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I have searched the term "bad faith" in the Black's Law Dictionary, 6th ed.,
and it means the following:
"Bad Faith.  The opposite of "good faith," generally implying or involving
actual or constructive fraud, or a design to mislead or deceive another, or
a neglect or refusal to fulfill some duty or some contractual obligation,
not prompted by an honest mistake as to one's rights or duties, but by some
interested or sinister motive.  Term "bad faith" is not simply bad judgment
or negligence, but rather it implies the conscious doing of a wrong because
of dishonest purpose or moral obliquity; it is different from the negative
idea of negligence in that it contemplates a state of mind affirmatively
operating with furtive design or ill will. Stath v. Williams, Ind. App., 367
N.E.2d 1120, 1124.  An intentional tort which results from breach of duty
imposed as consequence of relationship established by contract. Davis v.
Allstate Ins. Co., 101 Wis.2d 1, 303 N.W.2d 586, 599.
Insurance. "Bad faith" on part of insurer is any frivolous or unfounded
refusal to pay proceeds of policy; it is not necessary that such refusal be
fraudulent.  State Farm General Ins. Co. v. Clifton, 86 N.M. 757, 527 P.2d
798, 800.  For purposes of an action against an insurer for failure to pay a
claim, such conduct imports a dishonest purpose and means a breach of known
duty (i.e., good faith and fair dealing), through some motive of
self-interest or ill will; mere negligence or bad judgment is not bad faith.
Blue Cross and Blue Shield of Alabama v. Granger, Ala., 461 So. 2d 1320,
1327."

It seems "bad faith" is a legal term to mean deliberate breach of duty.
Hope this helps,


-----Original Message-----
From: Clifford, Gerry [mailto:[log in to unmask]]
Sent: Tuesday, July 30, 2002 8:12 AM
To: [log in to unmask]
Subject: Bad Faith


Good Morning All,

Need some assistance on the following:  Was in a conversation yesterday, and
in the conversation the term "bad faith" came up in the context of records
retention.  Simply stated that even though you may have a records retention
schedule in place, the courts can rule bad faith if you do not follow the
schedule that has been set-up. Or use it when the mood hits.  I have done
research and have come up empty.  Does anyone know where I can locate this
saying and what statue if any it falls under?  Thanking you in advance for
your time and effort is this matter.

Gerry

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