Detailed Answer

Short answer: In Oregon, failing to resolve (or settle) a personal injury claim before the statute of limitations (SOL) runs does not automatically prevent you from negotiating a settlement, but it does usually eliminate your right to file a lawsuit to enforce the claim. Once the SOL expires, a defendant can ask the court to dismiss your case as time‑barred. To preserve your claim you must either settle before the SOL expires, obtain a written tolling agreement, or file a lawsuit before the deadline.

How the Oregon statute of limitations applies

Most personal injury claims in Oregon must be filed within two years from the date of the injury. This general rule appears in Oregon’s statutes governing limits on actions — see ORS chapter 12 (for example, ORS 12.110 discusses the two‑year rule for many personal injury actions): ORS chapter 12 (see ORS 12.110).

What happens if you miss the deadline

• Loss of the right to sue: If you do not file a lawsuit before the SOL expires and no tolling applies, the defendant can move to dismiss any later lawsuit as time‑barred. Courts routinely enforce the SOL as a defense.
• Settlement becomes difficult: Insurers and defendants know that an expired SOL weakens your leverage. They may refuse settlement or offer much less because you lack the ability to file an enforceable lawsuit.
• Exceptions exist, but are limited: Certain circumstances can pause (toll) or extend the deadline (for example, if the injured person is a minor or is legally incapacitated, or if the defendant is absent from the state). Oregon law also treats some claim types differently; claims involving public bodies often require special notice rules. See ORS chapter 30 for actions involving public bodies: ORS chapter 30.
• Discovery rule in some cases: For injuries that are not immediately discoverable (latent injuries), courts may apply a discovery rule that starts the SOL when you knew or should have known about the injury. The availability and scope of the discovery rule depends on the facts and legal theory.

Practical options to preserve your claim

1. File a complaint before the SOL expires: Filing a lawsuit on time preserves your right to proceed and gives you time to negotiate a settlement afterward. If you then settle, you can voluntarily dismiss the case after the agreement.
2. Negotiate a tolling agreement: A tolling (or extension) agreement in writing pauses the running of the SOL for the period you agree to. Insurers often accept these during active settlement talks, but the agreement must be signed and clear.
3. Request reasonable extensions early: If settlement talks are ongoing as the deadline nears, ask the insurer or opposing party for a written tolling agreement rather than relying on informal promises.

Common special situations

• Claims against government entities: Many claims against public bodies require timely notice (often shorter than two years) before you can sue. Check ORS chapter 30 and related sections for the exact requirements: ORS chapter 30. Missing a mandatory notice deadline can bar a claim even if the usual SOL has not run.
• Medical malpractice: Medical malpractice and certain professional negligence claims may have different timing rules and discovery details. Investigate the specific statute for medical claims and consult counsel early.
• Minors and incapacity: If the injured person is a minor or legally incapacitated, the deadline may be tolled until the disability ends or until a guardian is appointed.

What you should do now

1. Identify the applicable SOL (usually two years in Oregon under ORS chapter 12) and write down the deadline date based on the date of injury or discovery of injury.
2. If the deadline is close, either file a lawsuit before the SOL expires or get a signed tolling agreement that extends the period.
3. Preserve evidence, document medical treatment and communications, and keep written records of settlement offers and insurer correspondence.
4. Consider quick legal help. An attorney can evaluate tolling options, statutory exceptions, or whether the discovery rule might apply.

Key takeaway

You do not have to settle before the Oregon statute of limitations expires, but you do need to protect your right to sue. To keep your claim alive, either settle before the deadline, secure a written tolling agreement, or file a lawsuit on time. Once the statute of limitations has passed without one of those steps, a court will likely dismiss your claim if the defendant raises the defense.

Helpful Hints

• Do not rely on verbal promises from insurers—get extensions in writing.
• Even if you plan to settle, filing a lawsuit preserves leverage and protects your claim while negotiations continue.
• Track medical records and bills—these often establish dates of injury and damages needed for the complaint.
• Ask whether a defendant is a public body; if so, research notice requirements early (ORS chapter 30).
• If you believe an injury was “latent,” mention the discovery date to counsel so they can evaluate whether the discovery rule applies.
• When in doubt, start the clock conservatively: act earlier rather than later to avoid losing rights.

Disclaimer: This article explains general Oregon law and is for educational purposes only. It is not legal advice and does not create an attorney‑client relationship. For advice about your specific situation, consult a licensed Oregon attorney promptly.