What is the test for bad faith in a personal injury action?

Pursuant to subrule 24(8), where a party has acted in bad faith, the court shall order costs on a full recovery basis, payable forthwith. The intentional failure to follow an order or an agreement to achieve an ulterior motive will constitute bad faith. In order to come within the meaning of bad faith, the behaviour must have been carried out with intent to inflict emotional harm on the other party, or to deceive the other person or the court (Erickson v. Erickson, 2001 CanLII 39078 (ON SC), 2000 CanLII 29675. Such intent does not need to be the party’s sole or primary intent, but only a significant part of the person’s intent. Unreasonable behaviour, even if it does not rise to the level of bad faith, can trigger an order for costs on a full recovery basis.