Opinion ID: 2831645
Heading Depth: 2
Heading Rank: 1

Heading: Argument Raised for the First Time on Appeal

Text: Initially, we must determine whether we can consider Kaass Law’s argument concerning the permissibility of awarding sanctions against a law firm pursuant to 28 U.S.C. § 1927 because the issue was raised by Kaass Law for the first time on appeal. “Ordinarily, an appellate court will not hear an issue raised for the first time on appeal.” Cornhusker Cas. Ins. Co. v. Kachman, 553 F.3d 1187, 1191 (9th Cir. 2008) (internal quotation omitted). “There are, however, four exceptions to this rule, where: (1) there are exceptional circumstances why the issue was not raised in the trial court; (2) new issues have become relevant while the appeal was pending because of [a] change in the law; (3) the issue presented is purely one of law and the opposing party will suffer no prejudice as a result of the failure to raise the issue in the trial court; or (4) plain error has occurred and injustice might otherwise result.” United States v. Echavarria-Escobar, 270 F.3d 1265, 1267–68 (9th Cir. 2001). KAASS LAW V. WELLS FARGO BANK 7 Kaass Law contends that because it “is not an attorney, nor is it a person admitted to conduct cases in courts, the district court erred in imposing sanctions against it pursuant to Section 1927.” Because this argument falls under the third exception noted in Echavarria-Escobar, we can consider it on appeal, and we need not consider the other exceptions. Whether a law firm may be sanctioned under 28 U.S.C. § 1927 is “purely” an issue of law. Moreover, Wells Fargo will not suffer prejudice if we address it for the first time on appeal. There is nothing in the record to suggest that Wells Fargo would “have presented new evidence or made new arguments” if the issue had been raised below. United States v. Rubalcaba, 811 F.2d 491, 493 (9th Cir. 1987).