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 court-issued judgment that defines and outlines the rights and obligations of each party in a contract.Declaratory judgment that United had a duty to defend and indemnify Snell. The district court granted summary judgment for. Underlying plaintiff does not chose to file or otherwise be involved in the declaratory judgment action? Justices Cunningham and Connors concurred in the judgment. ORDER. Supreme Court s approved of the use of declaratory judgment actions to resolve insurance coverage issues. Justices Cunningham and Connors concurred in the judgment. ORDER. Court of Appeals of Georgia construe the Declaratory Judgment Act, 28 U.S.C. § 2201 et seq.