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For example, a policyholder believes that their denied claim is unjust. As a result, they inform the insurer that they are considering a lawsuit to recover losses. The insurer seeks a declaratory judgment to clarify its rights and obligations with hopes of preventing the lawsuit.
Declaratory relief, also commonly known as declaratory judgment or declaration, is a form of discretionary remedy which parties may seek from the court. A declaration is essentially a statement made by the court at the request of a party.
Declaratory judgment and injunction Order (Injunctive Relief) are different in nature but same in purpose. The effects and outcomes may be varying ing to situation and requirements. The judgment doesn't award the remedies but the injunctive relief awards the remedies on the temporary or permanent base.
So in an injunctive relief suit the Plaintiff is claiming the other party is doing wrong and needs to be corrected. When you seek a Declaratory relief you are asking the Court to state essentially what right and wrong are, to make clear what the correct standard is.
Declaratory relief refers to a court's declaratory judgment stating the rights of parties without ordering any specific action or listing awards for damages.