules, a family or its authorized representative may seek:

• Autopsy and cause-of-death records from the Office of the Chief Medical Examiner of Virginia.
• Incident reports, restraint documentation and medical records from VADOC.
• Public records under the Virginia Freedom of Information Act, Virginia Code § 2.2-3700 et seq., which contains exemptions for certain records of ongoing criminal investigations.
• Court records from the Chesterfield County Circuit Court clerk’s office; public access to settlement papers may be limited.

What Should Families Do After a Death in Virginia State Custody?

These are practical steps, not a finding that any family has a valid claim.

1. Preserve records. Keep death notices, correspondence with officials, medical records, funeral invoices and photographs.
2. Identify the personal representative. A Virginia wrongful-death action is generally brought by that person, so establish who has authority and who may be a statutory beneficiary.
3. Request records. Ask for incident, medical and restraint documentation through the appropriate channels.
4. Check every deadline. Wrongful-death, Tort Claims Act and federal claims have different requirements, and delays in getting records do not necessarily pause a deadline.
5. Review any release before signing. Understand which claims it resolves, who is covered, how funds are divided and whether court approval is required.
6. Keep civil and criminal matters separate. One does not resolve the other.

Key Dates in the Michael Hailey and VADOC Settlement Matter

Date	Event
November 25, 2025	Michael Joseph Hailey Jr. dies at Red Onion State Prison, per the medical examiner as reported
September 1, 2026	Settlement reached in Chesterfield County Circuit Court, per court documents reported by WRIC
October 2, 2026	Advocacy group calls for recusal of the Wise County Commonwealth’s Attorney’s office
October 14, 2026	WRIC ABC 8News reports the $2.7 million settlement
October 15, 2026	Verification date of this article

Frequently Asked Questions About the VADOC $2.7 Million Settlement

Did the Virginia Department of Corrections admit fault in the Michael Hailey settlement?

No. The settlement was reported as reached without admission of liability, and VADOC’s statement said the same.

Can the public file a claim in the VADOC $2.7 million Michael Hailey settlement?

No. There is no claim form, administrator or deadline. It resolves one estate’s claims.

How much did Michael Hailey’s family receive from the VADOC settlement?

The net amount for each beneficiary has not been confirmed. Reporting says the funds covered funeral and cremation costs, a portion to the Krudys Law Firm, and money for Hailey’s father and brother. The court-approved distribution would give exact figures.

Did the Chesterfield County Circuit Court approve the Michael Hailey settlement?

The settlement is reported as associated with that court, but an approval order was not independently verified. Virginia Code § 8.01-55 governs court approval of wrongful-death compromises.

What law governs wrongful-death claims against the Virginia Department of Corrections?

Virginia Code § 8.01-50 and related sections create the claim, and the Virginia Tort Claims Act (§ 8.01-195.1 et seq.) and sovereign-immunity rules affect claims against the Commonwealth. Federal claims may arise under 42 U.S.C. § 1983.

Does the Virginia Tort Claims Act limit the VADOC settlement to $100,000?

Section 8.01-195.3 states a $100,000 cap, or higher applicable policy limits. How it applies to this settlement cannot be determined from the amount alone, because the legal basis and settlement documents are not public.

Does the VADOC settlement end the criminal investigation into Michael Hailey’s death?

No. Any charging decision by Wise County authorities or a special prosecutor is independent of the civil settlement.

What is the statute of limitations for a Virginia wrongful-death claim?

Generally two years from the death under Virginia Code § 8.01-244, with separate notice rules for claims against the Commonwealth and different rules for federal claims.

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Sources

1. WRIC ABC 8News, reporting on the VADOC settlement (October 14, 2026), citing Chesterfield County Circuit Court documents and a VADOC statement.
2. Office of the Chief Medical Examiner of Virginia, cause and manner of death, as reported.
3. Va. Code §§ 8.01-50, 8.01-52, 8.01-53, 8.01-54, 8.01-55, 8.01-244.
4. Virginia Tort Claims Act, Va. Code §§ 8.01-195.3, 8.01-195.6, 8.01-195.7.
5. Va. Code § 2.2-514 (state settlement authority).
6. 42 U.S.C. § 1983 and 42 U.S.C. § 1997e.

AllAboutLawyer.com is a U.S. consumer legal information site, not a law firm. This article is for information only and is not legal advice. Consult a licensed Virginia attorney about any specific situation.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. Case facts are drawn from WRIC ABC 8News reporting on Chesterfield County Circuit Court documents and the VADOC statement, and legal provisions are checked against the Code of Virginia and the U.S. Code. The signed settlement agreement, approval order and case number were not available, as of October 15, 2026. Last Updated: October 15, 2026.