San Mateo Union High School District v. County of San Mateo

*424 Opinion

This appeal has been taken from the trial court’s ruling that sustained defendants’ demurrer to all the causes of action of plaintiffs’ complaint and dismissed the action. We find that plaintiffs cannot properly state a cause of action for breach of contract, and defendants have public entity immunity from the remaining noncontractual causes of action. We therefore affirm the judgment.

STATEMENT OF FACTS AND PROCEDURAL HISTORY

Plaintiffs in the present action are school districts that invested money in the San Mateo Pooled Investment Fund (the Pool), managed and operated by defendants San Mateo County (the County) and former County Treasurer Lee Buffington. A portion of the Pool was invested by defendants in nine notes issued by Lehman Brothers Holdings, Inc. (Lehman). When Lehman declared bankruptcy in September of 2008, the Pool lost approximately $155 million, plaintiffs’ share of which was approximately $20 million.

After plaintiffs and defendants engaged in unsuccessful settlement discussions, and defendants rejected plaintiffs’ formal written notice of tort claim (Gov. Code, §§ 905, 945.4), 1 plaintiffs filed a complaint against defendants on January 4,…