Teodoro v. Teekay Shipping Philippines
REITERATIONFacts
The Antecedents: Petitioner Jolly D. Teodoro was hired as Chief Cook by respondent Teekay Shipping Philippines, Inc. (TSPI) for its principal, Teekay Shipping Limited (TSL), on board the vessel M.T. Al Marrouna. Despite a pre-existing condition of Dyslipidemia and diabetes mellitus, he was declared fit for duty. While on board, petitioner claimed to have experienced fever-like symptoms and blindness in his left eye after assisting in hauling food provisions from the upper deck to the reefer, experiencing extreme temperature changes. He was diagnosed with "Left Eye Endophthalmitis with Orbital Cellulitis" and repatriated. Procedural History: Upon repatriation, petitioner was confirmed to have "Idiopathic Orbital Inflammatory Disease, Left Eye; Retinal Detachment, Left Eye; Panuveitis, Left Eye; Dacryoadenitis, Left Eye." The company-designated physician opined that the condition may have been triggered by diabetes mellitus and lack of sleep, rendering it not work-related, and assessed a Grade 7 disability rating (total loss of vision in one eye), declaring him unfit for further sea duties and having reached maximum medical improvement. Petitioner filed a complaint for disability benefits after TSPI refused payment, citing a company policy of limited liability. The Panel of Voluntary Arbitrators (PVA) ruled in favor of petitioner, awarding total and permanent disability benefits and attorney's fees. The Court of Appeals (CA) modified the PVA ruling, granting only partial and permanent disability benefits (Grade 7) and deleting attorney's fees. The Petition: Petitioner sought review of the CA Decision, arguing that the CA erred in awarding only partial and permanent disability benefits and in deleting the award of attorney's fees.
Issue(s)
Whether the Court of Appeals committed reversible error in awarding petitioner partial and permanent disability benefits only, considering his unfitness for further sea duties and the Collective Bargaining Agreement (CBA). Whether the Court of Appeals committed reversible error in deleting the award of attorney's fees, given the circumstances of the case.
Ruling
The petition is GRANTED. The Decision dated August 24, 2018 and the Resolution dated February 8, 2019 of the Court of Appeals in CA-G.R. SP No. 153637 are AFFIRMED with MODIFICATION, entitling petitioner Jolly D. Teodoro to full disability benefits in the amount of US$89,100.00 at the prevailing rate of exchange at the time of payment, as well as attorney's fees equivalent to ten percent (10%) of the total monetary award. All monetary awards shall earn legal interest at the rate of six percent (6%) per annum from finality of this Decision until full payment.
Ratio Decidendi
On the entitlement to full disability benefits: The Court found that the Court of Appeals erred in modifying the PVA Decision. While the company-designated physician assessed petitioner with a Grade 7 disability rating (partial and permanent), he was also declared unfit for further sea duties. The Court reiterated the doctrine that an injury or disability must be characterized not only under the Schedule of Disabilities in the POEA-SEC but also under the Labor Code and its implementing rules. If an injury or disability, even if rated as partial and permanent, incapacitates a seafarer from performing his usual sea duties for more than 120 or 240 days, he is considered totally and permanently disabled. In this case, the permanent loss of vision in petitioner's left eye rendered him unfit for further sea service, thus entitling him to total and permanent disability benefits. Furthermore, the Collective Bargaining Agreement (CBA) provided for 100% compensation if a seafarer is certified as permanently unfit for further sea service, even if assessed with less than 50% disability. Petitioner met this condition, as his Grade 7 disability rating was below 50% and he was declared permanently unfit for sea duties. On the award of attorney's fees: The Court reinstated the award of attorney's fees. Article 2208 of the Civil Code allows for attorney's fees in actions for indemnity under workmen's compensation and employer's liability laws, and when an employer's act or omission compels an employee to incur expenses to protect their interest. Case law supports the award of attorney's fees when an employee is forced to litigate to enforce their rights. Given that petitioner was compelled to file a complaint to recover his rightful disability benefits under the CBA, the award of ten percent (10%) attorney's fees by the PVA was deemed proper and reinstated.
Main Doctrine
A seafarer declared unfit for further sea duties due to a work-related illness, even if assessed with a partial and permanent disability rating under the POEA-SEC, is entitled to total and permanent disability benefits if the incapacity to perform usual sea duties persists beyond the prescribed periods or is certified as permanent by a physician, especially when a Collective Bargaining Agreement provides for more favorable terms.