A declaratory judgment determines rights without awarding coercive relief, and it allows a party facing uncertainty to obtain a resolution.
Actual controversy required. The dispute must be definite and concrete, touching the legal relations of parties with adverse interests, and admitting of specific relief. Requests for advisory opinions on hypothetical facts are dismissed.
Discretion. Even where jurisdiction exists, a court may decline. Factors include whether the judgment would settle the controversy, clarify the legal relations, whether the action is being used for procedural fencing or to race to a favourable forum, friction with parallel proceedings, and the availability of a better remedy.
Typical uses. Insurance coverage disputes; contract interpretation before performance is due; validity of a restrictive covenant; whether a licence covers a proposed use; and challenges to the enforceability of a regulation.
Anticipatory filing. A party expecting to be sued may file first for a declaration. Courts frequently decline where the action was filed in response to a demand letter to secure a forum, treating it as an exception to the first-to-file rule.
Combined with damages. A declaration may accompany coercive claims, and does in most commercial cases.