Opinion
No. 00-2426 Section "I" (4).
October 23, 2000
ORDER AND REASONS
This diversity suit for declaratory judgment is before the court on the motion of the defendants to strike the plaintiff's jury demand. Federal law governs in determining the right to a jury trial. Simler v. Conner, 572 U.S. 221, 222, 83 S.Ct. 609, 610-11, 9 L.Ed.2d 691 (1963)
No oral argument was held notwithstanding that the motion was captioned "Motion to Strike Demand for Trial by Jury and Request for Oral Argument," because no separate statement setting forth the reasons why oral argument should be heard was presented as required by Local Rule 78.1E, and after review of the parties' briefs, the court found that oral argument was not necessary.
An issue is triable by jury if it is legal in nature as opposed to equitable. See Chauffeurs Teamsters and Helpers. Local No. 391 v. Terry, 494 U.S. 558, 564, 110 S.Ct. 1339, 1344, 108 L.Ed.2d 519 (1990). Declaratory relief may be legal or equitable depending on the basic nature of the underlying issues and the remedy sought. Id., 494 at 565, 110 S.Ct. 1345. See also Rule 57 (in a declaratory judgment action, "the right to trial by jury may be demanded under the circumstances and in the manner provided in Rules 38 and 39.")
In determining whether a claim for declaratory judgment involves a demand in law or equity, the court must examine how the claim would have arisen had it not been raised in a declaratory judgment action. See Wallace v. Norman Indus., Inc., 467 F.2d 824, 827 (5th Cir. 1972)
Plaintiff seeks a declaratory judgment that it is not liable for attorney fees allegedly due under a class action settlement agreement entered in a prior federal action. As a settlement agreement is a contract, see e.g., In re Raymark Indus., Inc., 831 F.2d 550. 553 (5th Cir. 1987) (discussing class action settlement agreement), the nature of the suit involves determination of contractual legal rights.
An action to recover attorney fees pursuant to a contract presents traditional legal issues which may be submitted to a jury. Dairy Queen. Inc. v. Wood, 369 U.S. 469, 477, 82 S.Ct. 894, 899, 8 L.Ed.2d 44 (1962) ("As an action on a debt allegedly due under a contract, it would be difficult to conceive of an action of a more traditionally legal character.") Had the defendants brought suit to recover fees, this action could be tried by a jury.
The fact that the plaintiff plead for "all other just and equitable relief" is not determinative of the right to a jury trial. See id., 369 U.S. at 477-78, 82 S.Ct. at 899-900.
Thus, the court finds that the essential cause of action here is legal, not equitable, and plaintiff has the right to have a jury decide whether defendants are entitled to attorney fees. See Simler v. Connor, 372 U.S. 221, 83 S.Ct. 609, 9 L.Ed.2d 691 (1963) (a client's suit against his lawyer for a declaration of how much of a fee was due was held to be in essence a law action and therefore triable by jury).
Accordingly,
IT IS ORDERED that defendants' Motion to Strike Demand for Trial by Jury is DENIED.