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. This HowTo Guide explains how to bring an action for declaratory relief to resolve liability insurance disputes.The United States District Court's look at whether a party that is not an insured may seek a declaration regarding an insurer's duties under its policy. An insured files a declaratory judgment action against their insurer and names an injured third party who shares citizenship with the insured. To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. First, is the constitutional inquiry. 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. La Jolla, California 92037. Watch the video to find out what is a declaratory judgment action My Business is to Protect your Business. Since July 10, 2021.