Chen Weili v. Lai Guofa

Lai Guofa (defendant) entered into a contract with Chen Weili (plaintiff) for Chen to work on a trailer that carried sand in exchange for compensation. Lai had not registered for a business license to run this operation. One day, Chen was working on the trailer when an accident occurred that crushed Chen’s leg. Chen went to the hospital to receive treatment. While Chen was recovering, his father entered a contract with Lai under which Lai would pay 1,000 yuan and all hospital expenses, which would be the extent of his liability. After returning from the hospital, however, Chen sought legal representation and eventually was certified by a court as majorly disabled as a result of the accident. Chen then sued Lai in the trial court. Lai responded that because this matter was employment related, it should have been submitted to a labor arbitration panel under China’s labor law instead of the general civil-liability law. Lai also argued that the settlement with Chen’s father discharged him of any liability. Finally, Lai argued that the injuries had been the fault of Chen, so that Chen was responsible for the damages. The trial court rejected Lai’s arguments and entered a judgment of approximately 82,000 yuan for Chen. Lai appealed to the intermediate appellate court, which again rejected his arguments. Lai again appealed.