Baker v. Apttus Corporation
3:17-cv-00587
| D. Nev. | May 26, 2020Background:
- Baker, an experienced sales executive, accepted at-will employment with Apttus in January 2016 under a written Agreement that required a signed release to obtain severance.
- Baker was hired to build a global sales team; soon she had internal conflicts with sales leaders (Kamal and Santileces) over account assignments and resources.
- Apttus terminated Baker about six months later (effective June 15, 2016) during a conference call while she was in Europe; the call was recorded by a third party.
- After termination Apttus presented a "Separation Agreement and Release of Claims" conditioning severance on execution of a release; Baker refused to sign and sued alleging five claims (fraud/misrepresentation; intentional interference; wrongful termination; breach of contract; breach of good faith).
- Apttus counterclaimed under NRS §200.690 for unlawful recording; the court granted Baker summary judgment on that counterclaim because the interception occurred outside Nevada.
- On cross-motions for summary judgment the court granted Apttus summary judgment on all claims except Baker's fraud-in-the-inducement claim (which survived for a jury).
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Counterclaim (illegal recording) | Baker recorded termination but was outside Nevada, so statute doesn't apply | Recording violated NRS §200.620; damages allowed | Held for Baker — interception occurred outside Nevada (Ditech) |
| Intentional interference with prospective economic advantage | Apttus induced Baker to abandon other offers and prevented future opportunities | No evidence Apttus intended to harm or targeted a specific prospective contract | Held for Apttus — Baker produced no evidence of intent or identifiable third-party expectancy |
| Wrongful termination (public-policy tort) | Fired in retaliation for refusing to lie to customers / commit fraud | Termination for performance, honesty concerns; no causal link to refusal to violate law | Held for Apttus — evidence supports legitimate basis; Baker’s inference too tenuous |
| Breach of contract (severance) | Entitled to severance under Agreement; Separation form went beyond contemplated release | Severance conditioned on timely signed release; Baker never executed release and sued | Held for Apttus — Baker failed to satisfy Agreement’s release requirement |
| Breach of good faith and fair dealing | Apttus acted in bad faith in performance and deprived Baker of contract benefits | Baker was an at-will employee; no implied promise against discharge without cause | Held for Apttus — at-will employment defeats this claim (Martin) |
| Fraud / Misrepresentation (inducement) | Krappe/Apttus made false factual representations (pipeline, funding, product readiness, account allocations) to induce hire | Integration clause, puffery/opinion, lack of fraudulent intent or falsity, and later conduct undermine reliance | Held partly for Baker — most fraud theories dismissed as puffery/opinion, but claims about pipeline/funding/product readiness raise genuine issues for jury (survives summary judgment) |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment standard)
- Anderson v. Liberty Lobby, 477 U.S. 242 (genuine dispute and "scintilla" rule)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (nonmoving party must show specific facts)
- Ditech Fin. LLC v. Buckles, 401 P.3d 215 (Nev. 2017) (NRS §200.620 does not apply when interception occurs outside Nevada)
- J.A. Jones Constr. Co. v. Lehrer McGovern Bovis, Inc., 89 P.3d 1009 (Nev. 2004) (elements and clear-and-convincing standard for fraud in inducement)
- Blanchard v. Blanchard, 839 P.2d 1320 (Nev. 1992) (integration clauses do not bar misrepresentation claims)
- Wichinsky v. Mosa, 847 P.2d 727 (Nev. 1993) (elements for tortious interference with prospective economic advantage)
- Sands Regent v. Valgardson, 777 P.2d 898 (Nev. 1989) (public-policy tortious discharge is narrowly limited)
- Martin v. Sears, Roebuck & Co., 899 P.2d 551 (Nev. 1995) (at-will employment ordinarily bars breach of good faith claim)
- Southern Trust Mortg. Co. v. K&B Door Co., Inc., 763 P.2d 353 (Nev. 1988) (contract terms are enforced as written when unambiguous)
