Philsynergy Maritime v. Gallano

G.R. No. 228504 · 2018-06-06 · J. PERLAS-BERNABE, J.: · Primary: Labor; Secondary: Remedial
REITERATION

Facts

The Antecedents: Respondent Columbano Pagunsan Gallano, Jr. was employed as Master on board the vessel M.V. Pearl Halo by petitioners Philsynergy Maritime, Inc. and Trimurti Shipmanagement Ltd. under a six-month contract. He passed the Pre-Employment Medical Examination (PEME) declaring him fit for sea duty. On October 10, 2012, while performing his duties, respondent experienced numbness on his left side and slurred speech, symptoms of a stroke. He was repatriated on October 23, 2012, and diagnosed by the company-designated physician with Cerebrovascular Infarct Middle Cerebral Artery, Right and Hypertension, which were declared not work-related. The company-designated physician's last medical report on March 9, 2013, indicated stabilized condition but advised continued rehabilitation and medication, without a definitive fitness to work assessment. Respondent sought total disability benefits, which were denied by petitioners. Procedural History: Respondent filed a complaint for total permanent disability benefits. The Labor Arbiter ruled in his favor, awarding US$60,000.00 and attorney's fees. The National Labor Relations Commission (NLRC) affirmed the ruling but modified the award to US$151,470.00 based on the Collective Bargaining Agreement (CBA). The Court of Appeals (CA) affirmed the NLRC's decision, finding no grave abuse of discretion. The Petition: Petitioners sought review of the CA's decision, arguing that the CA erred in upholding the NLRC's award of total and permanent disability benefits under the CBA.

Issue(s)

Whether the Court of Appeals erred in upholding the National Labor Relations Commission's findings that the respondent is entitled to total and permanent disability benefits under the CBA. Whether the respondent fraudulently concealed a pre-existing medical condition. Whether the respondent's illness is work-related and compensable. Whether the respondent's failure to undergo a third-doctor referral bars his claim.

Ruling

The petition is denied. The Court affirmed the Court of Appeals' decision with modification, ordering petitioners to pay respondent US$60,000.00 or its equivalent in Philippine Currency, representing total and permanent disability benefits in accordance with the 2010 Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC), and ten percent (10%) thereof as attorney's fees.

Ratio Decidendi

On the entitlement to total and permanent disability benefits under the CBA: The Court clarified that while the NLRC and CA awarded benefits under the CBA, the respondent's disability should be compensated under the 2010 POEA-SEC. The CBA requires an injury resulting from an accident, which is defined as an unintended and unforeseen injurious occurrence. Respondent suffered from an occupational disease, not an accident. Therefore, the entitlement to total disability compensation is governed by the POEA-SEC, specifically the provisions on work-related illnesses and disability. On the alleged fraudulent concealment of a pre-existing medical condition: The Court found no evidence of concealment. Petitioners anchored their claim on the respondent's possession of Isordil, a medication for angina, arguing it suggested a pre-existing hypertension. However, Isordil is not a direct medication for hypertension, and no medical doctor's advice for treatment or diagnosis of hypertension prior to employment was presented. The respondent's PEME showed normal blood pressure and no heart problem, indicating he was fit for sea duty. The Court held that carrying Isordil did not conclusively establish knowledge of a pre-existing condition that was concealed. On whether the respondent's illness is work-related and compensable: The Court affirmed that Cerebrovascular Events (CVA) and Hypertension are listed as occupational diseases under Section 32-A of the 2010 POEA-SEC. The respondent suffered a stroke while in the performance of his duties, and there was no indication he was previously known to have hypertension. His last PEME showed normal results for blood pressure, chest x-ray, and ECG. Therefore, his illnesses and resulting disability were correctly deemed compensable as work-related. On the failure to undergo a third-doctor referral: The Court ruled that the respondent's non-compliance with the third-doctor referral procedure was justified because the company-designated physician failed to issue a timely, conclusive, and definitive assessment of his fitness or unfitness to work within the 120-day period. The last medical report was beyond the 120-day period and did not provide a definite assessment, only advising continued rehabilitation and medication. Absent such a certification from the company-designated physician, the law steps in to conclusively characterize the disability as total and permanent, negating the need for a third-doctor referral.

Main Doctrine

The failure of the company-designated physician to issue a definitive assessment of the seafarer's fitness or unfitness to work within the 120-day period (or 240 days, if extended) negates the need for the seafarer to comply with the third-doctor referral provision, and the law steps in to conclusively characterize the disability as total and permanent.

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