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. Courts have traditionally held that an insurance company has no right to intervene in the liability action against the insured to seek a coverage determination.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. A declaratory judgment is a court order that declares the rights and obligations of the parties involved in a personal injury case. In the event of a legal controversy, both parties generally want to avoid any legal uncertainty and insecurity that could arise out of a dispute. All other municipalities in Texas) resulting in a loss of sales tax revenue for Coppell,. Humble, and DeSoto (and many other municipalities in Texas). Procedure for Enforcing Foreign State,.