Opinion ID: 1441864
Heading Depth: 2
Heading Rank: 3

Heading: Negligence Cases

Text: In many states, including ours, although there appears to be no Kentucky case directly on point, [d]eclaratory relief is not ordinarily available in respect of allegations of past negligence and damage, nor will an action for declaratory relief generally be available to a prospective defendant in a negligence action seeking to obtain a declaration of nonliability as to the prospective plaintiff. 22A Am.Jur.2d Declaratory Judgments § 56. It has been observed that: To reverse the roles of the parties to a negligence action would jeopardize those procedures the law has traditionally provided to injured parties seeking judicial relief. An injured party has a right to choose the forum and time, if at all, to assert a claim. To permit a prospective defendant to attempt to obtain a declaration of nonliability would force an injured party to litigate a claim that party may not have wanted to litigate at a time which might be inconvenient or which might precede the party's determination of the full extent of damages. Id. Nonetheless, in allowing the declaratory judgment action to proceed, the circuit court relied on two Kentucky cases: American Continental Ins. Co. v. Weber & Rose, P.S.C., 997 S.W.2d 12 (Ky.App.1998), and Bank One, Kentucky, N.A. v. Murphy, 52 S.W.3d 540 (Ky.2001). Although we acknowledge that these cases weigh in favor of allowing the declaratory judgment action, neither case is on point and they appear to be the exception rather than the rule. Weber & Rose involved an insurance coverage dispute. 997 S.W.2d at 12. There, a jury awarded $2.9 million in damages to the plaintiff, Gordon, against the insured, NKC, in a negligence action. Id. The law firm, Weber & Rose, represented the insured. Id. at 13. The verdict amount dipped into excess coverage limits. Id. After the trial in the underlying action, the excess carrier, ACIC, denied liability and filed a declaratory judgment action against the insured, seeking a ruling that it was not liable on the excess policy for the judgment rendered against the insured. Id. Thereafter, the law firm intervened in the action, seeking declaratory relief adjudicating that it could not be found liable to the excess insurer for malpractice in connection with its representation of the insured. Id. The circuit court granted the law firm a summary judgment on the ground that it could not be adjudged liable to the excess insurer for malpractice, and the Court of Appeals affirmed. Id. at 14. In Bank One , this Court considered whether an employer commits an impermissible retaliatory act under the Kentucky Civil Rights Act by filing a declaratory judgment action seeking a determination that it is entitled to prevail on its affirmative defenses before a potential plaintiff files a lawsuit and while settlement negotiations are ostensibly ongoing. 52 S.W.3d at 541. The employee contended that filing a suit while settlement negotiations were ongoing amounted to a violation of KRS 344.280 and was retaliatory in nature. Id. at 543. We disagreed. In holding that the action was not retaliatory, we stated that [i]t would be unwise for this Court to introduce limitations upon the rights of parties to seek declaratory relief. Id. at 546. It is not surprising that, besides Weber & Rose and Bank One , which are not directly on point, there is little precedent for declaratory relief under the present circumstances. However, a Texas case, Averitt v. PriceWaterhouseCoopers L.L.P., 89 S.W.3d 330 (Tex.App.2002), appears to address essentially the same issue we are faced with here. The issue in Averitt was whether an accounting firm could use a declaratory judgment action to obtain a declaration of non-liability for an alleged breach of oral contract for accounting services pertaining to the formation of a trust. Id. at 331. The client moved for summary judgment on the ground that the accounting firm was improperly using the Texas DJA to determine potential tort liability. Id. at 333. The trial court denied the client's motion for summary judgment, but the Texas Court of Appeals reversed and held that the accounting firm was improperly using its suit for declaratory judgment to determine potential tort liability. Id. at 336. In addition to Averitt, Mammoth cites to decisions by appellate courts in Arkansas, California, Idaho, Illinois, Indiana, Kansas, Maryland, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, and Wisconsin recognizing that declaratory relief is not intended as a vehicle for adjudicating allegations of past negligence or damage. Bankers & Shippers Ins. Co. of New York v. Kildow, 9 Ark.App. 86, 654 S.W.2d 600 (1983); Watson v. Sansone, 19 Cal.App.3d 1, 96 Cal.Rptr. 387 (1971); Ennis v. Casey, 72 Idaho 181, 238 P.2d 435 (1951); Howlett v. Scott, 69 Ill.2d 135, 13 Ill.Dec. 9, 370 N.E.2d 1036 (1977); Volkswagenwerk, A.G. v. Watson, 181 Ind.App. 155, 390 N.E.2d 1082 (1979); State Farm Fire and Cas. Co. v. Finney, 244 Kan. 545, 770 P.2d 460 (1989); Polakoff v. Hampton, 148 Md.App. 13, 810 A.2d 1029 (2002); Ditzler v. Spee, 288 Minn. 314, 180 N.W.2d 178 (1970); Campbell 66 Exp., Inc. v. Thermo King of Springfield, Inc., 563 S.W.2d 776 (Mo.Ct.App.1978); Ryder Truck Rental, Inc. v. Rollins, 246 Neb. 250, 518 N.W.2d 124 (1994); Donadio v. Cunningham, 58 N.J. 309, 277 A.2d 375 (1971); Salomon Bros., Inc. v. West Virginia State Bd. of Investments, 152 Misc.2d 289, 575 N.Y.S.2d 993 (N.Y.Sup.Ct.1990); Coca-Cola Bottling Co. Consol. v. Durham Coca-Cola Bottling Co., 141 N.C.App. 569, 541 S.E.2d 157 (2000); Baker v. Miller, 33 Ohio App.2d 248, 294 N.E.2d 901 (1972); Hyman-Michaels Co. v. Hampton, 471 P.2d 463 (Okla.1970); Osram Sylvania Products, Inc. v. Comsup Commodities, Inc., 845 A.2d 846 (Pa.Super.Ct.2004); Tennessee Farmers Mut. Ins. Co. v. Hammond, 200 Tenn. 106, 290 S.W.2d 860 (1956); Roberts v. Badger State Auto Auction, 604 N.W.2d 33 (Wis.Ct.App.1999). Federal law is consistent with this position. See, e.g., Cunningham Bros., Inc. v. Bail, 407 F.2d 1165 (7th Cir.1969) (the Federal DJA was not intended to enable a prospective defendant in a negligence action to obtain a declaration of non-liability). We find these authorities persuasive.