4.1.3 Requirements for a Declaratory Judgment Action

• Jurisdiction: Arizona

Assuming subject matter jurisdiction, there are really only two absolute requirements for a declaratory judgment action in either state or federal court: (1) the existence of an actual case or controversy; and (2) parties.

An actual or justiciable issue or controversy is required to create jurisdiction over a declaratory judgment action in either state or federal court.^[17] Such actions must be based on real controversies and not theoretical controversies.^[18] As a rule of thumb, an actual controversy is considered to exist where one side makes a claim of a present, specific right and the other makes an equally definite claim to the contrary.^[19]

An insurer's duty to defend or indemnify has been determined to present an actionable case or controversy.^[20]

Declaratory judgment actions are not permitted where the parties seek merely an advisory opinion,^[21] where the relief sought answers a moot or abstract question,^[22] or where it is based on a future controversy that may or may not arise, or is based on an uncertain set of future facts.^[23] An exception to this rule is that a court may decide a moot question or abstract proposition if the question is one of great public importance or that is capable of repetition yet evading review.^[24]

The complaint must describe the nature of the controversy to be resolved by the declaratory action, and a mere statement that an actual or justiciable controversy exists is not sufficient.^[25]

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Notes:

[17]Woodall,120 Ariz. 379, 586 P.2d 628; Lake Havasu Resort,139 Ariz. 369, 678 P.2d 950; 28 U.S.C. Sec. 2201; Aetna Life Ins. Co. v. Haworth,300 U.S. 227, 57 S. Ct. 461 (1937); Solenoid Devices, Inc. v. Ledex, Inc.,375 F.2d 444 (9th Cir. 1967). To be justiciable, the action must be within the jurisdiction of the court. Powers v. United States,218 F.2d 828 (7th Cir. 1954).

[18]Dail,128 Ariz. 199, 624 P.2d 877; Moore v. Bolin,...