Butler v. Bank of California

Lawrence T. Butler (appellant) appeals the judgment of the superior court entered in favor of respondent The Bank of California (Bank), contending that the court erred in sustaining the Bank’s demurrer to his complaint without leave to amend. For the reasons set forth below, we reverse the judgment.

*642 Facts

The complaint contains the following material facts. 1 In April 1976, Butler was hired as a senior vice-president for the Bank. Eight years later in December 1984, the Bank notified him that his employment would be terminated. Thereafter, appellant and the Bank entered into negotiations regarding severance and other benefits. Appellant was offered two options. Under option I, he could continue as an employee for six months with a lump sum severance payment equivalent to six months salary upon termination. Under option II, he could remain an employee for an additional year. Appellant inquired and was assured that there would be no material effect on his pension benefits under either option. Based on this representation, appellant chose option I and entered into a settlement agreement and general release on those terms.

Appellant retired from the Bank on July 15,…