Santiago v. Pacbasin ShipManagement
REITERATIONFacts
The Antecedents: Petitioner Alen H. Santiago (Santiago) was employed as a "riding crew cleaner" by respondent Pacbasin ShipManagement, Inc. (Pacbasin). On March 9, 2005, while performing his duties, Santiago was hit by falling scaffolding pipes, sustaining injuries to his head, neck, and shoulder. He received initial treatment in Dubai and was repatriated to the Philippines on March 17, 2005. He was referred to the company-designated doctor, Dr. Robert Lim (Dr. Lim), who diagnosed him with contusion, nape area and left, C5, C6, C7 radiculopathy, mild sensorineural hearing loss, bilateral probably secondary to cochlear concussion. On August 13, 2005, Dr. Lim assessed Santiago's disability as "Grade 12" and declared his hearing problem cured. Procedural History: Santiago consulted other physicians, including Dr. Epifania Collantes and Dr. Efren Vicaldo, who provided different assessments. Dr. Vicaldo assessed his disability as Grade 7 and declared him unfit to resume work as a seaman. Santiago demanded disability benefits, which Pacbasin denied, asserting that Dr. Lim's assessment of Grade 12 disability was controlling and entitled him to only US$5,225.00. The Labor Arbiter (LA) ruled in favor of Santiago, awarding him US$66,712.80. The National Labor Relations Commission (NLRC) modified the LA's decision, granting Santiago only partial permanent disability equivalent to Grade 12 (US$5,225.00) plus attorney's fees. The Court of Appeals (CA) affirmed the NLRC's decision, applying the ruling in Vergara v. Hammonia Maritime Services. The Petition: Santiago filed a petition for review, arguing that he was entitled to the maximum disability benefit of $60,000.00 based on the 120-day rule and that the CA misapplied the provisions regarding the opinion of a third doctor.
Issue(s)
Whether Santiago is entitled to the maximum disability benefit of US$60,000.00 on account of his inability to perform work as a seaman for more than 120 days. Whether the Court of Appeals erred in misapplying the provisions of the POEA Standard Employment Contract regarding the option to secure the opinion of a third doctor. Whether the Court of Appeals erred in not sustaining the award of attorney's fees in favor of the petitioner.
Ruling
The petition is denied. The Court of Appeals' decision affirming the NLRC's ruling that Santiago is entitled only to partial permanent disability equivalent to Grade 12 is affirmed.
Ratio Decidendi
On the entitlement to maximum disability benefits: The Court reiterated the ruling in Vergara v. Hammonia Maritime Services, which clarified the interplay between the Labor Code, the Implementing Rules, and the POEA Standard Employment Contract. A temporary total disability only becomes permanent when declared by the company-designated physician within the maximum 240-day medical treatment period, or upon the expiration of the 240-day period without such a declaration. In this case, Dr. Lim, the company-designated physician, assessed Santiago's disability as Grade 12 on the 148th day of treatment, which falls within the 240-day period. This assessment signifies a permanent partial disability, not a permanent total disability, thus Santiago is not entitled to the maximum disability benefit of $60,000.00. The Court distinguished this case from Crystal Shipping v. Natividad, where the disability extended beyond 240 days without any declaration of fitness to work, necessitating a ruling of permanent and total disability. On the misapplication of the third doctor provision: The Court noted that Santiago consulted independent doctors, Dr. Collantes and Dr. Vicaldo, whose findings did not conclusively establish total disability. Dr. Collantes' findings indicated Santiago was ambulatory and able to perform daily chores, despite experiencing pain. Dr. Vicaldo's assessment of Grade 7 disability would not entitle him to permanent total disability compensation. Crucially, Santiago did not avail of the procedure outlined in the POEA Standard Employment Contract, which requires agreement on a third doctor whose finding would be final and binding when there is a conflict between the company-designated physician and the seafarer's physician. Without this agreed-upon third doctor, the certification of the company-designated doctor, Dr. Lim, must be upheld. On the award of attorney's fees: While the petition for disability benefits was denied, the NLRC had awarded attorney's fees equivalent to 10% of the disability benefit. The Supreme Court affirmed the NLRC's decision, which included this award. Therefore, the petitioner is entitled to attorney's fees based on the modified award granted by the NLRC.
Main Doctrine
A temporary total disability becomes permanent only when declared by the company-designated physician within the 240-day period, or upon the expiration of the 240-day period without such declaration. A Grade 12 disability assessment by the company-designated physician within the 240-day period signifies permanent partial disability, not permanent total disability.