Also known as: mala fide · mala fides · bad faith
Written by attorneys · grounded in primary & secondary sources — see below
Conduct undertaken dishonestly or without an honest belief in its lawfulness or propriety.
Ingrid Innes sued Ironwood Capital in state court more than a year earlier. After an expert quantified damages above the jurisdictional threshold, Ironwood sought removal on diversity grounds. The district court denied the notice because Ingrid had not deliberately concealed the amount in controversy to block removal.
Ismael Ibrahim offered secondary evidence of a contract after the signed original disappeared from his files. The court admitted the evidence because the loss resulted from ordinary record-keeping and not from any deliberate act by Ismael to destroy proof.
Select any source to read its text and confirm it supports the definition.
Isaac Irving threatened to sue Ian Iverson for breach of warranty on a vehicle both parties had inspected and found defect-free years earlier. The court found the threat improper because it was made solely to extract a higher contract price rather than to vindicate any legitimate claim.
Igor Ito, trustee of a family trust, diverted assets to a company he controlled. The trust instrument attempted to relieve him of liability for any breach. The court held the clause unenforceable because the diversion constituted bad-faith conduct toward the beneficiaries.
Ilana Isaacs listed property with a broker who produced a buyer ready to pay the full asking price. The parties signed a purchase agreement with no financing contingency. Ilana later refused to close and denied the commission, but the court awarded it because her refusal was in bad faith.
Infinity Bank, the general partner, amended the limited partnership agreement to disclaim liability for any intentional regulatory violations that reduced costs. It then directed improper disposal of waste. The court refused to enforce the clause because the conduct involved bad faith and knowing illegality.
A plaintiff acts in bad faith when the delay is deliberate and intended to prevent removal. Courts examine whether the plaintiff concealed the amount in controversy to keep the case in state court beyond the statutory deadline.
No. Routine deletion or overwriting without intent to destroy evidence for litigation advantage does not constitute bad faith, so secondary evidence remains admissible.
A threat is in bad faith when it lacks any colorable basis and is used merely as leverage to extract contractual concessions rather than to pursue a legitimate claim.
No. Exculpatory clauses are unenforceable to the extent they attempt to relieve a trustee of liability for breaches involving bad faith or reckless indifference to beneficiaries.
A seller may not in bad faith refuse to complete a transaction after the broker has produced a buyer ready, willing, and able to purchase on the seller's terms and then deny the commission.
No. Partnership agreements cannot exonerate a person from liability for conduct involving bad faith, willful or intentional misconduct, or knowing violations of law.
…In order to escape the rule articulated in the cases cited in the next paragraph of this opinion that, absent harassment and bad faith, a defendant in a pending state criminal case cannot affirmatively challenge in federal court the statutes under which the State is prosecuting him, Dr. Hallford seeks to distinguish his…