Claims Pointer: Newly adopted amendments to ORS 20.080: (1) raise the threshold of maximum allowable claims; (2) enhances claimants' notice requirements; (3) extends time by which defendants may respond to demand; and (4) puts into place new requirements on claimants to turn over supporting documentation.
Amendments to ORS 20.080 (signed into law June 25, 2009)
| RECENT CHANGES TO ORS 20.080 |
| | Old Version | New Version |
| Effective Date | Present to 12/31/09 | 01/01/10 |
| Maximum Allowable Claim | $5,500 | · $7,500 (effective for all lawsuits filed from 1/1/10 to 12/31/11) · $10,000 (effective for all lawsuits filed on or after 1/1/12) |
| Notice Requirement | Claimant must notify Δ of claim | Claimant must notify Δ of claim and Δ’s insurer if known by claimant |
| Length of Time Plaintiff Must Wait Before Filing a Claim | 10 days from tendering of demand | 30 days from tendering of demand |
| Claimant must provide Δ the following in a personal injury claim | None | Medical records and bills so that Δ is made aware of nature and scope of Plaintiff’s claim* |
| Claimant must provide Δ with the following in a property damage claim | None | Repair bills, estimates of repairs or a written estimate of the difference in value* |
* This requirement to turn over documents continues through the 30 day-notice period. Failure to turn over these documents as required by the law will bar plaintiffs from recovering any of their attorney fees.
The legislature had considered other changes that were not adopted. Of note, the legislature had considered an amendment in response to the recent decision of Powers v. Quigley. The proposed amendment would have applied ORCP 54E(3) to ORS 20.080 claims. This would have returned the law to how it existed prior to Powers v. Quigley, that is, any offer of judgment made by an insurer up to 10 days prior to the trial that exceeds the eventual award, would cut off attorney fees from the moment that higher offer is provided. This amendment was not approved. Thus, other than a negotiated settlement, it appears that the only way to stop an attorney fee claim after a lawsuit has been filed is to amend the answer and admit the plaintiff is entitled to recover the amount of their pre-filing demand. As a result, it is very important that insurers make their best offer before the plaintiff files their lawsuit.
Another rejected amendment would have made the awarding of attorney fees not automatic and instead give each judge discretion to decide how much was proper after balancing several factors.
This article is intended to inform our clients and others about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in this email without seeking professional counsel.
Full Text of New Law Available Here