656.593
Procedure when worker or beneficiary elects to bring action; release of
liability and lien of paying agency in certain cases. (1) If a worker or the
beneficiaries of the worker elect to recover damages from an employer or third
person, the worker or beneficiaries shall give notice of the election to the
paying agency by personal service or by registered or certified mail. The paying
agency likewise must be given notice of the name of the court in which the
action is brought, and a return showing service of the notice on the paying
agency must be filed with the clerk of the court but is not a part of the
record except to give notice to the defendant of the lien of the paying agency,
as provided in this section. The proceeds of any damages the worker or
beneficiaries recover from an employer or third person are subject to a lien of
the paying agency for the paying agency’s share of the proceeds as set forth in
this section. If the proceeds are paid in a series of payments, each payment
must be distributed proportionately to each recipient according to the formula
provided in this section, unless the parties otherwise agree. The total
proceeds must be distributed as follows:
(a) Costs and
attorney fees incurred must be paid, and the attorney fees may not exceed the
advisory schedule of fees established by the Workers’ Compensation Board for
such actions.
(b) The worker or
the beneficiaries of the worker must receive at least 33-1/3 percent of the
balance of the recovery.
(c) The paying
agency must be paid and retain the balance of the recovery, but only to the
extent that the paying agency is compensated for the paying agency’s
expenditures for compensation, first aid or other medical, surgical or hospital
service, and for the present value of reasonably expected future expenditures
the paying agency makes for compensation and other costs of the worker’s claim
under this chapter. Other costs include expenditures that the Department of
Consumer and Business Services makes from the Consumer and Business Services
Fund, the Self-Insured Employer Adjustment Reserve, the Self-Insured Employer
Group Adjustment Reserve and the Workers’ Benefit Fund to reimburse the costs
of the paying agency. Other costs also include assessments for the Workers’
Benefit Fund and any compensation that may become payable under ORS 656.273 or
656.278.
(d) The balance
of the recovery must be paid to the worker or the beneficiaries of the worker
forthwith. The board shall resolve any conflict as to the amount of the balance
that the paying agency may retain.
(2) The amount
the worker or the beneficiaries of the worker retain must be in addition to the
compensation or other benefits to which the worker or beneficiaries are
entitled under this chapter.
(3) A claimant
may settle any third party case with the approval of the paying agency, in which
event the paying agency may accept a share of the proceeds that is just and
proper and the worker or the beneficiaries of the worker must receive the
amount to which the worker would be entitled for a recovery under subsections
(1) and (2) of this section. The board shall resolve any conflict as to what
may be a just and proper distribution.
(4) As used in
this section, “paying agency” includes the Department of Consumer and Business
Services with respect to expenditures from the Consumer and Business Services
Fund, the Self-Insured Employer Adjustment Reserve, the Self-Insured Employer
Group Adjustment Reserve and the Workers’ Benefit Fund 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 costs
of another paying agency 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.
(5) The
department must be repaid for the department’s expenditures from the proceeds
the paying agency recovered in an amount proportional to the amount of the
department’s reimbursement of the paying agency’s costs. The department shall deposit
all moneys the department receives under this section in the same fund from
which the department’s expenditures originated.
(6) Before, and
instead of, the distribution of proceeds described in subsection (1) of this
section, if a worker or the beneficiaries of a worker are entitled to receive
payment pursuant to a judgment or a settlement in a third party action in the
amount of $1 million or more, the worker or the beneficiaries of the worker may
elect to release the paying agency from all further liability on the workers’
compensation claim, thereby canceling the lien of the paying agency as to the
present value of the paying agency’s reasonably expected future expenditures
for workers’ compensation and other costs of the worker’s claim, if all of the
following conditions are met as part of the claim release:
(a) The worker or
the beneficiaries of the worker are represented by an attorney.
(b) The release
of the claim is presented in writing and is filed with the Workers’
Compensation Board, with a copy served on the paying agency, including the
Department of Consumer and Business Services with respect to the department’s
expenditures from the Consumer and Business Services Fund, the Self-Insured
Employer Adjustment Reserve, the Self-Insured Employer Group Adjustment Reserve
and the Workers’ Benefit Fund.
(c) The claim
release specifies that the worker or the beneficiaries of the worker understand
that the claim release means that no further benefits of any nature whatsoever
will be paid to the worker or the beneficiaries of the worker.
(d) The release
of the claim is accompanied by a settlement stipulation with the paying agency,
outlining terms of reimbursement to the paying agency, covering the paying
agency’s incurred expenditures for compensation, first aid or other medical,
surgical or hospital service and for expenditures from the Consumer and
Business Services Fund, the Self-Insured Employer Adjustment Reserve, the
Self-Insured Employer Group Adjustment Reserve and the Workers’ Benefit Fund to
the date the release becomes final or the order of the board becomes final. If
the payment of such incurred expenditures is in dispute, the release of the
claim must be accompanied by a written submission of the dispute by the worker
or the beneficiaries of the worker to the board for resolution of the dispute
by order of the board under procedures allowing for board resolution under ORS
656.587, in which case the release of the claim is not final until such time as
the order of the board becomes final. In such a case, the only issue to be
decided by the board is the amount of incurred expenses by the paying agency.
(e) If a service,
item or benefit has been provided but a bill for that service, item or benefit
has not been received by the paying agency before the release or order becomes
final, the reimbursement payment must cover the bill in accordance with the following
process:
(A) The paying
agency may maintain a contingency fund in an amount reasonably sufficient to
cover reimbursement for the billing.
(B) If a dispute
arises as to reimbursement for any bill first received by the paying agency not
later than 180 days after the date the release or order became final, the
dispute must be resolved by order of the board.
(C) Any amount
remaining in the contingency fund after the 180-day period must be paid to the
worker or the beneficiaries of the worker.
(D) Any billing
for a service, item or benefit that is first received by the paying agency more
than 180 days after the date the release or order became final is unenforceable
by the person who issued the bill.
(f) The
settlement or judgment proceeds are available for payment or actually have been
paid out and are available in a trust fund or similar account, or are available
through a legally enforceable structured settlement agreement if sufficient
funds are available to make payment to the paying agency.
(g) The
agreed-upon payment to the paying agency, or the payment to the paying agency
ordered by the board, is made within 30 days of the filing of the withdrawal of
the claim with the board or within 30 days after the board has entered a final
order resolving any dispute with the paying agency.
(7) If a release
of further liability on a claim, as provided in subsection (6) of this section,
has been filed, and if payment to the paying agency has been made, the effect
of the release is that the worker or the beneficiaries of the worker have no further
right to seek benefits under the original claim, or any independent workers’
compensation claim regarding the same circumstances, and the claim may not be
reasserted, refiled or reestablished through any legal proceeding. [Formerly
656.322; 1977 c.804 §16; 1979 c.839 §12; 1981 c.540 §1; 1985 c.600 §12; 1987
c.373 §35b; 1993 c.445 §1; 1995 c.332 §47; 1995 c.641 §8; 1997 c.639 §4; 2017
c.69 §3]
Notes of Decisions
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
· cites it 52× “Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
· cites it 8× “**626 In the event of a settlement approved by the insurer, the worker was entitled to receive amounts required by ORS 656.593, and the insurer was "authorized to accept such a share of the proceeds as may be just and proper," with any conflicts about that amount to be settled…”
Schlecht v. State Accident Ins. Fund Corp., 653 P.2d 1284 (Or. Ct. App. 1982).
· cites it 16× “89 to SAIF pursuant to ORS 656.593. 2 The *452 parties appear to agree that that amount was equal to SAIF’s recoverable costs under the statute as of the date of tender.”
Ore-Ida Foods, Inc. v. Indian Head Cattle Co., 627 P.2d 469 (Or. 1981).
· cites it 6× “591 and ORS 656.593 has approved a policy that employers have the right to recover, from third party tortfeasors, for compensation benefits paid to injured workers and their dependents.”
SAIF Corp. v. Wright, 817 P.2d 1317 (Or. 1991).
· cites it 12× “6 Moreover, ORS 656.593 gives the Board jurisdiction over the parties of a worker and a paying agency and over the subject matter of a worker’s recovery from a direct third-party action.”
Bird v. Norpac Foods, Inc., 934 P.2d 382 (Or. 1997).
· cites it 9× “ORS 656.593 does not guarantee that all of Bird’s judgment for damages will be reduced to “proceeds.”
Rash v. McKinstry Co., 20 P.3d 197 (Or. 2001).
· cites it 5× “, ORS 656.593 (“proceeds”); ORS 656.580 (“action”); ORS 656.”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992).
· cites it 5× “ORS 656.593 sets forth the procedures applicable to third-party actions brought by injured workers: “(1) If the worker * * * elect [s] to recover damages from the * * * third person, notice of such election shall be given by the paying agency by personal service or by registered…”
Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999).
· cites it 10× “In ORS 656.593, the legislature uses the term "proceeds" in describing the monies recovered from a third-party tortfeasor.”
Est. of Vance v. Williams, 734 P.2d 1372 (Or. Ct. App. 1987).
· cites it 8× “1 ORS 656.593 provides, in part: “(1) If the worker or the beneficiaries of the worker elect to recover damages from the employer or third person, notice of such election shall be given the paying agency by personal service or by registered or certified mail.”
Corvallis Aero Serv., Inc. v. Villalobos, 724 P.2d 880 (Or. Ct. App. 1986).
· cites it 6× “If the worker so elects, the “paying agency” responsible for the payment of workers’ compensation benefits has a lien on the worker’s cause of action and is entitled to share in the proceeds in accordance with the formula of ORS 656.593. If the worker elects not to bring the…”
EBI Companies v. Cooper, 785 P.2d 380 (Or. Ct. App. 1990).
· cites it 6× “In October, 1987, claimant petitioned the Board for a third party order pursuant to ORS 656.593 to redistribute the recovery in the third party action.”
— Or. Rev. Stat. § 656.593(1) — 25 cases
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
“**626 In the event of a settlement approved by the insurer, the worker was entitled to receive amounts required by ORS 656.593, and the insurer was "authorized to accept such a share of the proceeds as may be just and proper," with any conflicts about that amount to be settled…”
Rash v. McKinstry Co., 20 P.3d 197 (Or. 2001).
“, ORS 656.593 (“proceeds”); ORS 656.580 (“action”); ORS 656.”
Bird v. Norpac Foods, Inc., 934 P.2d 382 (Or. 1997).
“ORS 656.593 does not guarantee that all of Bird’s judgment for damages will be reduced to “proceeds.”
Est. of Vance v. Williams, 734 P.2d 1372 (Or. Ct. App. 1987).
“1 ORS 656.593 provides, in part: “(1) If the worker or the beneficiaries of the worker elect to recover damages from the employer or third person, notice of such election shall be given the paying agency by personal service or by registered or certified mail.”
— Or. Rev. Stat. § 656.593(1)(a) — 4 cases
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
“**626 In the event of a settlement approved by the insurer, the worker was entitled to receive amounts required by ORS 656.593, and the insurer was "authorized to accept such a share of the proceeds as may be just and proper," with any conflicts about that amount to be settled…”
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
— Or. Rev. Stat. § 656.593(1)(b) — 3 cases
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
“**626 In the event of a settlement approved by the insurer, the worker was entitled to receive amounts required by ORS 656.593, and the insurer was "authorized to accept such a share of the proceeds as may be just and proper," with any conflicts about that amount to be settled…”
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
— Or. Rev. Stat. § 656.593(1)(c) — 8 cases
Schlecht v. State Accident Ins. Fund Corp., 653 P.2d 1284 (Or. Ct. App. 1982).
“89 to SAIF pursuant to ORS 656.593. 2 The *452 parties appear to agree that that amount was equal to SAIF’s recoverable costs under the statute as of the date of tender.”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
“**626 In the event of a settlement approved by the insurer, the worker was entitled to receive amounts required by ORS 656.593, and the insurer was "authorized to accept such a share of the proceeds as may be just and proper," with any conflicts about that amount to be settled…”
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999).
“In ORS 656.593, the legislature uses the term "proceeds" in describing the monies recovered from a third-party tortfeasor.”
— Or. Rev. Stat. § 656.593(1)(d) — 5 cases
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
“**626 In the event of a settlement approved by the insurer, the worker was entitled to receive amounts required by ORS 656.593, and the insurer was "authorized to accept such a share of the proceeds as may be just and proper," with any conflicts about that amount to be settled…”
Schlecht v. State Accident Ins. Fund Corp., 653 P.2d 1284 (Or. Ct. App. 1982).
“89 to SAIF pursuant to ORS 656.593. 2 The *452 parties appear to agree that that amount was equal to SAIF’s recoverable costs under the statute as of the date of tender.”
— Or. Rev. Stat. § 656.593(2) — 3 cases
Bird v. Norpac Foods, Inc., 934 P.2d 382 (Or. 1997).
“ORS 656.593 does not guarantee that all of Bird’s judgment for damages will be reduced to “proceeds.”
— Or. Rev. Stat. § 656.593(3) — 25 cases
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
SAIF Corp. v. Wright, 817 P.2d 1317 (Or. 1991).
“6 Moreover, ORS 656.593 gives the Board jurisdiction over the parties of a worker and a paying agency and over the subject matter of a worker’s recovery from a direct third-party action.”
Toole v. EBI Companies, 838 P.2d 60 (Or. 1992).
“ORS 656.593 sets forth the procedures applicable to third-party actions brought by injured workers: “(1) If the worker * * * elect [s] to recover damages from the * * * third person, notice of such election shall be given by the paying agency by personal service or by registered…”
Vasquez v. Double Press Mfg., Inc., 437 P.3d 1107 (Or. 2019).
“**626 In the event of a settlement approved by the insurer, the worker was entitled to receive amounts required by ORS 656.593, and the insurer was "authorized to accept such a share of the proceeds as may be just and proper," with any conflicts about that amount to be settled…”
Schlecht v. State Accident Ins. Fund Corp., 653 P.2d 1284 (Or. Ct. App. 1982).
“89 to SAIF pursuant to ORS 656.593. 2 The *452 parties appear to agree that that amount was equal to SAIF’s recoverable costs under the statute as of the date of tender.”
— Or. Rev. Stat. § 656.593(4) — 1 case
— Or. Rev. Stat. § 656.593(6) — 2 cases
Rash v. McKinstry Co., 981 P.2d 343 (Or. Ct. App. 1999).
“In ORS 656.593, the legislature uses the term "proceeds" in describing the monies recovered from a third-party tortfeasor.”
— Or. Rev. Stat. § 656.593(l)(a) — 1 case
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
— Or. Rev. Stat. § 656.593(l)(b) — 1 case
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
— Or. Rev. Stat. § 656.593(l)(c) — 6 cases
Liberty Nw. Ins. Corp. v. Golden, 840 P.2d 1362 (Or. Ct. App. 1992).
“Liberty requested that all of the costs of the claim, including benefits paid to the husband and the children, be paid under ORS 656.593. The Board held that the claim costs attributable to an individual beneficiary should be payable only from the amount of the settlement…”
— Or. Rev. Stat. § 656.593(l)(d) — 2 cases
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.