Opinion ID: 1440874
Heading Depth: 1
Heading Rank: 4

Heading: Defendant's Ability to Cure the Default

Text: Finally, the defendant argues that the declaratory judgment cannot lie because he has joined the plaintiff in opposing foreclosure and can cure the default imposed by the NHHFA at any time by contracting with an approved managing agent. Therefore, he argues, no adverse claim exists as is required to maintain a declaratory judgment action. See RSA 491:22. The remedy of declaratory judgment affords relief from uncertainty and insecurity created by a doubt as to rights, status or legal relations existing between the parties. Petitions for declaratory relief must be liberally construed so as to effectuate the evident purpose of the law. Benson v. N.H. Ins. Guaranty Assoc., 151 N.H. 590, 593-94, 864 A.2d 359 (2004). The plaintiff brought this declaratory judgment action alleging the defendant's breach of fiduciary duties on several counts, including placing the partnership's asset at risk of foreclosure. However, the issues on appeal do not concern foreclosure. They concern whether the defendant willfully breached his duties by: (1) failing to comply with the NHHFA regulatory agreement and contract with an approved management agent; and (2) allowing the partnership to go into default with the NHHFA. Future developments such as foreclosure proceedings, or lack thereof, are of no consequence to our decision here. The defendant's failure to contract with an approved managing agent, thereby causing the partnership to go into default, constituted a breach of his fiduciary duties; whether or not he can cure the default is irrelevant, as the breach has already occurred. Such a claim is appropriate for declaratory judgment. Cf. 22A Am.Jur.2d Declaratory Judgments § 119 (2003) (Declaratory judgments are frequently rendered to interpret or construe contracts and declare their effect, [and] to determine whether there has been performance or breach. . . . (footnote omitted)). Affirmed.