Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
When you receive a personal injury settlement in Oregon after a work-related accident, your employer or its insurer may assert a workers’ compensation lien under Oregon law to recover benefits paid on your behalf. These liens arise from the insurer’s right of subrogation and are governed primarily by ORS 656.268 and ORS 656.262. Follow these steps to verify and satisfy that lien:
- Obtain Written Lien Claim. Ask the workers’ compensation insurer for a detailed written statement of its lien, including total benefits paid, dates, and supporting documentation. This request triggers the insurer’s obligation to disclose its subrogation claim.
- Verify Lien Validity. Confirm that the insurer provided you written notice of subrogation rights within one year of the injury (ORS 656.268(2)) and that it asserted the lien within one year after it stopped paying benefits (ORS 656.262(2)). If the insurer missed these deadlines, you may challenge the lien as untimely.
- Allocate Attorney Fees and Costs. Under ORS 656.268(4), the insurer must share in your attorney fees and litigation costs. Calculate the net lien by reducing the gross lien amount by your proportionate share of fees and costs tied to the third-party recovery.
- Negotiate the Lien. Review the insurer’s calculation. Negotiate disputed items—such as medical fees or benefit dates. A clear settlement memo or letter of understanding will streamline payment and avoid future disputes.
- Include Lien Satisfaction in Settlement Documents. Draft your settlement agreement or stipulation to identify the lien amount and obligate the settlement trustee or responsible party to pay the insurer directly. Clearly reference the workers’ compensation subrogation claim by statute.
- Obtain Board or Court Approval (If Required). If the workers’ compensation claim remains open before the Oregon Workers’ Compensation Board, file a petition for approval of the settlement under ORS 656.230. The Board must find the settlement fair and ensure the lien is satisfied.
- Disburse Funds and File Satisfaction. Upon closing the personal injury case, pay the net lien amount directly to the insurer or Board as directed. Then, file a certificate or affidavit of satisfaction with the Workers’ Compensation Board to clear the subrogation claim from your record.
Helpful Hints
- Keep all correspondence and benefit records in a dedicated file.
- Track notice and lien-assertion deadlines to avoid waiver issues.
- Calculate your attorney fees allocation before talking numbers with the insurer.
- Use clear written agreements to prevent disputes over payment timing.
- Consider board approval early if your WC claim is still open.
- Consult a personal injury attorney experienced in subrogation law.