Julleza v. Orient Line Philippines

G.R. No. 225190 · 2019-07-29 · J. CAGUIOA, J.: · Primary: Labor; Secondary: Remedial
REITERATION

Facts

The Antecedents: Petitioner Efren J. Julleza was employed as a bosun by respondents Orient Line Philippines, Inc., Orient Navigation Corporation, and Macario Dela Peña. His contract was covered by the IBF-JSU/PSU-IMMAJ Collective Bargaining Agreement (CBA). On December 19, 2012, while cleaning the cargo hold under bad weather conditions, petitioner allegedly slipped and sustained lower back pain. He was advised by the ship master to wait until his contract ended on December 25, 2012, before seeking medical attention. Upon repatriation, he consulted the company-designated physician on December 27, 2012. Tests and therapy were conducted, and on February 21, 2013, the company-designated physician certified that petitioner suffered from bilateral nephrolithiasis and lumbar spondylosis, with a disability grading of Grade 8 (loss of 2/3 lifting power of the trunk). Petitioner later consulted an independent physician, Dr. Rogelio Catapang, Jr., who, in a report dated June 29, 2013, stated that petitioner was unfit for further strenuous duties. Procedural History: Petitioner filed a complaint for illness allowance, disability benefits, and damages. The Labor Arbiter (LA) ruled that petitioner figured in an accident causing his lumbar spondylosis and awarded permanent total disability benefits under the CBA. The National Labor Relations Commission (NLRC) affirmed the LA's decision, finding that petitioner was entitled to permanent total disability benefits because his incapacity exceeded 120 days and respondents failed to refute the accident claim. The Court of Appeals (CA) granted in part respondents' petition for certiorari, reversing the NLRC. The CA ruled that the company-designated physician's Grade 8 disability grading for partial permanent disability should prevail, as petitioner failed to comply with the conflict-resolution procedure under the CBA. The CA also found that petitioner's injury was not a result of an accident, thus entitling him only to benefits under the POEA-SEC, specifically US$16,795.00 for Grade 8 disability and attorney's fees. Petitioner's motion for reconsideration was denied. The Petition: Petitioner filed a petition for review on certiorari before the Supreme Court, assailing the CA's decision and resolution.

Issue(s)

Whether the Court of Appeals erred in granting the petition for certiorari. Whether petitioner is entitled to permanent total disability benefits under the CBA or the POEA-SEC. Whether petitioner's lumbar spondylosis was a result of an accident. Whether petitioner complied with the conflict-resolution procedure under the CBA.

Ruling

The Supreme Court denied the petition and affirmed the decision of the Court of Appeals. The Court held that the CA correctly reversed the NLRC and LA. Petitioner failed to comply with the conflict-resolution procedure under the CBA, and his injury was not proven to be a result of an accident. Therefore, petitioner is entitled to benefits under the POEA-SEC corresponding to a Grade 8 disability rating.

Ratio Decidendi

The provided text does not contain any information pertaining to whether the Court of Appeals erred in granting the petition for certiorari. Therefore, I am unable to provide a ratio decidendi for this issue. On the issue of entitlement to benefits under the CBA versus the POEA-SEC: The Court affirmed the CA's ruling that petitioner was entitled to benefits under the POEA-SEC, not the CBA. Article 28 of the CBA explicitly covers disabilities "as a result of an accident." Since the Court found that petitioner's lumbar spondylosis did not arise from an accident, the CBA provisions were inapplicable. Consequently, the disability benefits should be computed based on the POEA-SEC. Section 20(A)(6) of the POEA-SEC provides that in case of permanent total or partial disability caused by injury or illness, the seafarer shall be compensated according to the schedule of benefits in Section 32 of the Contract. The disability grading, as determined by the company-designated physician, should be the basis for computation. The CA's award of US$16,795.00, corresponding to a Grade 8 disability rating under the POEA-SEC, was therefore deemed correct. On the issue of whether petitioner's injury was a result of an accident: The Court found that the evidence did not support petitioner's claim that he slipped and fell, causing his lumbar spondylosis. While petitioner and a fellow seaman provided statements alleging an accident, the medical reports from the ship captain, the company-designated physician, and even petitioner's own doctor did not corroborate the claim of a slip and fall. Instead, these reports indicated that petitioner complained of back pain, which had a gradual onset and was exacerbated by lifting heavy objects. The company-designated physician's initial report noted the pain arose from sickness, possibly due to weather or sea conditions, and the possibility of a fall was unchecked. Petitioner's own doctor's report mentioned a gradual onset of low back pain after lifting heavy objects and a history of intermittent back pain since 2010. The Court gave more weight to the official reports over self-serving statements, concluding that the back pain was not an "unlooked for mishap, occurrence, or fortuitous event" but rather a condition that developed over time, consistent with the nature of his work. On the issue of compliance with the conflict-resolution procedure: The Court reiterated that when there is a disagreement between the findings of the company-designated physician and the seafarer's own doctor, the Collective Bargaining Agreement (CBA) and the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) mandate a conflict-resolution procedure, typically involving the appointment of a third doctor whose decision is final and binding. In this case, the petitioner consulted an independent physician whose findings differed from the company-designated physician's assessment. However, the petitioner failed to show any proof that he notified the respondents of his intent to refer the conflicting medical findings to a third doctor, thereby failing to comply with the prescribed procedure. Jurisprudence consistently holds that non-compliance with this procedure militates against the seafarer's claims and results in the affirmance of the company-designated physician's certification.

Main Doctrine

A seafarer's non-compliance with the conflict-resolution procedure outlined in the Collective Bargaining Agreement (CBA) or the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC), particularly the referral to a third doctor when there is a disagreement between the company-designated physician and the seafarer's own doctor, results in the company-designated physician's assessment prevailing. Furthermore, claims for disability benefits arising from an illness or injury not proven to be the result of an accident are governed by the POEA-SEC, not the CBA, if the CBA specifically covers only disabilities resulting from accidents.

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