Lead Opinion
In this appeal, we must decide whether the Circuit Court for Baltimore City abused its discretion by entertaining a declaratory judgment action when the issue presented in the proceeding for declaratory relief was the same as that presented in pending, previously filed, tort actions. This case presents no unusual and compelling circumstances to justify the declaratory judgment while the same issue presented in the declaratory judgment action was presented in another pending case between the parties. Accordingly, we shall hold in this appeal that the Circuit Court for Baltimore City abused
This action began when Appellants, Gary Waicker and Cavalier Realty Company, Inc. (hereinafter ‘Waicker” and “Cavalier”), filed a declaratory judgment action in the Circuit Court for Baltimore City, seeking a declaration that they are entitled to absolute judicial immunity in any lead paint lawsuits filed by tenants of certain Baltimore City premises. Waicker and Cavalier were defendants in two. pending actions which had been instituted on behalf of minor children, Christina Colbert (Circuit Court for Baltimore City Case No. 92-337038) and William Reginald Brown (Circuit Court for Baltimore City Case No. 92-197001). The Circuit Court declared that Waicker and Cavalier do not enjoy absolute judicial immunity, but are entitled only to such immunity as is set forth in the Order of the District Court of Maryland dated December 18, 1986. Waicker and Cavalier appealed to the Court of Special Appeals, and this Court granted certiorari on our own motion before consideration by that court.
We shall briefly set out the facts necessary for an understanding of our decision. In 1986, the Mayor and City Council of Baltimore filed a municipal code enforcement action in the District Court of Maryland for Baltimore City against several owners of certain residential, rental properties located in Baltimore City. Mayor and City Council of Baltimore v. Max Berg, et. al., Case No. 23800-86. The parties to that action reached an agreement to settle the case, and the District Court entered a judgment by consent. The Consent Order provided for the appointment of a “Court Agent” to serve as an officer and agent of the court, independent of both parties. The “Court Agent” was to act as property manager to perform certain management, maintenance, and rehabilitation responsibilities specified in the order and to monitor the defendants’ compliance with the order, and to report to the court and the plaintiff. Appellants, Waicker and Cavalier, were appointed and served as “Court Agents” pursuant to the Consent Order. The Order addressed the immunity of a “Court Agent” as follows:
*111 While acting pursuant to the terms of this Order, the Court Agent shall be vested with such immunities as by law vest with this Court. This Court does not consent to any suit, legal action or administrative proceeding in any other court or forum arising out of an action taken by the Court Agent in the performance for the duties specified herein. The Court may, after reviewing an application therefor filed by any person, consent to a suit, action or proceeding against the Court Agent in the capacity as an Officer and Agent of this Court, in any particular case when it finds that such suit, action or proceeding will not materially interfere with the achievement of the purposes of this Order and implementation thereof.
In 1992, certain tenants of rental properties that were the subject of the municipal code enforcement case filed lawsuits in Baltimore City alleging lead paint poisoning. The owners of the rental properties, along with Waicker and Cavalier as “Court Agents” under the District Court Order, were named as defendants. See Brown, et. al. v. Gresser, et. al., Case No. 92-197001, and Colbert, et. al. v. Berg, et. al, Case No. 92-337038, in the Circuit Court for Baltimore City. In both of those lawsuits, Waicker and Cavalier filed motions to dismiss and for summary judgment. They asserted that no plaintiff in the lead paint cases made any application with the District Court of Maryland for Baltimore City seeking consent to file a suit against the “Court Agent.” The main thrust of their argument was that, notwithstanding the language in the District Court Order of December 18, 1986, the “Court Agent” enjoys absolute judicial immunity because no agreement or order of court is required to provide a court agent with such immunity, nor can the court limit such immunity. The Circuit Court denied the motions.
Appellants then filed, in the Circuit Court for Baltimore City, a complaint for declaratory relief, seeking a declaration that they are entitled to absolute judicial immunity. See Maryland Uniform Declaratory Judgments Act, Maryland Code (1973, 1995 RepLVol., 1996 Supp.) §§ 3-401 through 3-
Waicker and Cavalier seek to have resolved in the declaratory judgment proceeding an issue which would be fully decided in the pending tort actions, i.e., the nature of their immunity. The issue raised in the motion to dismiss and motion for summary judgment in both tort actions is identical to the issue raised in the declaratory judgment action.
Section 3-409(a) of the Maryland Uniform Declaratory Judgments Act provides in pertinent part:
(a) In general.—... [A] court may grant a declaratory judgment or decree in a civil case, if it will serve to terminate the uncertainty or controversy giving rise to the proceeding, and if:
(1) An actual controversy exists between contending parties;
(2) Antagonistic claims are present between the parties involved which indicate imminent and inevitable litigation; or
(3) A party asserts a legal relation, status, right, or privilege and this is challenged or denied by an adversary party, who also has or asserts a concrete interest in it.
Section 3-409(c) provides that a party may obtain a declaratory judgment or decree notwithstanding a concurrent common-
As a general rule, courts will not entertain a declaratory judgment action if there is pending, at the time of the commencement of the action for declaratory relief, another action or proceeding involving the same parties and in which the identical issues that are involved in the declaratory action may be adjudicated.
Judge Eldridge, -writing for the Court in Haynie v. Gold Bond Bldg. Products,
The Declaratory Judgment Act, as amended by Ch. 724 of the Acts of 1945, provided that a party is not barred from obtaining a declaratory judgment merely because the controversy “is susceptible of relief through a general common law remedy....” But the Act does not provide that, once the common law remedy is actually invoked to provide relief in the controversy, and the common law action is still pending, the parties may also institute a second lawsuit and obtain a declaratory judgment to resolve the same matter. Our cases have repeatedly held to the contrary.
Id. at 649-50,
In both Haynie,
Where an action or proceeding is already pending in another forum involving the same issues, it is manifestly unwise and unnecessary to permit a new petition for a declaration to be initiated by the. defendant or the plaintiff in that suit.
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[T]he court will refuse a declaration where another court has jurisdiction of the issue, where a proceeding involving identical issues is already pending in another tribunal, where a special statutory remedy has been provided, or where another remedy will be more effective or appropriate under the circumstances. In these cases it is neither useful nor proper to issue the declaration.
Borchard, Declaratory Judgments, Ch. v. Discretion at p. 302 (2d ed.1941).
Strong policy considerations support application of this rule. Absent such a rule, “almost any pending action could be interrupted and held at bay until the determination, in one or more subsequently instituted declaratory judgment actions, of issues culled out of the pending action.” Redmond v. Matthies,
[UJnder circumstances like those in the present case, overlooking the inappropriate procedure might result in litigants misusing the declaratory judgment statute in order to cir*116 cumvent the policy against appeals from interlocutory orders and against piecemeal appeals.
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Conceivably, ... each separate disputed issue in the tort case could be made the Subject of a separate declaratory judgment action. If this Court were to overlook the improper use of the declaratory judgment statute as long as no party to the litigation challenged the procedure, we would be allowing the parties, by consent, to bypass the final judgment requirement.
Id. at 653-54,
We find no unusual and compelling circumstances in this case that would permit the declaratory judgment action while other actions involving the same issue are pending. Appellants assert that they are entitled to a declaratory judgment because several suits have been filed against them and future suits will likely be filed against them as Court Agents under the Final Judgment and Consent Order, and a declaration that they are entitled to absolute immunity will preclude such suits. “[Fjear of having to participate in a ‘multiplicity of suits,’ cannot be the basis for this extraordinary intervention into a pending action.” State v. 91st Street Joint Venture,
JUDGMENT OF THE CIRCUIT COURT FOR BALTIMORE CITY VACATED, AND CASE REMANDED TO THAT COURT WITH DIRECTIONS TO DISMISS THE DECLARATORY JUDGMENT ACTION. APPELLANTS TO PAY COSTS.
Notes
. Unless otherwise indicated, all statutory references are to the Maryland Uniform Declaratory Judgments Act, Maryland Code (1973, 1995 Repl.Vol., 1996 Supp.) §§ 3-401 through 3-415 of the Courts & Judicial Proceedings Article.
. At oral argument, in response to a question from the bench inquiring whether every party in this declaratory judgment action is a parly in a pending action that has already been filed, the Attorney General responded “Yes, and those were stayed pending the outcome of the declaratory judgment actions....”
Upon our review of the record in this case, we note that Waicker and Cavalier represented in their response to Colbert’s motion to dismiss the complaint for declaratory judgment that the Mayor and City Council of Baltimore is a party in the declaratory judgment action, but is not joined as a party in either of the pending lead paint lawsuits. It appears that the Mayor & City Council never filed an answer to the complaint for declaratory relief and they are not a party to this appeal.
Although the plaintiffs have included a party in the declaratory action that is not a party in either of the pending actions, this fact does not, in and of itself, render this declaratory judgment action permissible. See Redmond v. Matthies,
Dissenting Opinion
dissenting.
I respectfully dissent. Prior to consideration of this case by the Court of Special Appeals, this Court granted certiorari on
I.
The question, as set forth in the parties’ briefs, on which the Court issued a writ of certiorari was:
“Did the Circuit Court err in declaring that Appellants were not entitled to common law judicial immunity when sued in their capacity as court appointed agents of the District Court, but were entitled to only such limited immunity as the District Court prescribed in the order appointing them?”
The Court should have limited its review to matters relevant to the resolution of this particular question. See Maryland Rule 8-131. Instead, the Court raises sua sponte an issue that was neither briefed nor argued by the parties: the validity of the declaratory judgment action itself. Significantly, there was no objection raised on appeal to the declaratory judgment as a method of resolution. Regardless of the Court’s impression of the propriety of this particular avenue of judicial review, therefore, the case should have been resolved—on the merits—in the form that it reached us.
Earlier cases demonstrate that this Court typically refrains from examining the validity of a declaratory judgment form of action if the issue is not raised by the parties. In Watson v. Dorsey,
Haynie v. Gold Bond Bldg. Products,
II.
Furthermore, even assuming, arguendo, that the propriety of the declaratory judgment were before the Court, I disagree with the majority’s conclusion that a declaratory judgment should not have been issued in this case.
The declaratory judgment form of action is particularly well suited to resolve the issue of immunity and has been used in Maryland for this purpose. See, e.g., American Structures v. City of Balto.,
Assuming that the issue is even before the Court, therefore, the question is whether the judge’s decision that the circum
Interestingly, the propriety of the declaratory judgment action was, at one time, an issue in this case. Appellees responded to the initial complaint for a declaratory judgment by filing a motion to dismiss on the ground that the issue of immunity already had been resolved in two other actions pending in the same court.
“[Wjith regard to the instant DECLARATORY JUDGMENT Action there are certain ‘special’ or unusual and compelling circumstances. These circumstances exist because the issue of the absolute Judicial Immunity of ‘Court Agents’ is not confined to the pending ‘Lead Paint Suits.’ A decision with regard to the immunity of ‘Court Agents’ ... will have far-reaching consequences. This is so because the Office of the City Solicitor and the District Court for Baltimore City rely heavily upon the use of ‘Court Agents’ in connection with such ‘Code Enforcement Actions.’ ”
Appellants also stressed that “[bjecause of the large number of properties and tenants involved ..., there is the strong likelihood that future ‘Lead Paint Suits’ will be brought”
The court denied Appellees’ motion to dismiss and ultimately issued the declaratory judgment that is presently under review by this Court. In allowing the declaratory judgment action to proceed, the court apparently recognized the validity
The majority disposes of this unusual circumstance by concluding, without discussion, that the “ ‘fear of having to participate in a “multiplicity of suits,” cannot be the basis’ ” for a declaratory judgment. Majority Op. at 116,
Ironically, the rule upon which the majority relies is specifically aimed at the conservation of judicial resources. The general prohibition against declaratory judgments (if the same issue is pending in another action) ensures that parties do not “circumvent the policy against appeals from interlocutory orders and against piecemeal appeals.” Haynie,
Illustrative of this principle is 91st Street Joint Venture, supra. In 91st Street Joint Venture, the Department of Natural Resources (DNR) and the town of Ocean City filed a request for an injunction against a hotel owner who had constructed a gazebo in alleged violation of city code require
All of the cases upon which the majority relies involved situations analogous to that in 91st Street Joint Venture: a declaratory judgment action filed subsequent to the commencement of a tort action, resulting in the presentation of the same issue to two courts.
The grant of a declaratory judgment during the pendency of a single tort action results in multiple determinations of the same issue. In contrast, the grant of a declaratory judgment in the face of numerous present and future tort actions prevents multiple determinations and multiple appeals of the same issue, particularly where, as here, the pending tort actions are stayed until resolution of the declaratory judgment action. Under such “unique and compelling circumstances,” the prohibition against declaratory judgment actions should not apply.
Consideration of the consequences of the Court’s refusal to allow a declaratory judgment action illustrates this point. If a declaratory judgment action is allowed, Appellants must litigate the issue of their immunity only once. The outcome of the immunity question in the declaratory judgment action will control the issue in the tort actions such that Appellants, if successful in the declaratory judgment action, will be entitled to a dismissal from the pending tort actions. As the case currently stands, however, Appellants must defend multiple lawsuits and, presumably, will assert immunity as a defense in each of them. Appellants must bear the burden of defending these actions, notwithstanding the fact that on appeal of a final judgment in any one of the suits, it may be determined that they do have judicial immunity.
Appellees, on the other hand, would benefit from a declaratory judgment in that it possibly would put them on notice that they are suing improper parties. The absence of a declaratory judgment creates the possibility that Appellees will end up with judgments against individuals who are later deemed immune from liability. Appellees would undoubtedly prefer to know the status of Appellants’ immunity prior to expending the time, money, and effort required in proving multiple cases against them.
. This challenge to the declaratory judgment was abandoned on appeal.
. At least one additional lawsuit was filed against Appellants subsequent to their request for a declaratory judgment.
. See Haynie v. Gold Bond Bldg. Products,
