Oregon Revised Statutes

Or. Rev. Stat. § 656.591 (2026)

Election not to bring action operates as assignment of cause of action; repayments to department by paying agency

✓ current as of May 2026
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      656.591 Election not to bring action operates as assignment of cause of action; repayments to department by paying agency. (1) An election made pursuant to ORS 656.578 not to proceed against an employer or third person operates as an assignment to the paying agency of the cause of action, if any, of a worker or the beneficiaries or legal representative of a deceased worker against the employer or third person, and the paying agency may bring action against the employer or third person in the name of the worker or other beneficiaries.

      (2) Any sum the paying agency recovers in excess of the expenses the paying agency incurred in making the recovery and the amount the paying agency expended for compensation, first aid or other medical, surgical or hospital service, together with the present value of the monthly payments of compensation to which the worker or other beneficiaries may be entitled under this chapter, must be paid to the worker or other beneficiaries.

      (3) A paying agency shall repay the Department of Consumer and Business Services for any expenditures from the Consumer and Business Services Fund, the Self-Insured Employer Adjustment Reserve, the Self-Insured Employer Group Adjustment Reserve or the Workers’ Benefit Fund that the department makes, together with the present value of any reasonably expected future expenditures from the funds or reserves that the department may make, to reimburse the paying agency for the paying agency’s costs and to compensate or pay other costs of a worker’s claim because of a self-insured employer’s or self-insured employer group’s insolvency, default or decertification. [Formerly 656.320; 2017 c.69 §2]

Notes of Decisions
Cited in 21 cases (2 in the last 5 years), 1979–2023 · leading case: Ore-Ida Foods, Inc. v. Indian Head Cattle Co., 627 P.2d 469 (Or. 1981).
Ore-Ida Foods, Inc. v. Indian Head Cattle Co., 627 P.2d 469 (Or. 1981). · cites it 16× “154 to seek a remedy against such third person, such worker or, if death results from the injury, the other beneficiaries[ [1a] ] shall elect whether to recover damages from such employer or third person.”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). · cites it 2× “If the worker elected not to bring an action against a negligent third party, that election operated as an assignment to the insurer of the worker's claim for damages, ORS 656.591(1) (1985), giving the insurer ownership of the claim.”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). · cites it 3× “580(2) grants a lien to the paying agency: “The paying agency has a lien against the cause of action as provided by ORS 656.591 or 656.593, which lien shall be *106 preferred to all claims except the cost of recovering such damages.”
State Accident Ins. Fund v. Meredith, 802 P.2d 95 (Or. Ct. App. 1990). · cites it 5× “SAIF brought this action pursuant to ORS 656.591 as the assignee of an injured worker’s third party tort action.”
Rash v. McKinstry Co., 20 P.3d 197 (Or. 2001). · cites it 2× “580(2) provides: “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.”
EBI Companies v. Cooper, 785 P.2d 380 (Or. Ct. App. 1990). · cites it 5× “EBI seeks review of a Workers’ Compensation Board order that held that claimant was entitled to rescind his election, made pursuant to ORS 656.591, to assign his third party action to EBI and that the proceeds of the third party settlement should be redistributed pursuant to ORS…”
Corvallis Aero Serv., Inc. v. Villalobos, 724 P.2d 880 (Or. Ct. App. 1986). · cites it 2× “If the worker elects not to bring the action, the paying agency may bring an action in the worker’s name against the third party, with any *140 recovery to be allocated between the paying agency and the worker in accordance with ORS 656.591. As relevant here, ORS 734.510 to 734.”
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992). · cites it 2× “580, "[t]he paying agency has a lien against the cause of action as provided by ORS 656.591 or 656.593 * * *." If the worker or a beneficiary sues and receives a damage award, subsection (1) grants the paying agency a lien against the award and designates the amount that it can…”
Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999). · cites it 2× “576 includes the insurer] 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.”
Scarino v. Saif Corp., 755 P.2d 139 (Or. Ct. App. 1988). · cites it 2× ““(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.”
Toole ex rel. Prof'l Liab. Fund v. EBI Companies, 815 P.2d 216 (Or. Ct. App. 1991). · cites it 3× “PLF argues that, under the third party recovery statutes, the Board had no jurisdiction over the settlement proceeds.”
State v. Divers, 625 P.2d 681 (Or. Ct. App. 1981). “” 2 ORS 656.591. If there is an effective assignment, the employer (or the insurer by way of subrogation) could recover damages against the third party in a civil action.”
— Or. Rev. Stat. § 656.591(1) — 8 cases
Ore-Ida Foods, Inc. v. Indian Head Cattle Co., 627 P.2d 469 (Or. 1981). “154 to seek a remedy against such third person, such worker or, if death results from the injury, the other beneficiaries[ [1a] ] shall elect whether to recover damages from such employer or third person.”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). “If the worker elected not to bring an action against a negligent third party, that election operated as an assignment to the insurer of the worker's claim for damages, ORS 656.591(1) (1985), giving the insurer ownership of the claim.”
Rash v. McKinstry Co., 20 P.3d 197 (Or. 2001). “580(2) provides: “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.”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). “580(2) grants a lien to the paying agency: “The paying agency has a lien against the cause of action as provided by ORS 656.591 or 656.593, which lien shall be *106 preferred to all claims except the cost of recovering such damages.”
State Accident Ins. Fund v. Meredith, 802 P.2d 95 (Or. Ct. App. 1990). “SAIF brought this action pursuant to ORS 656.591 as the assignee of an injured worker’s third party tort action.”
— Or. Rev. Stat. § 656.591(2) — 6 cases
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019). “If the worker elected not to bring an action against a negligent third party, that election operated as an assignment to the insurer of the worker's claim for damages, ORS 656.591(1) (1985), giving the insurer ownership of the claim.”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992). “580(2) grants a lien to the paying agency: “The paying agency has a lien against the cause of action as provided by ORS 656.591 or 656.593, which lien shall be *106 preferred to all claims except the cost of recovering such damages.”
EBI Companies v. Cooper, 785 P.2d 380 (Or. Ct. App. 1990). “EBI seeks review of a Workers’ Compensation Board order that held that claimant was entitled to rescind his election, made pursuant to ORS 656.591, to assign his third party action to EBI and that the proceeds of the third party settlement should be redistributed pursuant to ORS…”
Harvey v. Lou Surcamp Logging, 785 P.2d 383 (Or. Ct. App. 1990).
State Accident Ins. Fund Corp. v. Parker, 656 P.2d 335 (Or. Ct. App. 1982).
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