1. Dishonesty of belief or purpose (the lawyer filed the pleading in bad faith).
— Also termed mala fides (mal-[schwa] fI-deez).
“A complete catalogue of types of bad faith is impossible, but the following types are among those which have been recognized in judicial decisions: evasion of the spirit of the bargain, lack of diligence and slacking off, willful rendering of imperfect performance, abuse of a power to specify terms, and interference with or failure to cooperate in the other party’s performance.” Restatement (Second) of Contracts § 205 cmt. d (1979).
2. Insurance. An insurance company’s unreasonable and unfounded (though not necessarily fraudulent) refusal to provide coverage in violation of the duties of good faith and fair dealing owed to an insured. • Bad faith often involves an insurer’s failure to pay the insured’s claim or a claim brought by a third party.
3. Insurance. An insured’s claim against an insurance company for an unreasonable and unfounded refusal to provide coverage. Cf. GOOD FAITH. [Cases: Insurance 3335, 3379. C.J.S. Insurance §§ 1164, 1576–1577.] — bad-faith, adj.
