California Supreme Court Grants Review of Homeowner’s Wrongful Foreclosure Claims

On July 15, 2015, the California Supreme Court granted review of Boyce v. T.D. Service Company (2015) 235 Cal.App.4th 429. (Supreme Court Case No. S226267.) In Boyce, the Court of Appeal held that a plaintiff’s wrongful foreclosure claims were barred by res judicata and collateral estoppel since the plaintiff “had his day” in bankruptcy court, unlawful detainer court, and superior court. (For further details on the lower court’s decision, click here.)

Although the Supreme Court has granted review of Boyce, it is deferring further action until the disposition of Yvanova v. New Century Mortgage Corp. (S218973), another wrongful foreclosure matter that is currently pending before the Court. In Yvanova, the Court is reviewing the issue of whether a borrower has standing to challenge an assignment of the note and deed of trust on the basis of defects allegedly rendering the assignment void.

Pending the Court’s decisions on these two matters, the law regarding wrongful foreclosures – and a homeowner’s standing to allege the claim – is still divided.

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July 17, 2015