Opinion ID: 672838
Heading Depth: 3
Heading Rank: 1

Heading: Declaratory Judgment Standards

Text: 16 We begin by analyzing the declaratory judgment remedy. As has long been recognized, the Declaratory Judgment Act, 28 U.S.C. Sec. 2201 (1988), is an enabling Act, which confers a discretion on the courts rather than an absolute right upon the litigant. 10 Green v. Mansour, 474 U.S. 64, 72, 106 S.Ct. 423, 428, 88 L.Ed.2d 371 (1985) (quoting Public Serv. Comm'n v. Wycoff Co., 344 U.S. 237, 241, 73 S.Ct. 236, 239, 97 L.Ed. 291 (1952)); see also Cardinal Chem. Co. v. Morton Int'l, Inc., --- U.S. ----, ---- n. 17, 113 S.Ct. 1967, 1974 n. 17, 124 L.Ed.2d 1 (1993); ACLU Found. of Southern California v. Barr, 952 F.2d 457, 466 (D.C.Cir.1991); Hanes Corp. v. Millard, 531 F.2d 585, 591 (D.C.Cir.1976). The decision whether to grant the declaratory judgment remedy is informed by the teachings and experience concerning the functions and extent of federal judicial power. Wycoff, 344 U.S. at 243, 73 S.Ct. at 240. Public policy favors declaratory judgments (1) when the judgment will serve a useful purpose in clarifying and settling the legal relations in issue, and (2) when it will terminate and afford relief from the uncertainty, insecurity, and controversy giving rise to the proceeding. EDWIN BORCHARD, DECLARATORY JUDGMENTS 299 (2d ed. 1941). When a declaratory judgment will play scant role in settling a dispute, it is often better (if not legally necessary) to refrain from granting the declaratory judgment remedy. 17 The district court did not appear to question the wisdom or propriety of awarding declaratory relief in this case. We must initially determine, then, by what standard to review the exercise of discretion by the trial court to grant or deny declaratory relief. This circuit has never squarely decided the issue. In Hanes Corp. v. Millard, 531 F.2d 585 (D.C.Cir.1976), we noted that [a] number of courts and commentators take the view that the customary deference observed with respect to certain district court determinations is not applicable in this context, and that an appellate court can, and should, bring its own judgment to bear. Id. at 591. We did not expressly adopt this view in Hanes Corp., although we did describe our review as quite searching. Id.; see also President v. Vance, 627 F.2d 353, 364 n. 76 (D.C.Cir.1980) (noting thatHanes Corp. never actually adopted the de novo review standard). In subsequent cases, this court seems to have exercised independent judgment, although it has done so without identifying the particular standard under which it has acted. See Spivey v. Barry, 665 F.2d 1222, 1235 (D.C.Cir.1981); Winpisinger v. Watson, 628 F.2d 133, 141 (D.C.Cir.), cert. denied, 446 U.S. 929, 100 S.Ct. 1867, 64 L.Ed.2d 282 (1980). 18 The other circuits are divided over the standard of review governing discretionary declaratory relief. The Second, Fifth, Eighth, and Tenth Circuits overturn a trial court's decision only upon finding a clear abuse of discretion. See, e.g., Christopher P. by Norma P. v. Marcus, 915 F.2d 794, 802 (2d Cir.1990), cert. denied, 498 U.S. 1123, 111 S.Ct. 1081, 112 L.Ed.2d 1186 (1991); Mission Ins. Co. v. Puritan Fashions Corp., 706 F.2d 599, 601 & n. 2 (5th Cir.1983); United States Fidelity & Guar. Co. v. Murphy Oil USA, Inc., 21 F.3d 259, 263 n. 5 (8th Cir.1994); Kunkel v. Continental Casualty Co., 866 F.2d 1269, 1273 (10th Cir.1989). The Fourth, Sixth, Seventh, Ninth, Eleventh, and Federal Circuits review the district court's determination de novo. See, e.g., Mitcheson v. Harris, 955 F.2d 235, 237 (4th Cir.1992); Grand Trunk Western R.R. Co. v. Consolidated Rail Corp., 746 F.2d 323, 325-26 (6th Cir.1984); Tempco Elec. Heater Corp. v. Omega Eng'g, Inc., 819 F.2d 746, 749 (7th Cir.1987); United States v. Washington, 759 F.2d 1353, 1356-57 (9th Cir.) (en banc), cert. denied, 474 U.S. 994, 106 S.Ct. 407, 88 L.Ed.2d 358 (1985); Cincinnati Ins. Co. v. Holbrook, 867 F.2d 1330, 1333 (11th Cir.1989); Genentech, Inc. v. Eli Lilly & Co., 998 F.2d 931, 936 (Fed.Cir.1993). The First Circuit occupies a self-styled middle-ground, avowing that it cede[s] some deference to the trier but will not hesitate to act upon our independent judgment if it appears that a mistake has been made. El Dia, Inc. v. Hernandez Colon, 963 F.2d 488, 492 (1st Cir.1992). The Third Circuit employs its own form of intermediate scrutiny, reviewing trial court decisions granting declaratory relief under an abuse of discretion standard while reviewing decisions denying such relief more sharply. See Exxon Corp. v. FTC, 588 F.2d 895, 900 (3d Cir.1978). Commentators have virtually unanimously lauded the de novo standard. See EDWIN BORCHARD, DECLARATORY JUDGMENTS 294 (2d ed. 1941); Henry J. Friendly, Indiscretion About Discretion, 31 EMORY L.J. 747, 778-79 (1982); 10A CHARLES A. WRIGHT ET AL., FEDERAL PRACTICE AND PROCEDURE Sec. 2759 n. 22 (Supp.1993); 6A J. MOORE, MOORE'S FEDERAL PRACTICE p 57.08 (2d ed. 1982). 19 We adopt the view implicitly embraced by our precedents, currently employed by the Fourth, Sixth, Seventh, Ninth, Eleventh, and Federal Circuits, and approved by the overwhelming majority of commentators, that appellate courts must exercise independent judgment in evaluating the propriety of granting declaratory relief. It is difficult to see why we should be required to expand dramatically upon the law of this circuit when equitable and prudential factors indicate that our efforts are not likely to resolve the controversy. See Grand Trunk R.R., 746 F.2d at 326. Legal rules of general applicability are announced when their consequences are known and understood in the case before the court, not when the subject parties and the court giving judgment are left to guess at their meaning. Washington, 759 F.2d at 1357. Furthermore, like the Seventh Circuit, we believe that the decision whether to allow a declaratory judgment action to proceed is one which calls for 'discretion hardened by experience into rule.'  Tempco Elec. Heater, 819 F.2d at 749 (quoting BORCHARD, supra, at 293). The objective of formulating standards by which to guide the exercise of discretion over the declaratory judgment remedy in the future is best served by vigorous and independent appellate review.