Bad Faith


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Bad Faith

Abuse of the law by a party to a lawsuit. That is, one is acting in bad faith if one exploits the law for personal gain. Bad faith can result in the loss of a lawsuit and perhaps in punitive damages. See also: Insurance bad faith.
References in periodicals archive ?
Insurers' attempts to assert similar theories of liability against policyholders, also known as reverse bad faith, have been far less successful.
Thus, almost every breach of contract case in Montana alleged bad faith and requested that the jury award punitive as well as compensatory damages to the plaintiff.
The court explained that otherwise an "insurer could stonewall uninsured motorist claimants in every case but avoid bad faith liability through the simple act of requesting arbitration and refusing to pay until ordered to do so by an arbitrator.
We test this hypothesis using a large sample of automobile insurance claims from accidents occurring in 42 states over the period 1972-1997 when tort liability for insurer bad faith was expanding.
3036, which provides a cause of action for policyholders subject to bad faith claims handling.
He said the current system has become a game where plaintiffs' attorneys make complex and impossible demands on the insurance companies to delay a settlement, and then attempt to sue them for bad faith so the policy limits can be exceeded.
Zurich filed a subsequent motion for summary judgment on the bad faith claim, arguing that Trafalgar's bad faith claim was barred because Trafalgar had failed to obtain a "favorable resolution" on the underlying breach of contract claim.
Consequently, to level the playing field, many states have enacted similar legislation to that of Kentucky, wherein if bad faith can be shown on behalf of insurance carriers, punitive damages can be awarded.
While we express our attachment to this process, we remain cautious about any attempt to exploit it by some parties in bad faith," said the minister, who recalled that Morocco has made great efforts over the past 33 years to uphold its best interests, especially with respect to the Moroccan Sahara issue.
It follows that this rule establishes an opportunity to apply a civil liability to a member of a legal person acting in bad faith, and protects the creditors of the company from both unlawful acts or omission of the company's members and the abuse of the concept of limited liability.
In addition, Mealey's has also released "Commentary Review: Bad Faith 2005-2008," a new report that carries a collection of articles and reviews of bad faith cases from both the insurer and policyholder's perspectives.
No one wants to argue that insurers can act in bad faith without consequence.