dissenting. I respectfully dissent. The majority errs in dismissing the appeal. The circuit court
properly issued declaratory judgment on the definition of “prisoners of municipalities” under Ark. Code Ann. 12-41-506(a)(l) (Repl. 2003). This case began as a breach of contract action when Jefferson County filed the action on October 29, 2004; however, the City of Pine Bluff filed a counterclaim seeking declaratory judgment. When the parties settled their dispute over the 1993 contract, they remained in a contractual relationship, under a statutory obligation with respect to paying for prisoners, and needed a definition of the term “prisoners of municipalities” under Ark. Code Ann. § 12-41-506(a)(l). The circuit court noted this in the June 29, 2006 Order appealed from. Even after the parties settled their 1993 contract issues, the question of the meaning of “prisoners of municipalities” remained. Whether under contract, under statute, or otherwise, the County and the City must still decide who was to pay for each prisoner, and the definition of “prisoners of municipalities” is needed by the parties. Declaratory judgment was a proper action to determine this question:
Declaratory judgments axe used to determine the rights and liabilities of respective parties. The purpose of a declaratory judgment is to prevent “uncertainty and insecurity with respect to rights, status, and other legal relations.” Ark. Code Ann. § 16-111-102 (Repl. 1987). Under this Act, “ [a]ny person interested under a.. .written contract... or his rights, status, or other legal relations are affected by a . . . contract . . . may have determined any question of construction or validity arising under the... contract... and obtain a declaration of rights, status, or other legal relations thereunder.” Ark. Code Ann. § 16-111-104 (Repl. 1987).
Stilley v. James, 345 Ark. 362, 372, 48 S.W.3d 521, 528 (2001). Further, a declaratory judgment action is to be liberally construed in resolving uncertainty in rights, status, and legal relations. Wilmans v. Sears, Roebuck and Co., 355 Ark. 668, 144 S.W.3d 245 (2004). The circuit court properly decided the issue of the meaning of the term “prisoners of municipalities” in a declaratory judgment action, and the court should review that decision on appeal.