Teri Sahm, proceeding pro se, appealed a district court judgment that dismissed her action challenging a foreclosure and eviction. The underlying dispute involved a complex history of litigation where Sahm had previously filed multiple federal lawsuits and bankruptcy petitions regarding the same property, all of which were dismissed for being meritless, untimely, or otherwise deficient. The district court had not only dismissed the current complaint but also denied motions for recusal of the judge, a preliminary injunction, and reconsideration, while simultaneously designating Sahm as a vexatious litigant to bar future filings against the specific defendants concerning the property. Sahm appealed, arguing error in the dismissal and the various procedural denials.
The Ninth Circuit reviewed the dismissal de novo, applying the standards set forth in Ashcroft v. Iqbal and Bell Atlantic v. Twombly. The panel concluded that Sahm failed to explain how any of the named defendants harmed her or why she was entitled to relief, meaning her complaint lacked the necessary factual content to draw a reasonable conclusion of liability. Regarding preclusion, the court found the district court properly barred the claims because the foreclosure had been litigated in at least two prior federal cases that resulted in final judgments on the merits. On the motion for recusal, the court held there was no colorable basis for it, noting that a judge's prior adverse ruling is not sufficient cause for recusal under 28 U.S.C. §§ 144 and 455(a). The court also affirmed the denial of a preliminary injunction, citing Winter v. Nat. Res. Def. Council, Inc., because Sahm failed to show she was likely to succeed on the merits or suffer irreparable harm. Finally, the court upheld the vexatious litigant designation, finding the district court's order was narrowly tailored and that Sahm had received notice and an opportunity to respond, with the record supporting the finding that her previous actions were meritless.
The judgment dismissing Sahm's foreclosure challenge remains in effect. The designation of Sahm as a vexatious litigant continues to bar her from filing future actions against the named defendants concerning the specific property. The decision reinforces the strict application of pleading standards and preclusion doctrines for pro se litigants with a history of meritless filings, leaving no open questions on the specific procedural grounds addressed in this order.
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