Rickmers Marine Agency v. San Jose
REITERATIONFacts
The Antecedents: Respondent Edmund R. San Jose (San Jose) was engaged by petitioners Rickmers Marine Agency Phils., Inc., Global Management Limited, and/or George C. Guerrero as a wiper on board the vessel MV Maersk Edinburg. He underwent medical examinations and was declared fit for work. During his deployment, San Jose experienced loss of vision in his left eye. He was medically examined in Singapore and later in Le Havre, France, where he was diagnosed with retinal detachment/tear affecting the macula and recommended for medical repatriation. Upon arrival in Manila, he was referred to the company-designated physician, who assessed him with rhegmatogenous retinal detachment with proliferative vitreoretinopathy, lattice degeneration, myopia, OS, and recommended surgery. San Jose underwent two surgeries for his condition. The company-designated physician issued a medical certificate on July 4, 2011, giving him a Partial Temporary Disability Rating, and on November 21, 2011, declared him "fit for work" concerning the cause of repatriation. Despite the surgeries, his vision remained blurred, prompting him to file a complaint for permanent total disability benefits. Procedural History: The Labor Arbiter (LA) ruled in favor of San Jose, awarding him permanent total disability benefits and attorney's fees. The National Labor Relations Commission (NLRC) reversed the LA's decision, finding that the company-designated physician did not state any grading for compensation and both medical certifications stated San Jose was "fit to work." The NLRC awarded San Jose salaries for the unexpired portion of his contract and financial assistance. The Court of Appeals (CA) set aside the NLRC decision, reinstating the LA's award of permanent total disability benefits and attorney's fees, while also affirming the NLRC's award of unpaid salaries and financial assistance. The Petition: Petitioners assailed the CA decision, arguing that San Jose's illness was not work-related, as he was declared "fit to work" by the company-designated physician. They also contended that the lapse of the 120/240-day period does not automatically entitle a seafarer to compensation. They disputed the awards for unpaid salaries, financial assistance, and attorney's fees.
Issue(s)
Whether respondent San Jose is entitled to total permanent disability benefits. Whether the award of attorney's fees, salaries for the unexpired portion of the contract, and financial assistance is proper.
Ruling
The Supreme Court denied the petition, affirming the Court of Appeals' decision with modification. It declared petitioners solidarily liable to pay respondent total permanent disability compensation in the amount of US$ 60,000.00, or its peso equivalent. The award of attorney's fees, salaries for the unexpired portion of the contract of US$ 420.00, and financial assistance of P50,000.00 was deleted. Respondent was directed to return any amount received in excess of the awarded disability compensation.
Ratio Decidendi
On the entitlement to total permanent disability benefits: The Court reiterated the guidelines under the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) concerning the 120/240-day period for the company-designated physician's assessment. These guidelines stipulate that the seafarer must undergo post-employment medical examination within three working days of return, cooperate with the physician, and the company-designated physician must issue a final assessment within 120 days, extendable to 240 days for justifiable reasons. Crucially, if the company-designated physician fails to provide an assessment within these periods, the seafarer's disability is deemed permanent and total. In this case, San Jose was repatriated on March 3, 2011, and underwent two surgeries. The company-designated physician issued a "fit to work" assessment on November 21, 2011, which was 263 days from repatriation, exceeding the maximum 240-day period. Therefore, San Jose's disability was conclusively presumed to be total and permanent. On the award of attorney's fees, salaries for the unexpired portion of the contract, and financial assistance: The Court deleted these awards. It clarified that being compelled to litigate is insufficient grounds for attorney's fees, as there must be a showing of bad faith, which was absent here. Regarding salaries for the unexpired portion of the contract and financial assistance, the Court cited Section 20(B) of the 2000 POEA-SEC, which mandates the employer to pay wages while the seafarer is onboard and sickness allowance equivalent to the basic wage until declared fit to work or disability is assessed. Since San Jose was repatriated and received sickness allowance and medical treatment costs, these additional awards were deemed without basis.
Main Doctrine
The failure of the company-designated physician to issue a final medical assessment on the seafarer's disability grading within the 120-day period, or the extended 240-day period, results in the seafarer's disability being deemed total and permanent.