To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. First, is the constitutional inquiry - the case must be a 'case or controversy' pursuant to Article III of the US Constitution. Second is the prudential inquiry ? declaratory relief must be appropriate.
2-701. Declaratory judgments. (a) No action or proceeding is open to objection on the ground that a merely declaratory judgment or order is sought thereby.
Declaratory relief allows a party who is not certain of his rights to prevent the accrual of avoidable damages and to obtain an adjudication before the parties bring a coercive lawsuit.
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.
"The essential requirements of a declaratory judgment action are: (1) a plaintiff with a legal tangible interest; (2) a defendant having an opposing interest; and (3) an actual controversy between the parties concerning such interests. [Citations.]
Examples: a party to a contract may seek the legal interpretation of a contract to determine the parties' rights, or a corporation may ask a court to decide whether a new tax is truly applicable to that business before it pays it.
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.
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.