Chapter 57 Declaratory Judgment

• Library: South Carolina Civil Procedure (SCBar) (2020 Ed.)

Chapter 57 Declaratory Judgment Rule 57¹

The procedure for obtaining a declaratory judgment pursuant to Code § 15-53-10 through § 15-53-140, shall be in accordance with these rules, and the right to trial by jury may be demanded under the circumstances and in the manner provided in Rules 38 and 39. The existence of another adequate remedy does not preclude a judgment for declaratory relief in cases where it is appropriate. The court may order a speedy hearing of an action for a declaratory judgment and may advance it on the calendar.

Note:

This is the same as the language of Federal Rule 57 except that the appropriate State Code references are substituted for the Federal statute.

A. Introduction

At common law, courts would not act until an injury had occurred and the plaintiff was entitled to seek damages or an injunction. In many cases, however, a prompt determination of the rights and obligations of the parties reduces damages and allows the parties to restructure the relationship or seek other arrangements. The Declaratory Judgment Act and Rule 57 eliminate the common law requirement that a plaintiff must have been injured or entitled to coercive relief to state a claim. This change permits the parties to obtain a prompt adjudication of an actual controversy before a law is violated or a contract breached.²

B. Cases Appropriate for Declaratory Judgment

South Carolina adopted the Declaratory Judgment Act in 1948.³ Section 15-53-20 grants "courts of record" the authority to "declare rights, status and other legal relations whether or not further relief is or could be claimed." This language permits an action even though a party has not been injured and is not entitled to damages or coercive relief. A litigant's ability to maintain a traditional action for damages, however, does not preclude declaratory judgment. The first sentence of § 15-53-20 provides that the power to declare rights, status, and other legal relations is available "whether or not further relief is or could be claimed."⁴

The Act defines the types of disputes subject to a declaratory judgment. Included are actions to construe a deed, a will, or a contract before or after breach,⁵ actions to determine the effect of municipal ordinances, contracts or franchises,⁶ and actions to construe a trust or an estate.⁷ The list is not exclusive, for a declaratory judgment is appropriate whenever it would terminate the controversy or remove legal uncertainty.⁸ It is often used to determine the legitimacy of governmental action.⁹ Thus, a declaratory judgment was used to determine whether Santee Cooper's accounting period could be changed from the fiscal to the calendar year,¹⁰to challenge the constitutionality of a statute,¹¹ and to define the authority of a government body.¹²

A declaratory judgment is discretionary with the court,¹³ and certain requirements must be satisfied. The court must have a justiciable controversy, which is defined as "a real and substantial controversy which is appropriate for judicial determination, as distinguished from a dispute or difference of a contingent, hypothetical or abstract character."¹⁴ A justiciable controversy exists when a concrete issue is present, there is an assertion of legal rights, and there is a positive legal duty which is denied by the adverse party.¹⁵

The court will not grant a declaratory judgment if it will be an advisory opinion or not resolve the case. A declaratory judgment was refused when the requested construction of the statute would not affect the litigation.¹⁶ However, a company could obtain a declaratory judgment that its promotional instant win game was not a lottery because a justiciable controversy existed when the solicitor threatened criminal action and ordered the product removed, even though no formal proceedings had taken place.¹⁷

Moreover, the court will not grant a declaratory judgment when there is another action pending on the same subject matter between the same parties¹⁸ because it would be a collateral attack on a judgment rendered in another case.¹⁹ The existence of another procedural remedy does not preclude a declaratory judgment.²⁰ However, the court may refuse to hear a declaratory judgment action when there is a special statutory or administrative remedy available to the plaintiff.²¹

The state Supreme Court has held that the Declaratory Judgment Act "is to be liberally construed and administered to achieve its intended purpose 'to settle and to afford relief from uncertainty and insecurity with respect to rights, status and other legal relations.'"²²

C. Jury Trial

The right to a jury is not affected by the Declaratory Judgment Act or Rule 57.²³ The nature of the underlying claim determines the right to a jury. For example, an action to determine coverage under an insurance policy is an action at law.²⁴ However, an action to reform an insurance policy is in equity.²⁵ Rule 57 adds that the procedure for demanding a jury trial is provided in Rules 38 and 39.

D. Procedure

A declaratory judgment proceeds as any other action under the Rules of Civil Procedure,²⁶ and the joinder of other parties or claims is permitted.²⁷Declaratory judgments are often used to challenge the constitutionality of statutes and ordinances, so the statute requires joinder of the appropriate authorities, including the Attorney General, if the claim is that the statute is unconstitutional.²⁸

All other parties who would be affected by the action should be joined. Thus, a declaratory judgment determining coverage should include the insured and the person seeking damages from the insured.²⁹ However, a declaratory judgment only has preclusive effect on issues actually litigated rather than on all issues that could have been litigated. Thus, after a declaratory judgment determining the rights of the parties, there may be a subsequent action for...