Yepez-Razo v. Gonzales, 445 F.3d 1216 (9th Cir. Apr. 24, 2006) (lawful permanent resident was able to show lawful residence in the United States for purposes of INA 212(h) relief despite out of status period because she was prima facie eligible for Family Unity treatment, and the out of status period was caused in part by an improper denial of the relief by the INS; any period under the Family Unity program is not to be counted as unlawful presence. INA 212(a)(9)(B)(iii)(III)).
http://caselaw.lp.findlaw.com/data2/circs/9th/0372005p.pdf