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Some types of disputes cannot be decided by a jury. These include claims for injunctive relief or declaratory relief, or questions of law instead of questions of fact. If you have a type of case that a jury can decide, you still may want to have a judge decide the case instead of a jury.
The declaratory judgment would clarify the parties' rights and obligations under the insurance policy. It could guide future actions related to the claim.
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.
(1) Each district court has the power to issue declaratory judgments determining rights, status, and other legal relations within its respective jurisdiction. An action or proceeding may not be open to objection on the ground that a declaratory judgment or decree is prayed for.
For example, one party may claim that it performed under a commission agreement and is entitled to payment of his or her commission. The other party may file a declaratory judgment action seeking a declaration that there has not been performance under the agreement and that no commission is owed.
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.
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 First Circuit recently held that where a final judgment has been reached in a declaratory judgment action, res judicata does not preclude a later action for damages arising from the same operative facts.