Declaratory Judgment Actions: A Strategic Tool for Homeowners, Business Owners, and Named Insureds
*Disclaimer: David Dwyer, Owner of Experience Public Adjusters, is a skilled public adjuster in the field of insurance claims and not an attorney.*
Navigating the complexities of legal issues in insurance claims is a crucial challenge for homeowners, business owners, and named insureds. Understanding the role of declaratory judgment actions, and how they can benefit you, is pivotal in proactive claim management. If a public adjuster reaches an impasse and is not able to settle the insurance claim through adjusting then an attorney may want to file a declaratory judgement action.
**Understanding Declaratory Judgment Actions**
Declaratory judgment actions provide a strategic avenue for homeowners, business owners, and named insureds to define legal controversies before embarking on full-fledged lawsuits. This approach, commonly utilized in insurance claims and contract disputes, allows parties to establish their rights and responsibilities under existing agreements.
**Differences Between State and Federal Declaratory Judgment Actions**
For homeowners, business owners, and named insureds, choosing the right jurisdiction is vital. While the core difference lies in jurisdiction, understanding the procedural variances based on the chosen legal arena is equally important.
**Federal Declaratory Judgment Actions**
Under 28 U.S.C. § 2201, federal courts can address actual controversies, declaring the rights of interested parties. Rule 57 in the Federal Rules of Civil Procedure facilitates seeking declaratory judgment on these controversies.
**Florida Declaratory Judgment Actions**
In Florida, under Section § 86.011, Fla. Stat. (2023), a court with jurisdiction can declare “rights, status, and other equitable or legal relations” concerning a matter. This includes rendering judgments on immunity, power, privilege, or right.
**Outlining a Declaratory Judgment Action**
For homeowners, business owners, and named insureds, initiating a declaratory judgment action involves demonstrating:
1. A bona fide dispute.
2. A question for the court regarding immunity, power, privilege, or right.
3. Doubt about the issue being brought before the court.
4. Articulation of a need for the declaratory judgment action.
5. Assurance that the action is not a mere solicitation for legal advice or curiosity.
Parties acknowledge the risk of the court ruling against their interests, preventing dismissals unless an actual controversy is not articulated.
**Benefits of Using Declaratory Judgment Actions**
1. **Cost-Efficiency:** Declaratory relief eliminates the need for complex litigation, saving time and resources for homeowners, business owners, and named insureds.
2. **Forum Selection:** Filing a declaratory judgment action enables strategic forum selection, allowing for a favorable location before a dispute arises.
In conclusion, declaratory judgment actions serve as a valuable preemptive tool for homeowners, business owners, and named insureds, offering a streamlined approach to dispute resolution and forum selection in the intricate landscape of insurance claims.
This discussion pertaining to declaratory judgements is a tool to be used after you attempt with a public adjuster to settle an insurance claim. You will find that insurance company will have little to no reason to deny insurance claims. They wait to see if you will respond or hire a public adjuster. In many cases, our team of public adjusters will be able to get a fair settlement from them without the use of an attorney or having to file a lawsuit.