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' Henry Francis and Betty Hofstadt have had a business relationship for the past six years. Henry's company manufactures widgets and Betty's company sells widgets,

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' Henry Francis and Betty Hofstadt have had a business relationship for the past six years. Henry's company manufactures widgets and Betty's company sells widgets, so Henry has been selling widgets to Betty for the entirety of their relationship, which has gone mostly smoothly. The only problems have been two occasions where Henry's shipments to Betty have been sent one day later than expected, but it has never affected their relationship nor Betty's sales. On this occasion, Henry's shipment is one day late as well. and even though she knows she has sufficient inventory of widgets to cover her until Henry's shipment arrives. Betty decides to threaten Henry with a lawsuit. Henry is surprised, given their longstanding good business relationship and his knowledge of Betty's sufficient inventory of widgets. When Henry tries to resolve the issue with Betty and offers to expedite an additional shipment of widgets at his own expense, Betty hangs up on him, calls him "an absolute idiot with no business sense" and directs Henry to her attorney. Henry consults his own attorney, who states an action could be brought against Betty for bad faith and lack of substantial justification if she proceeds with her threatened lawsuit. What Rule is Henry's attorney relying upon to make such a statement, and will an action for bad faith and/or lack of substantial justification be successful, in your assessment

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