COMPLAINT FOR DECLARATORY AND ii. INJUNCTIVE RELIEF - Case No -cv-01655.Defendants filed their Motion for Summary Judgment or in the alternative Summary. 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. Novel Insurance Coverage Issue? File a Declaratory Judgment Action in Federal Court, Right? '" Santa Clara Pueblo v. Raskin is an associate in the San Francisco office of Morgan Lewis. A declaratory judgment does not determine whether you are entitled to damagesit simply assesses your right to insurance coverage. 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.