Declaration sought to determine the insurance issues and appropriate relief. The Amended Complaint that GICA seeks to file alleges a miscellany of reasons why it is not obligated to defend the underlying action.Attached to the complaint is a copy of the Policy. Plaintiffs seek a declaration that the Policy does not provide coverage for potential claims. This Court has jurisdiction under CPLR 3001 because this action seeks a declaratory judgment over a justiciable controversy. 4. The bottom line is – there is no good reason, nor even any need, to allow a bad faith cause of action for the filing of a declaratory action. 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 an action for declaratory relief to settle important questions concerning the. Clark moved for summary judgment on the declaratory judgment claim and voluntarily dismissed the other two counts of her complaint. Indiana Insurance sought a declaratory judgment relieving it of responsibility to its insured.