Bad Faith

"Bad faith" is a very broad legal term that refers to purposeful and deliberate deception, dishonesty or gross and willful negligence. Also known by the Latin term mala fides (MAH-la FEE-dehs), it constitutes willful and malicious action on the part of a party to a legal action that ultimately weakens and undermines their case.

When determining good or bad faith, the courts will examine the motives of the parties to a lawsuit and try to determine the exact reason for seeking a legal remedy. If it is determined that this reason constitutes an abuse of the law or the courts, a judge may deny the party in question the right to seek a remedy, or even dismiss the case altogether.

Bad faith is also relevant when the more powerful party to a transaction refuses to honor its legal obligations, requiring that a suit be brought against them. A case in point would be a manufacturer that was aware of a defect in one of its products that could result in injury. The corporate actuaries determine that it would be less expensive to pay out damage claims than to correct the defect. Although difficult to prove, if a court determines that a corporation had such disregard for human life (as is often the case), it may add punitive damages above and beyond compensation for medical expenses and pain and suffering.

 

 

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