N O T FO R PUB L ICAT IO N UNITED STATES C OUR T OF APPEALS FOR THE NINTH C IR C UIT
DAVID LER OY NEW M AN, Plaintiff - Appe lla nt, v. B ANK OF NEW

YOR K M E LLON C ORP., a s Truste e for the C e rtific ate Holde rs of C W M B S, Inc . , C H L M ortga ge Pa ss-Through Trust 2007-HY7, M ortga ge Pa ss Through C e rtific ate s 2007-HY7 (“ B ONY” ), FKA The B ank of Ne w York; e t a l., De fe nda

nts - Appe lle e s. No. 13-17297 D.C . No. 1:12-c v-01629-AW IGSA ORDER and M EM O R ANDUM *

Appe a l from

the Unite d

Stat e s Distric t C ourt for the Ea ste rn Distric t of C a lifornia Anthony W . Ishii, Se nior Distric t

Judge , Pre siding Subm itte d De c e m

be r 13, 2015 ** San Fran c isc o , C a lifornia B e fore : KOZINSKI, B YB EE, a nd C HR ISTEN, C irc u it Judge s. 

# FIL ED MAY13 2016 M OLLY C. DW Y ER, CLERK U
. S
. CO URT O F APPEALS

* This disposition is not a ppropria te for public at ion a

nd is not pre c e de nt e xc e pt a s provide d

by 9th C ir. R . 36-3. ** The pa

ne l una nim ously c onc lude s this c a se is suita ble for de c ision without oral a

rgum e nt. Se e Fe d. R . App. P. 34(a)(2).This c a se is submitte d a s of the date of this orde r.

Pla intiff Da

vid Ne wm an de fa

ulte d on his home m ortga ge and wa s told his hom e wa s going to be fore c lose d on. He file d this a c tion se e king a de c l ara tion tha

t de fe nda n ts do not ha

ve the right to fore c lose and ra ising va rious re late d

c a use s of a c tion. Thedistric t c ourt dismi sse d Ne wm an’ s c om

p la int with pre

j udic e . W e re ve rse an d re m and with re s pe c t to m ost of Ne wm a n’ s c l a im s, but wea ffirm

the distric t c o urt’ s dismissa l of Ne w m a n ’ s c la im s unde r C a lifornia C ivil C ode se c tion 2923.5. 1. The distric t c ourt dismisse d Ne wm a n’ s c la im s for de c la

ra tory re lie f, qua si c ontra c t, viola

tions of the Fa i r De bt C olle c tion Pra c tic e s Ac t, viola tions of C a lifornia B usine s s & Profe ssions C ode se c t ion 17200, a nd a c c ounting be c a

use the c ourt de te rm ine d tha

t a borrowe r like Ne wm an ha s no sta nding to c ha lle n ge a fore c losing e n t ity ’ s le ga l a uthority to fore c l ose . B ut

while this a

ppe a l wa s pe nding, theC a lifornia

Supre m e C ourt de c ide d Yv anov a v . N e w C e ntury Mortgage C orp. , 365 P.3d 845 (C a l. 2016), whic h c la rifie d tha t borrowe rs do have sta

nding to c h a lle nge a

fore c l o sing e n tity ’ s a

uthority to fore c lose onc e the fore c losure ha s oc c urre d. Id. at 860–61. And it a ppe ars tha

t Ne wm an’ s hom e wa s re c e ntly fore c lose d on, bringing him within the

c la ss of pe ople who ha

ve sta nding to bring 2the s e kind of c l a im s . W e the re fore re ve rse the distric t c ourt’ s dismissa l of the se

c la im s for the distric t c o urt to a pply inte rve ning C a lifornia

c a se la w in the first insta nc e . 2. As to Ne wm an’ s ne g lige nc e c la im , the distric t c ourt c orre c tly he ld tha t a le nde r ge ne ra lly

owe s no duty

to c o nside r a loa

n m odific ation. B ut whilethis a ppe a l wa s pe nding, theC a lifornia C ourt of Appe a l de c i de d a nothe r c a se , Alv are

z v . BAC HomeLoans Se rv ic i ng, L.P. , 176 C a l. R ptr. 3d 304 (C a l. C t. App. 2014), whic h c la rifie d tha t a le nde r m ay

have a duty to a c t re a sona

bly onc e it a ffirm ative ly

a gre e s to c onside r a

loa n m odific ation a

pplic ation. Id. at 310. B e c a use Ne wm an a lle ge s tha

t de fe nda nts a gre e d to c onside r his loa n m odific ation re que s t, we a lso re m and this c la im to the distric t

c ourt for c onside ra tion of inte rve ning C a lifornia

c a se la w in the first insta

nc e . 3. W e a ffirm

the distric t c ourt’ s dismissa l of Ne wm an’ s c la im for viola tions of C a lifornia C ivil C ode se c tion 2923.5. Now tha t Ne wm an’ s hom e ha s be e n fore c lose d on, the re is no re m e d y for a viola tion of this sta

t ute . Ste ble

y v . Litton Loan Se rv ic ing, LLP , 134 C a l. R ptr. 3d 604, 607 (C a l . C t. App. 2011) (“Afte r the sa le , [se c tion 2923.5] provide s no re l ie f.” ). The pa rtie s will be ar the ir own c osts. AFFIRM E D in PART , RE V E RSE D in PART and RE M ANDE D. 34