This form for use in litigation against an insurance company for bad faith breach of contract. Adapt this model form to fit your needs and specific law. Not recommended for use by non-attorney.
This form for use in litigation against an insurance company for bad faith breach of contract. Adapt this model form to fit your needs and specific law. Not recommended for use by non-attorney.
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A declaratory judgment is a binding judgment from a court defining the legal relationship between parties and their rights in a matter before the court. When there is uncertainty as to the legal obligations or rights between two parties, a declaratory judgment offers an immediate means to resolve this uncertainty.
In Arizona, declaratory judgments are governed by state law. They can be used in a variety of legal contexts, such as: Disputes over contract interpretation or validity. Questions of insurance coverage or liability.
The benefit of a declaratory judgment is that it prevents lawsuits that are likely to be unsuccessful, which saves the courts, and ultimately taxpayers, resources and time. A policyholder that receives an unfavorable declaratory judgment is unlikely to file a lawsuit, as the suit is much more likely to be dismissed.
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.
A plaintiff seeking declaratory relief must show that there is an actual controversy even though declaratory relief will not order enforceable action against the defendant. An actual controversy means there is a connection between the challenged conduct and injury, and redressability that the court could order.
So what is a "declaratory judgment" lawsuit? This answer is this: It's a lawsuit that a plaintiff files in which the plaintiff asks the court to "declare" through issuance of a "declaratory judgment" what the respective rights of the parties are.