Landmark Decision for Homeowners Feb. 2016 from the California Supreme Court in Yvanova v. New Century appeal in WORD format

8/20/2019 Landmark Decision for Homeowners Feb. 2016 from the California Supreme Court in Yvanova v. New Century ap…

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Filed 2/18/16

IN THE SUPREME COURT OF CALIFORNIA

TSVETANA YVANOVA, ))

Plaintiff and Appellant, )) S218973

v )) !tApp 2/1 "2#7188

NE$ !ENT%&Y 'O&T(A(E )!O&PO&ATON et al, )

) *+ An-ele !+.nt0efendant and &ep+ndent ) S.pe !t N+ *!97218

)

T4e 5+llape in 28 +f t4e 4+.in- .le and it a55+panin- te +f

4+e l+an e5.itiati+n led, a+n- +t4e 5+ne.en5e, t+ a -eat nati+nal :ave+f l+an defa.lt and f+e5l+.e One ;e le-al i.e aiin- +.t +f t4e 5+llape

:a :4et4e and 4+: defa.ltin- 4+e+:ne 5+.ld 54allen-e t4e validit +f t4e

54ain +f ai-nent inv+lved in e5.itiati+n +f t4ei l+an $e -anted evie:

in t4i 5ae t+ de5ide +ne ape5t +f t4at .eti+n< :4et4e t4e ++:e +n a 4+e

l+an e5.ed a deed +f t.t a ae an a5ti+n f+ :+n-f.l f+e5l+.e +n

alle-ati+n a p.p+ted ai-nent +f t4e n+te and deed +f t.t t+ t4e f+e5l+in-

pat +e defe5t endein- t4e ai-nent v+id

T4e !+.t +f Appeal 4eld plaintiff Tvetana Yvan+va 5+.ld n+t tate a 5a.e

+f a5ti+n f+ :+n-f.l f+e5l+.e aed +n an alle-edl v+id ai-nent e5a.e

4e la5;ed tandin- t+ aet defe5t in t4e ai-nent, t+ :4i54 4e :a n+t a


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pat $e 5+n5l.de, t+ t4e 5+nta, t4at e5a.e in a n+n=.di5ial f+e5l+.e +nl

t4e +i-inal enefi5ia +f a deed +f t.t + it ai-nee + a-ent a die5t t4e

t.tee t+ ell t4e p+pet, an alle-ati+n t4at t4e ai-nent :a v+id, and n+t

eel v+idale at t4e e4et +f t4e patie t+ t4e ai-nent, :ill .pp+t an

a5ti+n f+ :+n-f.l f+e5l+.e

O. .lin- in t4i 5ae i a na+: +ne $e 4+ld +nl t4at a ++:e :4+

4a .ffeed a n+n=.di5ial f+e5l+.e d+e n+t la5; tandin- t+ .e f+ :+n-f.l

f+e5l+.e aed +n an alle-edl v+id ai-nent eel e5a.e 4e + 4e :a

in defa.lt +n t4e l+an and :a n+t a pat t+ t4e 54allen-ed ai-nent $e d+ n+t

4+ld + .--et t4at a ++:e a attept t+ peept a t4eatened n+n=.di5ial

f+e5l+.e a .it .eti+nin- t4e f+e5l+in- pat> i-4t t+ p+5eed N+ d+

:e 4+ld + .--et t4at plaintiff in t4i 5ae 4a alle-ed fa5t 4+:in- t4e

ai-nent i v+id + t4at, t+ t4e e?tent 4e 4a, 4e :ill e ale t+ p+ve t4+e

fa5t N+, finall, in e=e5tin- defendant> a-.ent +n tandin- d+ :e adde

an +f t4e .tantive eleent +f t4e :+n-f.l f+e5l+.e t+t + t4e fa5t.al

4+:in- ne5ea t+ eet t4+e eleent

FACTUAL AND PROCEDURAL BACKGROUND

T4i 5ae 5+e t+ . +n appeal f+ t4e tial 5+.t> .tainin- +f a

de.e F+ p.p+e +f evie:in- a de.e, :e a55ept t4e t.t4 +f ateial

fa5t p+pel pleaded in t4e +peative 5+plaint, .t n+t 5+ntenti+n, ded.5ti+n,

+ 5+n5l.i+n +f fa5t + la: $e a al+ 5+nide atte .=e5t t+ =.di5ial

n+ti5e @ Evans v. City of Berkeley @26) 38 !al#t4 1, 6)1 T+ deteine :4et4e

1 T4e .pei+ 5+.t -anted defendant> e.et f+ =.di5ial n+ti5e +f t4ee5+ded deed +f t.t, ai-nent +f t4e deed +f t.t, .tit.ti+n +f t.tee,n+ti5e +f defa.lt and +f t.tee> ale, and t.tee> deed .p+n ale T4e e?iten5eand fa5ial 5+ntent +f t4ee e5+ded d+5.ent :ee p+pel n+ti5ed in t4e tial5+.t .nde Eviden5e !+de e5ti+n #2, .divii+n @5) and @4), and #3 @See Fontenot v. Wells Fargo Bank, N.A. @211) 198 !alApp#t4 26, 26#B266)%nde Eviden5e !+de e5ti+n #9, .divii+n @a), n+ti5e t4i 5+.t i t4eef+e

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t4e tial 5+.t 4+.ld, in .tainin- t4e de.e, 4ave -anted t4e plaintiff leave t+

aend, :e 5+nide :4et4e +n t4e pleaded and n+ti5eale fa5t t4ee i a

ea+nale p+iilit +f an aendent t4at :+.ld 5.e t4e 5+plaint> le-al

defe5t + defe5t @Schifando v. City of Los Angeles @23) 31 !al#t4 17#,

181)

n 26, plaintiff e?e5.ted a deed +f t.t e5.in- a n+te f+ C#83, +n a

eidential p+pet in $++dland Dill, *+ An-ele !+.nt T4e lende, and

enefi5ia +f t4e t.t deed, :a defendant Ne: !ent. '+t-a-e !+p+ati+n

@Ne: !ent.) Ne: !ent. filed f+ an;.pt5 +n Apil 2, 27, and +n A.-.t

1, 28, it :a li.idated and it aet :ee tanfeed t+ a li.idati+n t.t

On 0e5ee 19, 211, a55+din- t+ t4e +peative 5+plaint, Ne: !ent.

@depite it ealie di+l.ti+n) e?e5.ted a p.p+ted ai-nent +f t4e deed +f

t.t t+ 0e.t54e "an; Nati+nal T.t, a t.tee +f an invetent l+an t.t t4e

5+plaint identifie a 'a527 T.tDe1 Pa T4. !etifi5ateG $e ta;e

n+ti5e +f t4e e5+ded ai-nent, :4i54 i in t4e appellate e5+d @See fn 1,

ante) A ai-n+ t4e e5+ded d+5.ent lit Ne: !ent.H a ai-nee it lit

0e.t54e "an; Nati+nal T.t !+pan @0e.t54e "an;) a t.tee f+ t4e

e-iteed 4+lde +f '+-an Stanle A"S !apital n5 T.t 27DE1 '+t-a-e

PaT4+.-4 !etifi5ate, Seie 27DE1G @t4e '+-an Stanle invetent

t.t) T4e ai-nent tate it :a pepaed O5:en *+an Sevi5in-, **!,

:4i54 i al+ lited a t4e 5+nta5t f+ +t4 ai-n+ and ai-nee and a t4e

att+ne in fa5t f+ Ne: !ent. T4e ai-nent i dated 0e5ee 19, 211,

and ea a n+tati+n t4at it :a e5+ded 0e5ee 3, 211

andat+ $e t4eef+e ta;e n+ti5e +f t4ei e?iten5e and 5+ntent, t4+.-4 n+t +f dip.ted + dip.tale fa5t tated t4eein @See Glaski v. Bank of America @213)218 !alApp#t4 179, 112)

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5+n5l.din- +n eveal -+.nd t4at plaintiff 5+.ld n+t tate a 5a.e +f a5ti+n f+

.iet title

T4e !+.t +f Appeal affied t4e =.d-ent f+ defendant +n t4ei de.e

T4e pleaded 5a.e +f a5ti+n f+ .iet title failed fatall, t4e 5+.t 4eld, e5a.e

plaintiff did n+t alle-e 4e 4ad tendeed paent +f 4e det T4e 5+.t :ent +n t+

di5. t4e .eti+n, +n :4i54 it 4ad +.-4t and e5eived iefin-, +f :4et4e

plaintiff 5+.ld, +n t4e fa5t alle-ed, aend 4e 5+plaint t+ plead a 5a.e +f

a5ti+n f+ :+n-f.l f+e5l+.e

On t4e :+n-f.l f+e5l+.e .eti+n, t4e !+.t +f Appeal 5+n5l.ded leave t+

aend :a n+t :aanted &elin- +n enkins v. !"organ Chase Bank, N.A.

@213) 216 !alApp#t4 #97 @ enkins), t4e 5+.t 4eld plaintiff> alle-ati+n +f

ip+pietie in t4e ai-nent +f 4e deed +f t.t t+ 0e.t54e "an; :ee +f n+

avail e5a.e, a an .nelated t4id pat t+ t4at ai-nent, 4e :a .naffe5ted

.54 defi5ien5ie and 4ad n+ tandin- t+ enf+5e t4e te +f t4e a-eeent

alle-edl vi+lated T4e 5+.t a5;n+:led-ed t4at plaintiff> a.t4+it, Glaski v.

Bank of America, s#$ra, 218 !alApp#t4 179 @Glaski), 5+nfli5ted :it4 enkins

+n t4e tandin- i.e, .t t4e 5+.t a-eed :it4 t4e ea+nin- +f enkins and

de5lined t+ f+ll+: Glaski

$e -anted plaintiff> petiti+n f+ evie:, liitin- t4e i.e t+ e iefed and

a-.ed t+ t4e f+ll+:in-< n an a5ti+n f+ :+n-f.l f+e5l+.e +n a deed +f t.t

e5.in- a 4+e l+an, d+e t4e ++:e 4ave tandin- t+ 54allen-e an ai-nent

+f t4e n+te and deed +f t.t +n t4e ai +f defe5t alle-edl endein- t4e

ai-nent v+idJG


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DISCUSSION

I. Deeds of Trust ad No!ud"#"a$ Fore#$osure

A deed +f t.t t+ eal p+pet a5tin- a e5.it f+ a l+an tpi5all 4a

t4ee patie< t4e t.t+ @++:e), t4e enefi5ia @lende), and t4e t.tee

T4e t.tee 4+ld a p+:e +f ale f t4e det+ defa.lt +n t4e l+an, t4e

enefi5ia a deand t4at t4e t.tee 5+nd.5t a n+n=.di5ial f+e5l+.e aleG

@ Biancalana v. %.&. Service Co. @213) 6 !al#t4 87, 813) T4e n+n=.di5ial

f+e5l+.e te i dei-ned t+ p+vide t4e lendeenefi5ia :it4 an

ine?penive and effi5ient eed a-aint a defa.ltin- ++:e, :4ile p+te5tin-

t4e ++:e f+ :+n-f.l l+ +f t4e p+pet and en.in- t4at a p+pel

5+nd.5ted ale i final et:een t4e patie and 5+n5l.ive a t+ a +na fide

p.54ae @ "oeller v. Lien @199#) 2 !alApp#t4 822, 83)

T4e t.tee tat t4e n+n=.di5ial f+e5l+.e p+5e e5+din- a n+ti5e +f

defa.lt and ele5ti+n t+ ell @!iv !+de, K 292#, .d @a)@1))% Afte a

t4ee+nt4 :aitin- pei+d, and at leat 2 da ef+e t4e 54ed.led ale, t4e

t.tee a p.li4, p+t, and e5+d a n+ti5e +f ale @KK 292#, .d @a)@2),292#f, .d @)) f t4e ale i n+t p+tp+ned and t4e ++:e d+e n+t e?e5ie

4i + 4e i-4t +f eintateent + edepti+n, t4e p+pet i +ld at a.5ti+n t+

t4e 4i-4et idde @K 292#-, .d @a)H enkins, s#$ra, 216 !alApp#t4 at p 9H

"oeller v. Lien, s#$ra, 2 !alApp#t4 at pp 83B831) (eneall pea;in-, t4e

f+e5l+.e ale e?tin-.i4e t4e ++:e> detH t4e lende a e5+ve n+

defi5ien5 @!+de !iv P+5, K 8dH &reyf#ss v. 'nion Bank of California @2)

2# !al#t4 #, #11)

T4e t.tee +f a deed +f t.t i n+t a t.e t.tee :it4 fid.5ia +li-ati+n,

.t a5t eel a an a-ent f+ t4e ++:et.t+ and lendeenefi5ia

%All f.t4e .npe5ified tat.t+ efeen5e ae t+ t4e !ivil !+de

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@ Biancalana v. %.&. Service Co., s#$ra, 6 !al#t4 at p 819H (o#rnas v. Fidelity

Nat. %it. )ns. Co. @1999) 73 !alApp#t4 668, 677) $4ile it i t4e t.tee :4+

f+all initiate t4e n+n=.di5ial f+e5l+.e, e5+din- fit a n+ti5e +f defa.lt

and t4en a n+ti5e +f ale, t4e t.tee a ta;e t4ee tep +nl at t4e die5ti+n +f

t4e pe+n + entit t4at 5.entl 4+ld t4e n+te and t4e enefi5ial inteet .nde

t4e deed +f t.tLt4e +i-inal enefi5ia + it ai-neeL+ t4at entit> a-ent

@K 292#, .d @a)@1) Mn+ti5e +f defa.lt a e filed f+ e5+d +nl Mt4e

t.tee, +t-a-ee, + enefi5iaGH *achlon v. "arko+it @28) 168

!alApp#t4 316, 33# M:4en ++:e defa.lt +n t4e det, t4e enefi5ia a

de5lae a defa.lt and a;e a deand +n t4e t.tee t+ 5+en5e f+e5l+.eGH

Santens v. Los Angeles Finance Co. @19#9) 91 !alApp2d 197, 22 M+nl a pe+n

entitled t+ enf+5e t4e n+te 5an f+e5l+e +n t4e deed +f t.t)

0efendant ep4aie, 5+e5tl, t4at a ++:e 5an -eneall aie n+

+=e5ti+n t+ ai-nent +f t4e n+te and deed +f t.t A p+i+ n+te i a

ne-+tiale int.ent t4e lende a ell :it4+.t n+ti5e t+ t4e ++:e

@Creative (ent#res, LLC v. im Ward - Associates @211) 19 !alApp#t4 1#3,

1##B1##6) T4e deed +f t.t, +e+ve, i inepaale f+ t4e n+te it e5.e,

and f+ll+: it even :it4+.t a epaate ai-nent @K 2936H Cockerell v. %itle )ns.

- %r#st Co. @19#) #2 !al2d 28#, 291H '.S. v. %horn#rg @9t4 !i 1996) 82 F3d

886, 892) n a55+dan5e :it4 t4i -eneal la:, t4e n+te and deed +f t.t in t4i

5ae p+vided f+ t4ei p+ile ai-nent

A deed +f t.t a t4. e ai-ned +ne + .ltiple tie +ve t4e life +f t4e

l+an it e5.e ".t if t4e ++:e defa.lt +n t4e l+an, +nl t4e 5.ent

enefi5ia a die5t t4e t.tee t+ .ndeta;e t4e n+n=.di5ial f+e5l+.e p+5e

MOnl t4e t.e +:ne> + enefi5ial 4+lde> +f a 0eed +f T.t 5an in- t+

5+pleti+n a n+n=.di5ial f+e5l+.e .nde !alif+nia la:G @ Barrion#evo v.

Chase Bank, N.A. @N0!al 212) 88 FS.pp2d 96#, 972H ee /errera v.

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&e#tsche Bank National %r#st Co. @211) 196 !alApp#t4 1366, 1378 Man; and

e5+nvean5e 5+pan failed t+ etali4 t4e :ee 5.ent enefi5ia and

t.tee, epe5tivel, and t4eef+e failed t+ 4+: t4e 4ad a.t4+it t+ 5+nd.5t

t4e f+e5l+.e aleGH 5f '.S. Bank Nat. Assn. v. )ane @'a 211) 9#1 NE2d

#, 1 M.nde 'a la:, +nl t4e +i-inal +t-a-ee + it ai-nee a 5+nd.5t

n+n=.di5ial f+e5l+.e ale)

n itelf, t4e pin5iple t4at +nl t4e entit 5.entl entitled t+ enf+5e a det

a f+e5l+e +n t4e +t-a-e + deed +f t.t e5.in- t4at det i n+t, + at leat

4+.ld n+t e, 5+nt+veial t i a tai-4tf+:ad appli5ati+nM +f :ell

etali4ed 5+e5ial and ealp+pet la:< a pat 5ann+t f+e5l+e +n a

+t-a-e .nle it i t4e +t-a-ee @+ it a-ent)G @*evitin, %he !a$er Chase0

Sec#ritiation, Foreclos#re, and the 'ncertainty of "ortgage %itle @213) 63 0.;e

*I 637, 6#) 0e5iin- t4e 5+pi+. liti-ati+n aiin- +.t +f t4e e5ent

f+e5l+.e 5ii, a pai +f 5+entat+ e?plained< $4ile plent +f .n5etaint

e?ited, +ne 5+n5ept 5leal ee-ed f+ liti-ati+n d.in- t4e 28212 pei+d<

in +de t+ f+e5l+e a +t-a-e =.di5ial a5ti+n, +ne 4ad t+ 4ave t4e i-4t t+

enf+5e t4e det t4at t4e +t-a-e e5.ed t i 4ad t+ ia-ine 4+: t4i n+ti+n

5+.ld e 5+nt+veialG @$4itan 'ilne, Foreclosing on Nothing0 %he

C#rio#s !rolem of the &eed of %r#st Foreclos#re Witho#t Entitlement to Enforce

the Note @213) 66 A; *&ev 21, 23, fn +itted)

'+e .=e5t t+ dip.te i t4e .eti+n peented 4ee< .nde :4at

5i5.tan5e, if an, a t4e ++:e 54allen-e a n+n=.di5ial f+e5l+.e +n t4e

-+.nd t4at t4e f+e5l+in- pat i n+t a valid ai-nee +f t4e +i-inal lendeJ P.t

an+t4e :a, d+e t4e ++:e 4ave tandin- t+ 54allen-e t4e validit +f an

ai-nent t+ :4i54 4e + 4e :a n+t a patJ& $e p+5eed t+ t4at i.e

& S+e:4at 5+nf.in-l, +t4 t4e p.p+ted ai-nee> a.t4+it t+ f+e5l+eand t4e ++:e> ailit t+ 54allen-e t4at a.t4+it 4ave een faed a

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II. Borro'er Stad"( to C)a$$e(e a Ass"(*et as +o"d

A enefi5ia + t.tee .nde a deed +f t.t :4+ 5+nd.5t an ille-al,

fa.d.lent + :illf.ll +ppeive ale +f p+pet a e liale t+ t4e ++:e

f+ :+n-f.l f+e5l+.e @Chave v. )ndymac "ortgage Services @213) 219

!alApp#t4 12, 162H "#nger v. "oore @197) 11 !alApp3d 1, 7), A

f+e5l+.e initiated +ne :it4 n+ a.t4+it t+ d+ + i :+n-f.l f+ p.p+e +f

.54 an a5ti+n @ Barrion#evo v. Chase Bank, N.A., s#$ra, 88 FS.pp2d at pp

973B97#H 1hlendorf v. American /ome "ortgage Servicing @E0!al 21) 279

F&0 7, 82B83) A e?plained in pat , ante, +nl t4e +i-inal enefi5ia,

it ai-nee + an a-ent +f +ne +f t4ee 4a t4e a.t4+it t+ int.5t t4e t.tee t+

initiate and 5+plete a n+n=.di5ial f+e5l+.e ale T4e .eti+n i :4et4e and

.eti+n +f tandin-G @See, e-, *evitin, %he !a$er Chase0 Sec#ritiation, Foreclos#re, and the 'ncertainty of "ortgage %itle, s#$ra, 63 0.;e *I at p 6##Mdi5.in- p.p+ted ai-nee> tandin- t+ f+e5l+eGH enkins, s#$ra, 216!alApp#t4 at p 1 M++:e la5; tandin- t+ enf+5e Mai-nenta-eeentG t+ :4i54 4e + 4e i n+t a patH Bank of America Nat. Assn. v. Bassman FB%, LLC @llApp !t 212) 981 NE2d 1, 7 MEa54 pat 5+ntend t4att4e +t4e la5; tandin-G) $e .e t4e te 4ee in t4e latte ene +f a

++:e> le-al a.t4+it t+ 54allen-e t4e validit +f an ai-nent

, t 4a een 4eld t4at, at leat :4en ee;in- t+ et aide t4e f+e5l+.e ale,t4e plaintiff .t al+ 4+: pe=.di5e and a tende +f t4e a+.nt +f t4e e5.edindetedne, + an e?5.e +f tende @Chave v. )ndymac "ortgage Services, s#$ra, 219 !alApp#t4 at p 162) Tende 4a een e?5.ed :4en, a+n- +t4e5i5.tan5e, t4e plaintiff alle-e t4e f+e5l+.e deed i fa5iall v+id, aa-.al i t4e 5ae :4en t4e entit t4at initiated t4e ale la5;ed a.t4+it t+ d+ +@ )id.H )n re Cedano @"an; 9t4 !i 212) #7 "& 22, 29B3H Lester v. .!. "organ Chase Bank @N0!al 213) 926 FS.pp2d 181, 193H Barrion#evo v.

Chase Bank, N.A., s#$ra, 88 FS.pp2d 96#, 969B97) O. evie: ein- liitedt+ t4e tandin- .eti+n, :e e?pe n+ +pini+n a t+ :4et4e plaintiff Yvan+va.t alle-e tende t+ tate a 5a.e +f a5ti+n f+ :+n-f.l f+e5l+.e .nde t4e5i5.tan5e +f t4i 5ae N+ d+ :e di5. p+tential eedie f+ a plaintiff inYvan+va> 5i5.tan5eH at +al a-.ent, plaintiff> 5+.nel 5+n5eded 4e ee;+nl daa-e A t+ pe=.di5e, :e d+ n+t adde it a an eleent +f :+n-f.lf+e5l+.e $e d+, 4+:eve, di5. :4et4e plaintiff 4a .ffeed a 5+-nialein=. f+ tandin- p.p+e


10/32

:4en a :+n-f.l f+e5l+.e plaintiff a 54allen-e t4e a.t4+it +f +ne :4+

5lai it ai-nent

n Glaski, s#$ra, 218 !alApp#t4 179, 19#B19, t4e 5+.t 4eld a

++:e a ae a :+n-f.l f+e5l+.e 5lai +n alle-ati+n t4at t4e

f+e5l+in- pat a5ted :it4+.t a.t4+it e5a.e t4e ai-nent :4i54 it

p.p+tedl e5ae enefi5ia .nde t4e deed +f t.t :a n+t eel v+idale

.t v+id "ef+e di5.in- Glaski> 4+ldin- and ati+nale, :e evie: t4e

ditin5ti+n et:een v+id and v+idale tana5ti+n

A v+id 5+nta5t i :it4+.t le-al effe5t @&et2d !+nta5t, K 7, 5+ a) t

ind n+ +ne and i a ee n.llitG @ Little v. CFS Service Cor$ @1987) 188

!alApp3d 13#, 1362) S.54 a 5+nta5t 4a n+ e?iten5e :4ateve t 4a n+

le-al entit f+ an p.p+e and neit4e a5ti+n n+ ina5ti+n +f a pat t+ it 5an

validate it G @Coly v. %itle )ns. and %r#st Co. @1911) 16 !al 632, 6##) A

:e aid +f a fa.d.lent eal p+pet tanfe in First Nat. Bank of L. A. v. "a2+ell

@1899) 123 !al 36, 371, A v+id t4in- i a n+ t4in-> G

A v+idale tana5ti+n, in 5+ntat, i +ne :4ee +ne + +e patie 4ave

t4e p+:e, a anifetati+n +f ele5ti+n t+ d+ +, t+ av+id t4e le-al elati+n

5eated t4e 5+nta5t, + atifi5ati+n +f t4e 5+nta5t t+ e?tin-.i4 t4e p+:e +f

av+idan5eG @&et2d !+nta5t, K 7) t a e de5laed v+id .t i n+t v+id in

itelf @ Little v. CFS Service Cor$, s#$ra, 188 !alApp3d at p 138) 0epite it

defe5t, a v+idale tana5ti+n, .nli;e a v+id +ne, i .=e5t t+ atifi5ati+n t4e

patie @&et2d !+nta5t, K 7H Aronoff v. Alanese @NYApp0iv 1982) ##6

NYS2d 368, 37)

n Glaski, t4e f+e5l+in- entit p.p+tedl a5ted f+ t4e 5.ent enefi5ia,

t4e t.tee +f a e5.itied +t-a-e invetent t.t- T4e plaintiff, ee;in- elief

- T4e +t-a-e e5.itiati+n p+5e 4a een 5+n5iel de5ied af+ll+:< T+ aie f.nd f+ ne: +t-a-e, a +t-a-e lende ell p++l +f


11/32

f+ t4e alle-edl :+n-f.l f+e5l+.e, 5laied 4i n+te and deed +f t.t 4ad

neve een validl ai-ned t+ t4e e5.itied t.t e5a.e t4e p.p+ted

ai-nent :ee ade afte t4e t.t> 5l+in- date @Glaski, s#$ra, 218

!alApp#t4 at pp 182B187)

T4e Glaski 5+.t e-an it anali +f :+n-f.l f+e5l+.e a-eein- :it4

a fedeal diti5t 5+.t t4at .54 a 5a.e +f a5ti+n 5+.ld e ade +.t :4ee a

pat alle-ed n+t t+ e t4e t.e enefi5ia int.5t t4e t.tee t+ file a N+ti5e +f

0efa.lt and initiate n+n=.di5ial f+e5l+.e> G @Glaski, s#$ra, 218 !alApp#t4 at

p 19#, .+tin- Barrion#evo v. Chase Bank, N.A., s#$ra, 88 FS.pp2d at

p 973) ".t t4e :+n-f.l f+e5l+.e plaintiff, Glaski 5a.ti+ned, .t d+ +e

t4an aet a la5; +f a.t4+it t+ f+e5l+eH t4e plaintiff .t alle-e fa5t

4+:Min- t4e defendant :4+ inv+;ed t4e p+:e +f ale :a n+t t4e t.e

enefi5iaG @Glaski, at p 19#)

A5;n+:led-in- t4at a ++:e> aeti+n t4at an ai-nent +f t4e n+te

and deed +f t.t i invalid aie t4e .eti+n +f t4e ++:e> tandin- t+

54allen-e an ai-nent t+ :4i54 t4e ++:e i n+t a pat, t4e Glaski 5+.t

5ited eveal fedeal 5+.t de5ii+n f+ t4e p+p+iti+n t4at a ++:e 4a

tandin- t+ 54allen-e .54 an ai-nent a v+id, t4+.-4 n+t a v+idale @Glaski,

s#$ra, 218 !alApp#t4 at pp 19#B19) T:+ +f t4ee de5ii+n, C#lhane v.

A#rora Loan Services of Neraska @1t !i 213) 78 F3d 282 @C#lhane) and

+t-a-e int+ t.t 5eated t+ e5eive t4e tea +f inteet and pin5ipal paent f+ t4e +t-a-e ++:e T4e i-4t t+ e5eive t.t in5+e i pa5eled int+ 5etifi5ate and +ld t+ invet+, 5alled 5etifi5ate4+lde T4et.tee 4ie a +t-a-e evi5e t+ adinite t4e +t-a-e enf+5in- t4e+t-a-e te and adinitein- t4e paent T4e te +f t4e e5.itiati+nt.t a :ell a t4e i-4t, d.tie, and +li-ati+n +f t4e t.tee, elle, andevi5e ae et f+t4 in a P++lin- and Sevi5in- A-eeent @PSA>)G @ Black3ock Financial "gmt. v. Amac Ass#r. Cor$. @2d !i 212) 673 F3d 169, 173)


12/32

3einagel v. &e#tsche Bank Nat. %r#st Co. @t4 !i 213) 73 F3d 22 @ 3einagel ),

di5.ed tandin- at +e len-t4H :e :ill e?aine t4e in detail in a +ent

Glaski ad+pted f+ t4e fedeal de5ii+n and a !alif+nia teatie t4e vie:

t4at a ++:e 5an 54allen-e an ai-nent +f 4i + 4e n+te and deed +f t.t if

t4e defe5t aeted :+.ld void t4e ai-nentG n+t eel ende it v+idale

@Glaski, s#$ra, 218 !alApp#t4 at p 19) !ae 4+ldin- t4at a ++:e a

neve 54allen-e an ai-nent e5a.e t4e ++:e :a neit4e a pat t+ n+ a

t4id pat enefi5ia +f t4e ai-nent a-eeent paint :it4 t++ +ad a

.4> G failin- t+ ditin-.i4 et:een v+id and v+idale a-eeent @ )id.,

.+tin- C#lhane, s#$ra, 78 F3d at p 29)

T4e Glaski 5+.t :ent +n t+ e+lve t4e .eti+n +f :4et4e t4e plaintiff 4ad

pled a defe5t in t4e 54ain +f ai-nent leadin- t+ t4e f+e5l+in- pat t4at

:+.ld, if t.e, ende +ne +f t4e ne5ea ai-nent v+id at4e t4an v+idale

@Glaski, s#$ra, 218 !alApp#t4 at p 19.) On t4i p+int, Glaski 4eld alle-ati+n

t4at t4e plaintiff> n+te and deed +f t.t :ee p.p+tedl tanfeed int+ t4e t.t

afte t4e t.t> 5l+in- date :ee .ffi5ient t+ plead a v+id ai-nent and 4en5e

t+ etali4 tandin- @Glaski, at pp 196B198) T4i lat 4+ldin- +f Glaski i

n+t ef+e . On -antin- plaintiff> petiti+n f+ evie:, :e liited t4e 5+pe +f

+. evie: t+ :4et4e t4e ++:e M4a tandin- t+ 54allen-e an ai-nent +f

t4e n+te and deed +f t.t +n t4e ai +f defe5t alle-edl endein- t4e

ai-nent v+idG $e did n+t in5l.de in +. +de t4e .eti+n +f :4et4e a

p+t5l+in- date tanfe int+ a Ne: Y+; e5.itied t.t i v+id + eel

v+idale, and t4+.-4 t4e patie> ief adde it, :e e?pe n+ +pini+n +n t4e

.eti+n 4ee

T4e vei+n +f 3einagel 5ited in Glaski, p.li4ed at 722 F3d 7, :aaended +n e4eain- and .peeded 3einagel, s#$ra, 73 F3d 22


13/32

&et.nin- t+ t4e .eti+n t4at i ef+e ., :e 5+nide in +e detail t4e

a.t4+it Glaski elied +n f+ it tandin- 4+ldin- n C#lhane, a 'aa54.ett

4+e l+an ++:e +.-4t elief f+ 4e n+n=.di5ial f+e5l+.e +n t4e -+.nd

t4at t4e ai-nent :4i54 A.+a *+an Sevi5e +f Nea;a @A.+a) 5laied

a.t4+it t+ f+e5l+eLa tanfe +f t4e +t-a-e f+ '+t-a-e Ele5t+ni5

&e-itati+n Ste, n5 @'E&S),/ t+ A.+aL:a v+id e5a.e 'E&S neve

p+pel 4eld t4e +t-a-e @C#lhane, s#$ra, 78 F3d at pp 286B288, 291)

"ef+e addein- t4e eit +f t4e plaintiff> alle-ati+n, t4e C#lhane 5+.t

5+nideed A.+a> 5+ntenti+n t4e plaintiff la5;ed tandin- t+ 54allen-e t4e

ai-nent +f 4e +t-a-e f+ 'E&S t+ A.+a On t4i .eti+n, t4e 5+.t

fit 5+n5l.ded t4e plaintiff 4ad a .ffi5ient pe+nal ta;e in t4e +.t5+e, 4avin-

4+:n a 5+n5ete and pe+nalied in=. e.ltin- f+ t4e 54allen-ed

ai-nent< T4e a5ti+n 54allen-ed 4ee elate t+ A.+a> i-4t t+ f+e5l+e

vit.e +f t4e ai-nent f+ 'E&S T4e identified 4aLt4e f+e5l+.eL5an

e ta5ed die5tl t+ A.+a> e?e5ie +f t4e a.t4+it p.p+tedl dele-ated

t4e ai-nentG @C#lhane, s#$ra, 78 F3d at pp 289B29)

C#lhane ne?t 5+nideed :4et4e t4e p.dential pin5iple t4at a liti-ant

4+.ld n+t e peitted t+ aet t4e i-4t and inteet +f an+t4e di5tate t4at

++:e la5; tandin- t+ 54allen-e +t-a-e ai-nent a t+ :4i54 t4e ae

neit4e patie n+ t4id pat enefi5iaie @C#lhane, s#$ra, 78 F3d at p 29)

T:+ ape5t +f 'aa54.ett la: +n n+n=.di5ial f+e5l+.e pe.aded t4e 5+.t

/A t4e C#lhane 5+.t e?plained, 'E&S :a f+ed a 5+n+ti. +f

eidential +t-a-e lende and invet+ t+ tealine t4e tanfe +f +t-a-el+an and t4ee fa5ilitate t4ei e5.itiati+n A ee lende a nae'E&S a +t-a-ee +n a l+an t4e ee +i-inate + +:nH 'E&S a5t +lela t4e lende> n+inee,G 4avin- le-al title .t n+ enefi5ial inteet in t4e l+an$4en a l+an i ai-ned t+ an+t4e 'E&S ee, 'E&S 5an e?e5.te t4etanfe aendin- it ele5t+ni5 dataae $4en t4e l+an i ai-ned t+ an+nee, 'E&S e?e5.te t4e ai-nent and end it inv+lveent @C#lhane, s#$ra, 78 F3d at p 287)


14/32

.54 a +ad .le i .n:aanted Fit, +nl t4e +t-a-ee @t4at i, t4e +i-inal

lende + it ai-nee) a e?e5ie t4e p+:e +f ale,0 and t4e ++:e i entitled

t+ elief f+ f+e5l+.e an .na.t4+ied pat @C#lhane, at p 29) Se5+nd,

in a n+n=.di5ial f+e5l+.e t4e ++:e 4a n+ die5t +pp+t.nit t+ 54allen-e t4e

f+e5l+in- entit> a.t4+it in 5+.t $it4+.t tandin- t+ .e f+ elief f+ a

:+n-f.l f+e5l+.e, a 'aa54.ett +t-a-+ :+.ld e depived +f a ean

t+ aet 4e le-al p+te5ti+n G @ )id.) T4ee 5+nideati+n led t4e C#lhane

5+.t t+ 5+n5l.de a +t-a-+ 4a tandin- t+ 54allen-e t4e ai-nent +f a

+t-a-e +n 4e 4+e t+ t4e e?tent t4at .54 a 54allen-e i ne5ea t+ 5+ntet a

f+e5l+in- entit> tat. .a +t-a-eeG @ )d. at p 291)

T4e 5+.t iediatel 5a.ti+ned t4at it 4+ldin- :a liited t+ alle-ati+n +f

a void tanfe f, f+ e?aple, t4e ai-n+ 4ad n+ inteet t+ ai-n + 4ad n+

a.t4+it t+ a;e t4e pati5.la ai-nent, a 54allen-e +f t4i +t :+.ld e

.ffi5ient t+ ef.te an ai-nee> tat. .a +t-a-eeG @C#lhane, s#$ra, 78 F3d

at p 291) ".t :4ee t4e alle-ed defe5t in an ai-nent :+.ld ende it eel

v+idale at t4e ele5ti+n +f +ne pat .t +t4e:ie effe5tive t+ pa le-al title,G t4e

++:e 4a n+ tandin- t+ 54allen-e t4e ai-nent +n t4at ai @ )id.)

n 3einagel , .p+n :4i54 t4e Glaski 5+.t al+ elied, t4e fedeal 5+.t 4eld

t4at .nde Te?a la: ++:e defendin- a-aint a =.di5ial f+e5l+.e 4ave

tandin- t+ 54allen-e t4e 54ain +f ai-nent :4i54 a pat 5lai a i-4t

t+ f+e5l+e> G @ 3einagel , s#$ra, 73 F3d at p 22#) T4+.-4 Te?a la: d+e n+t

0 'aa54.ett (eneal *a: 54apte 183, e5ti+n 21, iilal t+ +. !ivil

!+de e5ti+n 292#, p+vide t4at t4e p+:e +f ale in a +t-a-e a e e?e5ied t4e +t-a-ee + 4i e?e5.t+, adinitat+, .55e+ + ai-nG On t4e eit, t4e C#lhane 5+.t e=e5ted t4e plaintiff> 5lai t4at 'E&Sneve p+pel 4eld 4e +t-a-e, -ivin- 4e tandin- t+ 54allen-e t4e ai-nentf+ 'E&S t+ A.+a a v+id @C#lhane, s#$ra, 78 F3d at p 291)H t4e 5+.t 4eld'E&S> +le a t4e lende> n+inee all+:ed it t+ 4+ld and ai-n t4e +t-a-e.nde 'aa54.ett la: @ )d. at pp 291B293)


15/32

all+: a n+npat t+ a 5+nta5t t+ enf+5e t4e 5+nta5t .nle 4e + 4e i an

intended t4idpat enefi5ia, t4e ++:e in t4i it.ati+n ae n+t atteptin-

t+ enf+5e t4e te +f t4e int.ent +f ai-nentH t+ t4e 5+nta, t4e .-e

t4at t4e ai-nent ae v+id a initi+G @ )d. at p 22)

*i;e C#lhane, 3einagel ditin-.i4ed et:een defe5t t4at ende a

tana5ti+n v+id and t4+e t4at eel a;e it v+idale at a pat> e4et

T4+.-4 t4e la: i ettled> in Te?a t4at an +li-+ 5ann+t defend a-aint an

ai-nee> eff+t t+ enf+5e t4e +li-ati+n +n a -+.nd t4at eel ende t4e

ai-nent v+idale at t4e ele5ti+n +f t4e ai-n+, Te?a 5+.t f+ll+: t4e

a=+it .le t4at t4e +li-+ may defend +n an -+.nd :4i54 ende t4e

ai-nent v+id> G @ 3einagel , s#$ra, 73 F3d at p 22) T4e 5+nta .le

:+.ld all+: an intit.ti+n t+ f+e5l+e +n a ++:e> p+pet t4+.-4 it i n+t a

valid pat t+ t4e deed +f t.t + p+i+ n+te G @ )id.)12

enkins, +n :4i54 t4e !+.t +f Appeal el+: elied, :a de5ided 5l+e in

tie t+ Glaski @neit4e de5ii+n di5.e t4e +t4e) .t ea54e t4e +pp+ite

5+n5l.i+n +n tandin- n enkins, t4e plaintiff .ed t+ pevent a f+e5l+.e ale

t4at 4ad n+t et +55.ed, alle-in- t4e p.p+ted enefi5ia :4+ +.-4t t4e ale

4eld n+ e5.it inteet e5a.e a p.p+ted tanfe +f t4e l+an int+ a e5.itied

t.t :a ade in vi+lati+n +f t4e p++lin- and evi5in- a-eeent t4at -+vened

t4e invetent t.t @ enkins, s#$ra, 216 !alApp#t4 at pp #B)

12 T4e 3einagel 5+.t n+net4ele e=e5ted t4e plaintiff> 5lai +f an invalidai-nent afte t4e 5l+in- date +f a e5.itied t.t, +evin- t4e 5+.ld n+tenf+5e t4e te +f t.t e5a.e t4e :ee n+t intended t4idpat enefi5iaieT4e 5+.t> 4+ldin- appea, 4+:eve, t+ et at leat in pat +n it 5+n5l.i+n t4ata vi+lati+n +f t4e 5l+in- date :+.ld n+t ende t4e ai-nent v+idG .t eelall+: t4e t+ e av+ided at t4e e4et +f a pat + t4idpat enefi5ia@ 3einagel , s#$ra, 73 F3d at p 228) A di5.ed a+ve in elati+n t+ Glaski,t4at .eti+n i n+t :it4in t4e 5+pe +f +. evie:


16/32

T4e appellate 5+.t 4eld a de.e t+ t4e plaintiff> 5a.e +f a5ti+n f+

de5laat+ elief :a p+pel .tained f+ t:+ ea+n Fit, enkins 4eld

!alif+nia la: did n+t peit a peeptive =.di5ial a5ti+nM t+ 54allen-e t4e i-4t,

p+:e, and a.t4+it +f a f+e5l+in- enefi5ia> + enefi5ia> a-ent> t+

initiate and p..e f+e5l+.eG @ enkins, s#$ra, 216 !alApp#t4 at p 11)

&elin- piail +n Gomes v. Co#ntry+ide /ome Loans, )nc. @211) 192

!alApp#t4 11#9, enkins ea+ned t4at .54 peeptive .it ae in5+nitent

:it4 !alif+nia> 5+pe4enive tat.t+ 54ee f+ n+n=.di5ial f+e5l+.eH

all+:in- .54 a la:.it :+.ld f.ndaentall .ndeine t4e n+n=.di5ial nat.e

+f t4e p+5e and int+d.5e t4e p+iilit +f la:.it filed +lel f+ t4e p.p+e

+f delain- valid f+e5l+.e> G @ enkins, at p 13, .+tin- Gomes at p 11)

T4i ape5t +f enkins, diall+:in- t4e .e +f a la:.it t+ peept a

n+n=.di5ial f+e5l+.e, i n+t :it4in t4e 5+pe +f +. evie:, :4i54 i liited t+ a

++:e> tandin- t+ 54allen-e an ai-nent in an a5ti+n ee;in- eedie f+

+rongf#l foreclos#re A faed t4e p+5eedin- el+:, t4e 5+n5ete .eti+n

in t4e peent 5ae i :4et4e plaintiff 4+.ld e peitted t+ aend 4e 5+plaint

t+ ee; ede, in a :+n-f.l f+e5l+.e 5+.nt, f+ t4e t.tee> ale t4at 4a

alead ta;en pla5e $e d+ n+t adde t4e ditin5t .eti+n +f :4et4e, + .nde

:4at 5i5.tan5e, a ++:e a in- an a5ti+n f+ in=.n5tive + de5laat+

elief t+ pevent a f+e5l+.e ale f+ -+in- f+:ad

Se5+nd, a an altenative -+.nd, enkins 4eld a de.e t+ t4e de5laat+

elief 5lai :a p+pe e5a.e t4e plaintiff 4ad failed t+ alle-e an a5t.al

5+nt+ve a e.ied !+de +f !ivil P+5ed.e e5ti+n 16 @ enkins, s#$ra,

216 !alApp#t4 at p 13) T4e plaintiff did n+t dip.te t4at 4e l+an 5+.ld e

ai-ned + t4at 4e 4ad defa.lted +n it and eained in aea @ )d. at p 1#)

Even if +ne +f t4e ai-nent +f t4e n+te and deed +f t.t :a ip+pe in +e

epe5t, t4e appellate 5+.t ea+ned, Ien;in i n+t t4e vi5ti +f .54 invalid


17/32

tanfeM e5a.e 4e +li-ati+n .nde t4e n+te eained .n54an-ed ntead, t4e

t.e vi5ti a e an individ.al + entit t4at elieve it 4a a peent enefi5ial

inteet in t4e p+i+ n+te and a .ffe t4e .na.t4+ied l+ +f it inteet

in t4e n+teG @ )d. at p 1) n pati5.la, t4e plaintiff 5+.ld n+t 5+plain a+.t

vi+lati+n +f t4e e5.itied t.t> tanfe .le< A an .nelated t4id pat t+

t4e alle-ed e5.itiati+n, and an +t4e .e.ent tanfe +f t4e enefi5ial

inteet .nde t4e p+i+ n+te, Ien;in la5; tandin- t+ enf+5e an

a-eeent, in5l.din- t4e invetent t.t> p++lin- and evi5in- a-eeent,

elatin- t+ .54 tana5ti+nG @ )id.)

F+ it 5+n5l.i+n +n tandin-, enkins 5ited )n re Correia @"an; 1t !i

211) #2 "& 319 T4e ++:e in t4at 5ae 54allen-ed a f+e5l+.e +n t4e

-+.nd t4at t4e ai-nent +f t4ei +t-a-e int+ a e5.itied t.t 4ad n+t een

ade in a55+dan5e :it4 t4e t.t> p++lin- and evi5in- a-eeent @PSA) @ )d.

at pp 321B322) T4e appellate 5+.t 4eld t4e ++:e la5;ed tandin- t+

54allen-e t4e +t-a-e> 54ain +f title .nde t4e PSAG @ )d. at p 32#) "ein-

neit4e patie n+ t4id pat enefi5iaie +f t4e p++lin- a-eeent, t4e 5+.ld

n+t 5+plain +f a fail.e t+ aide it te @ )id.)

enkins al+ 5ited /errera v. Federal National "ortgage Assn. @212) 2

!alApp#t4 1#9, :4i54 piail addeed t4e merits +f a f+e5l+.e

54allen-e, 5+n5l.din- t4e ++:e 4ad add.5ed n+ fa5t +n :4i54 t4e 5+.ld

alle-e an ai-nent f+ 'E&S t+ an+t4e enefi5ia :a invalid @ )d. at pp

12B16) n ea54in- t4e eit, t4e 5+.t did n+t e?pli5itl di5. t4e

plaintiff> tandin- t+ 54allen-e t4e ai-nent n a paa-e 5ited in enkins,

4+:eve, t4e 5+.t +eved t4at t4e plaintiff, in +de t+ tate a :+n-f.l

f+e5l+.e 5lai, needed t+ 4+: pe=.di5e, and t4e 5+.ld n+t d+ + e5a.e t4e

54allen-ed ai-nent did n+t 54an-e t4ei +li-ati+n .nde t4e n+te @ /errera,


18/32

at pp 17B18) Even if 'E&S la5;ed t4e a.t4+it t+ ai-n t4e deed +f t.t,

t4e t.e vi5ti :ee n+t plaintiff .t t4e lendeG @ )d. at p 18)

On t4e na+: .eti+n ef+e .L:4et4e a :+n-f.l f+e5l+.e plaintiff

a 54allen-e an ai-nent t+ t4e f+e5l+in- entit a v+idL:e 5+n5l.de

Glaski p+vide a +e l+-i5al an:e t4an enkins A e?plained in pat , ante,

+nl t4e entit 4+ldin- t4e enefi5ial inteet .nde t4e deed +f t.tLt4e +i-inal

lende, it ai-nee, + an a-ent +f +ne +f t4eeLa int.5t t4e t.tee t+

5+en5e and 5+plete a n+n=.di5ial f+e5l+.e @K 292#, .d @a)@1)H

Barrion#evo v. Chase Bank, N.A., s#$ra, 88 FS.pp2d at p 972) f a p.p+ted

ai-nent ne5ea t+ t4e 54ain :4i54 t4e f+e5l+in- entit 5lai t4at

p+:e i a+l.tel v+id, eanin- +f n+ le-al f+5e + effe5t :4at+eve @Coly v.

%itle )ns. and %r#st Co., s#$ra, 16 !al at p 6##H &et2d !+nta5t, K 7, 5+ a),

t4e f+e5l+in- entit 4a a5ted :it4+.t le-al a.t4+it p..in- a t.tee> ale,

and .54 an .na.t4+ied ale 5+ntit.te a :+n-f.l f+e5l+.e @ Barrion#evo v.

Chase Bank, N.A., at pp 973B97#)

*i;e t4e 'aa54.ett ++:e 5+nideed in C#lhane, :4+e +t-a-e

5+ntained a p+:e +f ale all+:in- f+ n+n=.di5ial f+e5l+.e, !alif+nia

++:e :4+e l+an ae e5.ed a deed +f t.t :it4 a p+:e +f ale a

.ffe f+e5l+.e :it4+.t =.di5ial p+5e and t4. :+.ld e depived +f a ean

t+ aet Mt4ei le-al p+te5ti+nG if n+t peitted t+ 54allen-e t4e f+e5l+in-

entit> a.t4+it t4+.-4 an a5ti+n f+ :+n-f.l f+e5l+.e @C#lhane, s#$ra,

78 F3d at p 29) A ++:e t4eef+e 4a tandin- t+ 54allen-e t4e

ai-nent +f a +t-a-e +n 4e 4+e t+ t4e e?tent t4at .54 a 54allen-e i

ne5ea t+ 5+ntet a f+e5l+in- entit> tat. .a +t-a-eeG @id. at p 291)L

t4at i, a t4e 5.ent 4+lde +f t4e enefi5ial inteet .nde t4e deed +f t.t

@A55+d, Wilson v. /SBC "ortgage Servs., )nc. @1t !i 21#) 7## F3d 1, 9 MA

4+e+:ne in 'aa54.ettLeven :4en n+t a pat t+ + t4id pat enefi5ia


19/32

+f a +t-a-e ai-nentL4a tandin- t+ 54allen-e t4at ai-nent a v+id

e5a.e .55e +n t4e eit :+.ld p+ve t4e p.p+ted ai-nee i n+t, in fa5t,

t4e +t-a-ee and t4eef+e la5; an i-4t t+ f+e5l+e +n t4e +t-a-eG)11

enkins and +t4e 5+.t denin- tandin- 4ave d+ne + patl +.t +f 5+n5en

:it4 all+:in- a ++:e t+ enf+5e te +f a tanfe a-eeent t+ :4i54 t4e

++:e :a n+t a pat n -eneal, !alif+nia la: d+e n+t -ive a pat pe+nal

tandin- t+ aet i-4t + inteet el+n-in- +lel t+ +t4e1% @See !+de !iv

P+5, K 367 Ma5ti+n .t e +.-4t + +n e4alf +f t4e eal pat in inteetH

asmine Net+orks, )nc. v. S#$erior Co#rt @29) 18 !alApp#t4 98, 992)

$4en an ai-nent i eel v+idale, t4e p+:e t+ atif + av+id t4e

tana5ti+n lie +lel :it4 t4e patie t+ t4e ai-nentH t4e tana5ti+n i n+t v+id

.nle and .ntil +ne +f t4e patie ta;e tep t+ a;e it + A ++:e :4+

54allen-e a f+e5l+.e +n t4e -+.nd t4at an ai-nent t+ t4e f+e5l+in- pat

+e defe5t endein- it v+idale 5+.ld t4. e aid t+ aet an inteet el+n-in-

+lel t+ t4e patie t+ t4e ai-nent at4e t4an t+ 4eelf

$4en t4e plaintiff alle-e a void ai-nent, 4+:eve, t4e enkins 5+.t>

5+n5en :it4 enf+5eent +f a t4id pat> inteet i ipla5ed "++:e :4+

54allen-e t4e f+e5l+in- pat> a.t4+it +n t4e -+.nd +f a v+id ai-nent

ae n+t atteptin- t+ enf+5e t4e te +f t4e int.ent +f ai-nentH t+ t4e

5+nta, t4e .-e t4at t4e ai-nent ae v+id a initi+G @ 3einagel , s#$ra, 73

11 $e 5ite de5ii+n +n fedeal 5+.t tandin- +nl f+ t4ei pe.aive val.ein deteinin- :4at !alif+nia tandin- la: 4+.ld e, :it4+.t an a.pti+n

t4at tandin- in t4e t:+ te i identi5al T4e !alif+nia !+ntit.ti+n d+e n+tip+e t4e ae 5ae+5+nt+ve> G liit +n tate 5+.t> =.idi5ti+n aati5le +f t4e %nited State !+ntit.ti+n d+e +n fedeal 5+.t @Grosset v.Wenaas @28) #2 !al#t4 11, 1117, fn 13)1% n pea;in- +f $ersonal tandin- t+ .e, :e et aide .54 d+5tine ata?pae tandin- t+ ee; in=.n5tive elief @ee !+de !iv P+5, K 26a) and p.li5 i-4t/p.li5 d.tG > G tandin- t+ ee; a :it +f andate @ee Save the !lastic Bag Coalition v. City of "anhattan Beach @211) 2 !al#t4 1, 166)


20/32

F3d at p 22H a55+d, "r#k v. "ortgage Elec. 3egistration Sys., )nc. @& 213)

82 A3d 27, 36 M++:e 54allen-in- an ai-nent a v+id ae n+t

atteptin- t+ aet t4e i-4t +f +ne +f t4e 5+nta5tin- patieH intead, t4e

4+e+:ne ae aetin- t4ei +:n i-4t n+t t+ 4ave t4ei 4+e .nla:f.ll

f+e5l+ed .p+nG)

%nli;e a v+idale tana5ti+n, a v+id +ne 5ann+t e atified + validated

t4e patie t+ it even if t4e + deie @Coly v. %itle )ns. and %r#st Co., s#$ra,

16 !al at p 6##H Aronoff v. Alanese, s#$ra, ##6 NYS2d at p 37) Patie t+

a e5.itiati+n + +t4e tanfe a-eeent a :ell :i4 t+ atif t4e tanfe

a-eeent depite an defe5t, .t n+ atifi5ati+n i p+ile if t4e ai-nent i

v+id a initi+ n ee;in- a findin- t4at an ai-nent a-eeent :a v+id,

t4eef+e, a plaintiff in Yvan+va> p+iti+n i n+t aetin- t4e inteet +f patie t+

t4e ai-nentH 4e i aetin- 4e +:n inteet in liitin- f+e5l+.e +n 4e

p+pet t+ t4+e :it4 le-al a.t4+it t+ +de a f+e5l+.e ale T4i, t4en, i n+t

a it.ati+n in :4i54 tandin- t+ .e i la5;in- e5a.e it +le +=e5t i t+

ettle i-4t +f t4id pe+n :4+ ae n+t patieG @Golden Gate Bridge etc. &ist.

v. Felt @1931) 21# !al 38, 316)

0efendant a-.e a ++:e :4+ i in defa.lt +n 4i + 4e l+an .ffe n+

pe=.di5e f+ f+e5l+.e an .na.t4+ied pat, in5e t4e a5t.al 4+lde +f t4e

enefi5ial inteet +n t4e deed +f t.t 5+.ld e.all :ell 4ave f+e5l+ed +n t4e

p+pet A t4e enkins 5+.t p.t it, :4en an invalid tanfe +f a n+te and deed

+f t.t lead t+ f+e5l+.e an .na.t4+ied pat, t4e vi5tiG i n+t t4e

++:e, :4+e +li-ati+n .nde t4e n+te ae .naffe5ted t4e tanfe, .t an

individ.al + entit t4at elieve it 4a a peent enefi5ial inteet in t4e

p+i+ n+te and a .ffe t4e .na.t4+ied l+ +f it inteet in t4e n+teG

@ enkins, s#$ra, 216 !alApp#t4 at p 1H ee al+ Siliga v. "ortgage Electronic

3egistration Systems, )nc. @213) 219 !alApp#t4 7, 8 M++:e 4ad n+


21/32

tandin- t+ 54allen-e ai-nent 'E&S :4ee t4e d+ n+t dip.te t4e ae in

defa.lt and t4ee i n+ ea+n t+ elieve t4e +i-inal lende :+.ld 4ave

efained f+ f+e5l+.e in t4ee 5i5.tan5eGH Fontenot v. Wells Fargo

Bank, N.A., s#$ra, 198 !alApp#t4 at p 272 M:+n-f.l f+e5l+.e plaintiff 5+.ld

n+t 4+: pe=.di5e f+ alle-edl invalid ai-nent 'E&S a t4e ai-nent

eel .tit.ted +ne 5edit+ f+ an+t4e, :it4+.t 54an-in- 4e +li-ati+n

.nde t4e n+teG)

n de5idin- t4e liited .eti+n +n evie:, :e ae 5+n5ened +nl :it4

pe=.di5e in t4e ene +f an in=. .ffi5ientl 5+n5ete and pe+nal t+ p+vide

tandin-, n+t :it4 pe=.di5e a a p+ile eleent +f t4e :+n-f.l f+e5l+.e t+t

@See fn #, ante) A it elate t+ tandin-, :e dia-ee :it4 defendant> anali +f

pe=.di5e f+ an ille-al f+e5l+.e A f+e5l+ed.p+n ++:e 5leal eet

t4e -eneal tandad f+ tandin- t+ .e 4+:in- an invai+n +f 4i + 4e

le-all p+te5ted inteet @ Angel#cci v. Cent#ry S#$$er Cl# @27) #1 !al#t4

16, 17)Lt4e ++:e 4a l+t +:ne4ip t+ t4e 4+e in an alle-edl ille-al

t.tee> ale @See C#lhane, s#$ra, 78 F3d at p 289 Mf+e5l+ed.p+n ++:e

4a .ffi5ient pe+nal ta;e in a5ti+n a-aint f+e5l+in- entit t+ eet fedeal

tandin- e.ieent) '+e+ve, t4e an; + +t4e entit t4at +deed t4e

f+e5l+.e :+.ld n+t 4ave d+ne + aent t4e alle-edl v+id ai-nent T4.

Mt4e identified 4aLt4e f+e5l+.eL5an e ta5ed die5tl t+ Mt4e f+e5l+in-

entit> e?e5ie +f t4e a.t4+it p.p+tedl dele-ated t4e ai-nentG

@C#lhane, at p 29)

N+ i it 5+e5t t4at t4e ++:e 4a n+ 5+-niale inteet in t4e identit +f

t4e pat enf+5in- 4i + 4e det T4+.-4 t4e ++:e i n+t entitled t+ +=e5t

t+ an ai-nent +f t4e p+i+ n+te, 4e + 4e i +li-ated t+ pa t4e det, +

.ffe l+ +f t4e e5.it, +nl t+ a pe+n + entit t4at 4a a5t.all een ai-ned

t4e det @See Cockerell v. %itle )ns. - %r#st Co., s#$ra, #2 !al2d at p 292 Mpat


22/32

5laiin- .nde an ai-nent .t p+ve fa5t +f ai-nent) T4e ++:e

+:e +ne n+t t+ t4e :+ld at la-e .t t+ a pati5.la pe+n + intit.ti+n, and

+nl t4e pe+n + intit.ti+n entitled t+ paent a enf+5e t4e det

f+e5l+in- +n t4e e5.it

t i n+ ee p+5ed.al ni5et,G f+ a 5+nta5t.al p+int +f vie:, t+ init

t4at +nl t4+e :it4 a.t4+it t+ f+e5l+e +n a ++:e e peitted t+ d+ +

@*evitin, %he !a$er Chase0 Sec#ritiation, Foreclos#re, and the 'ncertainty of

"ortgage %itle, s#$ra, 63 0.;e *I at p 6) S.54 a vie: f.ndaentall

i.ndetand t4e +t-a-e 5+nta5t T4e +t-a-e 5+nta5t i n+t ipl an

a-eeent t4at t4e 4+e a e +ld .p+n a defa.lt +n t4e l+an ntead, it i an

a-eeent t4at if t4e 4+e+:ne defa.lt +n t4e l+an, the mortgagee a ell t4e

p+pet p..ant t+ t4e e.iite le-al p+5ed.eG @ )id , itali5 added and

+itted.)

T4e l+-i5 +f defendant> n+pe=.di5e a-.ent iplie t4at anyone, even a

tan-e t+ t4e det, 5+.ld de5lae a defa.lt and +de a t.tee> aleLand t4e

++:e :+.ld e left :it4 n+ e5+.e e5a.e, afte all, 4e + 4e +:ed t4e det

t+ someone, t4+.-4 n+t t+ t4e f+e5l+in- entit T4i :+.ld e an +dd e.ltG

indeed @ 3einagel , s#$ra, 73 F3d at p 22) A a diti5t 5+.t +eved in

e=e5tin- t4e n+pe=.di5e a-.ent, Man; ae neit4e pivate att+ne -eneal

n+ +.nt 4.nte, aed :it4 a +vin- 5+ii+n t+ ee; +.t defa.ltin-

4+e+:ne and ta;e a:a t4ei 4+e in atifa5ti+n +f +e +t4e an;> deed

+f t.tG @ "iller v. /omecomings Financial, LLC @S0Te? 212) 881 FS.pp2d

82, 832)

0efendant n+te 5+e5tl t4at a plaintiff in Yvan+va> p+iti+n, 4avin-

.ffeed an alle-edl .na.t4+ied n+n=.di5ial f+e5l+.e +f 4e 4+e, need n+t

n+: fea an+t4e 5edit+ 5+in- f+:ad t+ 5+lle5t t4e det T4e 4+e 5an +nl

e f+e5l+ed +n5e, and t4e t.tee> ale e?tin-.i4e t4e det @!+de !iv P+5,


23/32

K 8dH &reyf#ss v. 'nion Bank of California, s#$ra, 2# !al#t4 at p #11) ".t a

t4e Att+ne (eneal p+int +.t in 4e ai5. 5.iae ief, a 4+ldin- t4at anyone

a f+e5l+e +n a defa.ltin- 4+e l+an ++:e :+.ld .ltipl t4e i; f+

4+e+:ne t4at t4e i-4t fa5e a f+e5l+.e at +e p+int in t4e life +f t4ei

l+an T4e p+iilit t4at .ltiple patie 5+.ld ea54 f+e5l+e at +e tie, t4at

i, in5eae t4e ++:e> +veall i; +f f+e5l+.e

0efendant .--et t4at t+ etali4 pe=.di5e t4e plaintiff .t alle-e and

p+ve t4at t4e t.e enefi5ia .nde t4e deed +f t.t :+.ld 4ave efained f+

f+e5l+in- +n t4e plaintiff> p+pet $4ateve eit t4i .le :+.ld 4ave a t+

pe=.di5e a an eleent +f t4e :+n-f.l f+e5l+.e t+t, it itate t4e tpe +f

in=. e.ied f+ tandin- A 4+e+:ne :4+ 4a een f+e5l+ed +n +ne

:it4 n+ i-4t t+ d+ + 4a .ffeed an in=.i+. invai+n +f 4i + 4e le-al i-4t at

t4e f+e5l+in- entit> 4and N+ +e i e.ied f+ tandin- t+ .e

@ Angel#cci v. Cent#ry S#$$er Cl#, s#$ra, #1 !al#t4 at p 17)

Neit4e Ca#lfield v. Sanders @1861) 17 !al 69 n+ Seidell v. %#2edo Land

Co. @1932) 216 !al 16, .p+n :4i54 defendant el, 4+ld + iplie a 4+e

l+an ++:e a n+t 54allen-e a f+e5l+.e alle-in- a v+id ai-nent n

t4e fit +f t4ee 5ae, :e 4eld a det+ +n a 5+nta5t f+ pintin- and advetiin-

5+.ld n+t defend a-aint 5+lle5ti+n +f t4e det +n t4e -+.nd it 4ad een ai-ned

:it4+.t p+pe 5+n.ltati+n a+n- t4e ai-nin- patne and f+ n+inal

5+nideati+n< t i +f n+ 5+ne.en5e t+ t4e defendant, a it in n+ epe5t affe5t

4i liailit, :4et4e t4e tanfe :a ade at +ne tie + an+t4e, + :it4 +

:it4+.t 5+nideati+n, + +ne + all t4e ee +f t4e fiG @Ca#lfield v.

Sanders, at p 72) n t4e e5+nd, :e 4eld land+:ne ee;in- t+ en=+in a

f+e5l+.e +n a deed +f t.t t+ t4ei land 5+.ld n+t d+ + 54allen-in- t4e

validit +f an ai-nent +f t4e p+i+ n+te t4e deed +f t.t e5.ed

@Seidell v. %#2edo Land Co., at pp 166, 169B17) $e e?plained t4at t4e


24/32

ai-nent :a ade an a-ent +f t4e enefi5ia, and t4at depite t4e

land+:ne> 5lai t4e a-ent la5;ed a.t4+it f+ t4e ai-nent, t4e enefi5ia

i n+t n+: 5+plainin-G @ )d. at p 17) Neit4e de5ii+n di5.e t4e

ditin5ti+n et:een alle-edl v+id and eel v+idale, and neit4e ne-ate a

++:e> ailit t+ 54allen-e an ai-nent +f 4i + 4e det a v+id

F+ t4ee ea+n, :e 5+n5l.de Glaski, s#$ra, 218 !alApp#t4 179, :a

5+e5t t+ 4+ld a :+n-f.l f+e5l+.e plaintiff 4a tandin- t+ 5lai t4e

f+e5l+in- entit> p.p+ted a.t4+it t+ +de a t.tee> ale :a aed +n a

v+id ai-nent +f t4e n+te and deed +f t.t enkins, s#$ra, 216 !alApp#t4

#97, p+;e t++ +adl in 4+ldin- a ++:e la5; tandin- t+ 54allen-e an

ai-nent +f t4e n+te and deed +f t.t t+ :4i54 t4e ++:e :a neit4e a pat

n+ a t4id pat enefi5ia enkins> .le a 4+ld a t+ 5laied defe5t t4at

:+.ld a;e t4e ai-nent eel v+idale, .t n+t a t+ alle-ed defe5t

endein- t4e ai-nent a+l.tel v+id1&

n ea5in- Glaski> .le t4at ++:e 4ave tandin- t+ 54allen-e

ai-nent a v+id, .t n+t a v+idale, :e =+in eveal 5+.t a+.nd t4e nati+n

@Wilson v. /SBC "ortgage Servs., )nc., s#$ra, 7## F3d at p 9H 3einagel , s#$ra,

73 F3d at pp 22#B22H Woods v. Wells Fargo Bank, N.A. @1t !i 213) 733 F3d

3#9, 3#H C#lhane, s#$ra, 78 F3d at pp 289B291H "iller v. /omecomings

Financial, LLC , s#$ra, 881 FS.pp2d at pp 831B832H Bank of America Nat. Assn.

v. Bassman FB%, LLC , s#$ra, 981 NE2d at pp 7B8H !ike v. &e#tsche Bank Nat.

%r#st Co. @ND 21) 121 A3d 279, 281H "r#k v. "ortgage Elec. 3egistration

1& $e diapp+ve enkins v. !"organ Chase Bank, N.A., s#$ra, 216!alApp#t4 #97, Siliga v. "ortgage Electronic 3egistration Systems, )nc., s#$ra,219 !alApp#t4 7, Fontenot v. Wells Fargo Bank, N.A., s#$ra, 198 !alApp#t426, and /errera v. Federal National "ortgage Assn., s#$ra, 2 !alApp#t41#9, t+ t4e e?tent t4e 4eld ++:e la5; tandin- t+ 54allen-e an ai-nent+f t4e deed +f t.t a v+id


25/32

Sys., )nc., s#$ra, 82 A3d at pp 3#B36H &ernier v. "ortgage Net+ork, )nc. @Vt

213) 87 A3d #6, #73) ndeed, a 5+entat+ +n t4e i.e 4ave tated<

M!+.t -eneall peit 54allen-e t+ ai-nent if .54 54allen-e :+.ld

p+ve t4at t4e ai-nent :ee v+id a +pp+ed t+ v+idaleG @Qa5; Qa5;,

Not a !arty0 Challenging "ortgage Assignments @21#) 9 St *+.i % *I 17,

18)

T4at eveal fedeal 5+.t applin- !alif+nia la: 4ave, la-el in

.nep+ted de5ii+n, a-eed :it4 enkins and de5lined t+ f+ll+: Glaski d+e n+t

alte +. 5+n5l.i+n Neit4e *han v. 3econtr#st Co. @N0!al 21) 81

FS.pp3d 867 n+ Flores v. E"C "ort. Co. @E0!al 21#) 997 FS.pp2d 188

add .54 t+ t4e di5.i+n n *han, t4e diti5t 5+.t f+.nd t4e ++:e, a a

n+npat t+ t4e p++lin- and evi5in- a-eeent, la5;ed tandin- t+ 54allen-e a

f+e5l+.e +n t4e ai +f an .npe5ified fla: in t4e l+an> e5.itiati+nH t4e

5+.t> +pini+n d+e n+t di5. t4e ditin5ti+n et:een a v+id ai-nent and a

eel v+idale +ne @ *han v. 3econtr#st Co., s#$ra, 81 FS.pp3d at pp 872B

873) n Flores, t4e diti5t 5+.t, 5+nidein- a :+n-f.l f+e5l+.e 5+plaint

t4at la5;ed .ffi5ient 5lait in it alle-ati+n in5l.din- identifi5ati+n +f t4e

ai-nent + ai-nent 54allen-ed, t4e diti5t 5+.t .+ted and f+ll+:ed

enkins> ea+nin- +n t4e ++:e> la5; +f tandin- t+ enf+5e an a-eeent t+

:4i54 4e + 4e i n+t a pat, :it4+.t addein- t4e appli5ati+n +f t4i ea+nin-

t+ alle-edl v+id ai-nent @ Flores v. E"C "ort. Co., s#$ra, at pp 113B

11)

Siilal, t4e .nep+ted fedeal de5ii+n applin- !alif+nia la: la-el

fail t+ -apple :it4 Glaski> ditin5ti+n et:een v+id and v+idale ai-nent

and tend eel t+ epeat enkins> a-.ent t4at a ++:e, a a n+npat t+ an

ai-nent, a n+t enf+5e it te and 5ann+t 4+: pe=.di5e :4en in defa.lt

+n t4e l+an, a-.ent :e 4ave f+.nd in.ffi5ient :it4 e-ad t+ alle-ati+n +f


26/32

v+id ai-nent $4ile .nep+ted fedeal 5+.t de5ii+n a e 5ited in

!alif+nia a pe.aive a.t4+it @ *an v. G#ild "ortgage Co. @21#) 23

!alApp#t4 736, 7##, fn 3), in t4i intan5e t4e la5; pe.aive val.e

0efendant 5ite t4e de5ii+n in 3a4amin v. &e#tsche Bank Nat. %r#st Co. @2nd

!i 21#) 77 F3d 79 @ 3a4amin), a a e.;eG +f Glaski 3a4amin> e?peed

dia-eeent :it4 Glaski, 4+:eve, :a +n t4e .eti+n :4et4e, .nde Ne: Y+;

la:, an ai-nent t+ a e5.itied t.t ade afte t4e t.t> 5l+in- date i v+id

+ eel v+idale @ 3a4amin, at p 9) A e?plained ealie, t4at .eti+n i

+.tide t4e 5+pe +f +. evie: and :e e?pe n+ +pini+n a t+ Glaski>

5+e5tne +n t4e p+int

T4e 3a4amin 5+.t did, in an ealie di5.i+n, tate -eneall t4at ++:e

la5; tandin- t+ 54allen-e an ai-nent a vi+lative +f t4e e5.itied t.t>

p++lin- and evi5in- a-eeent @ 3a4amin, s#$ra, 77 F3d at pp 8B86), .t t4e

5+.t in t4at p+ti+n +f it anali did n+t ditin-.i4 et:een v+id and v+idale

ai-nent n a late p+ti+n +f it anali, t4e 5+.t a.Med t4at tandin-

e?it f+ 54allen-e t4at 5+ntend t4at t4e ai-nin- pat neve p+eed le-al

title,> G a defe5t t4e plaintiff 5laied ade t4e ai-nent v+id @id. at p 9), .t

5+n5l.ded t4e plaintiff 4ad n+t p+pel alle-ed fa5t t+ .pp+t t4ei v+idne

t4e+ @id. at pp 9B91)

N+ d+ *an v. G#ild "ortgage Co., s#$ra, 23 !alApp#t4 736, and Siliga v.

"ortgage Electronic 3egistration Systems, )nc., s#$ra, 219 !alApp#t4 7

@Siliga), :4i54 defendant al+ 5ite, pe.ade . Glaski eed in findin- ++:e

tandin- t+ 54allen-e an ai-nent a v+id T4e *an 5+.t ditin-.i4ed Glaski

a inv+lvin- a p+tale :+n-f.l f+e5l+.e 5lai, a +pp+ed t+ t4e peeptive

.it inv+lved in enkins and *an itelf @ *an, at pp 7#3B7##) On tandin-, t4e

*an 5+.t n+ted t4e fedeal 5iti5i +f Glaski and +. -ant +f evie: in t4e

peent 5ae, .t f+.nd n+ ea+n t+ :ade int+ t4e i.e +f :4et4e Glaski :a


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5+e5tl de5ided, e5a.e t4e +pini+n 4a n+ die5t appli5ailit t+ t4i

pef+e5l+.e a5ti+nG @ *an, at p 7#)

Siliga, iilal, f+ll+:ed enkins in diapp+vin- a peeptive la:.it

@Siliga, s#$ra, 219 !alApp#t4 at p 82) $it4+.t di5.in- Glaski, t4e Siliga

5+.t al+ 4eld t4e ++:e plaintiff failed t+ 4+: an pe=.di5e f+, and

t4eef+e la5;ed tandin- t+ 54allen-e, t4e ai-nent +f t4ei deed +f t.t t+ t4e

f+e5l+in- entit @Siliga, at p 8) A alead e?plained, t4i pe=.di5e anali

ie t4e a; in t4e :+n-f.l f+e5l+.e 5+nte?t $4en a p+pet 4a een

+ld at a t.tee> ale at t4e die5ti+n +f an entit :it4 n+ le-al a.t4+it t+ d+ +,

t4e ++:e 4a .ffeed a 5+-niale in=.

n f.t4e .pp+t +f a ++:e> tandin- t+ 54allen-e t4e f+e5l+in-

pat> a.t4+it, plaintiff p+int t+ p+vii+n +f t4e e5ent le-ilati+n ;n+:n a

t4e !alif+nia D+e+:ne "ill +f &i-4t, ena5ted in 212 and effe5tive +nl afte

t4e t.tee> ale in t4i 5ae @See Le#ras v. BAC /ome Loans Servicing, L!

@213) 221 !alApp#t4 #9, 86, fn 1#)1, Davin- 5+n5l.ded :it4+.t efeen5e t+

t4i le-ilati+n t4at ++:e d+ 4ave tandin- t+ 54allen-e an ai-nent a

1, Plaintiff 5ite ne:l added p+vii+n t4at p+4iit an entit f+initiatin- a f+e5l+.e p+5e .nle it i t4e 4+lde +f t4e enefi5ial inteet.nde t4e +t-a-e + deed +f t.t, t4e +i-inal t.tee + t4e .tit.ted t.tee.nde t4e deed +f t.t, + t4e dei-nated a-ent +f t4e 4+lde +f t4e enefi5ialinteetG @K 292#, .d @a)@6))H e.ie t4e l+an evi5e t+ inf+ t4e ++:e, ef+e a n+ti5e +f defa.lt i filed, +f t4e ++:e> i-4t t+ e.et 5+pie +f an

ai-nent +f t4e deed +f t.t e.ied t+ de+ntate t4e i-4t +f t4e +t-a-eevi5e t+ f+e5l+eG @K 2923, .d @)@1)@")@iii))H and e.ie t4e evi5e t+en.e t4e d+5.entati+n .tantiate t4e i-4t t+ f+e5l+e @K 292#17, .d@)) T4e le-ilative 4it+ indi5ate t4e additi+n +f t4ee p+vii+n :a p+pted in pat ep+t t4at n+n=.di5ial f+e5l+.e p+5eedin- :ee ein-initiated +n e4alf +f 5+panie :it4 n+ a.t4+it t+ f+e5l+e @See Sen &.le!+, !+nfeen5e &ep +n Sen "ill N+ 9 @211B212 &e- Se) a aendedI.ne 27, 212, p 26)


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v+id, :e need n+t de5ide :4et4e t4e ne: p+vii+n p+vide additi+nal .pp+t

f+ t4at 4+ldin-

Plaintiff 4a alle-ed t4at 4e deed +f t.t :a ai-ned t+ t4e '+-an Stanle

invetent t.t in 0e5ee 211, eveal ea afte +t4 t4e e5.itied t.t>

5l+in- date and Ne: !ent.> li.idati+n in an;.pt5, a defe5t plaintiff 5lai

ende t4e ai-nent v+id "e+nd t4ei -eneal 5lai a ++:e 4a n+

tandin- t+ 54allen-e an ai-nent +f t4e deed +f t.t, defendant a;e eveal

a-.ent a-aint all+:in- plaintiff t+ plead a 5a.e +f a5ti+n f+ :+n-f.l

f+e5l+.e aed +n t4i alle-edl v+id ai-nent

Pin5ipall, defendant a-.e t4e 0e5ee 211 ai-nent +f t4e deed +f

t.t t+ 0e.t54e "an;, a t.tee f+ t4e invetent t.t, :a eel

5+nfiat+G +f a 27 ai-nent t4at 4ad een e?e5.ted in lan; @ie, :it4+.t

dei-nati+n +f ai-nee) :4en t4e l+an :a added t+ t4e t.t> invetent p++l

T4e p.p+e +f t4e 211 e5+ded ai-nent, defendant aet, :a eel t+

5+pl :it4 a e.ieent in t4e t.t> p++lin- and evi5in- a-eeent t4at

d+5.ent e e5+ded ef+e f+e5l+.e ae initiated An ai5. 5.iae

.pp+tin- defendant> p+iti+n aet t4at t4e -eneal pa5ti5e in 4+e l+an

e5.itiati+n i t+ initiall e?e5.te ai-nent +f l+an and +t-a-e + deed

+f t.t t+ t4e t.tee in lan; and n+t t+ e5+d t4eH t4e +t-a-e + deed +f t.t

i .e.entl end+ed t4e t.tee and e5+ded if and :4en tate la:

e.ie @See 3a4amin, s#$ra, 77 F3d at p 91) T4i 5lai, :4i54 -+e n+t t+

t4e le-al i.e +f a ++:e> tandin- t+ .e f+ :+n-f.l f+e5l+.e aed +n a

v+id ai-nent, .t at4e t+ t4e fa5t.al .eti+n +f :4en t4e ai-nent in t4i

5ae :a a5t.all ade, i +.tide t4e liited 5+pe +f +. evie: T4e ae i

t.e +f defendant> eainin- fa5t.al 5lai, in5l.din- t4at t4e te?t +f t4e

invetent t.t> p++lin- and evi5in- a-eeent de+ntate plaintiff> deed

+f t.t :a ai-ned t+ t4e t.t ef+e it 5l+ed


29/32

CONCLUSION

$e 5+n5l.de a 4+e l+an ++:e 4a tandin- t+ 5lai a n+n=.di5ial

f+e5l+.e :a :+n-f.l e5a.e an ai-nent :4i54 t4e f+e5l+in- pat

p.p+tedl t++; a enefi5ial inteet in t4e deed +f t.t :a n+t eel v+idale

.t v+id, depivin- t4e f+e5l+in- pat +f an le-itiate a.t4+it t+ +de a

t.tee> ale T4e !+.t +f Appeal t++; t4e +pp+ite vie: and, +lel +n t4at

ai, 5+n5l.ded plaintiff 5+.ld n+t aend 4e +peative 5+plaint t+ plead a

5a.e +f a5ti+n f+ :+n-f.l f+e5l+.e $e .t t4eef+e evee t4e !+.t +f

Appeal> =.d-ent and all+: t4at 5+.t t+ e5+nide t4e .eti+n +f an

aendent t+ plead :+n-f.l f+e5l+.e $e e?pe n+ +pini+n +n :4et4e

plaintiff 4a alle-ed fa5t 4+:in- a v+id ai-nent, + +n an +t4e i.e

elevant t+ 4e ailit t+ tate a 5lai f+ :+n-f.l f+e5l+.e


30/32

DISPOSITION

T4e =.d-ent +f t4e !+.t +f Appeal i eveed and t4e atte i eanded

t+ t4at 5+.t f+ f.t4e p+5eedin- 5+nitent :it4 +. +pini+n

3ERDEGAR 4 5.

3E CONCUR 6

CANTIL7SAKAU8E4 C. 5.

CORRIGAN4 5.LIU4 5.CU9LLAR 4 5.K RUGER 4 5.HUFFMAN4 5.:

: A+5iate I.ti5e +f t4e !+.t +f Appeal, F+.t4 Appellate 0iti5t,0ivii+n One, ai-ned t4e !4ief I.ti5e p..ant t+ ati5le V, e5ti+n 6 +f t4e!alif+nia !+ntit.ti+n


31/32

See ne2t $age for addresses and tele$hone n#mers for co#nsel +ho arg#ed in S#$reme Co#rt.

Na*e of O;""o Yvan+va v Ne: !ent. '+t-a-e !+p+ati+n


32/32

Couse$ ')o ar(ued " Su;re*e Court @ot "teded for ;u=$"#at"o '"t) o;""o6

&i54ad * Ant+-nini*a: Offi5e +f &i54ad * Ant+-nini236 Nevada !it Di-4:a, S.ite 636(a Valle, !A 99#77@916) 29#896

ennet4 *ee 'a4all"an !ave6 'ii+n Steet, S.ite 2San Fan5i5+, !A 9#1@#1) 673#

Documents

Landmark Decision for Homeowners Feb. 2016 from the California Supreme Court in Yvanova v. New Century appeal in WORD format