Opinion ID: 1756163
Heading Depth: 1
Heading Rank: 3

Heading: Declaratory judgment is available in this case

Text: A declaratory judgment action seeking the interpretation of an insurance policy, and the determination of liabilities arising under it, is properly brought under the declaratory judgment act. In determining whether or not a declaratory judgment should be entertained, the trial court is afforded considerable discretion. American Family Mut. Ins. Co. v. Nigl, 123 S.W.3d 297, 301 (Mo.App.2003). As noted in Cotton v. Iowa Mut. Liability Ins. Co., 363 Mo. 400, 251 S.W.2d 246, 249 (1952), the insurer's obligation to pay the injured plaintiff does not arise until the insured's obligation to pay has been finally determined by judgment against the insured or by written agreement among the injured, the insured, and the insurer. In this case, there is such a written agreement. Shelter has agreed to pay any amounts provided by the applicable coverages. Such an agreement is an admission that its insureds are liable in an amount at least equal to those amounts and that it is liable to pay those amounts. Likewise, the injured parties have agreed that they will be compensated by the insureds solely out of any amounts payable under the policies. All this is done as a settlement to resolve plaintiffs' underlying suit for damages. Plaintiffs seeking declaratory relief must demonstrate a justiciable controversy for which they have no adequate remedy at law. A justiciable controversy exists where the plaintiff has a legally protectible interest at stake, a substantial controversy exists between parties with genuinely adverse interests, and that controversy is ripe for judicial determination. A controversy is ripe if the parties' dispute is developed sufficiently to allow the court to make an accurate determination of the facts, to resolve a conflict that is presently existing and to grant specific relief of a conclusive character. Levinson v. State, 104 S.W.3d 409, 411-12 (Mo. banc 2003). This suit meets this criteria. The insureds' liability to the plaintiffs has been determined by the settlement. Under that settlement, the plaintiffs have a right to recover from the insurer if coverage exists. The controversy between the parties is the exact number of coverages that exist under the applicable insurance policies. The parties have adverse interests as to the number of coverages that exist. The parties have reduced the controversy to the specific language of the policies, and the trial court can grant the specific dollar amount to which the plaintiffs are entitled. Under these circumstances, the parties properly sought a declaratory judgment.