Or. Rev. Stat. § 656.578
Workers’ election whether to sue third person or noncomplying employer for damages
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656.578 Workers’ election whether to sue third person or noncomplying employer for damages. If a worker of a noncomplying employer receives a compensable injury in the course of employment, or if a worker receives a compensable injury due to the negligence or wrong of a third person (other than those exempt from liability under ORS 656.018), entitling the worker under ORS 656.154 to seek a remedy against such third person, such worker or, if death results from the injury, the other beneficiaries shall elect whether to recover damages from such employer or third person. If a worker leaves beneficiaries who are minors, the right of election shall be exercised by their surviving parent, if any; otherwise, such election shall be exercised by the guardian. [Formerly 656.312]
Notes of Decisions
Cited in 37
cases (3 in the last 5 years), 1972–2023 · leading case: Ore-Ida Foods, Inc. v. Indian Head Cattle Co.
Ore-Ida Foods, Inc. v. Indian Head Cattle Co. (1981)
“" ORS 656.578 provides for claims against third persons by injured workers and their beneficiaries: "If a worker * * * receives a compensable injury * * * due to the negligence or wrong of a third person (other than those exempt from liability under ORS 656.”
Toole v. EBI Companies (1992)
“ORS 656.578. 1 Each of the three claimants in the present cases elected to proceed with a third-party action for damages.”
State Accident Insurance Fund v. Meredith (1990)
“” ORS 656.578 provides: “If a worker of a noncomplying employer receives a compensable injury in the course of employment, or if a worker receives a compensable injury due to the negligence or wrong of a third person (other than those exempt from liability under ORS 656.”
Hansen v. Abrasive Engineering & Manufacturing, Inc. (1993)
“See ORS 656.578 (providing procedure). Plaintiff's claim against Akhurst Machinery, Inc.”
Rash v. McKinstry Co. (2001)
“154; ORS 656.578. 1 If a claimant so elects, then the entity that paid the claim (the “paying agency”) has a lien against the claimant’s action against the third party that is second only to the cost of recovering those damages.”
Haret v. State Accident Insurance Fund Corp. (1985)
“154; see also ORS 656.578. [6] Although not dispositive of the question, it is worth noting that the Supreme Court denied review in Button, and two legislative sessions since Button was decided have done nothing to change the conclusion we reached.”
Vasquez v. Double Press Mfg., Inc. (2019)
“One statute in that section, ORS 656.578 (1985), reflects that ORS 656.”
Rowden v. Hogan Woods, LLC (2020)
“020 (“Except for the provisions of ORS 656.578 to 656.593 and this sec- tion, such noncomplying employer is liable as the noncomplying employer would have been if this chapter had never been enacted.”
Estate of Vance v. Williams (1987)
“He also elected to seek damages from a third party pursuant to ORS 656.578. His attorney negotiated a settlement with the third party’s insurance carrier.”
Toole ex rel. Professional Liability Fund v. EBI Companies (1991)
“154; ORS 656.578. 1 In each case, claimant lost the third party claim or received only a partial recovery.”
Rhiner v. Red Shield Insurance (2009)
“See ORS 656.578 (worker of noncomplying employer entitled to seek damages from employer).”
Liberty Northwest Ins. Corp. v. Golden (1992)
“576, may receive a share of any sum recovered if a worker or the worker's beneficiary elects under ORS 656.578 to seek damages from the employer or a third person who has caused a compensable injury or death.”
— Or. Rev. Stat. § 656.578(1) — 1 case
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