Panama Railroad v. Bosse

Background

An individual was injured on July 3, 1916 when a railroad company’s chauffeur drove a motor omnibus at high speed through a crowded Canal Zone street. The injured person sued in the Canal Zone district court. After the defendant’s legal challenges failed, a jury returned a verdict for the plaintiff and the lower appellate court affirmed that judgment.

Reasoning

The central question was whether the familiar common-law rule that an employer answers for a servant’s torts applies in the Canal Zone, where the Civil Code of Panama had been kept in force by presidential orders and an act of Congress. The Court examined the translated Civil Code (including Articles 2341, 2347, and 2349) and prior local decisions, and found the Code’s language not necessarily inconsistent with the common-law rule. The Court also noted that the common-law principle was long accepted and useful for local courts. On that basis the Court held the company responsible for its chauffeur’s negligent driving. The Court also upheld the local courts’ practice of awarding compensation for physical pain, finding such damages to be a substantial and customary part of relief.

Real world impact

The decision affirms that companies operating in the Canal Zone can be held liable for negligent employees driving on the job, and that victims may recover for physical pain caused by such accidents. The ruling follows and confirms the Canal Zone courts’ approach and leaves the jury’s damage award intact.