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Dispute Resolution Keyed to Folberg, 4th Ed.
Engalla v. Permanente Medical Group, Inc.
Citation:
15 Cal. 4th 951, 64 Cal. Rptr. 2d 843, 938 P.2d 903 (1997)Facts
Wilfredo Engalla, an accountant at Oliver Tire & Rubber Company, enrolled in Kaiser’s health plan in 1980. In 1986, he began experiencing respiratory symptoms, but Kaiser allegedly failed to diagnose his lung cancer until 1991, when his condition had become terminal. In May 1991, Engalla initiated arbitration of his medical malpractice claim as required by Kaiser’s health plan agreement. The arbitration agreement specified that party arbitrators would be selected within 30 days and a neutral arbitrator within 60 days. Despite Engalla’s counsel’s persistent efforts to expedite the process due to Engalla’s terminal condition, Kaiser repeatedly delayed the selection of arbitrators. Statistical evidence showed that in 99% of Kaiser arbitrations, neutral arbitrators were not appointed within the contractually specified 60-day period. After 144 days, a neutral arbitrator was finally selected, but Engalla died the next day. His family then terminated the arbitration and filed a lawsuit, claiming Kaiser had fraudulently misrepresented its arbitration system and had waived its right to arbitration through dilatory conduct.
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