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California Civil Procedure, Keyed to Levine, 6th 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 enrolled in Kaiser’s health plan through his employer, Oliver Tire & Rubber Company, in 1980. The enrollment included an arbitration agreement requiring binding arbitration of medical malpractice claims. In 1986, Kaiser’s radiologist noted lung abnormalities but failed to follow up, and for years thereafter Kaiser failed to diagnose Engalla’s developing lung cancer despite repeated complaints. By 1991, Engalla was diagnosed with inoperable adenocarcinoma. On May 31, 1991, Engalla demanded arbitration. Despite his terminal condition and repeated requests for expedited proceedings, Kaiser delayed selecting arbitrators through various tactics including requiring staggered disclosure, designating unavailable arbitrators, and failing to respond to correspondence. Statistical evidence showed that in Kaiser’s arbitration system, neutral arbitrators were appointed within the contractual 60-day period in only 1 percent of cases, with an average delay of 674 days. The arbitration was not completed before Engalla’s death on October 23, 1991, which reduced Kaiser’s potential liability for noneconomic damages from $500,000 to $250,000 under MICRA.
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