This research guide includes information and resources on declaratory judgment. A declaratory judgment is "a binding adjudication that establishes.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. 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. A declaratory judgment is a judicial determination of the rights of respective parties, as opposed to coercive relief or damages. The purpose of declaratory. To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. First, is the constitutional inquiry. 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. Venue is in the County where the property is located.