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Encyclopedia > Bad faith

Bad faith (Latin: mala fides) is a legal concept in which a malicious motive on the part of a party in a lawsuit undermines their case. It has an effect on the ability to maintain causes of action and obtain legal remedies. Generally speaking, courts will not just look at the legal rights of parties in pursuing a transaction or a lawsuit, but will look behind the activity at the motives of the persons attempting to obtain the assistance of the court. If a court feels that the reasons behind the transaction or lawsuit have the effect of abusing the power of the law, or the court, it will generally deny a party the ability to rely on a legal remedy that they will otherwise be entitled to. It is related to the equitable powers of common law courts to look beyond the law. Jean Paul Sartre Bad faith (from French, mauvaise foi) is a philosophical concept first coined by existentialist philosopher Jean-Paul Sartre to describe the phenomenon wherein one denies ones total freedom, instead choosing to behave as an inert object. ... For other uses, see Latin (disambiguation). ... The term Malice has several meanings: Malice (legal term), a legal term describing the intent to harm Malice (movie), a 1993 movie starring Nicole Kidman, Alec Baldwin and Bill Pullman Malice (noun), a way to describe the feeling of hatred or disrespect. ... This article or section does not adequately cite its references or sources. ... In the law, a cause of action is a recognized kind of legal claim that a plaintiff pleads or alleges in a complaint to start a lawsuit. ... Look up remedy in Wiktionary, the free dictionary. ...


Relevance

Bad faith is relevant in the following areas of law:


Transactions that affect creditors - If creditors are denied the opportunity to realize on the proceeds of property that was previously owned by the debtor, they will often look at the motives of the parties involved in a purported sale, primarily when the sale is for little or no consideration. For example, if a spouse puts title to the family home in the other spouse's name before embarking on a risky business venture, this will usually be treated as a good faith attempt to lessen the exposure of his or her family to creditors. However, if the same transaction takes place after a spouse has been sued for a debt, the sale will generally be held void against the creditors, allowing them to look at the equity in the house for satisfaction of debt. A creditor is a party (e. ... This article does not cite any references or sources. ...


Possession of property - The law of detinue allows a person who has lost possession of personal property to regain possession of that property, even if it had been transferred to another after its loss or conversion. However, the court will only order such a remedy if the person with possession of the property obtained it in bad faith - for example that they obtained it for free or for nominal consideration. In other words, a person buying a stereo out of the back of someone's car has no defence to a claim in detinue where a person buying a stereo from a pawnbroker would most likely be able to show that the transaction was made in good faith even if it later turned out the pawnbroker didn't have valid title to the goods. In tort law, detinue is an action for the wrongful detention of goods from an individual who has a greater right to immediate possession than the current possessor. ... A pawnbroker offers monetary loans in exchange for an item of value to the given pawn broker. ...


Punitive damages - If the more powerful party to a transaction refuses to properly deal with its legal obligations and must be sued in order to force it to pay money that is clearly owing, courts will often punish litigants who take the position that the worst thing that can happen after a trial is that they will have to pay the money owed anyway. For example, if a check is sent and cashed in error and it is clear that the person receiving the money had no right to keep it, the court would most likely rule that simply ordering the payment of the money was an insufficient remedy for the plaintiff, who was put through the time and expense of trial for no reason. In Canada, one of the leading cases of this type resulted in a record punitive damages award of $1 million CAD when an insurance company pressed a claim for arson when its own experts and adjusters had come to the conclusion the fire was accidental and the lawyer advised the client that the desperate insured parties would be willing to settle for much less than what they were owed (Whiten v. Pilot Insurance Co., 2002 SCC 18)[1]. In law, damages refers to the money paid or awarded to a claimant (as it is known in the UK) or plaintiff (in the US) following their successful claim in a civil action. ... “C$” redirects here. ... Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. ... The Skyline Parkway Motel in Afton, Virginia after an arson fire on July 9, 2004. ...


Remedies in equity - When a party is seeking an extraordinary remedy such as an injunction or specific performance, the court must be convinced that the party seeking the remedy has no ulterior motive for doing so. If the defending party can show that the complaining party has abused the process or the power of the court, the court will generally deny the remedy even though the complaining party would otherwise be entitled to the relief claimed. The Court of Chancery, London, early 19th century This article is about the concept of equity in the jurisprudence of common law countries. ... Look up Injunction in Wiktionary, the free dictionary. ... Definition of Specific performance In the law of remedies, a specific performance is a demand of a party to perform a specific act. ...


External links

See also


  Results from FactBites:
 
bad faith legal definition of bad faith. bad faith synonyms by the Free Online Law Dictionary. (172 words)
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.
when there is bad faith then a transaction is called a "bad faith" contract or "bad faith" offer.
  More results at FactBites »


 

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