Insurance policyholders and their coverage providers can have different interpretations of their contract, which causes legal disputes that may wind up in court. To avoid the expense and stress of lengthy litigation, their attorneys at law may request a declaratory judgment, in which the judge issues an opinion based on the facts of the case before a suit is filed. If you’re considering filing a case, understanding declaratory judgments and when they may be used can help you decide whether to proceed. Here’s a guide to these judge-issued statements and how they can help you.

A Brief Guide to Declaratory Judgments

What Is a Declaratory Judgment?

After hearing the facts of a case and reviewing the evidence submitted to them by attorneys at law, a judge may issue a declaratory judgment. These statements, which come before a formal case, explain the rights and obligations of each party, as well as whether legal action can be taken. A judge’s declaration has the legal force of a final judgment, providing a fast resolution and certainty to both parties.

When Are They Used?

Both parties in nearly all types of civil disputes may request declaratory judgments to clarify their rights before filing a suit. This includes cases involving insurance disputes, libel and slander, breach of contract, and employment law.

What Are Their Benefits?

Requesting a declaratory judgment before filing a lawsuit gives people a clearer understanding of how the case might go. Insurers, for example, often ask a judge to issue a statement on a disputed claim. If the judge declares that a plaintiff is unlikely to succeed in court, the plaintiff may abandon the lawsuit to save on legal expenses. On the other hand, a statement against the insurer may drive them to increase their settlement offer, since they realize that they are likely to win the lawsuit.
 

For over a century, the office of Lee, Livingston, Lee, Nichols & Barron, P.C. has provided high-quality legal representation to clients throughout the state of Alabama. Their skilled attorneys at law have extensive experience with a broad range of civil matters and a reputation for excellence. Visit their website for more on their insurance defense and litigation services, or call (334) 792-4156 to schedule your free initial consultation with an attorney at law.