Wynia v. Fick

986 P.2d 625, 162 Or. App. 365, 1999 Ore. App. LEXIS 1508
CourtCourt of Appeals of Oregon
DecidedAugust 25, 1999
Docket97C-891886; CA A97885
StatusPublished
Cited by2 cases

This text of 986 P.2d 625 (Wynia v. Fick) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wynia v. Fick, 986 P.2d 625, 162 Or. App. 365, 1999 Ore. App. LEXIS 1508 (Or. Ct. App. 1999).

Opinion

ARMSTRONG, J.

Plaintiff appeals from a judgment of dismissal entered pursuant to ORCP 21 AO),1 which provides for dismissal when there is another action pending between the same parties for the same cause. He contends that the trial court erred when it applied the rule against maintaining multiple actions, because the legislature has enacted a statutory exception to that rule that allows an insurer to require its insured to bring a separate action to recover personal injury protection (PIP) benefits that the insurer has paid. We affirm.

Plaintiff was struck and injured by a car driven by defendant. Plaintiffs PIP provider, Farmers Insurance Company (Farmers), paid plaintiff PIP benefits totaling $7,002.20. In November 1996, plaintiff filed a negligence action against defendant, seeking $45,000 in noneconomic damages and over $4,000 in present and future medical bills. At Farmers’ request, plaintiff filed a second negligence action against defendant in February 1997 in which plaintiff sought only the economic damages that he had suffered that Farmers had paid in PIP benefits. Defendant moved to dismiss the second action on the ground that another action involving the same parties and the same cause was pending. The trial court granted defendant’s motion and plaintiff appeals.

ORCP 21 A(3) is a codification of the common-law rule against splitting claims. That rule is rooted, in turn, in the doctrine of claim preclusion. Claim preclusion prevents a party

“ ‘who has prosecuted an action through to final judgment * * * from prosecuting another action against the same defendant where the claim in the second action is one which is based on the same factual transaction that was at issue in the first, seeks a remedy additional or alternative to the one [368]*368sought earlier, and is of such a nature as could have been joined in the first action.’ ”

Drews v. EBI Companies, 310 Or 134, 140, 795 P2d 531 (1990) (quoting Rennie v. Freeway Transport, 294 Or 319, 323, 656 P2d 919 (1982)). The purpose of the rule is, in part, to protect limited dispute-resolution resources from repeated expenditure on the same dispute. Drews, 310 Or at 141. The same principle applies to simultaneous actions.

There are exceptions to the rules against splitting claims, and plaintiff contends that such an exception applies here. Plaintiff argues that the legislature has fashioned in ORS 742.5382 an exception that allows a PIP provider to [369]*369bring, in the name of the insured, an action against a third party for the recovery of PIP benefits, even though the insured may already have initiated an action against that party for the recovery of damages based on the same transaction. We disagree.

ORS 742.538 is a part of a statutory scheme designed by the legislature to ensure that persons injured in motor vehicle accidents receive prompt payment of benefits for economic damages that they have suffered. In order to encourage PIP providers to make timely payments, the legislature has established several mechanisms by which these providers can be reimbursed for the PIP benefits that they have paid. In addition to ORS 742.538, a PIP provider’s right to recover PIP benefits is covered by ORS 742.534 and ORS 742.536.3 Under those three statutes, a PIP provider has four [370]*370methods through which to recover benefits that it has paid. The method chosen by the provider may depend on whether another option is available or on whether the insurer has chosen not to follow a particular path to recovery.

First, under ORS 742.534, every authorized motor vehicle liability insurance provider whose insured is or could be held legally liable for injuries to another person is required to reimburse the injured person’s insurer for PIP benefits paid by that insurer to the injured person, provided that the PIP provider has requested such reimbursement and has not elected recovery by lien as provided by ORS 742.536. Any disputes as to liability or amount of recovery are decided through arbitration. Second, if the PIP provider’s insured has brought an action to recover damages from a tortfeasor, ORS 742.536 allows the provider to attach a lien to any recovery [371]*371by the insured for the amount of the PIP benefits provided, as long as it has not sought reimbursement under ORS 742.534. Third, under ORS 742.538(1), a PIP provider can recover PIP benefits from the proceeds of any judgment or settlement that may result from the injured person’s exercise of any rights to recover against any person legally responsible for the accident, less the insurer’s share of the expenses, costs or attorney fees incurred by the insured in connection with such recovery. Fourth, under ORS 742.538(4), a PIP provider can require the insured to bring an action against the responsible party to recover PIP benefits. In the latter case, the PIP provider would supply the attorney and direct the litigation, even though the action would be brought in the name of the insured.

Plaintiff chose to bring this action under ORS 742.538(4). The only express requirements that a PIP provider must meet before it can proceed under ORS 742.538 are that it must show that intercompany reimbursement was not available under the terms of ORS 742.534 and that it has not elected to recover by lien under ORS 742.536. Plaintiff argues that, because the insurer has met those requirements, he must be allowed to proceed even though another action is pending between the parties for the same cause.

Defendant first argues that the insurer has not fulfilled the statutory requirements for such an action, because intercompany reimbursement is always available as long as both parties are insured. He further argues that ORS 742.538 applies only to those cases in which the tortfeasor is uninsured.

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Cite This Page — Counsel Stack

Bluebook (online)
986 P.2d 625, 162 Or. App. 365, 1999 Ore. App. LEXIS 1508, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wynia-v-fick-orctapp-1999.