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SAIF Corp. v. Wright

Citations: 102 Or. App. 598; 795 P.2d 604; 1990 Ore. App. LEXIS 879Docket: WCB TP-88016; CA A51030

Court: Court of Appeals of Oregon; August 1, 1990; Oregon; State Appellate Court

Narrative Opinion Summary

This case involves a dispute over the distribution of proceeds from a third-party settlement in the context of workers' compensation claims. SAIF Corporation sought an order from the Workers' Compensation Board to distribute a portion of a third-party settlement to them, citing ORS 656.593. The claimant had settled a lawsuit related to an automobile accident while SAIF had previously denied claims related to this incident, asserting the claimant was not a subject worker. SAIF's motion was denied by the Board on the grounds that SAIF, having denied the underlying claim, was not the 'paying agency' and, therefore, not entitled to proceeds from the settlement. Upon review, the court confirmed that although it had jurisdiction to review the Board's decisions under ORS 656.298, it agreed with the claimant that the Board lacked the authority to rule on SAIF's motion regarding the settlement distribution. Consequently, the court reversed the Board's decision and remanded the case with instructions to dismiss SAIF's motion, denying the claimant's motion to dismiss the judicial review petition and the motion for attorney fees.

Legal Issues Addressed

Entitlement to Third-Party Settlement Proceeds

Application: The court found that SAIF was not entitled to a share of the third-party settlement as it was not the 'paying agency' due to its denial of the underlying claim.

Reasoning: The Board denied this motion, reasoning that SAIF, having denied the underlying claim, was not the 'paying agency' and thus not entitled to share in the settlement.

Jurisdiction of the Workers' Compensation Board

Application: The court determined that the Workers' Compensation Board lacked the authority to rule on SAIF's motion regarding the distribution of the third-party settlement proceeds.

Reasoning: However, it concurred with the claimant that the Board lacked authority to rule on SAIF's motion, as the statutory provisions grant limited powers concerning third-party settlements.

Reviewability of Third-Party Settlement Orders

Application: The court affirmed that orders regarding the distribution of third-party settlements are reviewable under ORS 656.298, maintaining jurisdiction over the appeal.

Reasoning: The order regarding the distribution of a third-party settlement is reviewable under ORS 656.298, and while the Board's authority to address the issue was questioned, the court maintained jurisdiction.