A declaratory judgment does not determine whether you are entitled to damagesit simply assesses your right to insurance coverage. Judgment Complaint seeks a declaratory judgment with respect to insurance coverage for the underlying claims in the state tort action.Policyholders purchase insurance policies as a safety net, promising financial protection in times of need. Moreover, diligence attempting intervention may be enough to put the burden on the party seeking coverage in a declaratory judgment action. Another avenue to resolve a dispute concerning the existence of insurance coverage is through a declaratory judgment action. A federal court recently denied an insurer's motion to dismiss an insured's claim for declaratory relief. Pending determination of the coverage issues in the parallel declaratory judgment action. Allen did not oppose the motion. (L. An additional consideration is who pays for insured's counsel in the DJA: • When insurer commences the DJA and loses, insured can collect attorneys' fees. Moderator: Cassandra S. Franklin, Esq.