May v. James G. Pardee Co.
May v. James G. Pardee Co.
Dissenting Opinion
dissenting. As pointed out in the majority opinion herein, this court has clearly recognized an exception to the independent-contractor rule, in that one who can lawfully operate only under a public franchise, i. e., an I. C. C.
The General Assembly has seen fit to except the plaintiff herein from the category of a “private motor carrier” and has relieved him from the necessity of having a permit of his own so long as his privately owned vehicle is employed or used by a private motor carrier. The majority opinion reasons that, because plaintiff was not required to have a permit, he can not be liable for the negligent acts of his independent contractor. It is on this point that I part company with the majority.
The majority opinion assumes that “the real basis for this reason for imputing negligence of an independent contractor-driver to someone else, is a requirement of insurance from the permit holder, — not from anyone else.” I submit that the real basis for such imputation is the protection of the public against the acts of anyone whose activity is originated by the permit holder. Plaintiff is an indispensable link in the chain between the driver of the truck and the permit holder. This particular driver could not have hauled this particular load without two things — the permit of Mercure affixed to plaintiff’s truck and the contract between Mercure and plaintiff.
This court has effectively closed the door to a permit holder’s escaping liability by employing an independent contractor. I think it should similarly prevent such escape from liability by anyone in a chain of activity that is originated and can only be originated by the permit holder.
I recognize that such a holding would necessitate the en-grafting of another exception on the independent-contractor doctrine. However, in my opinion, the facts of this case and the practice of many in the trucking industry to obtain contracts and then delegate the hauling, which in turn is delegated and redelegated, sometimes to responsible and sometimes to irresponsible persons, warrant the engrafting of the exception.
Opinion of the Court
The question to be decided is whether the negligence of the driver of a truck, who is as to the owner of the truck an independent contractor, will be imputed to such owner merely because the operation of the truck at the time required use of a permit issued by the Public Utilities Commission of Ohio and notwithstanding that such required permit had been lawfully supplied by a third person for use and was being lawfully used on such truck. This court has held that, in such an instance, at least where negligence as distinguished from contributory negligence is in question, the negligence of the driver while acting within the scope of such third-person permit holder’s business will be imputed to such permit holder, even if such driver is as to such permit holder an independent contractor. Duncan v. Evans, 134 Ohio St., 486, 17 N. E. (2d), 913. See Shaver v. Shirks Motor Express Corp., 163 Ohio St., 484, 127 N. E. (2d), 355; Thornberry v. Oyler Bros., Inc., 164 Ohio St., 395; Simon, a Minor, v. McCullough Transfer Co., Inc., 155 Ohio St., 104, 98 N. E. (2d), 19; Behner v. Industrial Commission, 154 Ohio St., 433, 96 N. E. (2d), 403.
In seeking an answer to the question to be decided in the instant case, it will be helpful to consider the reasons for the holdings in the foregoing cases.
Several of those cases involved a regulation of the Interstate Commerce Commission providing that a carrier, when using a vehicle of another in its operations under an Interstate Commerce Commission permit, must do so under an “arrange
In the annotation at 16 A. L. R. (2d), 960, it is said:
“It is, of course, a general rule of law that an employer is not liable for the torts of an independent contractor. There are, however, certain well recognized exceptions to this rule, two of which have been invoked frequently in considering liability in connection with the operation of commercial motor vehicles. One is that an employer cannot escape liability for tortious injuries to others through creation of the independent-contractor relationship if the work to be performed is inherently dangerous to others. The other is that where such an operation may be carried on only by permission given by public authority, the relationship cannot be created for the purpose of escaping the liability for harm to others which would otherwise attach.”
As to the first of these two “exceptions,” it was advanced as a reason for the decision in the briefs in Healy, Admr., v. Universal Carloading & Distributing Co., which was reported with Duncan v. Evans, supra (134 Ohio St., 486); and it was also mentioned in the reasons advanced by the Court of Appeals for its decision in Duncan v. Evans, 60 Ohio App., 265, 274, 275, 20 N, E. (2d), 729, However, nothing is said about
As to the second of these two “exceptions,” referred to in the above quotation from 16 A. L. R. (2d), 960, it was adopted as a reason for imputing negligence of an independent contractor-driver to a permit holder in Liberty Highway Co. v. Callahan, Admx., 24 Ohio App., 374, 157 N. E., 708, and in Interstate Motor Freight Corp. v. Beecher, 37 Ohio App., 23, 174 N. E., 27; subsequently advanced in the briefs as a reason for the decision unsuccessfully sought by the defendant in error in Leonard v. Kreider, a Minor, 128 Ohio St., 267, 190 N. E., 634, and apparently rejected sub sileniio by this court’s decision in that case; later adopted again as a reason for imputing negligence of an independent contractor-driver to a permit holder in the Court of Appeals decisions in Stickel v. Erie Motor Freight, Inc., 54 Ohio App., 74, 6 N. E. (2d), 15 (motion to certify overruled), and Duncan v. Evans, supra (60 Ohio App., 265); apparently again rejected by this court when it gave a different reason for its decision in Duncan v. Evans, supra (134 Ohio St., 486); and then referred to with approval as a valid one of several reasons for such a decision in Simon v. McCullough Transfer Co., supra (155 Ohio St., 104), 111, 112, 113, 114. See also Costello v. Smith, supra (179 F. [2d], 715); War Emergency Co-op Assn. v. Widenhouse, 169 F. (2d), 403, 406; Cotton v. Ship-By-Truck Co., 337 Mo., 270, 278, 85 S. W. (2d), 80, 84; Kissell et al., Trustees, v. Motor Age Transit Lines, Inc., 357 Pa., 204, 209, 53 A. (2d), 593, 595. Cf. Quigley, Gdn., v. Toledo Railways & Light Co., 89 Ohio St., 68, 105 N. E., 185; annotation, 28 A. L. R., 122.
Thus, in Simon v. McCullough Transfer Co., supra (155 Ohio St., 104), 113, it is said in quoting with approval from the opinion in Costello v. Smith, supra (179 F. [2d], 715), with reference to imputing negligence of an independent contractor-driver to the holder of an Interstate Commerce Commission certificate, where such holder was using such driver in its operations under such certificate:
“ ‘This is on the principle that one who can lawfully oper
“ ‘It is an exception to the independent contractor rule.’ ”
In the instant case, as will be hereinafter pointed out, Mercure was “one” who, with respect to the activity involved at the time of the collision in the instant case, could “lawfully operate only under a public franchise,” i. e., a P. U. C. O. permit; and therefore Mercure could not “escape liability by engaging an independent contractor [either plaintiff or Kiddon or both] to carry on” that “activity for him.” But, as will be hereinafter pointed out, while he was “eng’aged * * * as a private owner” of a motor vehicle “employed or used by a private motor carrier” such as Mercure, the statutes of Ohio did not require plaintiff to have a P. U. C. O. permit or any other “public franchise.” Subdivision (a) (1) of Section 614-103, General Code (Section 4923.02, Revised Code).
Also, in paragraph one of the syllabus in Quigley v. Toledo Railways & Light Co., supra (89 Ohio St., 68), it is stated:
“A street railway company receives its franchise to operate a street railroad subject to certain well defined duties to the public. It cannot relieve itself from these obligations by a lease or traffic arrangement by which it permits another company to make joint use of its tracks, except by legislative enactment authorizing such lease or arrangement with an express provision exempting it from liability for the acts of its licensee.” (Emphasis added.)
In the instant case, although Mercure received a “franchise” from the state to operate as a “private motor carrier,” plaintiff did not; and plaintiff’s activities at the time of the collision were not such as to require that he secure from the state such a “franchise.” Plaintiff did not therefore receive any “franchise * # * subject to * * # duties to the public” which are nondelegable, and his activities, at the time of the collision involved in the instant case, were not such as to require that he have such a “franchise.” Not being such a “franchise” holder or one who should have been such a “franchise” holder, there is no basis, under the foregoing authorities, for imputing negligence of his independent contractor to him. Thus, if the second of the two “exceptions” referred to in the above quota
The only other apparent reason for imputing the negligence of such independent contractor-driver to someone else is that advanced as the reason for the decision in Duncan v. Evans, supra (134 Ohio St., 486), where it was said in the opinion “by the court”:
“The defendants rely upon the decision of this court in the case of Leonard v. Kreider, 128 Ohio St., 267, 190 N. E., 634, in which it was held that ‘no rule of law as to independent contractors is abrogated by Section 614-99, General Code, relating to motor transportation companies.’ However, subsequently to the collision in the Kreider case the Legislature amended many existing statutes and added Sections 614-103 to 614-128, Géneral Code, inclusive. The powers of the Public Utilities Commission have been extended to include the supervision and regulation of ‘private motor carriers’ and ‘motor carrier transportation agents.’ Before operating, the former must obtain a permit from the commission, and the latter must secure a license therefrom. Both must furnish bonds for the protection of the public, as do motor transportation companies. Apparently the Legislature intended to protect the public against loss from negligence on the part of anyone using the highway in the business of transportation by motor truck. Therefore the trial courts were correct in charging the jury that these defendants could not escape liability by delegating their duties to independent contractors.”
The only language in the statutes referred to, which indicates an intention to provide protection to the public from operations by someone who is not a common carrier (Section 614-99, General Code, now Section 4921.11, Nevised Code, contains similar provisions applicable to common carriers) but is using the highway in the business of transportation by motor truck, is found in Section 614-115, General Code, now Section 4923.08, Nevised Code (the provisions of Section 614-121 et seq., General Code, now Section 4925.01 et seq., Nevised Code, relative to motor carrier transportation agents apparently apply only to transportation of “persons”), and reads so far as pertinent :
Apparently what this court meant by what it said in Duncan v. Evans, supra (134 Ohio St., 486), was that, since the General Assembly had required a motor transportation permit holder to have “liability insurance * * * against * * * death of or injuries to persons and * * * damage to property resulting from the negligence of” the permit holder so as “adequately to protect the interests of the public” (Sections 614-99 and 614-115, General Code, now Sections 4921.11 and 4923.08, Bevised Code; see also Section 614-126, General Code, now Section 4925.06, Bevised Code), and since the purpose of so protecting the interests of the public with insurance of the permit holder could be readily defeated if such a permit holder could relieve itself of responsibility for negligence in the operation of its vehicle under the permit by employing an independent contractor for such operation, therefore the General Assembly by necessary inference expressed an intention that the insured permit holder should be responsible under the doctrine of respondeat superior for the actions and conduct of its driver within the scope of the business conducted by the permit holder pursuant to the authority provided by the permit.-
However, the requirement of insurance, which is apparently the real basis for this reason for imputing negligence of an independent contractor-driver to someone else, is a requirement of insurance from the permit holder, — not from anyone else. Unless therefore plaintiff was required to have a permit, there would appear to be no justification for imputing the negligence of his independent contractor-driver to plaintiff. As hereinafter pointed out, plaintiff was not required to have a permit
It is not contended there was and we assume there was not anything improper in having plaintiff and the driver of plaintiff’s truck operating as independent contractors for the permit holder Mercure and using that permit holder’s permit in so operating. This is apparently contemplated by subdivision (a) (1) of Section 614-103, General Code (now subdivision (A) (1) of Section 4923.02, Revised Code), which reads so far as pertinent:
“ (a) The term ‘private motor carrier’ or ‘contract carrier by motor vehicle’ shall include every * * * person * * * not included in the definition under Section 614-84 [defining “motor transportation company” or “common carrier by motor vehicle”] * * * when engaged in the business of private carriage of persons or property, or both, or of providing, or furnishing such transportation service, for hire, in or by motor-propelled vehicles of any kind whatsoever, including trailers, over any public highway in this state, but shall not include any * * * person * * *
“(1) Engaged or proposing to engage, directly or indirectly, as a private oioner or operator of motor vehicles employed or used by a private motor carrier, as herein defined, or by a motor transportation company, as defined in Section 614-84 * * (Emphasis added.)
Admittedly neither Mercure nor plaintiff came within the definition of a “motor transportation company,” as defined in Section 614-84, General Code. Mercure obviously was included within the definition of a “private motor carrier” set forth in the above-quoted statute; and plaintiff was not so included, because he was a person such as described in subparagraph (1) of paragraph (a) of that statute. Thus, by reason of the operation of plaintiff’s truck at the time of the collision (in hauling coal for a mining company under a contract between such mining company and Mercure), Mercure was required to have a permit (Section 614-104, General Code, now Section 4923.04, Revised Code), but neither plaintiff nor the driver of his truck was.
In endeavoring to avoid responsibility for the negligence of the driver of the plaintiff’s truck, plaintiff is in a sub
In the dissenting opinion in Duncan v. Evans, supra (134 Ohio St., 486), it is stated that the defendant in one of the two cases reported “did not have a certificate of necessity and convenience” but that its independent contractor operator did
Our conclusion is that, at least where it has not been established that the operation of a truck is inherently dangerous to others, the negligence of the driver of such truck, who is as to the owner of the truck an independent contractor, will not be imputed to such owner, merely because the operation of the truck at the time requires use of a permit from the Public Utilities Commission of Ohio, if at that time such required permit has been lawfully supplied by a third person for use and is being lawfully used on such truck.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.