SALEM, Ore. -- Insurance companies now appear to have more leeway in workers' compensation cases in cases where companies change hands, according to a recent Oregon Supreme Court decision.
The court recently overturned a Court of Appeals workers' compensation decision against Republic Indemnity Co. of America. The Court of Appeals originally ruled that the insured company's contract with the respondent was ambiguous.
But the Supreme Court ruled instead that the clause, "rights and duties under our policies may not be transferred without our written consent," was clear in meaning, thereby awarding in favor of Republic.
The Supreme Court's ruling reinstated the original trial court decision in favor of Republic.