Legal Definitions - public-function doctrine

The public-function doctrine is a legal principle that allows certain private entities to be treated as if they are government actors for the purpose of applying constitutional protections. This doctrine applies when a private entity performs a function that has been traditionally and exclusively reserved to the state or local government. If a private entity is deemed to be performing a "public function," its actions can be subject to the same constitutional limitations (such as those related to due process or equal protection) that would apply if the government itself were performing the function.

Here are some examples illustrating the public-function doctrine:

• Example 1: Private Company Operating a "Company Town" Election

  Imagine a large industrial company that owns all the land, housing, and businesses in a remote town, effectively controlling all aspects of daily life. If this company were to also organize and administer the local elections for town officials, including setting voting rules and counting ballots, the public-function doctrine could apply. Running elections is a quintessential governmental function. Even though a private company is performing this role, its actions in conducting those elections would be subject to constitutional requirements, such as ensuring fair voting procedures and equal access to the ballot, just as if a municipal government were doing it.

• Example 2: Private Security Firm Performing All Municipal Police Duties

  Consider a scenario where a city, facing budget constraints, contracts with a private security firm to take over all law enforcement responsibilities, including patrolling streets, making arrests, conducting investigations, and maintaining public order. If this private firm were to violate someone's constitutional rights—for instance, through an unreasonable search and seizure or excessive force—the public-function doctrine could be invoked. Because law enforcement and maintaining public order are core, traditional governmental functions, the private firm's actions would be treated as "state action" and thus subject to constitutional scrutiny, allowing the victim to seek redress as if the violation had been committed by a government police department.

• Example 3: Private Utility Exercising Eminent Domain

  Suppose a state grants a private utility company a charter to build a new interstate power transmission line. As part of this charter, the state delegates to the private company the power of eminent domain, allowing it to acquire necessary land from private landowners for the project. The power of eminent domain—the government's right to take private property for public use with just compensation—is a sovereign power traditionally reserved exclusively for the government. Even though a private company is exercising this power, the public-function doctrine would mean that the company's use of eminent domain must comply with constitutional requirements, such as providing "just compensation" and ensuring the taking is for a legitimate "public use."