Also known as:good-faith argument · good faith argument · good faith arguments · good faith
Written by attorneys · grounded in primary & secondary sources — see below
A legal contention advanced by counsel that rests on a reasonable basis in law and fact and is not frivolous. Such an argument may seek an extension, modification, or reversal of existing precedent while remaining grounded in good-faith analysis of the governing authorities.
Sources & Authorities
How it applies
Common Examples
6
Mortgage Acceleration Dispute
Gerald Gibson missed two mortgage payments on his home. Grove Manufacturing, the lender, reviewed the loan documents and market conditions before declaring the full balance due. Gerald challenged the acceleration in court, and the lender responded with arguments that its decision rested on a reasonable reading of the default provisions.
Corporate Deposition Notice
Guardian Insurance noticed a Rule 30(b)(6) deposition of Greenleaf Farms and described the topics with particularity. The companies conferred about the scope before the deposition date. Greenleaf designated two officers and prepared them on the noticed matters after the parties exchanged good-faith positions on the examination boundaries.
Derivative Suit Dismissal Motion
Put it into practice
Test Yourself
10
Practice Questions5
· 37 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
Restatements
Shareholders of Golden Gate Logistics filed a derivative action alleging self-dealing by two directors. The board appointed a committee of qualified directors that conducted an inquiry and concluded the suit was not in the corporation's best interests. The court dismissed the action after the committee's determination satisfied the statutory criteria for good-faith review.
Client Counseling on Novel Issue
Gwen Gallagher asked her lawyer whether a proposed transaction might violate an ambiguous statute. The lawyer researched the statute's text, legislative history, and analogous cases. She then advised Gwen on the legal risks and helped her structure the deal to test a good-faith interpretation of the provision.
Reporter Grand Jury Testimony
A journalist received a grand jury subpoena seeking confidential sources in a public-corruption investigation. The reporter moved to quash, arguing that forcing testimony would chill press freedoms. The court denied the motion after finding the investigation was conducted in good faith and no constitutional privilege applied.
Foreclosure Process Compliance
Grace Gupta defaulted on her home loan. The servicer reviewed all required notices and timelines before initiating foreclosure. When Grace contested the proceeding, the servicer demonstrated that every step complied with the statutory good-faith obligations throughout the process.
Common questions
Frequently Asked
3
What makes an argument frivolous rather than a good-faith contention?+
An argument is frivolous if it lacks any basis in law or fact. A good-faith argument may still be advanced even if success is unlikely, provided counsel has conducted a reasonable inquiry and the position rests on a plausible reading of precedent or a reasoned request to change the law.
Can a lawyer file a claim before completing all factual discovery?+
Yes. A claim is not frivolous merely because counsel needs discovery to develop supporting evidence. The duty is to ensure the position is supported by a good-faith analysis of the facts and law known or reasonably obtainable at the time of filing.
Does a good-faith argument allow a lawyer to seek reversal of settled precedent?+
Yes. Model Rule 3.1 expressly permits a lawyer to make a good-faith argument for an extension, modification, or reversal of existing law. The argument must still be grounded in a reasonable basis rather than pure speculation or harassment.
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