Bird v. Norpac Foods, Inc.

934 P.2d 382, 325 Or. 55, 1997 Ore. LEXIS 17
CourtOregon Supreme Court
DecidedMarch 20, 1997
DocketCC 850500C; CA A65075 (Control); C900682CV; CA A68732; SC S42113
StatusPublished
Cited by9 cases

This text of 934 P.2d 382 (Bird v. Norpac Foods, Inc.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bird v. Norpac Foods, Inc., 934 P.2d 382, 325 Or. 55, 1997 Ore. LEXIS 17 (Or. 1997).

Opinion

*58 VAN HOOMISSEN, J.

The dispositive issue presented in these two consolidated appeals, under the Oregon Insurance Guaranty Association (OIGA) statutes, ORS 734.510 et seq, is as follows: When OIGA has assumed all of the rights, duties, and obligations of an insolvent insurer pursuant to ORS 734.570, and a plaintiff obtains a personal injury judgment against a defendant insured by that insolvent insurer, must the judgment be deemed satisfied to the extent that the plaintiff has received workers’ compensation benefits from a solvent insurer for the same injury? The Court of Appeals answered that question in the affirmative. Bird v. Norpac, 132 Or App 349, 888 P2d 118 (1995). For the reasons that follow, we affirm.

We take the undisputed facts from the Court of Appeals’ opinion. Plaintiff Bird was injured in the course of her employment when the car that she was driving collided with a car driven by Moreland, who was in the course of his employment with Norpac Foods, Inc. (Norpac), at the time of the accident. Bird filed a workers’ compensation claim based on her injuries and collected $84,607.84 in benefits from her employer’s workers’ compensation insurer, American Motorists Insurance Company (AMIC). She also filed an uninsured motorist (UM) claim against her own motor vehicle insurer, Farmers Insurance Company of Oregon (Farmers), and collected $5,664.49 on that claim. 1

Bird later filed a personal injury claim against Norpac and Moreland. At the time of the accident, Norpac (and Moreland as its agent) was insured by Mission Insurance Company (Mission). Mission later was declared insolvent, and OIGA assumed Mission’s rights, duties, and obligations vis-á-vis Norpac and Moreland, including the defense of Bird’s action. ORS 734.570. 2 A jury awarded Bird damages of *59 $104,742.26, including $94,742.26 in economic damages and $10,000 in noneconomic damages, and the trial court entered judgment against Norpac and Moreland, jointly and severally, in that amount. 3

After the judgment was final, at OIGA’s instigation, Norpac and Moreland filed a motion for an order directing satisfaction of the judgment. They argued that, because OIGA had assumed the obligations of Mission and ultimately was responsible for paying Bird’s judgment against them, pursuant to ORS 734.640, 4 the judgment must be deemed satisfied to the extent of her workers’ compensation and UM recoveries. Bird opposed the motion, arguing, among other things, that her workers’ compensation claim was neither a “claim under an insurance policy’ nor a “covered claim” within the meaning of ORS 734.640(1). She further argued that Norpac and Moreland’s post-judgment motion for satisfaction was untimely. The trial court denied the motion. Norpac, but not Moreland, appealed. That appeal (CA A65075) is the first of the two appeals consolidated here. With respect to Norpac’s appeal, the Court of Appeals reversed. Bird, 132 Or App at 359. We allowed Bird’s petition for review in that case.

*60 While Norpac’s appeal in CA A65075 was pending, OIGA, Norpac, and Moreland filed a complaint against Bird, AMIC, and Farmers, seeking a declaratory judgment that OIGA, Norpac, and Moreland had no duty to pay Bird’s judgment in CA A65075 because of the offset provision in ORS 734.640. Bird moved to dismiss, arguing, among other things, that another action involving the same claim — namely, Norpac’s appeal — was pending, and that the present action was barred under principles of claim preclusion and issue preclusion. Bird also moved for summary judgment. OIGA filed a cross-motion for summary judgment. The trial court denied Bird’s motions and granted summary judgment in favor of OIGA, Norpac, and Moreland, ruling that Bird’s recoveries from AMIC and Farmers must be applied to reduce the judgment against Norpac and Moreland. Bird appealed that judgment. That appeal (CA A68732) is the second of the appeals consolidated here. The Court of Appeals affirmed the declaratory judgment in favor of OIGA, Norpac, and Moreland. Bird, 132 Or App at 360. We allowed Bird’s petition for review.

This case requires us to interpret the OIGA statutes, ORS 734.510 et seq, particularly ORS 734.640(1). In interpreting a statute, this court’s role is to discern the intent of the legislature. ORS 174.020; PGE v. Bureau of Labor and Industries, 317 Or 606, 610, 859 P2d 1143 (1993). To do that, the court first examines both the text and context of the statute. In that first level of analysis, the text of the statutory provision itself is the best evidence of the legislature’s intent and provides the starting point for interpretation. Ibid. As part of the text, the court considers its prior cases interpreting the statute. See Stephens v. Bohlman, 314 Or 344, 350 n 6, 838 P2d 600 (1992) (when this court interprets a statute, that interpretation becomes a part of the statute as if written into it at the time of its enactment). Also at the first level of analysis, the court considers the context of the statute at issue, which includes other provisions of the same statute and other related statutes. If the legislature’s intent is clear from the above-described inquiry, further inquiry is unnecessary. Id. at 611.

*61 The text of ORS 734.640(1) does not clearly reveal whether it applies to a workers’ compensation recovery. Neither does it indicate whether a claim for workers’ compensation benefits is a “claim under an insurance policy’ under ORS 734.640(1).

This court had occasion in Carrier v. Hicks, 316 Or 341, 851 P2d 851 (1993), to interpret the OIGA statutes generally and ORS 734.640 in particular in the context of an uninsured/underinsured motorist (UM/UIM) recovery. The plaintiff in Carrier

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Cite This Page — Counsel Stack

Bluebook (online)
934 P.2d 382, 325 Or. 55, 1997 Ore. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bird-v-norpac-foods-inc-or-1997.