Declaratory Judgment Actions

Brien Roche

The purpose of the declaratory judgment action is to avoid uncertainty and insecurity as to legal rights without requiring one of the parties to invade the rights asserted by the other as to entitle him to maintain an ordinary action for such. Va. Code § 8.01-191; Miller v. Highland County, 274 Va. 355, 370 (2007) The intent of the statute is to guide the parties in their future conduct in relation to each other by relieving them of the risk of taking action which might jeopardize their interest. All of this is with a view to avoid litigation and opposed to aiding it. Cupp, et al. v. Board of Supervisors, 227 Va. 580, 592 (1984)

Determining such issues as whether an insurer has a duty to defend (Reisen v. Aetna, 225 Va. 327) and determining coverage while there is an underlying tort case pending, even if the ultimate issue of fact in determining coverage is at issue in that tort case is appropriate (Asplundh v. Pacific Employers Insurance Co., 269 Va. 399)

Necessary Parties

Necessary parties to an action such as this is anyone possessing even an indirect interest. Erie v. Hughes, 240 Va. 165 (1990)

Declaratory Judgment Actions-Liberal Construction

The Virginia statute is to be liberally construed. Dean v. Paolicelli, 194 Va. 219 (1952) 

The purpose of the act however is not to render advisory opinion. There must be a justiciable controversy. Chick v. MacBain, 157 Va. 60 (1931)

The purpose of the act is not to aid litigation. The purpose is to avoid litigation. Liberty Mutual v. Bishop, 211 Va. 414 (1970)

When suit is filed, the burden of proof will rest with the party who brings the action. Once that party has made a prima facie case, then the burden of persuasion shifts to the other party. Erie v. Meeks, 223 Va. 287 (1982)

Federal Declaratory Judgment Actions

In federal court, the standards may be a bit different. 28 U.S.C. § 2201  There must be a substantial controversy between the parties of such sufficient immediacy and reality to warrant the issuance of a declaratory judgment. It is not necessary to exhaust all other remedies before declaratory relief is available in a federal action as does seem to be required by the Virginia statute. Va. Code § 8.01-184

Diversity of Citizenship

In determining diversity, the alignment of the parties is not going to be controlling. The court may realign the parties. That is, if the interest of the party bringing the suit is the same as one of the defendants, then realignment is appropriate. That may either create or destroy diversity.