This issue was raised for the first time in history on appeal by KAASS LAW. On appeal KAASS LAW made two principal arguments, however before hearing the second argument, the panel held that § 1927 does not permit the imposition of sanctions against a law firm. The 9th Circuit Court reversed and vacated the district court’s order, holding that § 1927 does not permit sanctions against a law firm. Thus, the panel reversed the district court’s decision in granting Well Fargo’s motion for sanctions against KAASS LAW pursuant to 28 U.S.C. § 1927, and vacated the order imposing sanctions on KAASS LAW.
KAASS LAW’s second argument opposed the district court’s finding of bad faith. However, the 9th Circuit agreed with KAASS LAW’s first argument that the district court abused its discretion when it imposed sanctions against a law firm pursuant to 28 U.S.C. § 1927. Thus, the court did not reach the second argument.
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