Salonga v. Solvang Philippines
REITERATIONFacts
The Antecedents: Petitioner Abner P. Salonga was hired as Chief Steward under a nine-month POEA Contract of Employment. He alleged that in July 2012, he felt pain on his neck and back while on board. In October 2012, he sought medical attention in Indonesia but received none. On November 11, 2012, he was seen in Thailand and diagnosed with C-spondylosis, myofarcial pain, and L-spondylosis, with a remark "not unfit." He was advised rehabilitation. He resumed duties but due to unbearable pain and the Master's refusal to send him home, he requested medical repatriation. Upon arrival in the Philippines on January 12, 2013, he reported to respondents and was referred to Metropolitan Medical Center for examinations, which revealed cervical spondylosis and disc bulges/narrowing in the lumbar spine. The company-designated physician refused to issue a disability assessment. Petitioner consulted an independent Orthopedist, Dr. Allan Leonardo R. Raymundo, who diagnosed him with carpal tunnel syndrome and nerve root impingement of the lumbar spine, stating he would no longer be fit to return to work. In July 2013, his medical assistance was discontinued. Procedural History: Respondents claimed petitioner improved with therapy and that company-designated physicians issued interim and final disability ratings (Grades 8 and 12). The Labor Arbiter (LA) ruled in favor of petitioner, awarding US$110,000.00 disability compensation based on the Collective Bargaining Agreement (CBA) and attorney's fees. The National Labor Relations Commission (NLRC) partially granted respondents' appeal, reducing the award to US$60,000.00 and deleting reimbursement for medical and transportation expenses, holding that the CBA was not applicable. The Court of Appeals (CA) reversed the NLRC, finding grave abuse of discretion, and reduced the award to US$22,020.00 based on the company-designated physicians' ratings, stating that inability to work beyond 120 days does not automatically grant total and permanent disability benefits and that the company physicians' assessments prevail in the absence of a third-doctor referral. The Petition: Petitioner seeks to set aside the CA Decision and Resolution, arguing that the CA erred in not granting him total and permanent disability benefits due to the company-designated physician's failure to issue a definite medical assessment within the prescribed period.
Issue(s)
Whether petitioner is entitled to total and permanent disability compensation due to the failure of the company-designated physician to issue a definite medical assessment on petitioner's disability or fitness to work within the required 120 or 240-day period. Whether the CBA is applicable to petitioner's case. Whether petitioner is entitled to reimbursement of medical and transportation expenses. Whether petitioner is entitled to attorney's fees.
Ruling
The petition is GRANTED. The Decision dated September 15, 2015 and the Resolution dated January 17, 2017 of the Court of Appeals are REVERSED and SET ASIDE. The Decision dated September 25, 2014 and the Resolution dated December 15, 2014 of the National Labor Relations Commission are REINSTATED with MODIFICATION, ordering the monetary award of US$60,000.00 plus attorney's fee to earn interest at the rate of 6% per annum from the date of finality of the Decision until full satisfaction.
Ratio Decidendi
On the entitlement to total and permanent disability compensation: The Court found merit in the petition. It reiterated the rule that the company-designated physician must issue a final medical assessment within 120 days from the seafarer's report. Failure to do so without justifiable reason renders the disability permanent and total. If justified, the period can extend to 240 days, and failure to assess within this extended period also results in permanent and total disability. In this case, petitioner reported on January 13, 2013. The 120th day was May 13, 2013. Dr. Chuasuan allegedly issued a final assessment on May 23, 2013, which was beyond the 120-day period, without any justification for the extension. Furthermore, respondents failed to present evidence of this May 23, 2013 assessment, lending credence to petitioner's claim that no definitive assessment was issued. Therefore, petitioner's disability was rendered permanent and total by operation of law. On the applicability of the CBA: The Court affirmed the NLRC's ruling that the CBA was not applicable. The CBA was valid from January 1, 2011, to December 2011, while petitioner's employment contract commenced on April 3, 2012. Thus, petitioner's entitlement to disability benefits is governed by the POEA Standard Employment Contract (POEA-SEC), not the CBA. The award of US$60,000.00, as determined by the NLRC, is consistent with the POEA-SEC. On reimbursement of medical and transportation expenses: The Court denied petitioner's claim for P25,000.00 in medical and transportation reimbursement, finding no evidence in the record that he actually incurred such expenses. The LA had awarded this amount, but the NLRC deleted it, a decision which the Supreme Court upheld on this point. On attorney's fees: The Court agreed with the CA's award of attorney's fees. Petitioner was compelled to litigate to protect his rights, entitling him to reasonable attorney's fees under Article 2208(8) of the Civil Code. The Court also imposed legal interest at the rate of 6% per annum on the monetary awards from the finality of the Decision until full payment.
Main Doctrine
The failure of the company-designated physician to issue a final disability assessment on a seafarer within the 120-day period, without justifiable reason, renders the seafarer's disability permanent and total by operation of law. If the period is extended to 240 days with justification, failure to issue an assessment within the extended period also results in permanent and total disability.