Doehle-Philman Manning Agency v. Gatchalian

G.R. No. 207507 · 2021-02-17 · J. LOPEZ, J.: · Primary: Labor; Secondary: Remedial
REITERATION

Facts

The Antecedents: Jose N. Gatchalian, Jr. (Jose) was employed as Chief Cook by Doehle-Philman Manning Agency, Inc. and its principal Doehle (IOM) Ltd. since 2002. On December 4, 2006, while on board the vessel M/V Independent Endeavor, Jose experienced severe right knee pain, attributing it to an accident in August 2006 where his right kneecap struck the iron deck. He was examined in Belgium, diagnosed with a torn medial meniscus and fractured osteophyte, underwent surgery, and was declared unfit for duties. He was medically repatriated on December 12, 2006. Procedural History: Following repatriation, Jose received further medical evaluation, therapy, and surgery from company-designated doctors. On February 14, 2007, the company-designated doctor assessed him as fit to work. Almost two years later, on February 11, 2009, Jose filed a complaint for disability benefits and sickness allowance. The Labor Arbiter dismissed the complaint, giving more credence to the company-designated doctor's assessment. The National Labor Relations Commission (NLRC) affirmed the dismissal, deleting the award of financial assistance. Jose then filed a Petition for Certiorari with the Court of Appeals (CA). The Petition: The Court of Appeals granted Jose's petition, ruling he was entitled to permanent total disability benefits and sickness allowance, and awarded attorney's fees. The CA gave credence to Jose's independent physician's diagnosis of traumatic arthritis and considered his non-re-employment by the petitioners as contrary to his supposed fitness to work. The petitioners filed a Petition for Review on Certiorari under Rule 45 of the Rules of Court, assailing the CA's decision. They argue the CA erred in disregarding the company-designated doctor's fit-to-work assessment, which they contend is more credible, and in ruling that Jose's failure to work for 120 days justified the award of permanent total disability benefits. They also argue Jose failed to follow the procedure for contesting the company doctor's findings by not timely securing a contrary opinion and not invoking the joint appointment of a third doctor.

Issue(s)

Whether the Court of Appeals erred in reversing the NLRC's finding that Jose was properly declared to be fit to work.

Ruling

The petition is meritorious. The Court reversed and set aside the Decision and Resolution of the Court of Appeals and reinstated the Decision of the National Labor Relations Commission, affirming the dismissal of Jose's complaint for disability benefits.

Ratio Decidendi

On Issue 1: The Court held that the petition is meritorious and reversed the Court of Appeals' decision. The Court reiterated the principle that it is not a trier of facts, especially in labor cases, and that its review of a Rule 65 petition is limited to determining grave abuse of discretion by the NLRC. However, an exception exists when there is a conflict in factual findings between the labor tribunals and the CA, necessitating a review. In this case, both the LA and NLRC gave credence to the company-designated doctor's fit-to-work assessment, which the CA rejected. The Supreme Court found the CA's reasoning flawed. The Court emphasized that a seafarer's entitlement to disability benefits is governed by medical findings, law, and contract, specifically Section 20-B of the POEA-SEC. This section outlines the procedure for claiming benefits, including the mandatory post-employment medical examination by a company-designated physician within three days of return and the option to refer to a third doctor if there is a disagreement. The Court found that the company-designated doctor issued a fit-to-work assessment on February 14, 2007, well within the 120-day period. Jose failed to comply with the POEA-SEC procedure to contest this assessment by timely securing and disclosing a contrary opinion from his own doctor and signifying his intention to refer the dispute to a third doctor. His consultation with Dr. Chua occurred almost two years after repatriation and two months after filing his complaint, rendering it a mere afterthought and lacking sufficient evidentiary basis. The Court cited several cases, including Belmonte, Jr. v. C.F. Sharp Crew Management, Inc. and Calimlim v. Wallem Maritime Services, Inc., where similar delays in seeking a second opinion led to the dismissal of claims. Therefore, Jose is bound by the fit-to-work assessment of the company-designated doctor and is not entitled to disability benefits or sickness allowance beyond the period he was declared fit to work. The Court also clarified that the petitioners' failure to rehire Jose does not automatically establish his disability, as employment termination upon medical repatriation is provided for under the POEA-SEC, and there was no showing that Jose sought reemployment and was turned down due to unfitness.

Main Doctrine

A seafarer's claim for permanent total disability benefits is contingent upon the company-designated physician's failure to issue a fitness to work or disability grading within the prescribed 120-day period, or if the seafarer timely and properly contests the assessment through the mandatory referral to a third doctor. In the absence of a timely and proper contestation leading to a third doctor's opinion, the company-designated physician's assessment of fitness to work prevails, barring the seafarer's claim for disability benefits.

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