Lapping v. Wydham Vacation Ownership, Inc.
4:19-cv-07549
N.D. Cal.Sep 28, 2020Background
- Christopher Lapping worked for Wyndham Vacation Ownership (WVO) as a sales rep and was promoted to front line sales manager; he transferred to the Donatello site in San Francisco in mid‑2016 where Matthew Muro became his supervisor.
- Muro told Lapping he would “groom [him] into becoming a leader and a site director”; Lapping says he relied on that promise for job security and later alleges Muro acted to undermine his career.
- Lapping complained to HR in February 2017 about unfair and allegedly fraudulent practices and was terminated by WVO on March 22, 2017.
- Lapping sued, asserting a single claim of fraud against Muro (among other defendants originally). Muro moved for summary judgment.
- The court found the only asserted misrepresentation by Muro was the promise to “groom” Lapping; it characterized that statement as an aspirational prediction/opinion rather than an actionable representation of existing fact.
- Because no factual misrepresentation was shown, the court granted summary judgment for Muro and entered judgment in his favor; it did not reach Muro’s other defenses (punitive damages, workers’ comp preclusion, or pleading-timing arguments).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Muro made an actionable misrepresentation (fraud element) | Muro promised to groom Lapping into a leader/site director and had no intention to perform; Lapping relied on it | The statement was a promise/prediction or expression of intent — non‑actionable opinion, not a verifiable fact | Court held the statement was a forward‑looking, aspirational statement (non‑actionable); no misrepresentation established; SJ for Muro |
| Whether punitive damages should be available | Lapping sought punitive damages based on alleged intentional misconduct | Muro argued punitive damages were unsupported without actionable fraud | Court did not reach this issue after finding no actionable fraud |
| Whether the fraud claim is barred by the workers’ compensation scheme | Lapping argued tort claim independent of workers’ comp | Muro argued workers’ comp bars the fraud claim | Court did not decide because it resolved the case on the misrepresentation issue |
| Whether Lapping improperly raised a new fraud theory at summary judgment | Lapping relied on the alleged promise by Muro | Muro contended the complaint did not allege fraud by him and the theory was raised too late | Court did not reach this argument after deciding no actionable misrepresentation |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (movant’s burden to show absence of genuine dispute on material facts for summary judgment)
- Anderson v. Liberty Lobby, 477 U.S. 242 (1986) (standard for determining genuine issues of material fact at summary judgment)
- Scott v. Harris, 550 U.S. 372 (2007) (court should not adopt a party’s version of facts when blatantly contradicted by the record)
- Lazar v. Superior Court, 12 Cal. 4th 631 (1996) (elements of common‑law fraud in California)
- Nibbi Bros., Inc. v. Home Fed. Sav. & Loan Assn., 205 Cal. App. 3d 1415 (1988) (distinguishing actionable representations of fact from nonactionable opinion)
- Borba v. Thomas, 70 Cal. App. 3d 144 (1977) (actionable misrepresentation must concern past or existing facts)
- Richard P. v. Vista Del Mar Child Care Serv., 106 Cal. App. 3d 860 (1980) (predictions of future events are ordinarily nonactionable)
- Oregon Public Employees Retirement Fund v. Apollo Group, Inc., 774 F.3d 598 (9th Cir. 2014) (aspirational statements are not objectively verifiable; securities‑fraud analysis informative)
- Retail Wholesale & Dept. Store Union Local 338 Ret. Fund v. Hewlett‑Packard Co., 845 F.3d 1268 (9th Cir. 2017) (aspirational/forward‑looking statements express desires and are not verifiable)
