Black v. Bank of America N.T. & S.A.
Opinion
Opinion
Kline, J.
Donald Gordon Black (Black), Catherine Black and six related companies owned and/or controlled by Black (collectively, appellants) appeal the dismissal of their action against respondents Bank of America N.T. & S.A. (the Bank) and certain bank officers. They assert the court improperly sustained without leave to amend respondents’ demurrer to their first amended complaint. We affirm.
Background
For approximately 17 years the Bank loaned money to várious agricultural enterprises organized and managed by Black. These companies and partnerships, known as the “Black Group,” negotiated their loans with the Bank simultaneously. As security for these loans the Bank was given a lien on the crop that “floated” from year to year, regardless of whether the Bank advanced any money for the next year’s crop.
In the spring of 1984, the Bank entered into written loan agreements with three companies in the Black Group for the 1983-1984 operating year. At the same time, these companies orally agreed to reduce their outstanding indebtedness to the Bank. According to appellants, the Bank agreed to monitor these companies and notify them by June 30, 1984, if it would not be providing…