DECLARATORY JUDGMENT EXPENSE Sample Clauses
The Declaratory Judgment Expense clause defines how costs and expenses related to seeking a declaratory judgment are handled between the parties. In practice, this clause specifies which party is responsible for legal fees, court costs, and other expenses incurred if one party seeks a court's declaration regarding the interpretation or enforcement of the contract. For example, it may require the losing party in such a legal action to reimburse the prevailing party's expenses. The core function of this clause is to allocate the financial risk of litigation over contract interpretation, thereby discouraging frivolous lawsuits and clarifying the parties' obligations regarding legal costs.
DECLARATORY JUDGMENT EXPENSE. This term shall mean expense incurred by the Company in bringing or in defending a declaratory judgment action brought to determine the Company's obligations to its insured with respect to a specific claim under a policy (or coverage part thereof) reinsured hereunder.
DECLARATORY JUDGMENT EXPENSE. This term shall mean legal expenses and costs incurred by the Company in bringing or in defending a declaratory judgment or other legal action brought to determine the Company’s coverage obligations to its insured with respect to a specific claim under a policy reinsured hereunder. The date on which a Declaratory Judgment Expense is incurred by the Company shall be deemed, in all circumstances, to be the date of the original Occurrence.
DECLARATORY JUDGMENT EXPENSE. The reinsurer’s liability for loss adjustment expense will be in addition to its limit of liability for ultimate net loss under this agreement as set forth in the REINSURANCE COVERAGE ARTICLE (except as respects any such expense that is included in the definition of “ultimate net loss” as set forth below). The reinsurer will bear its pro rata share of all loss adjustment expense, and the reinsurer will, on the other hand, benefit proportionately from all reductions of loss adjustment expense by salvage, compromise or otherwise. Loss adjustment expense does not include salaries of the company’s officials and regular office employees and office expenses of the company.