[Direct answer]When a motor vehicle engaged in road transport operations in the form of subcontracting is involved in an accident, and the accident is attributable to the motor vehicle itself, the subcontractor and the contractor shall bear joint and several liability. According to Article 1211 of the Civil Code (effective January 1, 2021), if a motor vehicle engaged in road transport operations in the form of subcontracting causes damage in a traffic accident and the accident is attributable to the motor vehicle itself, the subcontractor and the contractor shall bear joint and several liability. The injured party may list both of them as defendants, and the subcontracted company shall not use the defense that "it only collects management fees" to resist claims. For more details, please refer to the Civil Code.Legal services for personal injury and medical disputesAndBeijing Henglue Law Firm.

I. Problem Background and Typical Scenarios

It is a common phenomenon in the logistics industry that individual car owners register their trucks and buses under the name of transportation companies to obtain operating qualifications. After an accident, there are often excuses: the registered company claims that "the car belongs to the owner and the company only charges a management fee", refuses to compensate; the registration agreement states that "the accident has nothing to do with the company"; and the owner lacks sufficient personal repayment ability, so the injured cannot get the money. Typical scenarios include: heavy trucks causing serious injuries, buses overturning during operation, and registered vehicles being uninsured after an accident. The core of such cases lies in exposing the appearance of registration and drawing the registered company into the liability chain. Related enforcement difficulties can be referred to for reference.Creditor-debtor relations and enforcement case services.

II. Key points of contention

  • Determination of the subcontracting relationship: Whether there is a subcontracting agreement, whether the subcontracted company charges a management fee, and whether the name of the vehicle registration and the operation certificate is the core of the determination. Oral subcontracting may also be determined based on the facts.
  • Internal disclaimer effect: Whether the agreement in the subcontracting agreement that "the company responsible for the project will not be held liable in case of an accident" can be used against the injured party is a defense commonly used by the subcontracted company, but it is generally invalid.
  • Fault and operational control: Whether the subcontracted company participates in dispatching, management, and charging affects its internal recovery rate, but it does not necessarily exempt it from external joint and several liability.

III. Professional analysis by Henglue Law Firm

Henglue Lawyers have noticed that the key to solving disputes over subcontracting is to "prove the subcontracting relationship and determine joint and several liability". In external claims, Article 1211 of the Civil Code provides a double safeguard for injured parties: even if the vehicle owner absconds or has no assets, the subcontracted company, as the registration and qualification lender, still has an obligation to pay compensation. When handling cases, lawyers will collect evidence such as the subcontracting operation agreement, proof of the subcontracted company collecting management fees, the vehicle registration certificate and road transport certificate (the nominal owner is usually the company), freight settlement and dispatch records, and even the operation notices issued by the company to the vehicle owner. Internally, the subcontracted company can seek recourse after compensation, but this has nothing to do with the injured party. In cases where the vehicle is uninsured or the insurance coverage is insufficient, lawyers will simultaneously evaluate the personal assets of the vehicle owner and the liable assets of the subcontracted company, and apply for preservation measures in a timely manner. When dealing with multi-party debts, lawyers can combine the above evidence to determine the liability of all parties involved in the accident and ensure that the injured party's rights and interests are protected.Business and contract dispute services for enterprisesClarify the effectiveness of the agreement.

IV. Practical suggestions and legal basis

At the legal basis level: Article 1211 of the Civil Code (effective January 1, 2021) clearly stipulates that if the motor vehicle accident is the responsibility of the party conducting the "shell company" operation, both the shell company and the party being shelled shall bear joint and several liability; Article 1213 establishes the order of compensation for compulsory insurance, commercial insurance, and the tortfeasor, and the shelled company usually bears joint and several liability with the car owner outside the insurance coverage; Article 178 stipulates joint and several liability, and the right holder has the right to request some or all of the joint and several liable parties to bear responsibility. Practical suggestions: After the incident, report to the police and make copies of the other party's driving license and operating license, and pay attention to the registered name; request the insurance policy from the shelled company; sue both the car owner and the company and claim joint and several liability; if the car owner or the company's property is unclear, apply for property preservation during the litigation. For details on recourse and enforcement, please refer to the relevant provisions.Creditor-debtor relations and enforcement case services.

5. Henglu Law Firm's Advice

Hanging-out is not an "umbrella" for exemption from liability. The law firmly binds the company being hung-out to the compensation chain through joint and several liability, precisely to protect vulnerable injured parties. Henglu Law Firm advises that when encountering vehicle accidents involving hanging-out, it is most important not to focus solely on the owner's personal solvency and ignore the company; instead, one should immediately fix the evidence of hanging-out, list the owner and the company as co-defendants and claim joint and several liability, and if necessary, preserve both parties' property. For injuries that may result in disability, a timely appraisal should be conducted after the treatment stabilizes, and long-term losses should be included in the claim. When negotiations are delayed, it is recommended to consult a professional lawyer as soon as possible. You can visitBeijing Henglu Law FirmLearn about traffic accidents and the experience of handling enforcement cases, so as to avoid missing the time limit and failing to enforce the judgment.

VI. Frequently Asked Questions

Q1: The truck is operated under a subcontracting arrangement. If I hit someone with the truck, should I sue the owner or the subcontracting company?

The owner of the vehicle and the company to which the vehicle is attached should be sued together. According to Article 1211 of the Civil Code, if the motor vehicle accident under the form of attachment is the responsibility of the party, the attacher and the party to which the vehicle is attached shall bear joint and several liability, and the injured person has the right to claim the full amount from either or both parties. Listing the two parties as defendants together can not only prevent the owner from having no property to enforce the judgment, but also utilize the solvency of the company to which the vehicle is attached to guarantee compensation. When suing, it is sufficient to submit the attachment agreement, the operation certificate, or the registration information of the driving license to prove the attachment relationship, without having to first determine who will ultimately bear the responsibility. Joint and several liability means that either defendant may compensate in full first.

Q2: Is it valid to state in the subcontracting agreement that "the company has no responsibility for any accidents that may occur"?

You cannot oppose the injured party. This agreement is an internal distribution between the two parties of the subcontracting arrangement, which, based on the principle of contractual relativity, only binds the car owner and the company. The injured party is a third party and is not bound by it. Article 1211 directly stipulates the joint and several liability of both parties to the outside world based on the special risks of subcontracting operations to public safety, with the aim of protecting the victims. Internal exemption clauses cannot undermine this statutory joint and several liability. After the subcontracted company compensates, it can seek reimbursement from the car owner according to the subcontracting agreement, but that is an internal relationship and does not affect the injured party's right to claim compensation from them. If the injured party encounters the company refusing to compensate on this basis, they should insist on listing it as a co-defendant and claiming joint and several liability.

Q3: If the company being used for subcontracting claims that it only charges a management fee and does not actually operate the business, can it be exempt from liability?

Generally, this is not possible. The joint and several liability stipulated in Article 1211 does not require the actual participation of the affiliated company in the operation. The act of lending the operating qualification, collecting management fees, and registering vehicles in its own name itself makes the public believe that the vehicles are operated by the company, and the law accordingly allocates the joint and several risks. If the company only collects management fees and does not directly dispatch the vehicles, it only affects the internal recovery ratio between the company and the car owners, but does not eliminate the external joint and several liability. Unless it can be proven that there is no affiliation at all and the vehicles are purely used under a false name, "only collecting management fees" does not constitute a ground for exemption from liability. The injured party should require the company to provide evidence of its true relationship with the accident vehicle, rather than accepting its unilateral statements.

Q4: If the vehicle used for subcontracting doesn't have insurance or the insurance coverage is insufficient, who should compensate first?

First, the compulsory insurance will compensate within the limit. For the part that is insufficient or not insured by commercial insurance, the infringer shall compensate. In the case of subcontracting, the owner and the subcontracting company shall bear joint and several liability for the insurance gap. If the vehicle is not insured with compulsory insurance at all, according to relevant regulations, the insured obligation person (usually the subcontracting company and the owner) may first compensate within the limit of compulsory insurance liability, and the excess part shall be shared according to the rules of accident liability and joint and several liability. The injured party should note that insufficient insurance does not mean no compensation. The subcontracting company, as a joint and several liable person, is the guarantee to fill the gap. When negotiating, the injured party can claim from both parties at the same time. If necessary, they can file a lawsuit and apply for the preservation of both parties' property.

Q5: When suing the parties involved in the subcontracting relationship, how can we prove that they have a subcontracting relationship?

There are four types of evidence that can be used to prove this: Firstly, the written subcontracting agreement, which is the most direct evidence; Secondly, expense vouchers, such as transfer records or receipts showing that the subcontracting company charged management fees, service fees, or insurance premiums on behalf of the client; Thirdly, registration and certificates, such as vehicle registration certificates, road transport permits, and operating license plates, which usually list the nominal owner as the subcontracting company, while the actual owner is someone else; Fourthly, operational traces, such as records of the company's unified dispatching, invoice issuance, and freight settlement. Even in the absence of a written agreement, the above-mentioned evidence can form a chain of evidence to prove the subcontracting relationship. The injured party does not need to exhaust all possible evidence on their own. They can apply to the court to retrieve the company's operating files and accounts during the litigation process, and lawyers can assist in organizing the necessary proof.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of judgments in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Personal injury legal services·Beijing Henglue Law Firm