To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. First, is the constitutional inquiry.Declaration sought to determine the insurance issues and appropriate relief. This appeal involves a request for declaratory judgment. What happens when specific damages are not alleged? How are damages assessed when the relief sought is a declaratory judgment? The reason is, or should be, obvious: "In a derivative action, any recovery belongs to the corporation, not the plaintiff shareholder. Examples from Montgomery County in the summary judgment record are: •. Cirino Assignment (2009), (JA301-303): MERS assigned to BAC. A declaratory judgment is a court judgment that outlines the rights and obligations of each party in a contract.