Making a Federal Case of It: Seeking Declaratory Relief in Federal Court

• Pages: 1-4
• Date: 01 April 2025
• Published date: 01 April 2025
• Author: Michael Steger,Jessica Kumar
• Subject Matter: Administrative & Public Law

Solo & Small Firm Litigation Committee

Spring 2025, Vol. 15, Issue 1

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ARTICLES

Making a Federal Case of It: Seeking Declaratory Relief

in Federal Court

By Michael Steger and Jessica Kumar – March 11, 2025

Uncertainty is the enemy of most businesses. If one of your clients is threatened with a possible

lawsuit, contract default, or other harm that has yet to occur, you may want a definitive

outcome sooner rather than later. Rather than wait for the adversary to terminate a contract,

withhold payment, or file a lawsuit, your client may want a court to interpret the contract, law,

or regulation under the relevant facts.

While almost all civil lawsuits seek monetary damages or injunctive or other equitable relief (or

both), courts may order declaratory relief, stating the rights and obligations of the parties

involved before any harm actually occurs, while stopping short of awarding damages or other

equitable orders. Unlike a monetary claim seeking retrospective relief for past harm, a

declaratory judgment grants prospective relief sorting out rights and duties to guard against

future harm.

While state courts regularly entertain declaratory judgment claims, if your client is threatened

in an unfamiliar jurisdiction where you are concerned about an unfriendly state court, a hostile

jury, or a problematic state procedure, you may consider seeking declaratory relief in federal

court. The federal declaratory relief statute, 28U.S.C. § 2201, provides:

In a case of actual controversy within its jurisdiction . . . any court of the United States,

upon the filing of an appropriate pleading, may declare the rights and other legal

relations of any interested party seeking such declaration, whether or not further relief

could be sought. Any such declaration shall have the force and effect of a final judgment

or decree and shall be reviewable as such.

While state courts have unlimited jurisdiction, Article III of the U.S. Constitution limits federal

court jurisdiction to constitutional questions, disputes covered by federal law, and a few

additional grounds. Experienced litigators know that federal judges are often looking for

avenues to dismiss claims and clear their dockets, so you must carefully set forth the grounds

for declaratory relief when filing in district court. Because trial court decisions to exercise or

decline the hearing of declaratory relief claims are reviewed for abuse of discretion (Wilton v.

Seven Falls Co., Inc., 515 U.S. 277, 290 (1995)), the district court judge’s initial jurisdictional

ruling will usually constitute the final word.