Issued declaratory judgment outlines the rights and responsibilities of each involved party. This judgment does not require action or award damages.Declaratory judgments are an important tool in litigation. Declaratory judgment actions are an exception to this rule and permit a party to seek a court judgment that defines the parties' rights before an injury occurs. You can bring a declaratory judgment action to make them fulfill the terms in their insurance policy if you think that they denied you. 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. This is known as declaratory relief. Commencing the Action. Declaratory relief is a legal term that refers to a type of court action where a plaintiff seeks a certain type of judgment from a court - learn more here. A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants.