Norgard v. Rawlinsons & New System Laundry

The issue in this workers’ compensation appeal is whether an insurer acts unreasonably, under ORS 656.262(8), thereby subjecting it to the payment of penalties by refusing to pay "compensation” consisting of medical expenses, pending review of a referee’s decision when the relevant rule of law is uncertain.

Claimant was injured in an industrial accident in April 1969. The insurer accepted claimant’s claim at that time. It was later apparently closed. Subsequently, in January 1974, claimant was hospitalized for low back pain which she contended was compensable as an exacerbation of her original…