Can an agreement signed before a work-related injury surgery to waive compensation be valid?

Compiled from: Changsha Furong District People's Court, Hunan Higher People's Court

When a worker is accidentally injured while providing labor services and, alone outside the hospital emergency room, urgently needs money for surgery, the employer offers to pay the surgical expenses on the worker’s behalf but refuses to pay any further costs. Can a compensation agreement signed under such urgent circumstances be revoked?

Case Review

The defendant Li Yang (pseudonym) undertook the renovation work of a certain villa and hired Zhao Wei (pseudonym) to perform carpentry work at the villa. On the afternoon of January 17, 2022, Zhao Wei accidentally fell and was injured while working on a scaffold at the work site.

After being hospitalized, Zhao Wei, in urgent need of surgery, entered into an agreement with Li Yang. The two parties agreed: “Li Yang shall be responsible for paying Zhao Wei’s surgery costs, and shall not be responsible for any other expenses. Thereafter, Li Yang shall not bear any liability whatsoever for Zhao Wei’s fall injury.” Later, upon appraisal, Zhao Wei was found to constitute a Grade 9 disability. Apart from paying the surgery costs, Li Yang paid no other expenses. Zhao Wei then filed a lawsuit with the Furong District People’s Court of Changsha City, requesting rescission of the agreement and demanding that the defendant Li Yang pay disability compensation, nursing fees, lost wages, and other expenses totaling more than 300,000 yuan. The defendant Li Yang argued that he had not coerced Zhao Wei into signing the agreement, that he had already paid the expenses in accordance with the agreement, and that he should not be required to pay any additional expenses.

The court held that the focus of the dispute in this case was: can a compensation agreement signed in haste after an injury be revoked?

Based on facts established at trial, the agreement was signed between Zhao Wei's hospitalization and surgery. Zhao Wei signed it without fully understanding the potential injury and consequences, and in urgent need of surgery funds. He was in a distressed state lacking proper judgment. The fees Li Yang agreed to pay under the agreement were significantly less than those Zhao Wei claimed in this case, reducing Li Yang's obligations. This caused an imbalance in rights and obligations, resulting in substantial loss to Zhao Wei, making it manifestly unfair and subject to revocation. Thus, the court supported Zhao Wei's claims.

The court ultimately ruled that, after considering the degree of fault of both parties, the causal relationship between their conduct and the damage suffered, and their capacity to bear liability, the defendant was to bear 60% of Zhao Wei’s reasonable economic losses, amounting to over 130,000 yuan, while Zhao Wei was to bear 40% of the liability himself. Neither party appealed after the first-instance judgment, and the case has now taken legal effect.

I'm ready to help translate your Chinese legal content into professional English for the Shenzhen Zhiming Law Firm website. Please provide the Chinese text you'd like me to translate.The Civil Code

Article 151

If one party takes advantage of the other party's distress, lack of judgment, or other circumstances, resulting in a manifestly unfair civil legal act at the time of its establishment, the aggrieved party has the right to request the people's court or an arbitration institution to revoke it.

[4] Author's Opinion

Although entering into a contract is a free agreement based on the parties' autonomy of will, if the contract's formation violates statutory circumstances, the parties have the right to request the court to revoke it. In judicial practice, whether a contract constitutes manifest unfairness is generally analyzed from both subjective and objective elements. Subjectively, it involves whether one party intentionally took advantage of its superior position or the other party's recklessness, inexperience, etc., to enter into a manifestly unfair contract. Objectively, it involves whether the contract's terms clearly violate the principles of fairness and equivalent compensation, and whether the interests of both parties are significantly imbalanced.

Civil subjects engaging in civil activities shall follow the principles of fairness and good faith, reasonably determine the rights and obligations of each party, and must not violate legal provisions. An individual attempting to exempt themselves from liability or increase the other party's burden through a written agreement is neither ethical nor in line with the fundamental principles of law and will not be protected by law.