Van Meter v. Public Utilities Commission

165 Ohio St. (N.S.) 391
CourtOhio Supreme Court
DecidedJune 27, 1956
DocketNo. 34674
StatusPublished

This text of 165 Ohio St. (N.S.) 391 (Van Meter v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Meter v. Public Utilities Commission, 165 Ohio St. (N.S.) 391 (Ohio 1956).

Opinions

Taft, J.

The question to be determined is whether Van Meter, by reason of what he was doing for Rogers as hereinbefore described, was, within the meaning of Section 4923.02, Revised Code, “engaged in the business of private carriage of * * * property * * * or of providing or furnishing such transportation service, for hire, in or by motor-propelled vehicles * # * over any public highway.”

In order to bring him within the foregoing statutory language, we must find that, in doing what he was for Rogers, Van Meter was “engaged in the business” so specified.

In a broad sense, a servant, while engaged in the business of his master, may be said to be engaged in business. Thus, it might be said that any truck driver employed for money to drive a truck carrying property, even though so employed as the servant of another, is “engaged in the business of private carriage of * * * property * * * or of providing or furnishing such transportation service, for hire.” All parties concede that the statutory language cannot be given so broad a meaning. This is probably because, where one is employed to do something as a servant for another, the doing of that something by such servant is generally regarded as something being done by the master rather than as any activity of the servant. See Derrick v. Commonwealth, 122 Va., 906, 95 S. E., 392, L. R. A. 1918D, 284. The master retains control of, or the right to control, the mode and manner of the servant’s doing of the work that he is employed to do. Councell v. Douglas, 163 Ohio St., 292, 126 N. E. (2d), 597. Hence, it is reasonable to consider the doing of such work in the mode and manner directed by the master as something being done by the one in control thereof and, if it relates to the business of the master, as part of the business of the master rather than as any business of the servant.

On the other hand, where one is employed by another to do something and the relationship of such one to his employer is that of an independent contractor, then the doing of that something is generally regarded as something being done by the independent contractor. Where the relationship is that of employer and independent contractor, the employer has not retained control of, or the right to control, the mode and manner of doing the work contracted for. Hence, it is reasonable to [397]*397consider the doing of snch work in the mode and manner determined by the independent contractor as being definitely an activity of the independent contractor who is in control thereof.

Without a driver, a truck cannot move. For this reason, the furnishing and providing for a monetary consideration of a truck, of the maintenance and repair therefor, of insurance with respect to its operation, and of fuel, oil, other materials, equipment and accessories necessary for its efficient operation, without furnishing or providing a driver, cannot be an engaging “in the business of * * * carriage of * * * property or of providing or furnishing of such transportation service, for hire,” within the meaning of those statutory words. See Motor Haulage Co. v. United States, 70 F. Supp., 17 (affirmed without opinion, 331 U. S., 784, 91 L. Ed., 1815, 67 S. Ct., 1205). See also annotation, 7 A. L. R. (2d), 456, 468 et seq. Where, however, a driver is also furnished, then there may be an engaging in such business. See 7 A. L. R. (2d), supra, 472. However, whether there is will depend in a particular instance upon the relationship between the driver of the truck and the one to whom the truck and driver are furnished; and what that relationship is will necessarily depend upon the facts. If the driver, while driving, is “in every respect # * * a servant of” the one to whom the truck is leased (as stipulated in the instant case), then his operation of the truck is part of the business of the lessee and not an engaging-in business by the driver or someone else. In such an instance, it cannot be said that even a driver-owner of the truck is “ engaged■ in the business of private carriage of * * * property * * * or of providing or furnishing such transportation service” within the meaning of the statutory words hereinbefore quoted. See 7 A. L. R. (2d), supra, 470, 471. If anyone is engaged in such business, it is the master who is in control of the mode and manner of operating the truck. It may be noted that all parties apparently concede that one, who is carrying his own property or providing or furnishing transportation for it, is not engaged in such “business * * * for hire” within the meaning of the statutory words.

The foregoing analysis and conclusions are supported by decisions which have dealt with similar problems.

Earle, Collector of Internal Revenue, v. Babler, 180 F. (2d), [398]*3981016, involved a statute providing for a tax on “amounts paid to a person engaged in the business of transporting property for hire. ’ ’

In the court’s opinion by Orr, Circuit Judge, it is said:

“Appellees, who were general contractors * * * required the transporting of bulk construction materials from stockpiles and quarries to the job sites. To carry out this transportation, appellees entered into verbal agreements with various owners of trucks for the use of their trucks on an hourly, load or yard-mile basis. * * # The Commissioner of Internal Revenue levied the tax on the theory * * * that the truck owners were persons engaged in the transportation of property for hire within the meaning of the statute. * * *

“We think * * * that it is established that the truck owners were not ‘person[sJ engaged in the business of transporting property for hire,’ in the sense of carrying on an independent enterprise * * *.

‘ ‘ The main fact relied upon by appellant as evidence of the truck owners’ independent-contractor status is the method by which they were paid. In most instances, irrespective of whether payment was by the hour, load or yard-mile, not only gas, oil and repairs were deducted from the compensation paid for the use of the truck, but also the regular wages and ‘payroll insurance’ (social security taxes, etc.,) of the drivers, which had been disbursed by appellees. Owners who drove their own trucks were usually paid wages which were later deducted from the truck ‘rental,’ although in a few instances driver-owners were paid a flat hourly rate for themselves and the truck without deductions. This financial responsibility for all supplies, repairs and drivers’ wages caused that remuneration of the owners to vary with the efficiency of both vehicles and drivers and thus tended, it is urged, to give them the character of individual businessmen. Each owner, furthermore, held a permit from the Oregon Public Utilities Commission of a kind issued to operators, as distinguished from owners, of trucks on the public highway, and carried the liability insurance required of the holders of such permits.

“* * * The drivers were subject to the will and control of appellees as to how the work should be done as well as what [399]*399should be done. The drivers were told where to spot their trucks for loading and unloading and what routes to take. Their times of arrival and departure were recorded and each detail of the work was supervised. The right to discharge the drivers, whether owners or not, at any time, existed. And owners and drivers were at liberty to quit at any time * *

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Bluebook (online)
165 Ohio St. (N.S.) 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-meter-v-public-utilities-commission-ohio-1956.