Court Opinion

ID: 9755932
Source: CourtListenerOpinion
Date Created: 2023-08-28 21:00:24.351537+00
Date Added: 2024-06-11T09:56:08.020451
License: Public Domain

TAMILIA, J.,
dissenting:
¶ 1 I respectfully dissent and would affirm the Order of the trial court sustaining appellee’s objections to appellant Bottom-er’s petition to compel arbitration due to the pendency of the declaratory judgment action. The very well-reasoned and erudite Opinion of the majority acknowledges there is some basis for such a procedure but claims the trial court was in error in ignoring the subtleties of various arbitration acts particularly the Act of 1927 and the role of declaratory relief. The trial court determined the declaratory judgment would be dispositive of the underlying dispute and for all practical purposes predetermine the outcome of the underlying dispute, thereby convincing one of the parties not to pursue arbitration as futile. Therefore, the pursuit of the arbitration proceeding contemporaneously with (but later to) the declaratory judgment would be premature. I agree with the reasoning of the trial court.
¶2 The majority, however, disputes the underlying assumption of the trial court’s ruling, that is, the conclusion of the declaratory judgment action will result in the *1178resolution of the dispositive issue(s) in the underlying arbitration proceeding. The majority instead pursues hypothetical and unlikely possibilities as to the interplay of declaratory judgment and concurrent arbitration matters. This belief, however, ignores the simple reality that a declaratory judgment action and an arbitration proceeding are two separate, bifurcated actions. As such, the majority’s contention an action for declaratory judgment is “designed to operate with, not instead of, any underlying dispute” is a dubious notion.
¶ 3 The clear mandate of 42 Pa.C.S.A. § 7541, Construction of subchapter, was declared to be remedial and expansive in nature, and more specifically, declaratory judgment proceedings could be additional and cumulative to all other available remedies except for those provided in subsection (c) Exceptions, none of which are applicable here. In so declaring this policy, the legislature did not require or intend that the declaratory judgment proceeding and other action be pursued in a simultaneous or concurrent fashion, but added the declaratory judgment as an adjunct to or “as well as” the other available proceeding. This does not mean that in the exercise of judicial discretion the court in the declaratory judgment proceeding could not hold the arbitration proceeding in abeyance, once it perceived an issue existed which was properly within the purview of the unique scope of declaratory judgment. Following a resolution of the issue in that proceeding, the court could determine that arbitration was the proper remedy and refer the case to the arbitration panel, or that arbitration was not the appropriate remedy, thereby bringing finality to the issue. The majority treats the action of the trial court as a dismissal of the arbitration proceeding whereas it is in effect a stay of that proceeding which could go forward as indicated above.
¶4 I believe it is a more logical and expedient process to permit the declaratory judgment proceeding to go forward, while holding arbitration in abeyance, pending that result. The majority recognizes but treats as diminimis the strong assertion by the trial court that because the declaratory judgment proceeding and the arbitration petition are before two different judges implicating the long-standing rule recognized in Pennsylvania law that the decision of one judge may not override the other in coordinate jurisdictions. The potential that two co-equal judges would be asked to decide the precise same issue, i.e. whether the parties’ dispute should be arbitrated raises the possibility of an insoluble result. See Trial Court Opinion, Herron, J., 2/20/02, at 8 n. 6. Simple clarification of contract language usually 'resolves this issue, but as here where the intent as to coverage is not clearly manifested, it needs to be determined, whether in a judicial or. arbitration proceeding. Like the trial court I-believe that resolution of the issue is more expeditiously resolved by proceeding with the declaratory judgment action.
¶ 5 Since Section 7541(b), Effect of alternative remedy, does not preclude declaratory judgment in addition and cumulative to all other available remedies (except as in subsection (e)), I believe the discretion of the trial court should be affirmed. There’ appears to be no overriding error in allowing the declaratory judgment to proceed while, holding in abeyance, the petition to compel arbitration as the court perceived this to be the most expeditious manner in achieving judicial economy. It would appear to be more practical to have a disposition in the prior permissible action (declaratory judgment) than to have two matters, which might reach different results, being litigated at the same time regarding the same parties (or some of them) and *1179the same legal issues. If the court in the declaratory judgment proceeding finds it is not applicable, arbitration is still available. If it finds on the issue that a judgment is appropriate, the arbitration proceeding is moot. As detailed in Standard Pennsylvania Practice 2d, Declaratory Judgments § 66:8, Effect of prior adjudication, “[rjelief is not available under the Declaratory Judgment Act with respect to any proceeding involving an appeal from an Order of a tribunal. Thus, a declaratory judgment action cannot be used in order to overturn a decision by a tribunal. In addition, resort may not be had to an action for a declaratory judgment to secure a modification of a judicial decree.” (Citations omitted.)
¶ 6 Conversely, the Declaratory Judgment Act § 66:10, Effect of pendency of other judicial proceedings, generally, “[wjhere another remedy has already been utilized by the bringing of another proceeding which is pending at the time declaratory relief is sought, the declaratory judgment action will not ordinarily be entertained .... ” (Citation omitted.) Thus, the action of the trial court comports with the above stated principles in that there was no prior existing proceeding when the declaratory judgment action was filed and the result of a decision by an arbitration panel, had there been one, would not be reversible by a declaratory judgment proceeding. The result of the trial court’s Order comports with the intent of the Declaratory Judgment Act, as detailed in section 66:4, Purpose of declaratory judgment, "... 2) to speedily determine issues and more quickly resolve or terminate litigation, 3) to render practical help in ending controversies; ... and 5) to render help by a judicial declaration of the respective rights and liabilities of parties before a situation develops where funds may be expended unnecessarily, or before harm actually occurs.”
¶ 7 Permitting a declaratory judgment proceeding and an arbitration proceeding to be considered concurrently in two different tribunals defeats all of the stated purposes and benefits of the Declaratory Judgment Act.
¶ 8 I, therefore, would affirm the Order of the trial court.