Also known as:carry for hire · carried for hire · carries for hire · common carrier
Written by attorneys — see sources below.
Transportation of passengers or goods provided to the public in exchange for compensation. The activity creates a special relationship that imposes affirmative duties on the provider to protect those transported from unreasonable risks of physical harm and to render aid when illness or injury becomes apparent.
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How its tested
Common Examples
6
Shuttle Service Triggers Carrier Duties
Maple Peak operates complimentary shuttle buses on a fixed schedule carrying only game attendees. After a rivalry game Clifford boards a crowded return shuttle. Rival fans begin pushing and throwing objects while the driver watches without stopping or summoning help. Clifford suffers bruises. The service qualifies as carrying for hire because it transports passengers under the carrier's control for the benefit of game attendance, triggering the duty to take reasonable protective action.
Freight Line Faces Regulatory Limits
Consolidated Freightways operates tractor-trailers that carry cargo for paying shippers across state lines. State law restricts the length of double-trailer rigs on certain highways. The carrier challenges the restriction as an undue burden on interstate commerce. Because the operation involves carrying for hire on a regular basis for the public, the company must comply with safety rules that do not discriminate against out-of-state carriers.
Kassell v. Consolidated Freightways Corp.450 U.S. 662, 702-703 (1981)
The State of Iowa maintains a statute that restricts most truck combinations on its highways to 55 feet in overall length while allowing 60-foot doubles, 60-foot singles hauling livestock or farm equipment, and 65-foot singles.
Consolidated Freightways Corporation of Delaware, a major common carrier operating in 48 states under an Interstate Commerce Commission certificate, regularly transports goods through Iowa on Interstate 80 and Interstate 35 using both 55-foot singles and 65-foot doubles. Because Iowa bars 65-foot doubles, Consolidated must either switch to shorter permitted vehicles, detach and shuttle the trailers separately, or divert its longer rigs around the state entirely, adding roughly $2 million per year to its own operating costs and an estimated $12.6 million annually to the industry as a whole.
Iowa's length limits originated in a 1947 uniformity statute and were set at 60 feet in 1963. In 1974 the legislature passed a bill raising the limit to 65 feet for doubles. Governor Ray vetoed it, stating that the change would benefit out-of-state trucking firms at the expense of Iowa citizens. The legislature then enacted a border-cities exemption allowing municipalities abutting other states to adopt the neighboring state's longer limits. Additional exemptions permit Iowa truck manufacturers to ship 70-foot units and allow oversized mobile homes when moved from or to points inside the state.
Consolidated filed suit in the United States District Court for the Southern District of Iowa seeking declaratory and injunctive relief. After a 14-day trial that included comparative accident data, braking and maneuverability tests, and testimony from state and federal transportation officials, the District Court found that 65-foot doubles were as safe as the vehicles Iowa permits. The court further found that the length restriction caused affected trucks to travel more miles over more dangerous roads in other states, increasing overall accidents, injuries, fatalities, fuel consumption, and highway wear.
The Court of Appeals for the Eighth Circuit affirmed. Iowa appealed, and the Supreme Court noted probable jurisdiction. At trial Consolidated introduced 1978 accident statistics showing that its 65-foot doubles, driven 56 million miles on identical routes, produced 106 accidents with 17 injuries and one fatality, while its 55-foot singles produced 100 accidents with 27 injuries and one fatality. Iowa's own Department of Transportation study concluded that 65-foot twins had not been shown to be less safe than 60-foot twins or conventional semis. Iowa presented evidence that longer vehicles take more time to pass and clear intersections. Iowa also showed that longer trucks are somewhat more prone to jackknifing. No witness testified that 65-foot doubles were more dangerous overall than the trucks the state allows.
A dairy company delivers milk to households and stores under contracts that compensate it for each delivery. The state sets minimum prices for the milk sold. The company argues the price rules violate due process. Because the deliveries constitute carrying for hire as part of a regulated public service, the state may impose reasonable economic controls without depriving the carrier of property.
Nebbia v. New York291 U.S. 502 (1934)
In 1932, prices received by New York dairy farmers for milk fell substantially below the cost of production amid overproduction and destructive competition. A joint legislative committee investigated the industry through public hearings and expert studies, producing a detailed report that recommended price regulation to stabilize the market and ensure an adequate supply of wholesome milk.
The Legislature responded by enacting Chapter 158 of the Laws of 1933, which established a Milk Control Board empowered to fix minimum and maximum wholesale and retail prices for milk. The Board issued an order setting a minimum price of nine cents per quart for milk sold by stores to consumers in cities and villages over one thousand population.
Leo Nebbia, the proprietor of a grocery store in Rochester, sold two quarts of milk and a five-cent loaf of bread for eighteen cents on April 19, 1933, thereby charging less than the prescribed minimum. He was prosecuted for violating the order, convicted in the County Court of Monroe County, and sentenced to pay a fine.
The conviction was affirmed by the Appellate Division of the Supreme Court and by the Court of Appeals of New York. Nebbia maintained throughout that the statute and the order contravened the equal protection and due process clauses of the Fourteenth Amendment.
A property owner leases space to a taxi company that carries passengers for fares throughout the city. The lease contains a covenant barring the company from serving certain racial groups. The company refuses to honor the covenant. Because the taxi service is carrying for hire and open to the public, enforcement of the discriminatory restriction would violate equal-protection principles.
Reitman v. Mulkey387 U.S. 369 (1967)
In 1963, the Mulkeys filed an action in California superior court against Reitman and other property owners under sections 51 and 52 of the Civil Code. They alleged that the owners had refused to rent them an apartment solely because of their race and sought an injunction and damages. After the filing of the complaint, California voters approved Proposition 14 in the November 1964 statewide election, which added section 26 to Article I of the California Constitution. The defendants moved for summary judgment, asserting that the new provision had rendered the statutory claims invalid. The trial court granted the motion, and the Mulkeys appealed to the California Supreme Court.
In December 1964, the Prendergasts filed a separate suit in superior court against Snyder to enjoin their eviction from an apartment. They alleged that the eviction was motivated by racial prejudice and would violate sections 51 and 52 of the Civil Code. Snyder filed a cross-complaint seeking a judicial declaration that he was entitled to terminate the month-to-month tenancy even if his action was based on racial considerations. The trial court dismissed the cross-complaint with prejudice after concluding that judicial enforcement of a racially motivated eviction would violate the Equal Protection Clause, without addressing the validity of Proposition 14. Snyder appealed to the California Supreme Court.
The California Supreme Court heard the two cases together. In the Mulkey appeal it reversed the trial court's grant of summary judgment. In the Prendergast appeal it affirmed the dismissal of the cross-complaint. The United States Supreme Court granted certiorari to review the judgments because the cases presented an important issue under the Fourteenth Amendment.
Prior to the adoption of Proposition 14, the California Legislature had enacted several statutes addressing racial discrimination in housing. The Unruh Act of 1959 prohibited certain discriminations in business establishments. The Rumford Fair Housing Act of 1963 prohibited racial discriminations in the sale or rental of private dwellings containing more than four units and was enforceable by the State Fair Employment Practice Commission. Proposition 14 provided that neither the State nor any subdivision or agency thereof shall deny, limit or abridge the right of any person to decline to sell, lease or rent residential real property to such person or persons as he in his absolute discretion chooses.
The two cases arose after the passage of Proposition 14 and presented challenges to its effect on prior antidiscrimination legislation and on claims of racial discrimination in housing.
A trucking firm that carries freight for hire advertises driver positions and receives applications from minority candidates. Statistical evidence shows the firm hires far fewer minority applicants than the local labor pool would predict. The government sues for pattern-or-practice discrimination. The carrying-for-hire operation subjects the firm to liability when its hiring practices produce a disparate impact without business justification.
International Brotherhood of Teamsters v. United States431 U.S. 324, 335 n.15 (1977)
The United States brought an action in a Tennessee federal court against T. I. M. E.-D. C., Inc., a common carrier of motor freight with nationwide operations.
The complaint charged discriminatory hiring, assignment, and promotion policies against Negroes at its Nashville terminal.
Almost three years later, the Government filed a second action in a Texas federal court against the company.
It alleged a pattern and practice of employment discrimination against Negroes and Spanish-surnamed persons throughout the company's transportation system.
The International Brotherhood of Teamsters was joined as a defendant.
The two actions were consolidated for trial in the Northern District of Texas.
The central claim in both lawsuits was that the company had engaged in a pattern or practice of discriminating against minorities in hiring so-called line drivers.
Those Negroes and Spanish-surnamed persons who had been hired were given lower paying, less desirable jobs as servicemen or local city drivers.
They were thereafter discriminated against with respect to promotions and transfers.
The complaint also challenged the seniority system established by the collective-bargaining agreements between the employer and the union.
The Government sought a general injunctive remedy and specific make-whole relief for all individual discriminatees.
The cases went to trial.
The District Court found that the Government had shown by a preponderance of the evidence that T. I. M. E.-D. C. and its predecessor companies were engaged in a plan and practice of discrimination in violation of Title VII.
The court further found that the seniority system contained in the collective-bargaining contracts between the company and the union violated Title VII because it operated to impede the free transfer of minority groups into and within the company.
With respect to individual relief the court accepted the Government's basic contention that the affected class of discriminatees included all Negro and Spanish-surnamed incumbent employees who had been hired to fill city operations or serviceman jobs at every terminal that had a line-driver operation.
The Court of Appeals for the Fifth Circuit agreed with the basic conclusions of the District Court.
It held, however, that the relief ordered by the District Court was inadequate.
The Court of Appeals remanded the case to the District Court to hold the evidentiary hearings necessary to apply its remedial principles.
The Supreme Court granted both the company's and the union's petitions for certiorari.
Standard Oil maintains a fleet of tankers that carry petroleum products for paying customers. A spill occurs during transit and damages nearby property. The owner of the damaged land sues in New York court. Because the transport constitutes carrying for hire, the company faces liability under the law of the place where the harm occurred even though the contract was formed elsewhere.
Loucks v. Standard Oil Co. of New York224 N.Y. 99, 111, 120 N.E. 198 (1918)
The plaintiffs, administrators of the estate of Everett A. Loucks, brought suit in New York courts seeking damages for his death. Loucks was traveling on a highway in Massachusetts when he was run down and killed by the negligence of servants of the defendant Standard Oil Co. of New York who were then engaged in the defendant's business. Loucks left a wife and two children, all residents of New York.
A Massachusetts statute, Public Laws chapter 171 section 2 as amended by Laws of 1907 chapter 375, states that if a person or corporation by negligence causes the death of a person who is in the exercise of due care and not in the defendant's employment or service, the defendant shall be liable in damages in a sum of not less than five hundred dollars nor more than ten thousand dollars, to be assessed with reference to the degree of culpability, to be recovered in an action of tort commenced within two years after the injury by the executor or administrator of the deceased, one-half to the use of the widow and one-half to the use of the children.
The action was brought under that Massachusetts statute. The case reached the Court of Appeals of New York after proceedings in the lower courts, including an order by the Special Term and a judgment by the Appellate Division.
All parties to the action are residents of New York. The death occurred on a Massachusetts highway during the course of the defendant's business operations there.
What distinguishes carrying for hire from private carriage?
Carrying for hire occurs when transportation is offered to the public in exchange for compensation and is conducted as a regular business. Private carriage involves transporting one's own goods or those of a single customer under a special contract without holding out to the public.
Supporting sources
Does a complimentary shuttle ever qualify as carrying for hire?
A complimentary shuttle can qualify when it is operated on a fixed schedule, controlled by the provider, and limited to a defined group of passengers who receive the service as part of a broader commercial arrangement. The key is whether the provider assumes the role of transporting people under circumstances that deprive them of normal self-protection.
Supporting sources
When does the duty to render first aid arise for a carrier carrying for hire?
The duty arises once the carrier knows or has reason to know a passenger is ill or injured. Observable symptoms such as pallor and unresponsiveness can supply that knowledge even if the carrier initially assumes intoxication, requiring at least minimal steps to summon or provide aid.
Supporting sources
Can a carrier carrying for hire limit its liability by contract?
A carrier may not exempt itself from liability for harm caused by its own negligence when performing a public service for compensation. Agreements that merely limit liability to a reasonable agreed value in exchange for a lower rate may be enforceable, but blanket exculpatory clauses are invalid.
Supporting sources
163 U.S. 537 (1896)
…Justice Nelson, speaking for this court in New Jersey Steam Navigation Co. v. Merchants' Bank , 6 How. 344, 382, said that a common carrier was in the exercise "of a sort of public office, and has public duties to perform, from which he should not be permitted to exonerate himself without the assent of the parties concerned."…