Nonfeasance is a legal concept referring to the willful failure to execute or perform an act or duty required by one’s position, office, or law, whereby such neglect results in harm or damage to a person or property. Such neglect can lead to liability and potential prosecution of the perpetrator.
Key Highlights
- Nonfeasance signifies a willful absence of action aimed at preventing harm or damage.
- It might not be illegal by itself; however, employers hold the legal right to terminate an employee or contractor for nonfeasance.
- Financial nonfeasance involves a failure by a fiduciary or financial representative to act on behalf of a client, such as a broker failing to input a trade requested by a customer.
Grasping the Essence of Nonfeasance
Nonfeasance, characterized by the absence of action to prevent harm or damage, was historically not punishable by law. However, legal reforms now allow courts to hold individuals liable for such inaction. In some places, nonfeasance may carry severe criminal penalties or at least lead to a notice of termination.
For an intentional inaction to be classified as nonfeasance, it must satisfy three criteria:
- The person who did not act was reasonably expected to do so.
- That individual did not perform the expected action.
- Their inaction caused harm.
Inspirational Example: Daycare Provider’s Duty of Care
Imagine a daycare provider entrusted with the care of children. If this provider fails to prevent a child from climbing onto a window ledge, leading to the child falling and injuring themselves, the provider could be held liable for nonfeasance. It was their duty to supervise and ensure the child’s safety. Failing to act breached this duty, causing harm.
Financial Nonfeasance
When an individual with a fiduciary duty, such as a corporate director, real estate agent, or financial advisor, breaches this duty through willful inaction, nonfeasance takes place. For instance, if a real estate agent receives an earnest money check from a client and fails to deposit that check, thereby causing the deal to collapse, the realtor might be held liable for nonfeasance—as long as there wasn’t a misuse of funds or inappropriate intent.
Similarly, a corporate director could face nonfeasance charges if they fail to remain actively involved in managing corporate affairs, resulting in harm to the business due to their neglect.
Related Legal Terminologies
Nonfeasance differs from malfeasance, which pertains to the willful and intentional conduct of an illegal or wrongful act that harms another party. It also varies from misfeasance, representing the intentional execution of an improper or incorrect action, or providing inappropriate advice. All three fall under the umbrella of misconduct in public office.
By understanding these terms and recognizing the distinctions, businesses and individuals can better navigate their duties and avoid the repercussions associated with willful inaction.
Related Terms: malfeasance, misfeasance, negligence, fiduciary responsibility, duty of care, public misconduct.
