Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney about your specific situation.
Detailed Answer
In Oregon, when a worker injured on the job brings a third-party personal injury claim, the workers’ compensation insurer has a statutory lien for benefits paid. To resolve that lien, follow these key steps under the Oregon Workers’ Compensation Law (ORS 656.262 and ORS 656.268):
Step 1: Identify the Lien Amount
Request a detailed statement from the insurer or self-insured employer. This statement should list:
- All medical benefits paid;
- All indemnity (lost wages or disability) payments, if any;
- Any interest or late-payment penalties.
Step 2: Provide Notice of the Lien
Under ORS 656.262, you must notify the workers’ compensation insurer of any pending third-party claim or lawsuit. Provide:
- A copy of the complaint or demand;
- Settlement proposals;
- Relevant medical records.
Step 3: Calculate the Net Recoverable Lien
Oregon law limits recovery to the net amount after attorney fees and costs. Common practice deducts up to 25% of the gross settlement to cover fees and expenses before calculating the lien share. Verify with the insurer how they apply this offset.
Step 4: Negotiate or Petition for Resolution
Attempt to agree on the lien amount and distribution terms. If negotiations stall, file a petition with the Workers’ Compensation Board for a lien dispute resolution hearing. The Board can issue an order setting the amount and priority of payment.
Step 5: Secure Settlement Funds
Place the lien portion in a client trust account or court registry. This ensures funds are available for payment once the insurer’s claim is resolved.
Step 6: Obtain Lien Release and Close the Claim
After payment, secure a written lien release from the insurer. File a stipulation or motion with the court or Board confirming payment and dismissing any interpleader or lien objection proceeding.
Helpful Hints
- Document every communication with the insurer in writing.
- Review ORS 656.262 and ORS 656.268 early in your case.
- Retain a lawyer experienced in both workers’ comp and personal injury claims.
- Track all expenses and fees to calculate accurate net recovery.
- Meet all deadlines for notices and petitions to avoid waiving lien rights.