Hello. My name is Jed Strong and I'm the owner and founder of Strong Law. Today I want to talk to you about ORS twenty eighty cases, and they are a special it's a special statute specifically for small auto accident cases in Oregon, and it comes from from the the ORS statute two zero point zero eight zero, and it's it's one of my favorite ways to handle a small injury case because it really forces the insurance carrier to treat a small case fairly. And so what do I mean by that? Most of the time auto accident attorneys work off off of what's called a contingency fee. For example, our firm and the standard is typically thirty three percent if the case settles before you file a lawsuit and forty percent if the case settles after you file a lawsuit or if you take that that case through trial. Now the problem though is that lawsuits can be extremely expensive and and add a lot more complexity and time to a case. Not only do you have to pay the you know the increased attorney's fee but also there's a lot of costs involved in lawsuits. You have to pay the court for filing a lawsuit, you have to pay for depositions, you have to pay a lot for expert witnesses, for doctors to come in and testify about the injuries. They can all get very very expensive, and insurance companies know this. And so, they know that if the case is a low value case, if it's a relatively small claim with relatively small injuries, then it's probably not worth it to file a lawsuit because of all of these additional costs that are just gonna that you're just gonna have to pay to other people and that money actually doesn't go to the injured party. So what insurance companies often like to do is they like to strong-arm these small cases and offer a small amount. So say the case is worth seven thousand dollars well they'll offer five thousand dollars because they know that if the person accepts the five thousand dollars they'll end up with the same amount in their pocket as if they as if they went to trial and got seven thousand dollars because of all those additional costs and fees. So it's it's it's really unfair to people who are injured in small accident cases. Well ORS two thousand and eighty changes this by kind of flipping flipping the tables on the insurance companies. And so what what the a twenty eighty demand or an ORS two thousand and eighty case does is when you send a demand to the insurance company you tell them hey we're demanding this as a twentyeighty case. Now the the downside is that you can only ask for up to ten thousand dollars so if you have a large case you can't use this process, but if your case is worth ten thousand dollars or less it really makes sense to use it and you have to go through the the special process to make sure that it complies with the statute but if your demand complies with the statute and then you can present this twentyeighty demand. And what it does is it forces the insurance company to give you their best offer. So let's say let's let's take this example again of a case that's worth seven thousand dollars If the insurance company plays its game and tries to offer you five thousand dollars well in that situation what you can do is you can actually go ahead and file a lawsuit. Even though it's it's quite a bit more expensive, what it does is it changes the way that the attorney is compensated. So rather than working off of a contingency fee of thirty three or forty percent on the case, the the case switches to an hourly basis. So the the attorney would then bill by the hour rather than a percentage of the fee of the case, and that can get really expensive really fast. For example, my firm typically charges three seventy five dollars an hour working on hourly matters including these twentyeighty cases. And so by the time you get through even a small lawsuit you're looking at somewhere around fifteen thousand dollars of attorney's fees build build at that hourly basis. And what the twentyeighty demand does is it says that if you go to an arbitration in this scenario, if you go to an arbitration and you win and the arbitrator awards you more money than the insurance company offered, then the insurance company has to pay whatever the award is plus they have to pay those attorney's fees a billed on an hourly basis. So in our scenario, the case is worth seven thousand dollars the insurance company offers five thousand dollars in that situation, you would take the case, you'd file a lawsuit, you'd go through the whole process of an arbitration, the insurance and the arbitrator would award seven thousand dollars which is the value of the case. So now the insurance company has to pay the seven thousand dollars and since they originally offered five and you got seven, so you beat their offer, they then have to pay the fifteen thousand dollars of attorney's fees on top of the seven thousand dollars amount. So that, so it makes it much more stringent for the insurance companies and they have to they have to go in there and they have to fairly assess the case because if they try to try to lowball an offer, they're gonna get slapped on the back end by having to pay the the fair value of the case plus all of the attorneys fees. So if you send, but you can only do that if you send the demand through the twentyeighty process and you jump jump through the different hoops in the two thousand and eighty statute to make sure that the demand qualifies. And so that that causes, you know, causes insurance companies to treat small cases in a fair manner because there's that risk that they now suffer of, or the risk that they face of suffering a much higher reward on, you know, on a small case. I mean I can't tell you how many cases that we've had that an insurance company gives a terrible offer and then we turn around and file a twentyeighty demand, and or we file a lawsuit based on the twentyeighty demand and the insurance carrier has to pay three four five times more than they offered at the end of the day. So it really forces the insurance companies to to be fair. Now that said, there is some risk and reward with these twentyeighty demands. So let's take our example of a a seven thousand dollars case and, and a five thousand dollars offer. So let me just do some quick math here. So if you take that that regular case at five thousand dollars and, and you settle that case, it would be settled on a contingency fee because that's typically how these cases begin is through a contingency fee. So it would be a third. So there'd be sixteen hundred dollars of attorney's fees and, if you so if you settle for five thousand dollars, six sixteen hundred dollars of attorney's fees and that will leave about three thousand three hundred dollars, for for for for the client, for the pain and suffering. So your ultimate take home would be thirty three hundred dollars Now if you go to through the litigation process and you get that seven thousand dollars well that full seven thousand dollars is going to the injured party because the attorney's fees are paid separately. They're not they're not paid out of the award anymore. They're paid on an hourly basis by the at fault insurance company. So it would it would, more than double the the amount that the injured client would get, in that scenario. But it's not all sunshine because let's say that, that the insurance company offers five thousand dollars and the case is really only worth four thousand dollars. Well in that situation, if the arbitrator awarded only four thousand dollars after you filed the lawsuit, then the insurance company and so the insurance company offered more than you got in litigation. Well the fees at that point would be owed by the injured party on an hourly basis and again those fees are fifteen thousand dollars and you only got four thousand dollars in the case so, you're not going to see any money out of that. Now most firms that I know, well at least my firm does, I don't know how other, you know, other firms deal with it, but, we we never force our client to pay that, you know, the remaining nine thousand dollars on the bill because that's just, you know, that's just not fair. But in in that scenario, the client would not receive anything because all of the settlement proceeds would be going to pay the, the fees for the for the attorney to litigate that case. So when you do the twenty eighty demand, it forces the insurance company to give you their best offer but then you have to really take a look at the case and say, can we beat their offer? Does it make sense like what is the chance that we will get a a better award from an arbitrator than what the insurance company is offering? And if if you're not confident that you're gonna beat that offer, then it's a good idea to accept the offer because, well, a, it's probably a fair offer to begin with and you should always accept fair offers, but b, there's that risk that the injured party does not walk away with anything, because it all goes to the attorney's fees. Conversely, again, if it's a bad offer from the insurance company and you are confident that you're going to win and you go to arbitration and you get a better award than the offer from the insurance company, the client walks away with a lot more money because the attorney's fees are paid by the at fault insurance company rather than through the the settlement or the award proceeds. So that's a summary of a twentyeighty demand. I think it's a great tool on small cases to make sure that insurance companies are fair and, it helps resolve a lot of cases. And then when the insurance company, you know, doesn't play fairly, then it really, makes it profitable for the client, and really, punishes the insurance company for being unfair from the outset. So if you have any additional questions on that, please feel free, reach out to us and discuss the the nuances of your case. But if you have a small case, I highly recommend, the twentyeighty process.
Video overview: Jed Strong explains how ORS 20.080 can affect certain smaller Oregon injury and property-damage claims, including demand requirements, settlement offers, attorney fees, and litigation risk.
When dealing with auto accident cases in Oregon, it’s crucial to understand specific statutes that can affect the outcome of your claim. One essential law in this regard is ORS 20.080, a statute specifically designed to protect claimants with smaller claims by encouraging fair settlements and discouraging unnecessary litigation. ORS 20.080 can have significant implications for auto accident cases, and knowing its applications can help you make informed decisions during a claim.
Understanding ORS 20.080 and Its Purpose
ORS 20.080, or Oregon Revised Statutes 20.080, is a provision aimed at supporting plaintiffs in civil cases, particularly those involving personal injury or property damage. This law primarily pertains to cases where the claim amount is $10,000 or less and offers a mechanism to ensure that individuals with smaller claims can access justice without the need for a lengthy and costly trial. The statute mandates that if the insurance company or liable party refuses to settle a legitimate claim, they may face legal and financial repercussions, including having to pay the plaintiff’s attorney fees should the case go to court.
How ORS 20.080 Applies to Auto Accident Cases
ORS 20.080 is particularly relevant to auto accident claims involving minor injuries or property damages. Under this statute, if a claimant submits a compliant written demand to the at-fault party and, when known, the party’s insurer in a case where the amount pleaded is $10,000 or less, the claimant can file a lawsuit and, if successful, have the defendant pay their attorney fees. This statute incentivizes fair settlements by insurance companies to avoid additional legal costs.
Key Requirements for ORS 20.080 to Apply
To qualify for ORS 20.080 benefits, certain requirements must be met:
- Written Demand Letter: The claimant must send a written demand for compensation to the at-fault party or their insurer. This letter must outline the details of the claim, including the accident date, damages, and the compensation amount sought.
- 30-Day Demand Period: The written demand generally must be made at least 30 days before an action or formal complaint is filed. Eligibility for attorney fees depends on complying with the statute and on whether the defendant tendered an amount that was at least as large as the damages ultimately awarded.
- Claim Amount: ORS 20.080 only applies to claims of $10,000 or less. This statute does not cover claims exceeding this amount.
The Importance of the Demand Letter in ORS 20.080 Cases
A demand letter is a critical component in ORS 20.080 cases. It should include:
- Accident Details: The date, location, and circumstances of the accident.
- Proof of Damages: Documentation such as medical bills, repair estimates, or receipts to substantiate the requested amount.
- Demanded Amount: A specific dollar amount for compensation that does not exceed $10,000.
- Legal Implications: Language that outlines ORS 20.080 provisions, indicating that the claimant will seek attorney fees if forced to take the case to court.
Failure to include these elements or provide proper documentation can undermine the effectiveness of the demand letter, reducing the likelihood of a favorable settlement offer.
Potential Outcomes and Benefits of ORS 20.080 for Auto Accident Claimants
ORS 20.080 offers several key benefits to claimants:
- Increased Likelihood of Fair Settlements: Insurers and defendants are often more inclined to settle claims rather than face court-imposed attorney fees.
- Access to Legal Representation: For cases that proceed to court, the statute allows for the recovery of attorney fees, making it more feasible for claimants to secure legal support.
- Deterrent Against Unreasonable Denials: ORS 20.080 deters insurance companies from ignoring or underestimating smaller claims, encouraging a more just handling of these cases.
What Happens if the Case Goes to Court?
If the insurer does not make an acceptable settlement offer after receiving a compliant demand, the plaintiff may have the option to file a lawsuit under ORS 20.080. Should the plaintiff win, the defendant may be ordered to cover not only the awarded compensation but also the plaintiff’s attorney fees and court costs. This provision makes it advantageous for plaintiffs with smaller claims to pursue fair compensation and discourages insurance companies from dragging out cases without valid grounds.
Common Scenarios in ORS 20.080 Auto Accident Cases
ORS 20.080 can apply to several scenarios within the context of auto accidents, including:
- Property Damage Claims: Damage to a vehicle that costs less than $10,000 to repair or replace can be claimed under ORS 20.080.
- Minor Personal Injuries: Claims involving medical expenses for minor injuries that do not exceed the $10,000 threshold may also qualify.
- Uninsured Motorist Claims: In cases where the at-fault driver is uninsured or underinsured, the claimant may pursue compensation from their own insurance under ORS 20.080.
- Hit-and-Run Accidents: If an at-fault driver leaves the scene, ORS 20.080 may allow the victim to pursue a claim against their own insurance company if the damages fall within the statute’s limitations.
Important Considerations for Claimants Using ORS 20.080
Understanding the following nuances can help you make informed decisions in ORS 20.080 cases:
- Filing Deadlines: Oregon has a statute of limitations on personal injury claims, typically two years from the accident date. Ensure all necessary steps under ORS 20.080 are completed within this timeframe.
- Documentation Requirements: Clear and accurate documentation of damages is essential. This includes repair estimates, medical bills, and any other expenses incurred due to the accident.
- Working with an Attorney: Consulting a personal injury attorney familiar with ORS 20.080 can improve your chances of a successful claim. While the statute allows for attorney fees if the case goes to court, an attorney can often help negotiate a favorable settlement without the need for litigation.
How ORS 20.080 Impacts Insurance Company Behavior
ORS 20.080 has a notable influence on how insurance companies handle smaller claims in Oregon. Insurers are generally motivated to settle qualifying claims promptly to avoid paying attorney fees and court costs. This statute has encouraged many insurance companies to adopt more transparent and fair settlement practices for smaller claims. As a result, ORS 20.080 has become an effective tool for plaintiffs seeking swift, fair resolutions for their auto accident claims without resorting to extended legal battles.
Steps to Take if You Believe ORS 20.080 Applies to Your Auto Accident Case
- Assess Your Damages: Determine if your claim falls under the $10,000 limit.
- Prepare a Demand Letter: Draft a comprehensive demand letter detailing the accident, damages, and compensation amount sought.
- Send the Demand to the Insurer: Ensure the insurer receives the demand letter and note the statutory 30-day demand period.
- Consider Legal Counsel: Consulting an attorney can provide strategic advantages and enhance your chances of a successful claim.
- Evaluate Settlement Offers: If the insurer makes an offer, assess whether it fairly compensates your losses. If they fail to respond or offer a low amount, you may proceed with a lawsuit under ORS 20.080.
Call Us and We Can Help Answer Any Questions You May Have
Understanding ORS 20.080 and its implications for auto accident cases in Oregon can be instrumental in securing fair compensation for minor injuries or property damage. This statute levels the playing field for claimants with smaller claims, offering an efficient path to justice without unnecessary court expenses. By following the guidelines and taking advantage of the protections ORS 20.080 provides, auto accident claimants can confidently pursue the compensation they deserve.
