Marlow Navigation v. Quijano
REITERATIONFacts
The Antecedents: Primo D. Quijano was hired as a Cook by Marlow Navigation Phils., Inc., for its principal Marlow Navigation Netherlands B.V., on board the vessel M/V Katharina Schepers. After undergoing a pre-employment medical examination and being declared fit for sea duty, Quijano commenced his employment. His initial six-month contract was cut short, and he was signed off purportedly due to completion of his contract. Subsequently, Quijano sought re-employment but was unable to materialize it due to a severe illness diagnosed as liver abscess, cholecystitis with cholelithiasis, diabetes mellitus, type II, and panophthalmitis, right. He claimed these illnesses were acquired during his last employment and that the petitioners refused to provide medical assistance upon his repatriation, compelling him to seek treatment at his own expense. Quijano filed a complaint for disability benefits, sickness allowance, medical reimbursement, damages, and attorney's fees. Procedural History: The Voluntary Arbitrator (VA) found Quijano entitled to total and permanent disability benefits and ordered the petitioners to pay him US$127,932.00 and 10% attorney's fees. The VA based this decision on the finding that Quijano was denied medical assistance, his contract was pre-terminated without reason, and he was not referred to a company-designated physician after repatriation. Furthermore, the VA noted the company-designated physician's failure to provide a definitive assessment within the prescribed period, leading to the presumption of total and permanent disability. The petitioners appealed this decision to the Court of Appeals (CA), asserting that Quijano was not medically repatriated and failed to comply with the mandatory post-employment medical examination. The CA affirmed the VA's decision, agreeing that Quijano was entitled to total and permanent disability benefits and that the petitioners' failure to provide medical assistance justified his consultation with an independent physician. The petitioners' motion for reconsideration was denied, leading to the present petition. The Petition: Petitioners Marlow Navigation Phils., Inc., Marlow Navigation Netherlands B.V., and Captain Leopoldo C. Tenorio filed this petition for review on certiorari under Rule 45 of the Rules of Court, assailing the Decision and Resolution of the Court of Appeals. They argue that the CA committed reversible error in upholding the finding that Quijano is entitled to total and permanent disability benefits. The core of their argument revolves around Quijano's alleged failure to undergo the mandatory post-employment medical examination with the company-designated physician within three days of repatriation, which they contend should result in the forfeiture of his right to claim benefits. They also dispute the work-relatedness of Quijano's illnesses and the classification of his position for disability compensation purposes under the Collective Bargaining Agreement (CBA).
Issue(s)
Whether the Court of Appeals committed reversible error in upholding the finding that Quijano is entitled to total and permanent disability benefits, and whether Quijano complied with the post-employment medical examination requirement. Whether Quijano's illnesses were work-related. Whether the amount of disability benefits awarded was correct. Whether the award of attorney's fees was proper.
Ruling
The petition is partly meritorious. The Supreme Court affirmed the CA's finding that Quijano is entitled to total and permanent disability benefits but modified the award by reducing the amount from US$127,932.00 to US$95,949.00.
Ratio Decidendi
On the entitlement to total and permanent disability benefits and compliance with post-employment medical examination: The Court reiterated that entitlement to disability benefits for seafarers is governed by medical findings, Philippine law, and the contract between the parties. Failure of the company-designated physician to issue a definitive assessment within the prescribed period transforms temporary total disability into permanent and total disability. The Court found that Quijano was entitled to such benefits because the company-designated physician failed to provide a definite assessment within the required period. Furthermore, Quijano's claim for benefits would not be defeated by the absence of a post-employment medical examination, as the records showed he reported to petitioners' office to request medical assistance, which was allegedly rejected, leading him to seek treatment from an independent physician. The Court gave more weight to Quijano's positive assertion of being refused medical assistance over petitioners' bare denial. On the work-relatedness of Quijano's illnesses: The Court affirmed the findings that Quijano's diagnosed illnesses were work-related. While not specifically listed as occupational diseases, these illnesses fall under the categories of "abdomen" and "eyes." The Court also noted that Section 20(A)(4) of the 2010 POEA-SEC establishes a disputable presumption that a non-listed illness is work-related, and the burden rests upon the employer to overcome this presumption, which the petitioners failed to do. On the amount of disability benefits: While upholding Quijano's entitlement to permanent and total disability benefits, the Court modified the awarded amount. The Court determined that Quijano, as a rating, was entitled to US$95,949.00 for total and permanent disability categorized as Impediment Grade 1 under the 2010 POEA-SEC, instead of the US$127,932.00 awarded by the CA. On attorney's fees: The Court sustained the award of attorney's fees, citing Article 2208 of the New Civil Code, which allows for attorney's fees in actions for indemnity under workmen's compensation and employer's liability laws, and when a party is compelled to incur expenses to protect their interests. The Court reiterated that where an employee is forced to litigate to protect their rights, they are entitled to attorney's fees equivalent to ten percent of the award.
Main Doctrine
A seafarer is entitled to permanent and total disability benefits if the company-designated physician fails to issue a definitive assessment of the seafarer's fitness or unfitness to work within the prescribed 120/240-day period, transforming the temporary total disability into permanent and total disability by operation of law. Furthermore, the seafarer's claim for disability benefits will not be defeated by the absence of a post-employment medical examination if the failure to undergo such examination was due to the employer's inadvertence or deliberate refusal.