First Interstate Bank v. State of California

Plaintiff/appellant First Interstate Bank appeals a judgment in favor of defendants/respondents State of California and the Board of Governors of the California Community Colleges (Board) after the trial court sustained without leave to amend respondents’ demurrer to appellant’s complaint grounded in, inter alia, breach of contract and negligence. Appellant contends the trial court erred in its basic conclusion that respondents are not liable as a matter of law for the acts of a particular community college district.

The rules governing our review of a judgment sustaining a demurrer are long-settled and require no elaboration. Basically, the allegations in the complaint are regarded as true and are liberally construed, the plaintiff is assumed to be able to prove all facts as alleged, and while a demurrer admits all material facts properly pleaded, it does not admit contentions, deductions, or conclusions of law. (Dale v. City of Mountain View (1976) 55 Cal.App.3d 101, 105 [ 127 Cal.Rptr. 520 ].) A complaint will withstand a general demurrer if, liberally construed, it states a cause of action on any theory. “The ruling on a general demurrer is thus a method of deciding…