Gamboa v. Maunlad Trans
REITERATIONFacts
The Antecedents: Petitioner Oscar D. Gamboa was employed as Bosun by respondent Maunlad Trans, Inc. (MTI) on January 17, 2014, for a nine-month contract. After a pre-employment medical examination (PEME) where he was declared fit, he joined the vessel MV Oriente Shine on January 24, 2014. On January 25, 2014, while assisting in unloading logs, he experienced an asthma attack due to the strong odor. On February 4, 2014, he slipped while going down the ship's galley, causing back pain. On February 12, 2014, he experienced back pain and difficulty breathing during a rigging operation, prompting the ship master to disembark him for medical consultation in Canada. A foreign port doctor diagnosed him with asthma and declared him unfit for duty. He was medically repatriated on February 15, 2014. Procedural History: Upon repatriation, company-designated physicians confirmed his bronchial asthma and also diagnosed "Degenerative Changes, Thoracolumbar Spine" and a "metallic foreign body on the anterior cervical area." The company-designated physician issued an interim assessment on May 14, 2014, noting occasional asthma attacks and tenderness on his back, with interim disability grades of Grade 8 (orthopedic) and Grade 12 (pulmonary). The orthopedic specialist opined that the degenerative changes might be a pre-existing condition. MTI refused to shoulder the extraction of the foreign body, which petitioner had done at his own expense. MTI issued medical certificates listing "Bronchial Asthma; Degenerative Changes, Thoracolumbar Spine, Left Parathoracic Muscle Strain." On June 4, 2014, petitioner filed a complaint for sickness allowance, medical expenses, and rehabilitation fees. On June 18, 2014, he amended the complaint to include a claim for permanent total disability benefits under the Collective Bargaining Agreement (CBA), impleading RMCL and Capt. Fajardo. The Labor Arbiter (LA) ruled in favor of petitioner, awarding disability benefits, damages, and attorney's fees. The National Labor Relations Commission (NLRC) affirmed the LA's decision but deleted the award of moral and exemplary damages, holding the illnesses work-related and petitioner entitled to permanent total disability benefits. The Court of Appeals (CA) annulled the NLRC decision, dismissing the complaint, ruling that the May 14, 2014 assessment was not final and petitioner was still undergoing treatment within the allowable period, and that the lapse of the 120-day period did not automatically entitle him to benefits. The Petition: Petitioner filed a petition for review on certiorari assailing the CA Decision and Resolution.
Issue(s)
Whether the Court of Appeals erred in finding that petitioner is not entitled to permanent total disability benefits. Whether petitioner's illnesses, bronchial asthma and degenerative changes of the thoracolumbar spine, are work-related. Whether petitioner is entitled to permanent total disability benefits by operation of law due to the company-designated physician's failure to issue a final assessment within the 120-day period. Whether petitioner's complaint was prematurely filed.
Ruling
The petition is meritorious. The Court REVERSED and SET ASIDE the Decision dated January 24, 2017 and the Resolution dated July 5, 2017 of the Court of Appeals, and REINSTATED the Decision dated March 18, 2015 and the Resolution dated April 29, 2015 of the National Labor Relations Commission.
Ratio Decidendi
On the entitlement to permanent total disability benefits: The Court reiterated the general rule that only questions of law may be raised in petitions for review on certiorari, but acknowledged exceptions, including misapprehension of facts. The entitlement to disability benefits is governed by law, contract, and medical findings. Section 20(A) of the 2010 POEA-SEC outlines the procedure for work-related injuries or illnesses. The company-designated physician must issue a final assessment within 120 days from repatriation. If this period is exceeded without a definitive declaration and the seafarer requires further medical attention, the period may be extended to 240 days. Failure to issue a final assessment within these periods, without sufficient justification, results in the disability being deemed permanent and total by operation of law. The Court determined that petitioner was entitled to permanent total disability benefits. Although the CBA's Article 28.1 specified permanent disability as a result of an accident, Article 28.3 provided for disability compensation in accordance with Appendix 3. Since the company-designated physician failed to issue a final assessment, the disability was deemed total and permanent (Grade 1 under POEA-SEC), equivalent to 100% compensation under Appendix 3 of the CBA, amounting to US$127,932.00 for his position as Bosun. On the work-relatedness of petitioner's illnesses: The Court found that petitioner's bronchial asthma and degenerative changes of the thoracolumbar spine were work-related. While an orthopedic specialist suggested the degenerative changes might be pre-existing, the Court noted that conditions for deeming an illness pre-existing under the POEA-SEC were not met. Specifically, there was no advice of medical treatment for a continuing illness, nor was there knowledge and failure to disclose during PEME. Furthermore, degenerative changes of the spine are listed as an occupational disease under the POEA-SEC if the occupation involves joint strain from heavy loads or undue physical labor, which was applicable to petitioner's role as Bosun. The Court also held that even if an illness existed prior to employment, it is compensable if employment contributed to its development. On the entitlement to permanent total disability benefits by operation of law: The Court found that the company-designated physician issued only an "interim" assessment on May 14, 2014, which was not a final and definitive assessment. Despite subsequent follow-up sessions, no definitive assessment was made within the 120-day period, nor was there any indication or justification provided for extending the treatment period to 240 days. Consequently, by operation of law, petitioner's temporary total disability became permanent and total after the lapse of the 120-day period from his repatriation on February 15, 2014. The Court emphasized that without a valid final and definitive assessment within the prescribed periods, the law deems the disability as total and permanent. On the prematurity of the complaint: The Court clarified that the initial complaint filed on June 4, 2014, was for non-payment of sickness allowance and medical expenses, not disability benefits. The amended complaint for permanent total disability benefits was filed on June 18, 2014, after the 120-day period had already lapsed. Therefore, the complaint was not prematurely filed. The Court also noted that the petitioner was not required to refer the matter to a third doctor as there was no final assessment from the company-designated physician to contest.
Main Doctrine
The failure of the company-designated physician to issue a final medical assessment on the seafarer's fitness or degree of disability within the 120-day period, without sufficient justification for extension to 240 days, results in the seafarer's disability being deemed permanent and total by operation of law, entitling them to full disability benefits.