Misfeasance

Misfeasance is a term in tort law that describes a situation where an unintentionally inappropriate or wrongful execution of a task negatively affects another party. Though the person in authority, regarded as the perpetrator here, does it unintentionally, the act can lead to severe consequences for them.

Such negligence is seen in healthcare, public offices, corporate, auditing, and financial services, where people in authority fail to execute their duties in a desired manner. The aggrieved party can file for legal proceedings against the perpetrator in such a case and demand compensation for their personal, financial, property, or psychological loss incurred due to such negligence.

Misfeasance is the improper execution of an act, leading to harm or adverse outcomes. However, it is not intended to harm the aggrieved. The term is coined from 'mesfaire,' an Old French word meaning "to misdo" ('mes' implies wrongly, and 'faire' means to do). Misfeasance of public office denotes the improper execution of duties by a public official, leading to harm to individuals or the general public. Such misdeeds include violations of legal obligations or deliberate abuse of their position. The consequences for such actions can range from civil to criminal liability for the official. 

Some of the instances where one comes across misfeasance in the real world are as follows:

• Healthcare professionals fail to provide appropriate care, resulting in harm or injury to patients;
• Government officials misuse their power or resources for personal gain;
• Company leaders make decisions that harm stakeholders or breach laws;
• Legal practitioners mishandle client cases due to negligence or incompetence;
• Public safety officers, like police personnel, intentionally ignore proper protocols, leading to harm or violation of rights and
• Financial advisors purposefully offer poor advice to clients for personal gains.

Such an unintentional breach of contract results in legal accountability, financial fines, harm to one's reputation, and legal proceedings initiated by affected parties. Misfeasance proceedings commonly cover allegations of negligence, breach of duty, or inappropriate conduct within a position of authority. When found guilty, the perpetrator has to be fined or face imprisonment in such cases. The severity of these consequences depends on the degree of harm done and the applicable legal jurisdiction.

The courts must distinguish between Misfeasance, malfeasance, and nonfeasance to ensure justice for both parties. Let us understand the following instances to gain a better insight into the misfeasance law:

Example #1 - Misfeasance in Company's Law

Suppose Director Mary exercises her power and convinces the management to hire her brother, Stuart, as the head of the IT department without making him appear for any kind of interview. Mary knew that he was the best candidate for the post, and hence the interview was not required. While she confirmed his brother's position, the corporate lawyer thought to remind her of a few standard rules of the company. 

The legal expert told the director that hiring someone without interviewing them was ethically wrong, and if an investigation is conducted in the future and she is found to be involved in the unethical hiring of her relative, she might be sued. After the corporate legal professional reminded her of the clause, she immediately kept the offer letter on hold and conducted a formal interview for the position. Her confidence in her brother proved justified as he was hired on merit. 

This example shows that Mary did not intentionally recommend Stuart's unethical hiring. Hence, it became one of the misfeasance cases. 

Example #2 - Misfeasance in Public Office

In June 2024, FRP Advisory Trading Limited won the battle against British Home Stores (BHS) directors Lennart Henningson and Dominic Chandler after a claim was filed against the latter under the first misfeasance trading matter in the UK. According to the revelations, the directors disobeyed their corporate duties and continued to trade despite being aware of their high chances of becoming insolvent. 

The verdict went in favor of the creditors, and the BHS directors were asked to pay £18m over its wrongdoing that affected its stakeholders significantly.

Misfeasance, malfeasance, and nonfeasance are the three different tort law terms that exemplify distinct categories of wrongful or negligent actions. Let us now go through their various dissimilarities: