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 ?
Insurance and Bad Faith Litigation: Underwriting Issues and Settlement Practices
Whether State Farm had actually acted in bad faith in resolving Landers' claim presented a question of fact that remained to be resolved, the appellate court said, but nothing in the statute or case law precluded the filing of a CRN while a demand for appraisal was outstanding, it concluded.
A trademark registration may be challenged as invalid if it was procured in bad faith.
The Third Circuit first held that an involuntary petition may be dismissed as a bad faith filing even where the petitioning creditors had satisfied all of Bankruptcy Code Section 303's requirements for an involuntary bankruptcy filing.
When the bad faith attorneys learned of the settlement and conditions, they objected, and $1.
The Legislature has not included statutory first-party bad faith claims among the limited exceptions to Citizens' immunity when it could have easily chosen to do so.
The court then described the opposing forces at work in this context, reasoning, "[y]et, as conditions precedent to bringing the bad faith action, insureds must allege in their complaints that there has been a final determination of both liability and the extent of damages.
The Fidelity case is important because it provides a template for California insureds seeking to prove bad faith, as a matter of law.
Finally, these states generally hold that an action for bad faith against an insurer is only premised upon the failure to pursue a settlement offer, not the acceptance of one.
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).
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.