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Oregon Revised Statutes

Or. Rev. Stat. § 656.580 (2026)

Payment of compensation notwithstanding cause of action for damages; lien on cause of action for compensation paid

✓ current as of May 2026
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      656.580 Payment of compensation notwithstanding cause of action for damages; lien on cause of action for compensation paid. (1) The worker or beneficiaries of the worker, as the case may be, shall be paid the benefits provided by this chapter in the same manner and to the same extent as if no right of action existed against the employer or third party, until damages are recovered from such employer or third party.

      (2) The paying agency has a lien against the cause of action as provided by ORS 656.591 or 656.593, which lien shall be preferred to all claims except the cost of recovering such damages. [Formerly 656.314]

 

      656.582 [Renumbered 656.384]

Notes of Decisions
Cited in 23 cases (1 in the last 5 years), 1972–2022 · leading case: Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999).
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Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999). · cites it 10× “Claimant seeks review of a Workers' Compensation Board (Board) order ruling that insurer's lien rights, pursuant to ORS 656.580 and 656.593, on claimant's third-party settlement proceeds were not resolved by the parties' Claim Disposition Agreement (CDA).”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). · cites it 2× “The worker would continue to receive workers' compensation benefits "in the same manner and to the same extent as if no right of action existed against the employer or third party, until damages are recovered from such employer or third party," ORS 656.580(1) (1985), and the…”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). · cites it 4× “2 ORS 656.580(2) grants a lien to the paying agency: “The paying agency has a lien against the cause of action as provided by ORS 656.”
Rash v. McKinstry Co., 20 P.3d 197 (Or. 2001). · cites it 3× “593 (“proceeds”); ORS 656.580 (“action”); ORS 656.587 (same); ORS 656.”
Scarino v. Saif Corp., 755 P.2d 139 (Or. Ct. App. 1988). · cites it 3× “ORS 656.580 provides: “(1) The worker or beneficiaries of the worker, as the case may be, shall be paid the benefits provided by ORS 656.”
Robertson v. Davcol, Inc., 783 P.2d 43 (Or. Ct. App. 1989). · cites it 4× “08 so far, ORS 656.580, and reasonably expects to pay future expenses of $23,386.”
Toole ex rel. Prof'l Liab. Fund v. EBI Companies, 815 P.2d 216 (Or. Ct. App. 1991). · cites it 5× “After the malpractice settlements, EBI Companies and Port of Portland (insurers), who are the paying agents under the third party recovery statutes, 2 filed petitions with the Workers’ Compensation Board, asserting liens against the settlement proceeds under ORS 656.580 3 in…”
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992). · cites it 2× “Under ORS 656.580, "[t]he paying agency has a lien against the cause of action as provided by ORS 656.”
Weems v. Am. Int'l Adjustment Co., 874 P.2d 72 (Or. 1994). · cites it 2× “” ORS 656.580 provides that the paying agency has a lien against a claimant’s third-party claim.”
Bird v. Norpac Foods, Inc., 934 P.2d 382 (Or. 1997). “en a worker elects to bring a tort action for damages against a third party, “[t]he proceeds” 12 of any damages recovered in that action shall be distributed as follows: first, costs and *66 attorney fees are paid; second, the worker receives 33 Vs percent of the balance of the…”
State v. Divers, 625 P.2d 681 (Or. Ct. App. 1981). “On the other hand, if the worker elects to pursue the cause of action, the "paying agency” does not share in the cause of action but merely has a lien against it for its share of the proceeds.”
Est. of Vance v. Williams, 734 P.2d 1372 (Or. Ct. App. 1987). “” ORS 656.580(2); ORS 656.593(1). 1 If, however, the claimant settles the third-party claim with the approval of the agency, ORS 656.”
Show all 23 citing cases →
— Or. Rev. Stat. § 656.580(1) — 2 cases
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). “The worker would continue to receive workers' compensation benefits "in the same manner and to the same extent as if no right of action existed against the employer or third party, until damages are recovered from such employer or third party," ORS 656.580(1) (1985), and the…”
State Accident Ins. Fund Corp. v. Parker, 656 P.2d 335 (Or. Ct. App. 1982).
— Or. Rev. Stat. § 656.580(2) — 19 cases
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). “2 ORS 656.580(2) grants a lien to the paying agency: “The paying agency has a lien against the cause of action as provided by ORS 656.”
Rash v. McKinstry Co., 20 P.3d 197 (Or. 2001). “593 (“proceeds”); ORS 656.580 (“action”); ORS 656.587 (same); ORS 656.”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). “The worker would continue to receive workers' compensation benefits "in the same manner and to the same extent as if no right of action existed against the employer or third party, until damages are recovered from such employer or third party," ORS 656.580(1) (1985), and the…”
Scarino v. Saif Corp., 755 P.2d 139 (Or. Ct. App. 1988). “ORS 656.580 provides: “(1) The worker or beneficiaries of the worker, as the case may be, shall be paid the benefits provided by ORS 656.”
Bird v. Norpac Foods, Inc., 934 P.2d 382 (Or. 1997). “en a worker elects to bring a tort action for damages against a third party, “[t]he proceeds” 12 of any damages recovered in that action shall be distributed as follows: first, costs and *66 attorney fees are paid; second, the worker receives 33 Vs percent of the balance of the…”
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