News: Uber’s legality turns on 1929 High Court decision

Wednesday’s ruling by Victoria’s County Court quashing the conviction of an Uber driver in a test prosecution has been reported as confirming the legality of the Uber X service in Victoria, avoiding the need for drivers and vehicle owners to obtain expensive commercial licenses. A curiosity of this week’s ruling is the role of,a High Court decision on the Uber X of 1929 Victoria (and the first ever High Court judgment of Justice Owen Dixon.)

In Blyth v Hudson [1929] HCA 3, the High Court considered the legality of a transport service from Geelong to Melbourne. The driver, George Hudson, who had been refused a commercial licence to operate a ‘motor omnibus‘ – a service for ‘carrying passengers for reward at separate and distinct fares for each passenger’ – struck a deal with the Geelong Motor Tourist Bureau, which arranged for shopkeepers to sell tickets for his service and then pay him a lump sum to drive anyone who showed up with a ticket. When he was prosecuted by William Blyth (the Country Roads Board’s Chief Inspector,) Victoria’s Supreme Court ruled that the definition of motor omnibus should be read strictly so that it didn’t cover fares paid to intermediaries, but the High Court (including Dixon J) disagreed, prophetically emphasising the need for flexibility to effectively regulate a fast-changing sector of the economy: Continue reading