A lawsuit seeking a declaratory judgment—also known as a “deck action” (dec. action)—is a lawsuit that asks the court to determine the rights, status, or other legal relations of the parties when a controversy has arisen, but before a wrong has been committed. A declaratory judgment seeks to prevent further litigation, liability, and harm. Declaratory relief is not available to settle disputes already pending before a court. A declaratory judgment is improper if the relief requested is raised for the first time in an amended petition (lawsuit) and merely addresses the same issues as were raised in the original petition.
A declaratory judgment is often sought when there is a disagreement over the meaning or application of an insurance policy or other contract, or a deed, will, trust, lease, statute, or municipal ordinance.
In New Jersey, a declaratory judgment action, also known as a 'declaratory action' or 'dec action,' is a legal proceeding in which a party seeks a court's determination on the legal rights, duties, or status of the parties involved, typically before any actual harm or breach has occurred. This type of action is governed by the New Jersey Declaratory Judgment Act, N.J.S.A. 2A:16-50 to 62, which allows for such judgments to be issued to declare rights, status, or other legal relations. The purpose of a declaratory judgment is to resolve uncertainties and controversies that might lead to future litigation, thereby providing parties with legal certainty and potentially avoiding more extensive legal disputes. It is commonly used in cases involving the interpretation of contracts, insurance policies, statutes, and other legal documents. However, it is not appropriate for disputes that are already the subject of ongoing litigation, nor can it be used to address issues that are simply reiterations of matters raised in an original petition. The court will not grant declaratory relief if it would not resolve the uncertainty or controversy that prompted the action.