JAMES D. WHITTEMORE, District Judge.
Plaintiff, General Electric Capital Corporation (
The Declaratory Judgment Act provides that a declaratory judgment may be issued only in the case of an "actual controversy." 28 U.S.C. § 2201; see Emory v. Peeler, 756 F.2d 1547, 1551-52 (11
Thus, to invoke Article III subject matter jurisdiction under the Declaratory Judgment Act, GECC must allege not only a "substantial continuing controversy" between the parties, but facts demonstrating a continuing controversy which is "real and immediate," rather than "conjectural, hypothetical, or contingent," and a "definite, rather than speculative threat of future injury." Malowney, 193 F.3d at 1347 (quoting Emory v. Peeler, 756 F.2d 1547, 1551-52 (11
GECC contends that an actual controversy exists because Defendant has "threatened" to hold GECC liable for the underlying judgment against THMI, pointing out that Defendant's counsel sought recovery against GECC on behalf of a different client in an unrelated post-judgment proceeding commenced under Section 56.29, Florida Statutes (i.e., the Florida statute governing post-judgment proceedings supplementary).
Since there is no history between these parties, and the post-judgment supplementary proceedings feared by GECC have not occurred, it must be determined whether there is a "practical likelihood" that Defendant will commence post-judgment supplementary proceedings against GECC in the future. See GTE Directories Publishing Corp. v. Trimen America, Inc., 67 F.3d 1563, 1569 (11
Indeed, if the facts describing the lack of legal relationship between GECC and THMI alleged in paragraphs 17 through 23 of the Complaint are accurate, one can only reasonably conclude that the practical likelihood of post-judgment supplementary proceedings is simply not calculable, let alone demonstrably likely.
In sum, the facts alleged in the Complaint merely demonstrate a potential controversy between the parties, rather than a "real," "definite," and "immediate" one. Cone Corp., 921 F.2d at 1205. Accordingly, this Court concludes that the mere possibility that Defendant
Alternatively, assuming the existence of an actual case or controversy between GECC and Defendant, the unusual, if not exceptional, circumstances of this case provide ample justification for declining to exercise jurisdiction, notwithstanding the district court's "virtually unflagging obligation... to exercise the jurisdiction given them" and that abstention "is the exception, not the rule." Cormier v. Green, 141 Fed. Appx. 808, 812 (11th Cir. 2005) (quoting Colorado River Water Conservation Dist. v. United States, 424 U.S. 800, 813, 817-18 (1976)).
First, there is no obligation for this Court to exercise subject-matter jurisdiction in this action merely because GECC seeks declaratory relief in a federal forum. See 31 Foster See Children v. Bush, 329 F.3d 1255, 1274 (11th Cir. 2003) ("But `virtually' is not `absolutely,' and in exceptional cases federal courts may and should withhold equitable relief to avoid interference with state proceedings.") (citing New Orleans Pub. Serv. Inc. v. Council of New Orleans, 491 U.S. 350, 359 (1989)). The Declaratory Judgment Act grants federal courts "competence to make a declaration of rights; it does not impose a duty to do so." Ameritas Variable Life Ins. Co. v. Roach, 411 F.3d 1328, 1330 (11th Cir. 2005) (citing Brillhart v. Excess Ins. Co. of America, 316 U.S. 491, 494 (1942)). "Consistent with the "nonobligatory nature of the remedy, a district court is authorized, in the sound exercise of its discretion, to stay or to dismiss an action seeking a declaratory judgment...." Wilton v. Seven Falls Co., 515 U.S. 277, 286 (1995).
Second, it is apparent that any state court litigation between the parties would necessarily be limited to proceedings supplementary under Section 59.29, Florida Statutes, as opposed to some new, independent cause of action. By definition, Section 56.29 proceedings can only be commenced in the same state court action in which Defendant obtained the default judgment against THMI. See Zureikat v. Shaibani, 944 So.2d 1019, 1022 (Fla. 5th DCA 2006) (Section 56.29 describes a "procedure by which a person holding an unsatisfied execution could initiate proceedings supplementary to execution"). Significantly, for purposes of determining whether to exercise subject-matter jurisdiction, Section 56.29 proceedings are
In summary, Section 56.29 proceedings can only be initiated in a state court case in which a final judgment has been obtained, and cannot, as a matter of Florida law, be filed independently of that underlying action. As a practical matter, therefore, when this declaratory action was filed, there was a pending state court proceeding from which the anticipated Section 56.29 proceedings would spring.
Third, and most significantly, the declaratory relief Plaintiff seeks in federal court, if granted, would interfere with, if not effectively enjoin, the state court's exercise of its statutory authority to enforce its judgment. Under these unusual circumstances, therefore, abstaining from exercising Article III jurisdiction is also appropriate. See Old Republic Union Ins. Co. v. Tillis Trucking Co., Inc., 124 F.3d 1258, 1261 (11th Cir. 1997) (no abuse of discretion in abstaining from exercising jurisdiction where effect of declaratory relief sought would enjoin state court from enforcing wrongful death judgment against insured and from entertaining subsequent state action brought by judgment creditor against insured's insurer); see also Samuels v. Mackell, 401 U.S. 66, 73 (1971) (principles of Younger apply to declaratory judgments that would effectively enjoin state proceedings).
Undoubtedly, Florida has a substantial interest in enforcing judgments entered in its courts. See Cormier, 141 Fed. Appx. at 813 (noting that Georgia "has substantial interest in enforcement of all of the orders of its courts, ... and an especially strong interest in enforcement of ... judgments"). And it cannot be shown that the state court proceedings are less than adequate to determine GECC's liability for the default judgment held by Defendant against THMI. Accordingly, the three components of discretionary abstention are met: (1) there are pending state proceedings, (2) the proceedings implicate important state interests, and (3) the proceedings provide an adequate opportunity for raising federal constitutional questions. See Middlesex County Ethics Committee v. Garden State Bar Ass'n, 457 U.S. 423, 432 (1982).
An additional factor also weighs in favor of abstention and against the Court exercising its discretion under the Declaratory Judgment Act to consider GECC's request for relief. It is readily apparent that GECC filed this federal declaratory action to avoid what it considers a likelihood of being impleaded into post-judgment proceedings in state court — proceedings that would not be removable under 28 U.S.C. § 1441(a). As discussed, a Section 56.29 proceeding is supplemental to the underlying case in which the unsatisfied judgment was obtained, and does not constitute an independent cause of action. Zureikat, 944 So.2d at 1022. Accordingly, Section 56.29 proceedings are not removable, as such proceedings could not have originally been brought in federal court as an independent action. Estate of Jackson v. Ventas Realty, Ltd. Partnership, 812 F.Supp.2d 1306, 1311 (M.D. Fla. 2011) ("Because a judgment creditor cannot initiate in the district court a supplemental proceeding under Section 56.29 to enforce a Polk County circuit court judgment, that is, because a Section 56.29 action is not within the `original jurisdiction' of the district court under Section 1441(a), a defendant cannot remove a Section 56.29 supplemental proceeding to federal court, notwithstanding the presence of both jurisdictional amount and complete diversity of citizenship."); cf. Estate of Jackson v. Trans Health Management, Inc., No. 8:10-cv-2937-T-33TGW, 2011 WL 4345315, at *4 (M.D. Fla. Sept. 16, 2011) (remanding supplemental proceeding brought under Section 56.29 after finding "exceptional circumstances" supported abstention in favor of pending state court proceeding).
GECC's argument that it is "not seeking to litigate a § 56.29 proceeding in this Court" is disingenuous.
In short, the purported controversy identified by GECC involves state law issues rather than federal law and, absent the Declaratory Judgment Act, would fall outside the original jurisdiction of the federal courts. Entertaining GECC's request for declaratory relief would not only deprive Defendant of a state court forum (and effectively enjoin the state court from enforcing the underlying judgment), but would also countenance GECC's attempt to use the Declaratory Judgment Act to invoke federal jurisdiction over state enforcement proceedings as to which this Court lacks original, supplemental, and removal jurisdiction. Thus, to the extent an actual controversy exists sufficient to establish Article III jurisdiction, the Court declines to exercise such jurisdiction under the Declaratory Judgment Act for the reasons discussed.
Accordingly, Defendant's Motion to Dismiss Complaint for Declaratory Judgment (Dkt. 6) is