Bad Faith - in Law

In Law

In law, there are inconsistent definitions of bad faith, with one definition much more broad than used in other fields of study discussed in the above sections. Black's Law Dictionary equates fraud with bad faith. But one goes to jail for fraud, and not necessarily for bad faith. The Duhaime online law dictionary similarly defines bad faith broadly as "intent to deceive", and "a person who intentionally tries to deceive or mislead another in order to gain some advantage". A Canadian labor arbitrator wrote, in one case, that bad faith is related to rationality in reasoning, as it is used in other fields, but is ill defined in the law.

The concept of bad faith is likely not capable of precise calibration and certainly has not been defined in the same way by all adjudicators. At its core, bad faith implies malice or ill will. A decision made in bad faith is grounded, not on a rational connection between the circumstances and the outcome, but on antipathy toward the individual for non-rational reasons ... The absence of a rational basis for the decision implies that factors other than those relevant were considered. In that sense, a decision in bad faith is also arbitrary. These comments are not intended to put to rest the debate over the definition of bad faith. Rather, it is to point out that bad faith, which has its core in malice and ill will, at least touches, if not wholly embraces, the related concepts of unreasonableness, discrimination and arbitrariness.

What was called "Canada's best judicial definition of 'bad faith'" by Duhaime's Legal Dictionary is similarly more consistent with use in other fields discussed above.

Good faith and its opposite, bad faith, imports a subjective state of mind, the former motivated by honesty of purpose and the latter by ill-will.

Duhaime also refers to another description, "...bad faith refers to a subjective state of mind… motivated by ill will ... or even sinister purposes."