A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract. This is known as injunctive relief.The court may decide the rights of parties to a dispute. Declaration sought to determine the insurance issues and appropriate relief. A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants. Declaratory judgments are an important tool in litigation. Declaratory judgment. There can be a judgment awarding money or dismissing claims, a declaratory judgment (CPLR 3001),. i.e. Four different types of declaratory judgments actions that you can bring. A court decision in a civil case that tells the parties what their rights and responsibilities are, without awarding damages or ordering them to do anything.