Introduction
Recent reporting about the frequency of sexual assault complaints against Uber drivers—and Uber’s knowledge of the complaints and its failure to implement effective deterrents—has revived a national discussion about the role rideshare companies play in protecting their passengers. While much of the debate involves the question of whether drivers are employees or independent contractors, there are other legal lenses through which rideshare companies may be held liable. One example is whether rideshare companies like taxis, buses and trains can be considered “common carriers” who owe passengers the highest duty of care. Another is whether—in states where rideshare companies are exempted from the definition of common carrier—a rideshare company’s failure to follow the state’s regulatory scheme could open the door to individual causes of action against the rideshare companies for negligence per se and even the possibility of punitive damages.
Common Carriers and Transportation Network Companies (TNCs)
In South Carolina, a common carrier is generally any person who offers motor vehicle transportation to the public for a fee. Common carriers owe a duty of utmost care to their passengers, meaning they must take all reasonable precautions to ensure their safety. This duty extends to providing safe vehicles, qualified drivers, and well-maintained routes. Even minor negligence on the part of the carrier can lead to liability if it results in injury to a passenger.
By contrast, rideshare companies, also known as transportation network companies (“TNCs”), by statute, owe passengers very little when it comes to avoiding injuries. Some rideshare companies have argued that the mere existence of a state TNC statute means that they can’t be considered common carriers, but judges in some states with TNC statutes have held that plaintiffs can allege that rideshare companies are common carriers in certain circumstances. This opens the door to holding rideshare companies liable for injuries sustained by passengers who were assaulted by their drivers. However, this argument likely has more mileage in states like California—where, despite having TNC statutes, rideshare companies are not specifically exempted from the definition of common carrier—compared to states like South Carolina where rideshare companies are specifically exempted.
TNC Regulation in South Carolina
TNC statutory regimes, including South Carolina’s, require rideshare companies to abide by specific requirements in order to be granted a license to operate in the state. Chief among these are driver background checks, which require the company to verify (and regularly re-verify) a driver’s valid license, age, and driving record; pass a local and national criminal background check; and provide proof of insurance. TNCs are required to exclude sex offenders and anyone with a recent conviction for DUI, fraud, theft, violent felonies, or using a vehicle to commit a felony.
Most statutes provide specific statutory penalties for non-compliance, but in addition to those, if a TNC violates its statutory mandates—particularly those designed to protect passenger safety—plaintiffs may pursue:
- Negligence per se, arguing that the violation of a safety-based statute constitutes negligence as a matter of law.
- Punitive damages, if the violation is willful, reckless, or grossly negligent—especially plausible in cases involving sexual misconduct.
In some jurisdictions, asserting that a rideshare company failed to conduct or act on required background checks can serve as powerful legal leverage for an injured passenger plaintiff.
Summary
Even though TNC statutes provide some protections to rideshare platforms, some courts have allowed common carrier liability claims to proceed. In South Carolina, the statutory framework demands stringent background checks, and failure by TNCs to comply opens them up to negligence per se, punitive damages, and statutory penalties.
For legal professionals, combining these theories—common carrier duty, statutory breach, negligence per se, and punitive liability—creates a compelling, multifaceted approach to holding rideshare companies accountable for driver misconduct. For injured passengers, these theories may hold the key to compensation for their injuries and can help them start down the road to recovery.
