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Civil suit against Goguen tossed

by Colin Gaiser Daily Inter Lake
| September 23, 2019 5:03 PM

A California arbitrator last week threw out a civil breach-of-contract suit alleging sexual and emotional abuse by Michael Goguen, a venture capitalist who has donated to many causes in Whitefish and the Flathead Valley.

The civil suit was dismissed by arbitrator and retired judge Read Ambler on Sept. 12. In his order filed Sept. 18, Ambler wrote that the plaintiff, Amber Baptiste, repeatedly refused to comply with court orders, missing multiple medical examinations and court appearances and compromising Goguen’s ability to prepare for trial.

The suit “collapsed under the weight of its own falsehood yesterday, when a judge dismissed the case because of Baptiste’s repeated, egregious and willful misconduct,” Goguen’s attorney Diane Doolittle said in a statement.

Goguen has a residence on the west shore of Whitefish Lake. He was the sole funder of the Two Bear Air rescue helicopter service and provided major funding to the Whitefish Trail system and the North Valley Food Bank. He was also the sole investor in Casey’s Bar and Grill in downtown Whitefish.

The dismissal follows years of bizarre legal proceedings and delayed hearings as a result of Baptiste’s alleged medical problems.

According to Ambler’s 33-page order, Baptiste agreed with Goguen on a $40 million settlement in May 2014. Goguen made the first $10 million payment in June 2014, but in December 2015 refused to make additional payments, claiming Baptiste had threatened to “falsely and publicly accuse him” of sexual assault and other crimes.

Baptiste filed a verified complaint for breach of the settlement in March 2016. Baptiste alleged Goguen abused her “sexually, physically and emotionally for 13 years” and accused him of rape and sodomy.

Later that month, Sequoia Capital parted ways with Goguen after he had spent nearly 20 years with the firm.

Goguen filed a counterclaim in January 2017 against Baptiste and a tax-exempt public charity called Every Girl Counts. The charity was allegedly a shell company Goguen asked Baptiste to form in 2010 so he could funnel her money for general living expenses.

Goguen’s counsel asserts this allegation was proven false, claiming the charity was formed by Baptiste and that Goguen only made one donation “based upon false and fraudulent statements” made by Baptiste that is was a legitimate charity.

In August 2017, Baptiste allegedly broke her elbow after falling out of bed and had surgery in Canada. The injury caused Baptiste’s counsel to ask to postpone an upcoming deposition, and by March 2018 Goguen was still attempting to schedule a deposition and receive Baptiste’s medical records.

Baptiste lost her representation, the Sherman Law Group, in May 2018. Months later, Ambler’s ruling stated, she sent Goguen’s counsel an extensive series of emails blaming them for her injury due to post traumatic stress disorder and “night terrors” stemming from her history with Goguen. She did not show up for a scheduled meeting with Goguen’s counsel that same month.

On Oct. 26, 2018, a judge granted Goguen’s motion to compel Baptiste to appear for two additional seven-hour dispositions. She failed to appear at the Nov. 30 disposition, once again citing medical problems and prompting Goguen to file to terminate his arrangement with Baptiste on Dec. 3, 2018.

A licensed physician examined Baptiste the following day and confirmed Baptiste fractured her elbow and was taking a number of medications.

“It is my opinion, within a reasonable degree of medical certainty, that as a result of the chronic pain she has been experiencing since fracturing her elbow, Amber Laurel Baptiste has a serious narcotic medication dependency, which renders her incompetent to remain sufficiently cognitive and able to answer questions correctly,” the physician, Dr. Vance Eberly, reported.

“Subjecting Ms. Baptiste to oral or written litigation discovery would be the equivalent of expecting an individual who would be legally intoxicated on alcohol to respond in a coherent manner to questions presented to her.”

Goguen disputed Dr. Eberly’s findings, bringing in an expert in forensic psychiatry, Dr. Suzanne Dupee, who said “a forensic psychiatry evaluation is the only method to determine a litigant’s competency.”

On May 23, Goguen motioned to order Baptiste to submit to medical and physical medical examinations. Despite Baptiste’s protests, Goguen’s motion for a court-ordered independent medical examination was granted on June 17.

Baptiste sent Goguen’s counsel a long, occasionally unintelligible email a week later. She wrote she “cannot commit” to the dates of the medical examinations and would not let “the man that raped me ... further harass me with invasive testing.”

In August, the three doctors scheduled to meet with Baptiste reported she failed to appear for her medical examinations. Goguen’s counsel pointed out that Baptiste was active on Twitter at the times her examinations were scheduled.

On Aug. 19, Goguen filed the most recent motion to terminate his arrangement with Baptiste.

“Combined with Baptiste’s repeated failures to comply with her discovery obligations, including her continuing violations of other Court orders, Baptiste’s actions have irreparably prejudiced Goguen ... made it impossible for Goguen to defend himself, and made it impossible to conduct a trial in this fashion,” the motion reads.

Baptiste did not file an opposition to the motion and did not appear at a Sept. 11 hearing. On Sept. 12, Ambler granted the motion to terminate sanctions against Baptiste.

“While Baptiste is free to believe what she wants to believe, the orders are binding on Baptiste, and her failure to comply with the orders are unacceptable,” Ambler wrote in his ruling.

But on Sunday, Baptiste wrote on Twitter, “An Appeal will be made shortly this is by no means the end of my fight for justice. As usual the defendant in the case and man who sexual abused and raped me from a young age has this one sided story that he is the victim.”

She continues by accusing him of victimizing other women and committing a harassment campaign against her case.

Goguen addressed the case in a post on Friday on LinkedIn. “I wouldn’t wish what happened to my family and I on anyone. But, I’m a big believer that ‘everything happens for a reason’ and that extreme lows can be the pre-cursor to higher highs,” he writes.

“Instead I’ve had the last 3 years to focus on connecting with the community I love, maximizing my philanthropic impact, strengthening the bonds with my family & friends, and of course, starting the next great venture capital firm, Two Bear Capital.”

According to court documents, Baptiste and Goguen met in 2002 at a Dallas strip club where Baptiste worked. They maintained a relationship for the next 13 years.

Reporter Colin Gaiser may be reached at 758-4407 or by email at cgaiser@dailyinterlake.com.

[This article has been updated to clarify certain aspects of the lawsuit]