New Filipino Maritime Agencies v. Despabeladeras
REITERATIONFacts
The Antecedents: Respondent Michael D. Despabeladeras (Michael) was hired as a Wiper on board the vessel M/V "ATHENS HIGHWAY" by petitioner New Filipino Maritime Agencies Inc. for its principal, St. Paul Maritime Corp. He was declared "Fit for Sea Service" after his Pre-Employment Medical Examination (PEME). On August 20, 2009, while on board, Michael slipped and fractured his left hand. He experienced severe pain and swelling, and was diagnosed with "Ulna Styloid Fracture, Left Wrist." He was repatriated to the Philippines on August 28, 2009, and placed under the care of the company-designated physician, Dr. Nicomedes G. Cruz, from August 2009 until February 10, 2010. Despite continuous treatment, Michael alleged no improvement and consulted Dr. Rogelio C. Catapang, Jr., who declared him unfit to resume his duties as a seaman on January 16, 2010. Michael's check-up with the company-designated orthopedic surgeon on February 3, 2010, showed minimal pain, and he was advised to continue medical therapy. He was asked to return on February 17, 2010, but failed to do so, instead demanding disability benefits. Procedural History: Michael filed a complaint for disability compensation and other monetary claims before the National Labor Relations Commission (NLRC). The Labor Arbiter (LA) ruled in favor of Michael, awarding permanent total disability benefits, finding him unable to perform his job for more than 120 days and not having abandoned medical treatment. The NLRC reversed the LA decision, holding that there was no positive proof of disability grading and that Michael did not complete his medical treatment. The Court of Appeals (CA) reversed the NLRC, sustaining the LA's award of permanent total disability benefits by applying the 120-day presumptive disability rule, stating that inability to work for more than 120 days determined entitlement. The Petition: Petitioners assailed the CA's decision, arguing that the 120-day rule was abandoned, that Michael committed medical abandonment by failing to complete treatment, and that the CA deviated from established jurisprudence.
Issue(s)
Whether the Court of Appeals erred in applying the 120-day rule despite jurisprudence clarifying its application, and whether the respondent was guilty of medical abandonment. Whether the Court of Appeals erred in disregarding the role of the company-designated physician in assessing disability, and whether the respondent's cause of action had accrued. Whether the Court of Appeals erred in deviating from established jurisprudence regarding disability claims of seafarers, specifically regarding entitlement to temporary total disability benefits.
Ruling
The petition is granted. The assailed decision and resolution of the Court of Appeals awarding permanent total disability benefits are reversed and set aside. Petitioners are ordered to pay Michael D. Despabeladeras income benefit for one hundred sixty-six (166) days.
Ratio Decidendi
On the application of the 120-day rule and medical abandonment: The Court ruled that the CA's conclusion that Michael was entitled to permanent total disability benefits based solely on his inability to perform duties for more than 120 days was not justified. The 120-day rule, as clarified in Vergara v. Hammonia Maritime Services, Inc., is not a general rule and its application depends on the circumstances, including compliance with contractual duties. The Court found that Michael was guilty of medical abandonment for failing to complete his treatment with the company-designated physician before the lapse of the 240-day period. His failure to return for his scheduled check-up on February 17, 2010, prevented Dr. Cruz from issuing a disability assessment or a fit-to-work declaration. The Court emphasized that temporary total disability only becomes permanent when declared by the company physician within the allowed period or upon the expiration of the maximum 240-day medical treatment period without such a declaration. Michael's condition on February 10, 2010, after 166 days of treatment, showed improvement, with full range of motion and good hand grip, indicating a probability of being declared fit for work. On the accrual of the cause of action and the role of the company-designated physician: The Court held that Michael's cause of action for permanent total disability benefits had not yet accrued when he filed his complaint. He filed the complaint prematurely while still under the care of the company-designated specialist and before the 240-day period had lapsed. The company-designated physician is entrusted with assessing a seafarer's disability, and there is a procedure to contest findings, but Michael deprived Dr. Cruz of the opportunity to make such an assessment by failing to attend his scheduled check-up. Consulting another physician, Dr. Catapang, before the company-designated physician made a final assessment, did not provide Michael with a cause of action, especially since the POEA-SEC mandates that compensation is not payable for injuries resulting from willful acts or intentional breach of duties, which includes discontinuing medical treatment. On entitlement to temporary total disability benefits: Despite reversing the award for permanent total disability benefits, the Court found that Michael was entitled to temporary total disability benefits. Since he was still undergoing treatment by the company doctors even after the lapse of 120 days but within the 240-day extended period, he remained under temporary total disability. His treatment lasted for 166 days from his repatriation until his last visit to the company-designated orthopedic surgeon. Therefore, he was entitled to income benefits for this period.
Main Doctrine
The 120-day rule for temporary total disability is not an absolute rule and may be extended up to 240 days, especially when the seafarer's injury requires further medical treatment. Failure to complete medical treatment within this extended period, without valid justification, constitutes medical abandonment and forfeits the right to permanent total disability benefits. A seafarer's cause of action for permanent total disability benefits accrues only after the lapse of the maximum 240-day period without a declaration of fitness to work or permanent disability by the company-designated physician.