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. The Court concluded that the insureds ratified the change and ruled that the van was insured under the insureds personal policy.An insured files a declaratory judgment action against their insurer and names an injured third party who shares citizenship with the insured. This research guide includes information and resources on declaratory judgment. A declaratory judgment is "a binding adjudication that establishes. The United States District Court's look at whether a party that is not an insured may seek a declaration regarding an insurer's duties under its policy. In doing so, the court of appeals looked to the Supreme Court of. Texas' opinion in Farmers Texas County. Disappointed or wouldbe beneficiaries and errant fiduciaries fuel the bulk of fiduciary litigation in the probate courts. 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.