Also known as:wilfulness, fault, or bad faith · bad faith · willful misconduct
Written by attorneys · grounded in primary & secondary sources — see below
A culpable mental state or conduct involving intentional wrongdoing or reckless disregard of legal duties or the rights of others. This standard determines when procedural protections, contractual limitations, or evidentiary rules yield to sanctions, liability, or exceptions. Courts apply it to prevent manipulation of process or abuse of authority.
Sources & Authorities· 22 primary sources
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
Study Supplements
How it applies
Common Examples
6
Late Removal Attempt Blocked
Wanda Williams filed a state-court suit against Westmont Healthcare seeking damages under $75,000. More than a year later she amended the complaint to add a federal claim exceeding that amount. The district court denied removal because Wanda had deliberately understated the amount in controversy to block the defendant from removing within the one-year window.
Lost Original Document Admitted
Warren Woods sued Willowbrook Capital over a disputed contract whose signed original had disappeared from the company's files. Willowbrook could not produce the document but showed it had been routinely destroyed under a neutral retention policy with no intent to hide evidence. The court allowed secondary evidence of the contract's terms.
Bad-Faith Threat of Suit
William Williams threatened to sue Wren Wright for breach of a consulting agreement unless Wren paid an inflated sum. William knew the underlying claim lacked merit and used the threat solely to extract a settlement. The court refused to enforce the resulting agreement because the threat constituted improper means.
Exculpatory Clause Invalidated
Winter Wolfe served as trustee of a family trust that contained a clause shielding her from liability for any breach. After she diverted trust funds for personal use, the beneficiaries sued. The court held the clause unenforceable because the diversion occurred in bad faith.
Broker Denied Commission
Willow West listed her home with Westbrook Dynamics under an exclusive-right-to-sell agreement. The broker produced a buyer ready to meet the listed price, but Willow refused to sign the contract in order to avoid paying the commission. The court awarded the commission anyway because the seller's refusal was in bad faith.
Partnership Agreement Limit Struck
Wellesley Media's limited-partnership agreement contained a clause purporting to eliminate liability for any partner conduct. After one partner knowingly diverted partnership opportunities for personal gain, the other partners sued. The court refused to enforce the clause because the conduct involved bad faith and knowing violation of law.
Common questions
Frequently Asked
5
When does a plaintiff's conduct constitute bad faith that permits removal after the one-year deadline?+
A plaintiff acts in bad faith when she deliberately conceals the true amount in controversy or manipulates pleadings to prevent a defendant from removing within the statutory window. Courts examine whether the plaintiff intentionally understated damages or delayed disclosure to block removal. If such conduct is found, the one-year bar is lifted and removal is allowed.
Supporting sources
Does loss of an original document always bar secondary evidence under Rule 1004?+
No. Secondary evidence is admissible when the original is lost or destroyed unless the proponent herself acted in bad faith to cause the loss. Routine destruction under a neutral retention policy, without intent to suppress evidence, does not constitute bad faith and permits admission of other proof of content.
Supporting sources
What makes a threat of civil process improper under the Restatement?+
A threat of civil process is improper when made in bad faith, meaning the threatener knows the underlying claim lacks merit and uses the threat solely to extract an unfair settlement. The resulting agreement is unenforceable because the means employed were wrongful.
Supporting sources
When is an exculpatory clause in a trust or partnership agreement unenforceable?+
An exculpatory clause is unenforceable to the extent it attempts to relieve a trustee or partner from liability for breach committed in bad faith or with reckless indifference to beneficiaries or the entity's interests. Courts will not honor clauses that shield intentional misconduct or knowing violations of law.
Supporting sources
May a seller avoid paying a broker's commission by refusing to complete a sale?+
No. When a broker produces a buyer ready, willing, and able to purchase on the seller's terms, the seller may not in bad faith refuse to close and then deny the commission. The broker earns the commission upon producing the buyer, and the seller's bad-faith refusal does not defeat that right.
Supporting sources
. The Court of Appeals for the Ninth Circuit reversed. 702 F. 2d 788 (1983). First, the Court of Appeals decided that the District Court had permissibly chosen not to abstain from the…
or engaged in a pattern of similar conduct. Pp. 575–580. (2) The $2 million award is 500 times the amount of Gore’s actual harm as determined by the jury. This disparity is substantially…
. The patents were numerous and covered not only the patented board but machines and processes in the manufacture of board, and the rights and privileges granted were of great value to the…
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