bad faith


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Bad Faith

The fraudulent deception of another person; the intentional or malicious refusal to perform some duty or contractual obligation.

Bad faith is not the same as prior judgment or Negligence. One can make an honest mistake about one's own rights and duties, but when the rights of someone else are intentionally or maliciously infringed upon, such conduct demonstrates bad faith.

The existence of bad faith can minimize or nullify any claims that a person alleges in a lawsuit. Punitive Damages, attorney's fees, or both, may be awarded to a party who must defend himself or herself in an action brought in bad faith.

Bad faith is a term commonly used in the law of contracts and other commercial dealings, such as Commercial Paper, and in Secured Transactions. It is the opposite of Good Faith, the observance of reasonable standards of fair dealings in trade that is required of every merchant.

A government official who selectively enforces a nondiscriminatory law against the members of a particular group or race, thereby violating the Civil Rights of those individuals, is acting in bad faith.

bad faith

1) n. intentional dishonest act by not fulfilling legal or contractual obligations, misleading another, entering into an agreement without the intention or means to fulfill it, or violating basic standards of honesty in dealing with others. Most states recognize what is called "implied covenant of good faith and fair dealing" which is breached by acts of bad faith, for which a lawsuit may be brought (filed) for the breach (just as one might sue for breach of contract). The question of bad faith may be raised as a defense to a suit on a contract. 2) adj. when there is bad faith then a transaction is called a "bad faith" contract or "bad faith" offer. (See: good faith, fraud, clean hands doctrine)

bad faith

noun abjection, abjectness, abscondence, apostasy, artifice, base conduct, betrayal, betrayment, breach of faith, broken faith, broken promise, collaboration, complicity, connivance, cozenage, debasement, deceit, deceitfulness, deception, defalcation, defection, delusion, delusiveness, dereliction, dereliction of duty, deviation from rectitude, deviousness, disaffection, disavowal, dishonesty, dishonor, disingenuousness, disloyalty, disobedience, double-dealing, duplicity, fallaciousness, false preeenses, false pretension, false swearing, falseheartedness, falseness, forswearing, fraud, fraudulency, furtiveness, guile, hypocrisy, ignominy, improbity, indiscretion, infidelity, insidiousness, insincerity, inveracity, lack of conncience, lack of fidelity, lack of principle, lack of probity, mala fides, malversation, mendaciousness, mendacity, misfeasance, misrepresentation, obliquity, perfidiousness, perfidy, pettifoggery, pretense, pretext, punic faith, recantation, recreancy, reprobacy, sedition, spuriousness, subterfuge, subversion, subversive activity, suppression of truth, surreptitiousness, traitorousness, treacherousness, treachery, turpitude, unauthenticity, unconscientiousness, underrand dealing, unfairness, unfaith, unfaithfulness, unfaithworthiness, ungenuineness, unloyalty, unsteadfastness, untrueness, untrustiness, untruthfulness, unveraciousness, unveracity, venality, violation of allegiance, violation of duty
Associated concepts: fraud
References in periodicals archive ?
The Case: Policyholders can sue insurers for bad faith but insurance companies have been reluctant to sue for reverse bad faith.
The authors discussed Montana's bad faith precedents in some detail for an earlier article (see the Montana Business Quarterly, Summer 1988).
Engaging in bad faith bargaining during negotiations;
The Court of Appeal reversed, finding that Maslo's complaint adequately stated a claim for bad faith when it alleged that the insurer, presented with evidence of a valid claim, failed to investigate or evaluate the claim, insisting instead that its insured proceed to arbitration.
2) The threat of greater expected financial penalties in the event of a bad faith ruling by the courts increases the relative bargaining power of policyholders and reduces the incentives of an insurer to deny, delay, or underpay claims (Abraham, 1994; Sykes, 1996; Crocker and Tennyson, 2002).
This bad faith bill would only be effective during states of emergency declared by either the governor or president.
If the company does that, Passidomo said, it would be immune from being sued for bad faith.
The trial court granted both Zurich's motion for summary judgment on the breach of contract claim and Trafalgar's motion to amend its complaint to include a bad faith claim.
8 million in bad faith as she knew there was not enough money in her account.
In response, Duechle directed Aurelia's attorney to direct all communications to his attorney, Mark Arnzen whom he had retained The case was bifurcated as to the issue of medical malpractice and bad faith the insurance carrier.
Fassi Fihri told MAP on the sidelines of the second Arab-African summit, HM King Mohammed VI is attached to this process which should find a path for it to materialize away from any ideological tendency, political conflict or bad faith.
50 (3) of the Civil Code of the Republic of Lithuania states: where a legal person fails to perform his obligations due to acts in bad faith of a member of the legal person, the member of the legal person shall, in a subsidiary manner, be liable for the obligations of the legal person by his property.