This is known as injunctive relief. The court may decide the rights of parties to a dispute.A declaratory judgment is a binding judgment that a court issues to form a legal relationship between parties and the parties' rights regarding a court matter. Declaratory Judgement as the phrase suggests is a judgement which declares a right that a person possess over something eg a chattel. There can be a judgment awarding money or dismissing claims, a declaratory judgment (CPLR 3001),. i.e. You can bring a declaratory judgment action to make them fulfill the terms in their insurance policy if you think that they denied you. A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract. To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. First, is the constitutional inquiry. 206.6 Contents of a claim or a notice of intention to file a claim; action for declaratory judgment.