Transocean Ship Management v. Vedad
REITERATIONFacts
The Antecedents: Inocencio B. Vedad (Inocencio), a seafarer employed by Transocean Ship Management (Phils.), Inc. (Transocean) for its principal General Marine Services Corporation (General Marine), was repatriated on February 19, 2006, due to illness experienced on board M/V Invicta. The initial diagnosis abroad was chronic suppurative otitis media right with acute pharyngitis and mild maxillary sinusitis. Upon repatriation, he was treated by the company-designated physician, Dr. Nicomedes G. Cruz (Dr. Cruz). A subsequent tonsillectomy revealed cancer of the right tonsil. Transocean and General Marine initially promised to shoulder the estimated PhP 500,000 cost of chemotherapy and linear treatment, but failed to provide the necessary funds, prompting Inocencio to file a complaint for disability benefits and sickness allowance. Procedural History: The Labor Arbiter awarded Inocencio USD 60,000.00 in permanent total disability benefits and attorney's fees, considering his tonsil cancer presumptively work-related. The National Labor Relations Commission (NLRC) reversed this, awarding only 120 days of sickness allowance and reimbursement of medical expenses, holding that the company-designated physician's report that the cancer was not work-related shifted the burden of proof to Inocencio, which he failed to meet. The Court of Appeals (CA) modified the NLRC ruling by setting aside the award of sickness allowance but affirming the reimbursement of medical expenses, agreeing with the NLRC that the cancer was not work-related based on the company physician's certification. The Petition: Both parties appealed to the Supreme Court. Transocean, et al. questioned the award of medical expenses, while Inocencio sought permanent total disability benefits, reversal of the CA's denial of sickness allowance, and attorney's fees.
Issue(s)
Whether Inocencio is entitled to permanent total disability benefits. Whether Inocencio is entitled to sickness allowance. Whether Transocean, et al. are liable for Inocencio's medical expenses.
Ruling
The petition of Transocean, et al. is denied for lack of merit. The petitions of Inocencio are partly granted. The CA's decision is reversed and set aside, and the NLRC's decision is reinstated with modification. Transocean, Salinas, and General Marine are jointly and solidarily liable for Inocencio's medical expenses and sickness allowance, with legal interest.
Ratio Decidendi
On the entitlement to permanent total disability benefits: The Court ruled that Inocencio is not entitled to permanent total disability benefits because he failed to establish that his tonsil cancer was work-related. The Court reiterated that factual findings of the NLRC, when affirmed by the CA, are binding. The certification of the company-designated physician, Dr. Cruz, that the cancer was not work-related, was not rebutted by Inocencio with contrary findings or a second opinion from a physician of his choice, as provided for in the POEA-SEC. While the PEME showed him fit, the illness was not proven to have developed or aggravated from work-related causes. The Court noted that the possibility of work-related stresses causing a latent condition to flare up, as in Montoya v. Transmed Manila Corporation, could have been a basis, but Inocencio failed to present any duly medically proven work-relatedness. On the entitlement to sickness allowance: The Court held that Inocencio is entitled to sickness allowance equivalent to his basic wage for 120 days. This is based on Section 20(B)(3) of the POEA-SEC, which grants sickness allowance until declared fit to work or the degree of permanent disability is assessed, not exceeding 120 days. The illness manifested while on board and he was repatriated for medical treatment during his contract period. At the time of repatriation, his illness was not yet declared not work-related, thus the disputable presumption under Section 20(B)(4) of the POEA-SEC applied. The Court emphasized that the purpose of sickness allowance is to help the seafarer meet expenses while incapacitated, and the law looks tenderly on laborers, tilting the balance in their favor in cases of doubt, consistent with social justice. On the liability for medical expenses: The Court affirmed the NLRC and CA's ruling that Transocean, et al. must pay or reimburse Inocencio's medical expenses. This is based on their judicial admission in their Position Paper before the Labor Arbiter, where they acknowledged offering to shoulder the costs of treatment estimated at PhP 500,000. Having obliged themselves to shoulder the medical treatment, they are bound by this obligation. The Court noted that Inocencio started the procedure but could not continue because Transocean and General Marine unilaterally withdrew payment. Therefore, Transocean, Salinas, and General Marine are jointly and solidarily liable for the payment of PhP 500,000 representing the medical expenses agreed upon, inclusive of actual expenses incurred by Inocencio.
Main Doctrine
Seafarers are entitled to sickness allowance pending assessment by the company-designated physician on the work-relatedness of their ailment, even if later declared not work-related. Employers who promise to shoulder medical treatment costs are bound by their judicial admission and must reimburse or pay for said expenses.