Also known as: bad-faith intent · bad faith
Written by attorneys · grounded in primary & secondary sources — see below
A culpable mental state characterized by dishonesty or improper purpose in pursuing a legal advantage or evading responsibility. Courts and statutes treat the presence of this state as disqualifying a party from benefits such as extended removal time, exculpation clauses, or commission recovery.
Bruce Baldwin sued Blue Horizon Industries in state court more than thirteen months earlier. When Blue Horizon Industries received an expert report quantifying damages above the diversity threshold, it filed a notice of removal. The district court found that Baldwin had not concealed the amount in controversy and therefore denied removal under the one-year bar.
Benjamin Brooks offered secondary evidence of a destroyed contract after the original was lost in a flood. The court admitted the evidence because nothing showed that Brooks had destroyed the document to gain an advantage at trial.
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Bernard Bass threatened to file a civil action against Brianna Burke for breach of warranty even though inspection records showed no defects. The court held the threat improper because it was made solely to extract a higher contract price.
Bei Bai, trustee of a family trust, drafted a clause relieving herself of liability for any breach. The beneficiaries showed that Bai had diverted trust funds for personal use, rendering the clause unenforceable.
Brian Bailey listed property with Benson Motors under an exclusive agreement. After the broker produced a buyer who signed a contract at the listed price, Bailey refused to close and withheld the commission. The court awarded the commission because Bailey's refusal was designed to avoid paying the broker.
Barclay Financial, a limited partner, caused the partnership agreement to include a clause excusing all liability for breaches. When the general partner diverted funds for personal gain, the court refused to enforce the clause.
A plaintiff acts in bad faith when deliberately failing to disclose the actual amount in controversy to prevent removal. Courts examine whether the plaintiff concealed information or strategically delayed quantification of damages.
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No. Routine data management or technical glitches that destroy originals without intent to gain a litigation advantage do not constitute bad faith, so secondary evidence remains admissible.
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A threat to use civil process is improper when made in bad faith, such as when the threatened claim lacks any colorable basis in the parties' own records and is deployed only to extract contractual concessions.
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An exculpatory clause is unenforceable to the extent it relieves a trustee or partner from liability for breach committed in bad faith or with reckless indifference to the purposes of the trust or interests of the beneficiaries.
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…F.2d at 1486. Despite Haute Diggity Dog’s obvious intent to profit from its use of parodies, this action does not amount to a bad faith intent to create consumer confusion. To the contrary, the intent is to do just the opposite — to evoke a humorous, satirical association that distinguishes the products. This factor does not favor…