Wilton v. Seven Falls Co., 515 U.S. 277, 2 (1995)

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278

WILTON v. SEVEN FALLS CO.

Syllabus

(b) The Act's distinct features justify a standard vesting district courts with greater discretion in declaratory judgment actions than that permitted under the "exceptional circumstances" test set forth in Colorado River and Moses H. Cone, neither of which dealt with declaratory judgments. On its face, the Act makes a textual commitment to discretion by specifying that a court "may" declare litigants' rights, 28 U. S. C. § 2201(a) (emphasis added), and it has repeatedly been characterized as an enabling Act, which confers a discretion on the courts rather than an absolute right upon the litigant. Pp. 283-287. (c) Petitioners' argument that, despite the unique breadth of this discretion, district courts lack discretion to decline to hear a declaratory judgment suit at the outset depends on the untenable proposition that a court, knowing at the litigation's commencement that it will exercise its discretion to decline declaratory relief, must nonetheless go through the futile exercise of hearing a case on the merits first. Nothing in the Act recommends this reading, and the Court is unwilling to impute to Congress an intention to require such a wasteful expenditure of judicial resources. Pp. 287-288. 2. District courts' decisions about the propriety of hearing declaratory judgment actions should be reviewed for abuse of discretion, not de novo. It is more consistent with the Act to vest district courts with discretion in the first instance, because facts bearing on the declaratory judgment remedy's usefulness, and the case's fitness for resolution, are particularly within their grasp. Proper application of the abuse of discretion standard on appeal can provide appropriate guidance to district courts. Pp. 288-289. 3. The District Court acted within its bounds in staying the declaratory relief action in this case, since parallel proceedings, presenting opportunity for ventilation of the same state law issues, were underway in state court. Pp. 289-290.

41 F. 3d 934, affirmed.

O'Connor, J., delivered the opinion of the Court, in which all other Members joined, except Breyer, J., who took no part in the consideration or decision of the case.

Michael A. Orlando argued the cause for petitioners. With him on the briefs were Patrick C. Appel and Paul LeRoy Crist.

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