Chapter 8-10 Declaratory Judgment

• Jurisdiction: United States

8-10 Declaratory Judgment

8-10:1 Overview

An action for declaratory relief is governed by Chapter 37 of the Texas Civil Practice and Remedies Code, also referred to as the Uniform Declaratory Judgment Act (UDJA). Neither legal or equitable in nature, the Act provides a procedural device allowing judicial determination of controversies within a court's jurisdiction. The purpose of the Act is to settle and afford relief from uncertainty and insecurity with respect to rights, status and other legal relations.

8-10:1.1 Related Causes of Action

Injunction, Specific Performance

8-10:2 Elements for Declaratory Judgment

(1) A justiciable controversy exists as to the rights, status or legal relations between the parties;

• To bring an action for declaratory judgment, a justiciable controversy must exist between the parties involved.³⁹¹
• "To constitute a justiciable controversy, there must exist a real and substantial controversy involving genuine conflict of tangible interests and not merely a theoretical dispute."³⁹²
• As long as there is a justiciable controversy, the party seeking relief need not have incurred actual injury.³⁹³
• An actual controversy need not exist if the "ripening seeds" of a controversy are present.³⁹⁴ Ripening seeds of controversy exist when facts and circumstances indicate imminent and inevitable litigation, as opposed to a hypothetical or abstract conflict.³⁹⁵
• "A person interested under a deed, will, written contract, or other writings constituting a contract or whose rights, status, or other legal relations are affected by a statute, municipal ordinance, contract, or franchise may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status, or other legal relations thereunder."³⁹⁶
• However, declaratory judgment is not limited solely to disputes regarding written instruments and statutes. It encompasses a wide variety of factual situations and applies whenever there is a justiciable controversy involving uncertainty or insecurity as to the rights, legal relations or status of parties and declaratory relief will resolve the controversy.³⁹⁷
• Declaratory relief is proper when the sole issue concerning title to real property is the determination of the proper boundary line between adjoining properties.³⁹⁸ If the controversy also requires determination of proper title to the land, however, declaratory judgment is not available.³⁹⁹
• Relief may also be obtained when a controversy exists regarding various aspects of administration of a trust.⁴⁰⁰
• A court may not render a declaratory judgment that rules on a hypothetical fact situation.⁴⁰¹
• Declaratory relief is not available for the interpretation of a prior judgment entered by that or any other court.⁴⁰²

(2) The party seeking relief has a justiciable interest in the subject matter of the suit.

• To maintain an action for declaratory judgment, a plaintiff must have a justiciable interest in the subject matter of the suit.⁴⁰³ Consistent with the usual rules of standing, the party seeking relief must demonstrate a particularized interest in a conflict distinct from the public at large.⁴⁰⁴

(3) The controversy will be resolved by the declaratory judgment sought;

• The judgment or decree sought must terminate the uncertainty or controversy giving rise to the proceeding.⁴⁰⁵
• A judgment that provides specific relief to a litigant or otherwise affects legal relationship terminates the uncertainty or controversy.⁴⁰⁶
• A court may not render a declaratory judgment that amounts to an advisory opinion.⁴⁰⁷

(4) The controversy's subject matter is:

• An action under the UDJA must fall within the specified subject matters outlined in Chapter 37 of the Act.⁴⁰⁸
• A potential defendant may not use a declaratory judgment action to determine potential tort liability; declaratory judgments were not intended to deprive a potential tort plaintiff of the right to decide whether, when and where to sue.⁴⁰⁹

(4)(a) Determination of one of following questions arising in administration of estate or trust:

(i) Ascertainment of class of creditors, devisees, legatees, heirs, next of kin or other persons interested in matter;
(ii) Direction that executors, administrators or trustees do or abstain from doing a particular act in fiduciary capacity; or
(iii) Any question arising in administration of trust or estate, including construction of will or other writing.⁴¹⁰

(4)(b) Declaration of client's rights, status or other legal relations under deed, will, written contract, statute, municipal ordinance or franchise.

• Declaration of client's rights, status or other legal relations under deed, will, written contract, statute, municipal ordinance or franchise.⁴¹¹
• Whether an insurer is required to provide defense and indemnity may be included within this category.⁴¹²

(4)(c) Determination of the proper boundary line between adjoining properties.

• Determination of the proper boundary line between adjoining properties.⁴¹³

8-10:3 Damages and Remedies

8-10:3.1 Declaratory Judgment

A court of record within its jurisdiction has power to declare rights, status and other legal relations whether or not further relief is or could be claimed.⁴¹⁴

The declaration may be either affirmative or negative in form and effect, and the declaration has the force and effect of a final judgment or decree.⁴¹⁵

A declaratory judgment has the same force and effect as a final judgment or decree.⁴¹⁶ Declaratory relief is not available for the interpretation of a prior judgment entered by that or any other court.⁴¹⁷ An action for a declaratory judgment cannot be used to set aside a final judgment that is not void because it would constitute an impermissible collateral attack on the judgment.⁴¹⁸

8-10:3.2 Attorney's Fees

In any proceeding under the UDJA, the court may award costs and reasonable and necessary attorney's fees as are equitable and just.⁴¹⁹

However, a declatory judgment may not be used solely to obtain attorney's fees.⁴²⁰

A party must file an affirmative pleading requesting attorney's fees, unless the issue was waived or tried by consent.⁴²¹

The DJA places the grant or denial of attorney's fees in declaratory judgment actions within the discretion of the trial court.⁴²²

A prevailing party in a declaratory judgment action is not entitled to fees as a matter of law.⁴²³

A non-prevailing party may be awarded attorney's fees if it is equitable and just under the circumstances.⁴²⁴

The court may award attorney's fees even if a case does not go to trial or does not result in a judgment.⁴²⁵

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