Pastor v. Bibby Shipping Philippines, Inc.
REITERATIONFacts
The Antecedents: Petitioner Jon A. Pastor was hired as Assistant Butcher and declared fit for duty after a pre-employment medical examination. On August 10, 2014, he sustained an injury to his left elbow and lower back during a lifeboat drill, resulting in a displaced fracture of the left humerus medical epicondyle. He underwent surgery and was repatriated on August 15, 2014, for further treatment. After therapy and a second surgery to remove screws, work simulation evaluation showed persistent pain and reduced left hand grip. The company-designated physician assessed an interim disability grading of Grade 11. Petitioner consulted an independent physician who declared him unfit for sea duties due to limited elbow flexion and muscle weakness. The company-designated physician later assessed a 12% partial disability, equivalent to US$9,600.00 under the CBA, stating petitioner could resume work once pain-free with continuous physical therapy. Petitioner filed a complaint for total and permanent disability benefits, claiming incapacity for over 240 days and non-furnishing of medical records. Procedural History: The Labor Arbiter awarded permanent partial disability benefits of US$5,225.00, giving more credence to the company-designated physician's assessment. The NLRC set aside the LA's decision and awarded total and permanent disability benefits of US$80,000.00, considering the company-designated physician's assessment was beyond the 240-day period and not definitive. The CA annulled the NLRC ruling, reinstating the award of US$9,600.00 for permanent partial disability, giving more credence to the company-designated physician's assessment. The Petition: Petitioner seeks review of the CA's decision, arguing it erred in finding him not entitled to permanent total disability benefits.
Issue(s)
Whether the Court of Appeals erred in finding that petitioner was not entitled to permanent total disability benefits. Whether the company-designated physician timely issued a final and definitive disability assessment within the prescribed period. Whether the third doctor referral procedure under the POEA-SEC is applicable when no valid medical assessment was issued within the prescribed period.
Ruling
The petition is meritorious. The Court reversed and set aside the Decision and Resolution of the Court of Appeals and reinstated the Decision and Resolution of the National Labor Relations Commission. Petitioner is entitled to permanent total disability benefits amounting to US$80,000.00, plus 10% attorney's fees.
Ratio Decidendi
On the issue of whether the Court of Appeals erred in finding that petitioner was not entitled to permanent total disability benefits: The Court ruled that the CA erred. It is settled that the entitlement of a seafarer to disability benefits is governed by law, contract, and medical findings. The 2010 POEA-SEC mandates that the employer must refer the seafarer to a company-designated physician who must issue a definite assessment of fitness or degree of disability within 120 days from repatriation. This period can be extended to 240 days if the seafarer requires further medical attention, but the employer must prove justification for this extension. Failure to issue a final and definitive assessment within these periods results in the seafarer's temporary total disability being converted to permanent total disability by operation of law. In this case, the company-designated physician's last assessment was issued on April 14, 2015, beyond the 240-day extended period, and it was not definitive as petitioner still complained of pain and required continuous physical therapy. Therefore, the required final assessment was not timely issued, entitling petitioner to permanent total disability benefits. On the issue of whether the company-designated physician timely issued a final and definitive disability assessment within the prescribed period: The Court found that the company-designated physician failed to issue a timely and definitive assessment. The initial assessment on March 3, 2015, was explicitly interim. While the April 14, 2015 assessment provided a percentage, it was issued beyond the 240-day extended period. Crucially, the report itself indicated that petitioner still complained of pain and needed continuous physical therapy, negating the finality of the assessment. The CA's reliance on a March 31, 2015 report, presented for the first time on appeal, was disregarded due to its belated submission and the fact that subsequent medical reports indicated ongoing treatment needs. Thus, the assessment was neither timely nor definitive as required by law. On the issue of whether the third doctor referral procedure under the POEA-SEC is applicable when no valid medical assessment was issued within the prescribed period: The Court held that the third doctor referral provision is not applicable in this case. Section 20 (A) (3) of the 2010 POEA-SEC requires a third doctor referral when there is a disagreement between the seafarer's doctor and the company-designated physician's assessment. However, this procedure presupposes that the company-designated physician has issued a valid, final, and definitive assessment within the prescribed 120 or 240-day period. Since the company-designated physician failed to issue such an assessment within the extended 240-day period, there was no valid assessment to contest. Consequently, the law itself steps in to declare the seafarer's disability as total and permanent, rendering the third doctor referral procedure moot and unnecessary.
Main Doctrine
The failure of the company-designated physician to issue a final and definitive disability assessment within the extended 240-day period, despite the seafarer requiring further medical attention, results in the seafarer's temporary total disability being converted to permanent total disability by operation of law, entitling them to the maximum benefits.