Also known as: good faith effort · good-faith efforts · good faith efforts · good faith
Written by attorneys · grounded in primary & secondary sources — see below
A standard of conduct requiring honest and reasonable behavior in fulfilling a legal obligation or exercising a right. The actor must proceed without intent to deceive or evade duties and after making a reasonable inquiry or attempt appropriate to the context.
Select any source to read its text and confirm it supports the definition.
Gavin Grant missed two monthly payments on his home loan held by Grove Manufacturing. Grove sent notice of intent to accelerate the full balance. Grant promptly cured the arrears and offered to resume regular payments. Grove nevertheless declared the entire debt due. The court held that Grove failed to exercise its acceleration right through a good-faith effort because it ignored the cure and offered no reasonable basis for immediate acceleration.
Galaxy Technologies received a Rule 30(b)(6) notice describing five specific topics for examination. Its counsel conferred with opposing counsel about the scope and designated two officers to cover the topics. The parties exchanged emails confirming the division of topics and the officers' availability. Galaxy later moved for a protective order claiming the notice was overbroad. The court denied the motion because Galaxy had made a good-faith effort to confer and designate appropriate witnesses.
Gregory Gates, a shareholder in Gable Construction, demanded that the board sue two officers for self-dealing. The board appointed a committee of two qualified directors who reviewed documents and interviewed witnesses over six weeks. The committee concluded that litigation would harm the company and recommended dismissal. The board adopted the recommendation by majority vote of qualified directors. The court dismissed the derivative suit because the determination was made in good faith after a reasonable inquiry.
Grace Gupta asked her lawyer whether a proposed transaction might violate an ambiguous tax regulation. The lawyer researched the statute, reviewed analogous rulings, and advised Gupta that the position was defensible though untested. The lawyer also warned Gupta of the risks and recommended disclosure to the IRS. The lawyer did not assist Gupta in concealing the transaction. The ethics board found that the lawyer had made a good-faith effort to determine the validity and scope of the law.
A grand jury investigating public corruption subpoenaed Guillermo Guzman, a reporter, to identify a confidential source. Guzman appeared and answered all questions unrelated to the source. He refused only the source questions and offered to submit an affidavit confirming the information came from a public record. The prosecutor accepted the affidavit and released Guzman. The court upheld the subpoena because the grand jury had proceeded in good faith and Guzman had made a good-faith effort to comply.
Greenleaf Farms defaulted on its mortgage held by a bank. The bank sent a notice of default that included a thirty-day cure period and a statement that it would act in good faith throughout the process. Greenleaf Farms made a partial payment within the cure period. The bank accepted the payment and postponed foreclosure. The court later confirmed that the bank had complied with its obligation to act in good faith throughout the foreclosure process.
A good-faith effort requires honest intent plus a reasonable attempt to fulfill the underlying purpose of the rule rather than formal box-checking. Courts examine whether the actor made a genuine inquiry or attempt appropriate to the circumstances and whether any claimed limitation was reasonable.
Good faith requires only a sincere and reasonable attempt. Success is not required. An actor who makes an appropriate inquiry or effort satisfies the standard even if the ultimate goal is not achieved.
…was not to be found guilty of the offense "unless it is proved that the act which caused the death of the child was not done in good faith for the purpose only of preserving the life of the mother." A seemingly notable development in the English law was the case of Rex v. Bourne , [1939] 1 K. B. 687. This case apparently…
…and inspection in advance and the failure to obtain inspection may unreasonably delay trial; and (4) the application is made in good faith
…18 U. S. C. § 6002, and subsequently prosecuted, is not dependent for the preservation of his rights upon the integrity and good faith of the prosecuting authorities. As stated in Murphy : "Once a defendant demonstrates that he has testified, under a state grant of immunity, to matters related to the federal…
…of war; a practice which violates the spirit, though not the letter, of Magna Charta; and, certainly, can, in equity and good faith, find few advocates. Of the right of Great Britain thus to seize vessels and cargoes found in her ports on the breaking out of war, I do not find any denial in authorities which are…
…After reviewing the record and Stevens’s allegations, we hold that the district court’s conclusion that the government acted in good faith
A mortgagee must exercise acceleration honestly and not for an improper purpose such as pressuring the borrower into unfavorable terms. Some jurisdictions also require notice and a meaningful opportunity to cure before acceleration is valid.
Yes. A lawyer may counsel or assist a client in making a good-faith effort to determine the validity, scope, meaning, or application of the law even if the position is ultimately rejected by a court.
The board must demonstrate that a qualified group conducted a reasonable inquiry and reached its conclusion honestly. The plaintiff must then allege particularized facts showing the inquiry was unreasonable or the determination was not made in good faith.