Texas also has a fouryear statute of limitations for lawsuits involving contractual obligations. The stated purpose of the Texas Uniform.Declaratory Judgments Act ("TUDJA" or the "Act") is. ONE-YEAR LIMITATIONS PERIOD. Declaratory judgments play a big role in determining the duty to defend in that insurers frequently initiate declaratory judgments to resolve duty to defend. The statute of limitations for breach of contract and the declaratory judgment is generally four years from the date of the accident. 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 found the statute to be invalid and affirmed the judgments of the trial court and of the Court of Civil Appeals in granting the declaratory judgment. Mascio, 2015 Colo. Dist. Houston, Texas 77019.