Bahia Shipping Services v. Constantino
REITERATIONFacts
The Antecedents: Respondent Crisante C. Constantino (Constantino) entered into a nine-month contract of employment as utility with petitioners Bahia Shipping Services, Inc. and Fred Olsen Cruise Lines, Limited (petitioners) for the vessel MIS Braemar. While onboard, Constantino complained of low back pain. He was referred to a shore-based physician who diagnosed him with an acute exacerbation of a pre-existing lumbar disc syndrome and declared him unfit to work for 10 days. Constantino was repatriated and referred to petitioners' physician, Dr. Robert D. Lim, who managed his treatment, including surgery and therapy, for several months. On October 2, 2002, Dr. Lim issued a report stating Constantino was asymptomatic and fit to work, a certification Constantino concurred with. Despite this, Constantino consulted Dr. Marciano Almeda, his physician of choice, who assessed him with permanent partial disability (Grade 11 impediment) and unfit for sea duties. Petitioners denied the claim, prompting Constantino to file a complaint for disability benefits. Procedural History: The Labor Arbiter dismissed the complaint, giving credence to Dr. Lim's fit-to-work declaration and Constantino's concurrence. The NLRC set aside the Labor Arbiter's decision and dismissed the complaint, agreeing that Dr. Lim's certification should prevail. The Court of Appeals (CA) partially granted Constantino's petition, refusing to give credit to Dr. Lim's assessment, deeming it self-serving and not based on his own findings. The CA found Dr. Almeda's report more credible and noted Constantino's continued inability to work. The CA upheld the denial of sickness allowance but granted attorney's fees. The Petition: Petitioners seek reversal of the CA rulings, arguing the CA erred in setting aside the NLRC's denial of disability benefits and awarding permanent partial disability compensation and attorney's fees. They contend the evidence supports their position and that the CA wrongly relied on Dr. Almeda's assessment while disregarding their submitted medical reports and Constantino's fitness certificate.
Issue(s)
Whether the Court of Appeals erred in disregarding the fit-to-work assessment of the company-designated physician. Whether Constantino is entitled to permanent partial disability benefits despite the company-designated physician's declaration of fitness to work, and the effect of the Certificate of Fitness for Work. Whether the failure to refer the conflicting medical assessments to a third doctor affects the prevailing medical opinion. Whether Constantino is entitled to attorney's fees.
Ruling
The petition is meritorious. The assailed decision and resolution of the Court of Appeals are SET ASIDE, and the October 28, 2005 resolution of the National Labor Relations Commission is reinstated. The complaint is DISMISSED for lack of merit.
Ratio Decidendi
On the prevailing medical assessment: The Court held that under Section 20 (B) 3 of the POEA Standard Employment Contract (POEA-SEC), it is the company-designated physician who declares the fitness to work or the degree of disability of a seafarer. The company-designated physician, Dr. Lim, declared Constantino fit to work after extensive examination, treatment, and rehabilitation for almost six months. The Court found the CA's rejection of Dr. Lim's assessment flawed, noting that Dr. Almeda, Constantino's physician of choice, examined Constantino only once and merely interpreted existing medical findings from the company-accredited doctors. The Court emphasized that the petitioners' team of doctors examined and treated Constantino multiple times over several months, with each treatment yielding a report that formed the basis of Dr. Lim's fit-to-work declaration. The Court reiterated the principle that in similar cases, the findings of company-designated physicians, supported by extensive treatment and examination, are given more weight than those of physicians who examined the seafarer for a shorter period and relied on the same medical history. On the entitlement to permanent partial disability benefits and the Certificate of Fitness for Work: The Court clarified that the Certificate of Fitness for Work signed by Constantino signified his concurrence with Dr. Lim's fit-to-work declaration. It was not a quitclaim, and there was no substantiation in the records for Constantino's claim that he signed it only due to assurances of re-deployment or that he applied for redeployment and was refused. Consequently, this certificate did not absolve the petitioners from liability. On the referral to a third doctor: The Court noted that while the POEA-SEC allows a seafarer to seek a second opinion and provides for a third doctor to resolve disagreements, Constantino failed to initiate this process. Although Dr. Almeda's assessment disagreed with Dr. Lim's, Constantino did not actively request a referral to a third doctor. The Court stated that the seafarer bears the burden of actively notifying the company of the contrary finding and requesting the process of choosing a third doctor. In the absence of such a request and a subsequent third doctor's resolution, the assessment of the company-designated physician, Dr. Lim, should stand. Therefore, the CA's conclusion that Constantino's inability to work for more than 120 days rendered him permanently disabled could not be sustained. On Attorney's Fees: Given that the complaint was dismissed for lack of merit, the award of attorney's fees to Constantino was deemed unwarranted. The petitioners' refusal to pay disability compensation was based on sound medical advice and the provisions of the POEA-SEC, and thus, their actions could not be considered in bad faith.
Main Doctrine
Under the POEA Standard Employment Contract (POEA-SEC), the company-designated physician's assessment of fitness to work or degree of disability prevails over the physician of choice, unless a third doctor is jointly agreed upon to resolve the conflicting assessments. The seafarer bears the burden of initiating the referral to a third doctor.