On June 4, 2010, the California Court of Appeal issued its first important decision on the scope of California's Perata Mortgage Relief Act, passed into law in 2008 and codified at California Civil Code Sections 2923.5 and 2923.6. See Mabry v. Superior Court (Case No. G042911, June 4, 2010) ---Cal.App.4th---, 2010 WL 2180530.

Though the Court held that plaintiffs have a private right of action under the PMRA, it also held that the PMRA does not require lenders to modify loans, but only to contact (or attempt to contact) borrowers about possible options to potentially avoid foreclosure. The Court's other holdings also limit the impact of the PMRA, eviscerating the claims of many plaintiffs seeking to halt or unwind foreclosure sales in the wake of the mortgage crises.