Pacific Airmotive Corp. v. First Interstate Bank

This is an action under state law by an employer against the trustee of its employee retirement plan for damages suffered by the employer because the trustee inaccurately reported the assets of the plan. The trial court sustained the trustee’s demurrer to the complaint without leave to amend and dismissed the action on the ground the Employee Retirement Income Security Act (ERISA) gives the federal courts exclusive jurisdiction over the employer’s claim. We reverse.

Facts and Proceedings Below

For purposes of appeal we accept as true the properly pleaded factual allegations of the complaint. (Lopez v. Southern Cal. Rapid Transit Dist. (1985) 40 Cal.3d 780, 784 [ 221 Cal.Rptr. 840 , 710 P.2d 907 ].) Furthermore, the allegations of the complaint must be liberally construed with a view to attaining substantial justice among the parties. (Thompson v. County of Alameda (1980) 27 Cal.3d 741, 746 [ 167 Cal.Rptr. 70 , 614 P.2d 728 , 12 A.L.R.4th 701 ].)

Plaintiff, Pacific Airmotive Corporation (PAC), appointed defendant, First Interstate Bank (bank), trustee of its employee benefit plan pursuant to the requirement of ERISA that the assets of a plan be held in trust. ( 29…