meredith city winter argued october decided november hull john graham deland petitioners giles patterson jacksonville respondent chief justice stone delivered opinion petitioners sought judgment granting equitable relief district whose jurisdiction rested solely diversity citizenship question whether circuit appeals appeal judgment district rightly declined exercise jurisdiction ground decision case merits turned questions florida constitutional statutory law decisions florida courts left state uncertainty petitioners brought suit district southern florida alleging bill complaint owners holders general refunding bonds issued respondent city winter florida terms bonds callable city interest date tender principal amount accrued interest including specified amount depending date call interest payable upon coupons attached bonds city call retire bonds without providing payment coupons bill complaint prayed declaration lawfully done injunction restraining city event determine obligation coupons unenforceable prayed declare petitioners entitled enforce obligation payment principal interest amount original bonded indebtedness city refunded general refunding bonds held petitioners enjoin city officials respondents failing refusing pay interest due refunded bonds provided resolution city commissioners authorizing issue sale general refunding bonds district granted respondents motion dismiss complaint grounds failed state cause action questions law involved determined adversely petitioners florida appeals without passing merits reversed directed cause dismissed without prejudice petitioners right proceed state courts secure determination questions state law involved appeals agreed petitioners bill complaint presented justiciable controversy requiring determination entitled judgment declaring law florida respect validity coupons petitioners contentions sustained entitled declaration favor injunction implementing declaration upon examination florida decisions concluded applicable law florida clearly settled stable quite contrary citing sullivan city tampa commissioners columbia county king state ex rel nuveen greer humphreys state ex rel palm beach spurway lee lumber andrews city winter expressed doubt florida law applicable facts presented declared view uncertainty since federal question presented jurisdiction invoked solely grounds diversity citizenship thought petitioners required proceed state courts although opinion refers suit one declaratory judgment declaration rights prayed usually case suits injunction indispensable prerequisite award one forms equitable relief petitioners seek alternative hence far concerned necessity propriety determination federal questions state law case differ ordinary equity suit since erie tompkins federal courts called upon decide state questions order render judgment facts presented amended bill complaint motion dismiss raise two issues state law one possibly must decided petitioners benefit seek jurisdiction conferred district courts diversity cases first question arises fact refunding bonds issued without referendum freehold voters city article ix florida constitution provides municipalities power issue bonds shall approved majority votes cast election majority freeholders municipality shall participate dispenses requirement case bonds question whether applicable decisions florida courts provision coupons rightly included obligation refunding bonds without referendum decided provision included coupons invalid second question whether petitioners holders refunding bonds entitled resolution city commissioners authorizing refunding bond recover principal interest equivalent amount bonds refunded question unlike first far appears passed upon florida courts several decisions florida declared bonds refunded contain provision coupons refunding bonds containing coupons impose additional burdensome terms outman cone may included refunding bonds unless approved referendum accordance article ix outman cone supra taylor williams andrews city winter supra appears amended bill complaint present suit begun florida decided case andrews city winter supra case involved issue refunding bonds question florida held deferred interest coupons invalid purported obligation invalid coupons severable obligations pay principal bonds current interest coupons obligations valid enforceable bonds subject call upon tender stipulated principal interest without including amount purporting payable coupons contention petitioners andrews case controlling well outman cone supra taylor williams supra cited followed inconsistent earlier decisions florida antedating refunding bonds particularly sullivan city tampa supra state city miami state special tax school dist dade county bay county state state citrus county state sarasota county petitioners also insist deciding andrews case attention florida directed doctrine earlier announced commissioners columbia county king supra state ex rel nuveen greer supra law florida contract governed laws declared time contract made consequently apply doctrine finally said weight outman andrews cases precedents impaired fact although appear record adversary litigations fact vigorously contested rulings florida andrews case must taken controlling unless said assurance florida follow future see wichita royalty city nat bank fidelity union trust field west american tel tel assume appeals indicated state may modify even set aside future decisions opinion difficulties ascertaining state courts may hereafter determine state law afford sufficient ground federal decline exercise jurisdiction decide case properly brought decision diversity jurisdiction conferred benefit federal courts serve convenience purpose generally afford suitors opportunity cases option assert rights federal rather state courts absence recognized public policy defined principle guiding exercise jurisdiction conferred exceptional cases warrant first deemed duty federal courts jurisdiction properly invoked decide questions state law whenever necessary rendition judgment commonwealth bradford risty chicago kline burke const mcclellan carland exceptional circumstances present denial opportunity federal courts merely answers questions state law difficult uncertain yet given highest state thwart purpose jurisdictional act exceptions relate discretionary powers courts equity appeal equity jurisdiction conferred federal district courts appeal sound discretion guides determinations courts equity beal missouri pac exercise discretion well courts equity powers may require withhold relief furtherance recognized defined public policy di giovanni camden fire ins cases cited reason federal jurisdiction cause may decline interfere state criminal prosecutions except moved urgent considerations spielman motor dodge beal missouri pac supra pages pages douglas city jeannette collection state taxes fiscal affairs state matthews rodgers stratton louis great lakes dredge dock huffman state administrative function prescribing local rates public utilities central kentucky natural gas railroad commission et seq cases cited interfere appointing receiver liquidation insolvent state bank state administrative officer contention interests creditors stockholders adequately protected commonwealth pennsylvania williams gordon ominsky gordon washington cf kelleam maryland casualty similarly may refuse appraise shape domestic policy state governing administrative agencies railroad commission rowan nichols oil burford sun oil may course decline ercise equity jurisdiction conferred federal plaintiff fails establish cause action cavanaugh looney gilchrist interborough rapid federal adhering salutary policy refraining unnecessary decision constitutional questions may stay proceedings enable parties litigate first state courts questions state law decision preliminary may render unnecessary decision constitutional questions presented railroad commission pullman cf thompson magnolia petroleum duty suit pending state courts state questions conveniently authoritatively answered least parties federal action strangers state action city chicago fieldcrest dairies thus declining exercise jurisdiction enforce rights arising state laws federal courts following principles traditionally moved like considerations policy refuse give extraordinary remedy protection federal rights ex rel greathouse dern see virginian system federation cases cited cf securities exchange comm realty improvement et seq none considerations similar one present congress adopted policy opening federal courts suitors diversity cases involving jurisdictional amount discern action recognition policy exclude cases jurisdiction merely involve state law law uncertain difficult determine decision case concerned solely extent liability city ing bonds decision require federal determine shape state policy governing administrative agencies entails interference agencies state courts litigation pending state courts questions presented decided pointed public policy interest served withholding petitioners benefit jurisdiction congress created purpose availed exercised subject limitations traditionally justify courts declining exercise jurisdiction possess remit parties state courts delay disposition litigation pending two years ready decision penalize petitioners resorting jurisdiction entitled invoke absence special circumstances warrant refusal exercise erie tompkins supra free federal courts duty deciding questions state law diversity cases instead placed greater responsibility determining applying state laws cases within jurisdiction federal law govern accepting responsibility duty hesitated decide questions state law necessary disposition case brought decision although highest state answered answers difficult character answers highest state courts might ultimately give remained uncertain wichita royalty city nat bank supra west american tel tel supra pages page fidelity union trust field supra pages page six companies joint highway stoner new york life ins palmer hoffman even though cisions finally settle questions state law involved adjudicate rights parties aid light afforded materials decision hand accordance applicable principles determining state law case within jurisdiction conferred federal courts congress think plaintiffs petitioners entitled adjudication judgment reversed cause remanded circuit appeals proceedings conformity opinion reversed justice black justice jackson opinion judgment affirmed reasons stated opinion circuit appeals footnotes clause section paragraph provision resolution general refunding bonds hereby authorized declared unenforcible final jurisdiction shall affect invalidate remainder thereof bonds hereby authorized adjudged illegal unenforcible whole part holders thereof shall entitled assume position holders like amount indebtedness hereby provided refunded enforce claim payment