What is Good Faith?
Good Faith is, “an honest intention to abstain from taking any unconscientious advantage of another, even through technicalities of law, together with absence of all information, notice, or benefit or belief of facts which render transaction unconscientious.” (Black’s Law Dictionary 822. 4th Ed. Rev. 1968). Good faith is a broad term that describes general honesty in dealing and communication.
More specifically, good faith can refer to a party acting with an honest intention not to behave unfairly or fraudulently. In contract law, good faith implies that parties will deal with each other honestly and fairly, and stick to agreed-upon terms. In negotiation, acting in good faith would mean communicating honestly, without ulterior motives. Parties are required to act in good faith in many legal systems. If they do not, they may be penalized.
Cases such as Waugh v. Prince have simply taken acting in good faith to be acting, “Honestly, without fraud, collusion or deceit; really, actually, without pretense.” There is an assumed trust between negotiators, as well as between insurers and policyholders. Acting in bad faith would be one party taking advantage of that trust, and using it to defraud or cheat another party. Acting in good faith is important not only in business dealings or insurance, but in the legal system as well.
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Can I Sue the Insurance Company for Delaying a Claim?
Accepting the first settlement offer an insurer makes when filing a personal injury claim, auto claim, or other such claim is often unwise. An insurance company’s initial settlement offer may not represent the full amount of compensation you deserve.
However, once you do accept a settlement amount, you may expect the insurance company to issue a check relatively shortly after. Perhaps this hasn’t happened.
An insurance company may not be engaging in good faith practices if it is delaying payment unreasonably. Speak with our personal injury team at Munley Law to learn more about your options in these circumstances.
Understanding Insurance Bad Faith
There is an implied contract between an insurer and a client. Per this implied contract, the insurance company theoretically agrees to operate in good faith, […]
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How to Report Unsafe Working Conditions in Pennsylvania
If you’re working in Pennsylvania and you have discovered or you have been injured by unsafe conditions at work, you should know your rights and the steps you can take to protect yourself and your coworkers.
The workers’ compensation attorneys here at Munley Law firm have put together this guide to help you understand the laws that protect you, how to report any hazards you find, and what to do if you get hurt on the job.
Laws Pertaining to Unsafe Working Conditions in Pennsylvania
The Occupational Safety and Health Act (OSHA) of 1970 governs workplace safety at the federal level. In Pennsylvania, the state’s laws work in tandem with OSHA to ensure that employers provide safe working environments for their employees. Employers are legally required to identify and address workplace hazards and any safety violations to prevent accidents and injuries. […]
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