two types (at least) of bad faith

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  1. Bad faith (existentialism) - Wikipedia, the free encyclopedia

    Bad faith
    (from French, mauvaise foi) is a philosophical concept first coined by
    existentialist philosopher Jean-Paul Sartre to describe the phenomenon ...

    en.wikipedia.org/wiki/Bad_faith_(existentialism) - Cached - Similar

  2. Bad faith - Wikipedia, the free encyclopedia

    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. ...
    en.wikipedia.org/wiki/Bad_faith - Cached - Similar

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.

[edit] 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.

Possession of property - The torts of detinue and conversion
allow 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 defense 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.

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].

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.

Good faith

Good faith, or in Latin bona fides (bona fide means "in good faith"), is good, honest intention (even if producing unfortunate results) or belief. In law, it is the mental and moral state of honesty, conviction as to the truth or falsehood of a proposition or body of opinion, or as to the rectitude or depravity of a line of conduct. This concept is important in law, especially equitable matters.[1][2]

In contemporary English, "bona fides" is sometimes used as a synonym for credentials, background, or documentation of a person's identity. "Show me your bona fides" can mean: Why should I trust you (your good faith in this matter)? Tell me who you are. In this sense, the phrase is sometimes used in job advertisements, and should not be confused with the bona fide occupational qualifications or the employer's good faith effort, as described below.[3]

[edit] Good faith effort

U.S.A. federal and state governments
are required to look for disabled, minority, and veteran business
enterprises when bidding public jobs. An employer's good faith effort is
used as an evaluation tool by the jurisdiction during the annual
program review process to determine an employer's level of commitment to
the reduction goals of the CTR Law.
Good faith effort law varies from state to state and even within states
depending on the awarding department of the government. Most good faith
effort requires advertising in state certified publications, usually a
trade and a focus publication.[citation needed]

[edit] Good faith in wikis

Public wikis, of which the collaborative encyclopedia Wikipedia—currently the largest and most popular general reference work on the Internet[4][5][6]—is
the most well-known, depend on implicitly or explicitly assuming that
its users are acting in good faith. Wikipedia's principle of "Assuming
Good Faith" (often abbreviated AGF), which has been a stated guideline
since 2005,[7] has been described as "the first principle in the Wikipedia etiquette".[8]
According to one study of users' motives for contributing to Wikipedia,
"while participants have both individualistic and collaborative
motives, collaborative (altruistic) motives dominate."[9]