This HowTo Guide explains how to bring an action for declaratory relief to resolve liability insurance disputes. A declaratory judgment action is a type of lawsuit that allows businesses and individuals to seek a court's conclusive ruling on an uncertain legal issue.Courts have traditionally held that an insurance company has no right to intervene in the liability action against the insured to seek a coverage determination. In California, an insured is not entitled to automatic recovery of attorney's fees if the insurer loses a reasonably founded declaratory relief action. If an insurance company has refused to defend a lawsuit, or if you are facing a declaratory relief action, you need an experienced insurance lawyer. At all relevant times,. Travelers has been and is transacting the business of insurance in the state of California and in. Venue for this action properly lies in the Superior Court of the State of California,. The Insurer will reimburse the Insured Entity for Breach. Coverage under a reservation of rights and immediately filed a de- claratory relief action.