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1668 An arbitration agreement in a health plan contract was induced by promissory fraud if a member joined the plan in reliance on promises made by the plan concerning the way in which arbitration would be conducted and with no intention of keeping those promises; an employer negotiating a health plan for employees acts as their agent, so reliance by the employer is reliance by the employees; if a court finds that an arbitration agreement was induced by promissory fraud, it is not enforceable by way of a motion to compel arbitration; whether conduct by a party to arbitration constituted a waiver of the right to compel arbitration is a matter to be determined by the court on a motion to compel arbitration.CitationENGALLA v PERMANENTE (Kaiser Arbitration) 15 C4 951 [See: CCP 1281.2; Lazar v Superior Court 12 C4 631, T/AT 2/96; Spinks v Clark 147 C 439; Rosenthal v Great Western 14 C4 394; Engalla v Permanente AT 9/95]
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