Gomez v. Crossworld Marine Services
REITERATIONFacts
The Antecedents: Petitioner Eugenio M. Gomez, an Ordinary Seaman, was hired by respondents Crossworld Marine Services, Inc. and Golden Union Shipping Company, S.A. for a period of 11 months. While performing his duties on board the vessel M/V Elena VE, petitioner slipped and hit his lower back on the steel deck, sustaining an injury. Despite initial pain, he continued working but eventually sought medical attention. He was diagnosed with Lumbago and repatriated to the Philippines for further treatment. Subsequent medical evaluations, including an MRI and surgical procedures for a herniated disc, revealed multilevel discogenic and osteophytic central canal and bilateral foraminal stenosis at L4-L5 and L5-S1. Despite treatment and physical therapy, petitioner continued to experience pain and was unable to perform strenuous activities. Procedural History: Following his repatriation, petitioner sought medical treatment and disability benefits from the respondents, which were refused. He then filed a complaint before the Labor Arbiter, seeking a declaration of total and permanent disability and compensation. The Labor Arbiter ruled in favor of the petitioner, awarding permanent total disability benefits. The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter's decision. Respondents appealed to the Court of Appeals, which modified the NLRC ruling, declaring petitioner to have suffered permanent partial disability with a Grade 8 impediment and awarding compensation of US$30,527.26, plus attorney's fees. The Petition: Petitioner filed a petition for review on certiorari under Rule 45 of the Rules of Court, assailing the Court of Appeals' decision. He argues that the appellate court gravely abused its discretion by reversing the NLRC's decision, ruling that he is not entitled to full disability benefits, and refusing to apply the landmark case of Kestrel Shipping Company, Inc. v. Francisco Munar. Petitioner contends that his condition renders him unable to earn wages in his customary work or similar nature, and that the medical findings of the company-designated physician were not conclusive of his fitness to return to work. The core issue is the propriety of awarding disability benefits, specifically whether the petitioner's temporary total disability should be deemed permanent and total, and the correct computation of benefits under the applicable Collective Bargaining Agreement.
Issue(s)
Whether petitioner Eugenio M. Gomez is entitled to permanent total disability benefits. Whether the Court of Appeals erred in reversing the NLRC's decision and awarding permanent partial disability benefits with an impediment of Grade 8. Whether the case of Kestrel Shipping Company, Inc. v. Munar is applicable to the present case. Whether the medical reports of the company-designated physician are hearsay evidence. Whether the disability compensation should be computed based on the ITF Uniform "TCC" Collective Agreement or the ITF Standard Collective Agreement.
Ruling
The petition is denied. The Decision of the Court of Appeals is affirmed with modification, declaring petitioner Eugenio M. Gomez to have suffered permanent partial disability with an impediment of Grade 8, and ordering respondents to pay him disability compensation in the amount of US$30,527.26, plus interest and attorney's fees.
Ratio Decidendi
On the entitlement to permanent total disability benefits: The Court reiterated that a seafarer's temporary total disability only becomes permanent when declared as such by the company-designated physician within the allowed period, or upon the expiration of the maximum 240-day medical treatment period without a declaration of fitness to work or permanent disability. In this case, petitioner filed his complaint on September 13, 2012, which was 197 days after his repatriation on March 19, 2012. This was before the lapse of the 240-day period within which the company-designated physician could make a final assessment. Therefore, the legal presumption of permanent total disability did not apply. On the Court of Appeals' reversal and award of permanent partial disability: The Court found that the Court of Appeals correctly adopted the disability impediment of Grade 8 given by the company-designated doctor, Dr. Tay, based on the POEA SEC Schedule of Disability. While Dr. Runas, the petitioner's private physician, declared him permanently unfit for sea duty, the Court gave weight to the company-designated physician's assessment, especially since the petitioner failed the functional capacity test and required further therapy. The Court noted that the disability grade is based solely on the POEA SEC Schedule of Disability and not merely on the duration of treatment. On the applicability of Kestrel Shipping Company, Inc. v. Munar: The Court distinguished the present case from Kestrel Shipping Company, Inc. v. Munar. The Court explained that Kestrel applied the rule enunciated in Crystal Shipping, Inc. v. Natividad, which held that total and permanent disability refers to the seafarer's incapacity to perform customary sea duties for more than 120 days. However, Kestrel itself clarified that the pronouncements in Vergara v. Hammonia Maritime Services, Inc. restrained the indiscriminate reliance on Crystal Shipping, as the temporary total disability period could be extended up to 240 days. Since the present case was decided after Vergara, the 240-day rule was correctly applied by the CA. On the medical reports being hearsay evidence: The Court found the contention that Dr. Tay's medical reports were hearsay to be unmeritorious. The petitioner did not dispute the medical treatments detailed in these reports before the lower tribunals and even confirmed them in his complaint and petition. The Court noted that Dr. Tay and the spine surgeon worked closely, and their findings were reflected in Dr. Tay's reports. In the absence of substantial evidence from the petitioner that Dr. Tay lacked personal knowledge, the reports were considered valid. On the computation of disability compensation: The Court affirmed the CA's finding that the applicable CBA was the ITF Uniform "TCC" Collective Agreement. The CA correctly computed the disability benefit based on Grade 8 disability (33.59%) under this agreement, resulting in US$30,527.26, as opposed to the higher amount awarded by the Labor Arbiter and NLRC based on the ITF Standard Collective Agreement, which was not the applicable contract.
Main Doctrine
A seafarer's temporary total disability becomes permanent only when declared as such by the company-designated physician within the allowed period (initially 120 days, extendable up to 240 days), or upon the expiration of the 240-day period without such a declaration. Filing a complaint before the lapse of the 240-day period does not automatically grant permanent total disability benefits.