April 23, 2013

Oregon Workers' Compensation Settlements - What is a Claim Disposition Agreement (CDA)?



Claim Disposition Agreement (CDA)

A CDA is a type of workers' compensation settlement that settles out an accepted workers' compensation claim. Basically, a CDA consists of a lump sum paid to the injured worked in exchange for giving up his or her future benefits under their accepted claim. The settlement thus "disposes of" the accepted claim.

Benefits Retained in a CDA

Some benefits cannot be settled out in a CDA. The most important benefit is the right to future medical care under the claim. In other words, an injured worker with an accepted claim can settle out their future right to benefits under the claim, but cannot settle out their rights to future medical care. However, it is important to note that this medical care will only be the most basic care for the accepted claim. The medical benefits retained will not include future aggravations, surgeries, or any other significant treatment.

Benefits Given Up in a CDA

When a claim is settled via a CDA, the injured worker gives up his or her rights to benefits for time loss, aggravation, vocational retraining, re-opening, and permanent impairment.

CDA and DCS

It is very common that a workers' compensation settlement will include both a claim disposition agreement and a disputed claim settlement.  In this case, the settlement is a complete settlement of the workers' compensation claim, including any accepted or denied portions, and the injured worker will not retain any rights or benefits whatsoever relating to the claim.

Attorney Fees and Costs

Under Oregon law, attorney fees for injured workers in the Oregon workers' compensation system are capped.  The amount of the attorney fee for a claim claim settlement is 25 percent of the first $50,000 and 10 percent of the remainder.  The attorney costs cannot be taken out of a CDA.  If you owe your attorney costs at the time of a settlement, you will have to pay them back directly from your portion of the proceeds.  Attorney costs will likely not be more than a few hundred dollars.

Do You Need and Attorney to Settle Your Workers' Compensation Claim?

Yes.  It is always a good idea to have an attorney help you settle your workers' compensation claim.  The attorney will help you get a better settlement and make sure you do not give up more rights than you should.

Will my Workers' Compensation Settlement be Taxed?

No, proceeds from your workers' compensation settlement will not be taxed.  Under Oregon law, it is not considered taxable income.

End Result

The final result of a CDA is that the injured worker's accepted claim still exists with entitlement to medical benefits, but no entitlement to any other benefits. In exchange, the injured worker accepts the lump sum settlement.

If you have questions about settling your workers' compensation claim, call us for a free consultation: (503) 975-5535.


1 comment:

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