Bad Breaker?

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I found an outlet this morning that the hot had burned off of and welded the grounding screw into the back of the box, I suspect that the hot was nicked at some point. I was kind of surprised that the breaker did not trip, once I located it. Could the breaker be bad? It did seem to operate normally to turn it off and back on.
 
I found an outlet this morning that the hot had burned off of and welded the grounding screw into the back of the box, I suspect that the hot was nicked at some point. I was kind of surprised that the breaker did not trip, once I located it. Could the breaker be bad? It did seem to operate normally to turn it off and back on.
If the ground sheared off at the next box from the arc it might not. Or if the cable run is long but then it wouldn't weld to the box
 
It sounds like you may have had a high resistance fault, that never drew enough current to trip the breaker.
 
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