Tort Actions

ORS 31.555
Effect of advance payment

  • payment as satisfaction of judgment

(1)

If judgment is entered against a party on whose behalf an advance payment referred to in ORS 31.560 (Advance payment for death or personal injury not admission of liability) or 31.565 (Advance payment for property damage not admission of liability) has been made and in favor of a party for whose benefit any such advance payment has been received, the amount of the judgment shall be reduced by the amount of any such payments in the manner provided in subsection (3) of this section. However, nothing in ORS 12.155 (Effect of notice of advance payment on running of period of limitation), 31.560 (Advance payment for death or personal injury not admission of liability) and 31.565 (Advance payment for property damage not admission of liability) and this section authorizes the person making such payments to recover such advance payment if no damages are awarded or to recover any amount by which the advance payment exceeds the award of damages.

(2)

If judgment is entered against a party who is insured under a policy of liability insurance against such judgment and in favor of a party who has received benefits that have been the basis for a reimbursement payment by such insurer under ORS 742.534 (Reimbursement of other insurers paying benefits), the amount of the judgment shall be reduced by reason of such benefits in the manner provided in subsection (3) of this section.

(3)

(a)

The amount of any advance payment referred to in subsection (1) of this section may be submitted by the party making the payment, in the manner provided in ORCP 68 C(4) for the submission of disbursements.

(b)

The amount of any benefits referred to in subsection (2) of this section, diminished in proportion to the amount of negligence attributable to the party in favor of whom the judgment was entered and diminished to an amount no greater than the reimbursement payment made by the insurer under ORS 742.534 (Reimbursement of other insurers paying benefits), may be submitted by the insurer which has made the reimbursement payment, in the manner provided in ORCP 68 C(4) for the submission of disbursements.

(c)

Unless timely objections are filed as provided in ORCP 68 C(4), the court clerk shall apply the amounts claimed pursuant to this subsection in partial satisfaction of the judgment. Such partial satisfaction shall be allowed without regard to whether the party claiming the reduction is otherwise entitled to costs and disbursements in the action. [Formerly 18.510]

Notes of Decisions

Because 1) insurer’s policy commits it to pay whatever its insured becomes liable to pay up to policy limits, 2) before judgment, reimbursement of PIP carrier is not in law payment of insured’s liability, and 3) amount that will be applicable to judgment may not yet be known, insurer is not entitled to pre-judgment credit for reimbursement. Kessler v. Weigandt, 68 Or App 180, 685 P2d 425 (1984), aff’d 299 Or 38, 699 P2d 183 (1985)

Where it could not be determined whether jury awarded damages already compensated for by PIP payments, reduction of offset allowed for PIP payments was improper. Dougherty v. Gelco Express Corp., 79 Or App 490, 719 P2d 906 (1986)

PIP payment to plaintiff does not reduce judgment where it can be determined jury did not award damages for losses compensated for by PIP payment. Brus v. Goodell, 119 Or App 74, 849 P2d 562 (1993)

Where affidavit by attorney for insurer merely acknowledged propriety of reimbursement procedure but did not obligate insurer to pay specific amount, refusal by court to issue order of partial satisfaction was proper. Heintz v. Baxter, 120 Or App 603, 853 P2d 320 (1993), Sup Ct review denied

Liability insurer repayment to other insurer for amount of Personal Injury Protection payment advanced by other insurer is reduction in judgment amount having priority over attorney lien on judgment. Willhite v. Biff’s Seafood Restaurant, Inc., 124 Or App 360, 862 P2d 580 (1993)

Reduction of judgment by offsetting advance payments received from insurer must be done after judgment has been entered for unreduced amount of verdict. Wade v. Mahler, 167 Or App 350, 1 P3d 485 (2000), Sup Ct review denied

Payments made without consideration of liability for damages are not “advance payments” triggering tolling of statute of limitations. Meoli v. Brown, 200 Or App 44, 114 P3d 507 (2005), Sup Ct review denied

Statement that request to apply personal injury protection reimbursement payment “may be submitted by insurer” does not render, for purposes of this statute, requirements of ORCP 68C (4) equivocal. Medean v. Moeller, 246 Or App 717, 268 P3d 623 (2011)

Source

Last accessed
May 30, 2023

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