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

Heading: Prior Proceedings in the Action for Sanctions

Text: On March 21, 2013, the district court’s judgment dismissing Wells Fargo from the action was filed. Thereafter, Wells Fargo filed a motion to recover $11,236.50 in attorneys’ fees and costs from Kaass Law and the named Plaintiff, pursuant to 28 U.S.C. § 1927. Wells Fargo contended that Kaass Law’s “litigation conduct undoubtedly ‘multipl[ied] the proceedings in any case unreasonably and vexatiously’ thereby constituting bad faith.” Specifically, Wells Fargo argued that Kaass Law had acted in bad faith by: 1) filing a complaint and amended complaint that failed to differentiate Wells Fargo from the other defendants, and failed to provide factual allegations identifying the inaccurate information; 2) failing to communicate its intent to file a motion for leave to amend, and then filing a motion for leave to amend the day after Wells Fargo filed a motion to dismiss; 3) failing to oppose Wells Fargo’s motion to dismiss; 4) and engaging in a pattern and practice of filing similar “canned” and “boilerplate” complaints, in the same manner as Kaass Law’s “predecessor,” attorney Arshak Bartoumian, had done. The district court granted the motion in part, and denied it in part. While the district court declined to award fees against the Plaintiff, it ruled that “Kaass Law acted in bad faith by knowingly raising frivolous arguments against Wells Fargo and other defendants,” and granted the motion against Kaass Law. The district court noted that “Wells Fargo provides sufficient evidence that Kaass Law acted in bad faith,” including “its failure to plead specific allegations or differentiate between defendants in the Complaint; its failure KAASS LAW V. WELLS FARGO BANK 5 to oppose defendants’ motions to dismiss; and its failure to meet and confer or communicate with opposing counsel.” Additionally, the district court concluded that in attempting to file a first amended complaint, Kaass Law had “failed to correct the glaring pleading and legal errors identified by defendants, thereby recklessly and knowingly multiplying the proceedings in this action.” The district court reduced the hours claimed by Wells Fargo’s attorneys, Scott J. Hyman and David Berkeley, from 14.4 hours to 10 hours for Mr. Hyman, and from 22.5 hours to 18 hours for Mr. Berkeley, but then awarded Wells Fargo a total of $8,480 in attorneys’ fees. This timely appeal followed. STANDARD OF REVIEW AND JURISDICTION We have jurisdiction over this appeal pursuant to 28 U.S.C. § 1291. “We review all aspects of an award of § 1927 sanctions for an abuse of discretion.” GRiD Sys. Corp. v. John Fluke Mfg. Co., 41 F.3d 1318, 1319 (9th Cir. 1994) (per curiam); United States v. Associated Convalescent Enters., Inc., 766 F.2d 1342, 1345 (9th Cir. 1985). The construction or interpretation of 28 U.S.C. § 1927 is a question of law, and is reviewed de novo. See Miranda v. Anchondo, 684 F.3d 844, 849 (9th Cir. 2011).