Legal Definitions - malfeasance

Malfeasance refers to an act that is intentionally unlawful or wrongful, particularly when committed by someone in a position of authority or public trust. It involves deliberate misconduct that causes harm, whether financial, physical, or otherwise. This term signifies a higher degree of culpability than simply making a mistake (misfeasance) or failing to act when one should have (nonfeasance), as it implies a conscious decision to engage in prohibited behavior.

It is a serious form of wrongdoing, often involving an abuse of power or a breach of duty, and is distinct from actions that are merely negligent or accidental.

• Example 1: Public Official Misconduct

  A city mayor uses their official power to secretly divert public funds, allocated for a new park, into a shell company they secretly own. The funds are then used for the mayor's personal lavish expenses, leaving the park project unfunded and the community without the promised amenity.

  This is an act of malfeasance because the mayor, a public official, intentionally engaged in an unlawful and wrongful act (embezzlement and abuse of power) for personal gain, causing financial harm to the public and betraying their trust.

• Example 2: Corporate Executive Deliberate Harm

  An executive at a car manufacturing company knowingly approves the installation of a faulty braking system in a new model of vehicles, despite receiving internal reports detailing the severe safety risks and potential for accidents. The executive's decision is driven by a desire to cut costs and rush the product to market.

  This constitutes malfeasance because the executive made a deliberate, unlawful, and wrongful decision that put consumers at risk, prioritizing profit over safety and potentially causing physical harm or death to drivers and passengers.

• Example 3: Professional Abuse of Authority

  A hospital administrator intentionally falsifies patient billing records to charge insurance companies for services that were never rendered, pocketing the difference. This fraudulent scheme leads to increased premiums for patients and illegal profits for the administrator.

  This is an example of malfeasance because the administrator, in a position of professional authority, deliberately engaged in unlawful and wrongful conduct (fraud) that caused significant financial harm to insurance companies and, indirectly, to patients.