Mwangi v. Wells Fargo Bank, N.A. (In Re Mwangi)

MEMORANDUM

Appellants Eric Mwangi and Pauline Mwicharo (collectively “the Debtors”) appeal from a district court affirmance of the bankruptcy court’s denial of their motion for sanctions. The facts and procedural posture of this case are known to the parties, and we do not repeat them here. In light of our decision in Mwangi v. Wells Fargo Bank, N.A. (In re Mwangi), 764 F.3d 1168 (9th Cir.2014), we dismiss this appeal as moot.

Mwangi, our prior decision, arose from the same set of facts as the instant case. There, the Debtors claimed that Wells Fargo violated 11 U.S.C. § 362 (a)(3), the automatic stay provision of the Bankruptcy Code, when it placed an “administrative pledge” on the Debtors’ bank accounts, effectively freezing the accounts and preventing the Debtors from accessing their funds. We held that the Debtors failed to allege any injury based on the operation of Wells Fargo’s administrative pledge. Id. at 1177 . We reasoned that “[f]rom the filing of the Chapter 7 bankruptcy petition ... to the end of the thirty-day objections period ... the Debtors had no right to possess or control the account funds.” Id. Moreover, after the thirty-day objections period closed, and…