A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract. A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants.A declaratory judgment is a binding judgment from a court defining the legal relationship between parties and their rights in a matter before the court. These rules shall govern the procedure in the superior and district courts of the State of North Carolina in all actions and proceedings of a civil nature. You can bring a declaratory judgment action to make them fulfill the terms in their insurance policy if you think that they denied you. Declaratory Judgments. A declaratory judgment establishes the rights and other legal actions of the parties without providing for or ordering enforcement.