Millan v. Wallem Maritime Services
REITERATIONFacts
The Antecedents: Petitioner Benjamin C. Millan, a seafarer employed since May 1981, was deployed as a messman on October 19, 2002. On February 13, 2003, he slipped and injured his left arm, diagnosed as "fracture on left ulnar shaft." He was medically repatriated on February 26, 2003, and underwent surgery on March 3, 2003, followed by consultations and physical therapy until July 2, 2003. The company-designated physician, Dr. Ramon S. Estrada, scheduled a physical capacity test for August 28, 2003. Instead, on August 29, 2003, Millan filed a complaint for various benefits. Millan also consulted independent physicians, Dr. Rimando C. Saguin and Dr. Nicanor F. Escutin, who diagnosed him with POEA Disability Grade 11 and Grade 10, respectively, deeming him unfit to work at sea. Procedural History: The Labor Arbiter ruled that since the company-designated physician failed to declare Millan's fitness to work within 120 days, his disability was permanent and total, ordering respondents to pay US$60,000.00 plus attorney's fees. The NLRC reversed this, holding that the independent doctors' assessments could not prevail over the company-designated physician's extensive examinations, emphasizing the POEA Standard Employment Contract's requirement for the company-designated physician to declare disability. The Court of Appeals (CA) modified the ruling, finding Millan suffering from partial permanent disability Grade 10, awarding US$7,465.00 plus attorney's fees. The Petition: Millan filed a petition for review on certiorari, questioning the CA's award of only partial permanent disability Grade 10 despite his inability to work for more than 120 days.
Issue(s)
Whether the Court of Appeals committed reversible error in granting petitioner only partial permanent disability Grade 10 despite his inability to work for more than 120 days.
Ruling
The petition is denied. The Decision dated August 20, 2010 and Resolution dated January 13, 2011 of the Court of Appeals in CA-G.R. SP No. 104924 are affirmed.
Ratio Decidendi
On the issue of permanent and total disability benefits: The Court reiterated that a seafarer's inability to resume work after 120 days does not automatically equate to total and permanent disability benefits. The POEA Standard Employment Contract (POEA-SEC) and the Labor Code, as interpreted in Vergara v. Hammonia Maritime Services, Inc., allow for an extension of temporary total disability up to 240 days if further medical attention is required. In this case, the company-designated physician had a period of 240 days from the date of injury to make a finding on Millan's fitness for sea duties or degree of disability. Millan filed his complaint on August 29, 2003, which was 184 days from his medical repatriation, well within the 240-day period. Therefore, he was still considered under temporary total disability and had not yet acquired a cause of action for total and permanent disability benefits. The rule is that temporary total disability becomes permanent only when the company-designated physician declares it so within the 240-day period, or fails to make such a declaration after the lapse of the period. Furthermore, Millan's own evidence indicated a partial permanent disability of either Grade 10 or 11, supporting the CA's finding of Grade 10 partial permanent disability.
Main Doctrine
A seafarer's inability to resume work after 120 days does not automatically grant total and permanent disability benefits; the company-designated physician has up to 240 days to make a declaration of fitness or disability.