Medean v. Moeller

The 14-day time limit imposed by ORCP 68 C(4), and incorporated into ORS 31.555(3)(b), “is the exclusive means by which the insurer may offset its PIP reimbursement payment against the money award.”

Plaintiff was injured in car accident with defendant. Plaintiff’s insurer, Travelers, paid plaintiff $8,413.15 in personal injury protection (PIP) benefits. Defendant’s insurer, Allstate, reimbursed Travelers for the PIP payment, pursuant to ORS 742.534. Later, a jury awarded plaintiff $19,839. Allstate paid plaintiff $11,425.85, the award amount minus the previous PIP payment of $8,413.15. On appeal, plaintiff sought the full amount of the award, arguing that Allstate did not properly seek a judgment reduction within the 14-day time limit pursuant to ORS 31.555. A lower court denied plaintiff's request and allowed the prejudgment PIP payment as credit on the award. The Court of Appeals assigned error to the judgment of the lower court and agreed with plaintiff, stating that the procedure in ORS 31.555(3)(b) which incorporates ORCP 68 C(4) “is the exclusive means by which the insurer may offset its PIP reimbursement payment against the money award.” Reversed.