Luzon Stevedoring Corp. v. Rosano

G.R. No. L-27588 · 1969-04-28 · J. REYES, J.B.L., J.: · Primary: Labor; Secondary: Civil
REITERATION

Facts

The Antecedents: Stevedore Pastor Rosano went to Pier 9, Manila, to await a barge. While waiting, he had a verbal argument with another stevedore, Benjamin Valdez, over a platform. Rosano eventually obtained the platform. After going home for lunch, Rosano returned and again argued with Valdez over the platform, which almost led to a fistfight. Valdez uttered threats against Rosano. Later, Rosano boarded a passenger jeep to go home. Upon alighting near his house, Valdez accosted him, stabbed him with a knife, and fled. Rosano was brought to the hospital where he died later that day. Procedural History: The widow, Rosario Vda. de Rosano, filed a claim for death compensation benefits for herself and her three minor children. The company denied the claim and raised the defense of prescription, asserting the claim was filed beyond the three-month period. The Acting Referee ordered the company to pay death compensation benefits, burial expenses, and attorney's fees, rejecting the prescription defense due to the company's failure to controvert the claim within the prescribed period. The Workmen's Compensation Commission affirmed the decision, and its en banc resolution denied the company's motion for reconsideration. The Petition: The Luzon Stevedoring Corporation filed a petition for review, assailing the Commission's findings on the existence of an employer-employee relationship and the ruling that the claim had not prescribed.

Issue(s)

Whether an employer-employee relationship existed between petitioner and the deceased stevedore. Whether the death of the stevedore arose out of and in the course of his employment, despite occurring outside company premises. Whether the claim for death compensation benefits had prescribed.

Ruling

The petition is dismissed. The decision of the Workmen's Compensation Commission is affirmed.

Ratio Decidendi

On the existence of an employer-employee relationship: The Court found no merit in the petitioner's contention that no employer-employee relationship existed. Evidence showed the deceased had been doing stevedoring work for the petitioner for 15 years and was present at the pier prepared to work. Even if the union furnished laborers, it acted as an agent of the company, and this indirect employment did not relieve the company of liability under the Workmen's Compensation Law. The work was not purely casual, and the deceased was present to perform hauling jobs for the petitioner. On whether the death arose out of and in the course of employment: The Court held that the death was compensable. The fatal stabbing by Benjamin Valdez was directly traceable to a disagreement over a platform to be used for work for the petitioner. The altercation began at the workplace and continued outside, with Valdez lying in wait for Rosano. The Court emphasized that for an injury to be compensable, it is not necessary for the cause to occur within the company premises if the workman is acting within the scope of his employment. The protection "in the course of" employment continues regardless of the place of injury. The Court cited jurisprudence where injuries sustained from assaults by co-employees or third parties are compensable if a rational mind can trace the injury to a cause set in motion by the employment or its incidents, even if the assault occurs outside the premises, as long as it is a continuation of a work-related quarrel. On the defense of prescription: The Court rejected the petitioner's defense of prescription. While the formal claim was filed beyond the three-month period, the petitioner failed to controvert the claimants' right to compensation within the period prescribed by Section 45 of Act 3428. The Court held that failure to controvert constitutes a waiver of the right to question the validity and reasonableness of the claim, precluding non-jurisdictional defenses like prescription. The Court also found it improbable that the petitioner had no knowledge of the stabbing incident, given that it involved two of its laborers and the cause originated at the workplace.

Main Doctrine

An employer's failure to controvert a claim for compensation within the period prescribed by law constitutes a waiver of its right to question the validity and reasonableness of the claim, including non-jurisdictional defenses such as prescription and non-compensability.

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