/di-KLAR-uh-tawr-ee JUJ-muhnt pruh-SEE-ding/·procedural term
Also known as:declaratory judgment proceedings · declaratory judgment · declaratory relief action
Written by attorneys — see sources below.
A judicial proceeding in which a court declares the rights, duties, or legal relations of the parties. The proceeding supplies a binding determination that resolves uncertainty without requiring coercive relief such as damages or an injunction.
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How its tested
Common Examples
2
Servitude Enforcement Dispute
Delilah Duran owns land subject to a recorded servitude requiring continued access across her parcel for Dwight Dorsey's adjacent industrial operations. After a new public road is built nearby, Duran notifies Dorsey that she will fence the historic crossing. Dorsey sues in state court seeking a declaratory judgment that the servitude by necessity remains in force because the alternative route imposes commercially unreasonable costs. The court issues the declaration, confirming that the servitude continues and binding the parties on the ongoing access right.
Insurance Coverage Dispute
Duffy Construction faces a lawsuit alleging property damage from its operations. Its insurer, Dakota Industries Insurance, believes the policy excludes coverage for the claimed harm. The insurer files a declaratory judgment proceeding against Duffy Construction to obtain a judicial declaration that no duty to defend or indemnify exists under the policy. The court resolves the coverage question, allowing the insurer to proceed without providing a defense if the declaration favors it.
AES Corporation v. Steadfast Insurance Co.725 S.E.2d 532 (Va. 2012)
In 1996 to 2000 and again from 2003 to 2008, The AES Corporation, a Virginia-based energy company, purchased commercial general liability policies from Steadfast Insurance Company, an Illinois-based insurer.
In February 2008, the Native Village of Kivalina and the City of Kivalina filed a complaint in the United States District Court for the Northern District of California against AES and other energy companies. The complaint alleged that AES intentionally emitted millions of tons of carbon dioxide and other greenhouse gases annually as part of its electricity-generating operations. This contributed to global warming that caused erosion damaging the village located on an Alaskan barrier island.
AES requested defense and coverage from Steadfast under the policies for the Kivalina claims. Steadfast provided a defense subject to a reservation of rights and filed a declaratory judgment action in the Circuit Court of Arlington County, Virginia. The parties filed cross-motions for summary judgment, both relying on the eight corners of the complaint and the policies to determine coverage.
The circuit court denied AES's motion and granted Steadfast's motion for summary judgment. AES appealed to the Supreme Court of Virginia, which granted review on the assignment of error challenging the ruling that the complaint did not allege an occurrence covered by the policies. A prior opinion issued in September 2011 was withdrawn after rehearing.
When may a party obtain a declaratory judgment instead of seeking damages or an injunction?
A declaratory judgment is available when a party needs a judicial declaration of rights or legal relations to resolve uncertainty. The existence of another adequate remedy does not preclude the declaratory judgment if it is otherwise appropriate. Courts may also grant further relief based on the declaration after notice and hearing.
Supporting sources
How does a declaratory judgment proceeding function as a remedy for enforcing a servitude?
A servitude may be enforced by any appropriate remedy, including a declaratory judgment. The court considers the nature and purpose of the servitude, the conduct of the parties, fairness of the servitude, and the costs and benefits of enforcement when choosing the remedy.
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What procedural rules govern a declaratory judgment action in federal court?
The Federal Rules of Civil Procedure govern the procedure for obtaining a declaratory judgment under 28 U.S.C. § 2201. Rules 38 and 39 control demands for jury trial. The court may order a speedy hearing of the action.
Supporting sources
Can an insurer use a declaratory judgment proceeding to resolve a coverage defense?
An insurer asserting that there is no coverage and therefore no duty to defend may file a declaratory judgment proceeding. If the insurer prevails, it has no obligation to provide a defense or indemnify the insured.
667 F.2d 1034, 1045–47 (D.C. Cir. 1981)
…upon manufacturers' liability for disease caused by asbestos products. In this action, Keene Corporation (Keene) seeks a declaratory judgment of the rights and obligations of the parties under the comprehensive general liability policies that the defendants issued to Keene or its predecessors from 1961 to 1980. Specifically,…
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