Opinion ID: 6927862
Heading Depth: 2
Heading Rank: 2

Heading: Declaratory Judgment Analysis

Text: The Joneses also challenge the district court’s decision to remand their declaratory judgment action against Preferred Risk to Nicholas County. In remanding to state court, the district court noted that it has discretion in determining whether to hear an action for declaratory relief. 28 U.S.C. § 2201. Grand Trunk W. R.R. Co. v. Consolidated Rail Corp., 746 F.2d 323 (6th Cir.1984). The Joneses do not challenge the district court’s remand of their action for declaratory judgment, recognizing the court’s discretion. Allstate Ins. Co. v. Mercier, 913 F.2d 273 (6th Cir.1990). However, the Joneses contend that the district court failed to consider their second cause of action against Preferred Risk, that being a diversity action for money damages, arguing that a federal district court should not refuse to hear a claim where the elements of diversity jurisdiction have been met. Meredith v. City of Winter Haven, 320 U.S. 228, 64 S.Ct. 7, 88 L.Ed. 9 (1943). A review of the Complaint reveals that the Joneses did not plead a cause of action against Preferred Risk separate and apart from their declaratory judgment claim. While the Complaint makes reference to the $100,000 insurance the Joneses allege they are entitled to, the prayer merely seeks a declaration that they are entitled to that amount. The reference to the specific amount of $100,000 is made merely to define the content of the declaration. The argument that the Joneses advanced two separate causes of action against Preferred Risk is further belied by the Joneses’ post-judgment Motion to Alter, Amend, or Vacate filed with the district court, (Docket Nos. 46, 47). In addition to objecting to the dismissal of the § 1983 claim against the City, the Joneses challenged the remand of the declaratory judgment claim without indicating to the district court that their complaint could be construed to include a diversity action against Preferred Risk separate and apart from their declaratory judgment claim. 5 The declaratory judgment action against Preferred Risk was originally filed in district court. It was consequently improper for the district court to remand it to a state court. Therefore, .the Joneses’ declaratory judgment action is remanded to the district court for entry of an order of dismissal without prejudice. 6