ELI5: Explain Like I'm 5

Li v. Yellow Cab Co. of California

Okay, so you know how sometimes grown-ups need to go somewhere far but they don't have a car? So they call a taxi to help them get to where they need to go.

Well, a bunch of people who needed a taxi in California were not happy with one taxi company called Yellow Cab. They said that when they got into the taxi, the driver was not a good driver and they got hurt in a car accident.

These people wanted Yellow Cab to pay for their injuries, but Yellow Cab said it was not their fault because they didn't hire the driver directly. They said the driver was an independent contractor, which means that he worked for himself and just used Yellow Cab's car to pick up passengers.

So the people who got hurt took Yellow Cab to court. The court listened to their arguments and they found out that Yellow Cab was actually responsible for the driver's actions because Yellow Cab had control over what the driver did while he was driving for them.

The court said that if someone gets hurt in a taxi accident with Yellow Cab, they can sue Yellow Cab for the injuries. This is important because it means that people can hold companies responsible for bad things that their contractors or workers do, even if those people are not directly employed by the company.