Junio v. Pacific Ocean Manning

G.R. No. 220657 · 2022-03-16 · J. LOPEZ, M., J.: · Primary: Labor; Secondary: Civil
REITERATION

Facts

The Antecedents: Petitioner Celestino M. Junio (Celestino) was employed as a Fitter by Pacific Ocean Manning, Inc. (Pacific Manning) for its foreign principal, Mega Chemical Tanker (Mega Tanker). He underwent a pre-medical examination and was found fit to work. On June 15, 2011, while performing an overhaul, a hose detached and hit his left eye. His request for a medical examination was denied as the vessel was about to depart. On September 11, 2011, Celestino collapsed while changing a fuel injector and was referred to an offshore physician. An MRI of his brain and left eye revealed "Asymmetrical Mild Exophithalmos of the eye associated with residual chronic [l]ymphedema of the retrobulbar fatty tissues, including slightly increased signal intensity around the left optic nerve as well as perio[r]bital soft tissue swelling and lymphedema; suspicions of partial tear of the posterior retina as well as minimal residual posttraumatic contusive edema of the sclera and choroid posterior along eye globe on the left." He was diagnosed with posterior retinae partial tear, sinusitis, hyperlipidemia, and acute gastroduodenitis. The offshore physician indicated the illnesses were not work-related. Celestino was repatriated on September 21, 2011. He reported to Pacific Manning two days later and requested medical treatment, which was ignored. He filed a complaint for disability benefits, sickness allowance, damages, and attorney's fees. Procedural History: The Labor Arbiter (LA) dismissed Celestino's complaint, finding that he failed to comply with the mandatory three-day reporting requirement for a post-employment medical examination. The National Labor Relations Commission (NLRC) reversed the LA's decision, awarding permanent total disability benefits, sickness allowance, and attorney's fees, holding that Celestino was medically repatriated and denied medical treatment by Pacific Manning. The Court of Appeals (CA) reversed the NLRC ruling, reinstating the LA's decision, and found that Celestino failed to observe the three-day reporting requirement and that the medical certificate from his chosen doctor lacked substantial weight. The CA concluded Celestino was barred from claiming benefits. The Petition: Celestino filed a petition for review on certiorari with the Supreme Court, asserting his entitlement to disability benefits and claiming he reported to respondents within three days of repatriation but was denied medical attention. Respondents maintained Celestino failed to submit to a post-employment medical examination and did not mention any medical condition during debriefing. Alternatively, they argued his condition was not work-related.

Issue(s)

Whether Celestino was medically repatriated. Whether Celestino complied with the three (3)-day mandatory reporting requirement under the Philippine Overseas Employment Administration (POEA) Standard Employment Contract (SEC). Whether Celestino's medical condition is considered work-related and compensable. Whether Celestino is entitled to attorney's fees.

Ruling

The petition is meritorious. The Court REVERSED the Court of Appeals' Decision and Resolution and REINSTATED the National Labor Relations Commission's Decision, with modification. Respondents Pacific Ocean Manning, Inc., represented by its President/Manager Erlinda S. Azucena, and Mega Chemical Tanker are ordered to pay Celestino M. Junio US$60,000.00 representing permanent total disability benefit, US$2,792.00 representing sickness allowance, or their peso equivalent at the time of payment, plus ten percent (10%) thereof as attorney's fees. The monetary awards shall earn legal interest of six percent (6%) per annum from the finality of the Resolution until fully satisfied.

Ratio Decidendi

On whether Celestino was medically repatriated: The Court ruled that Celestino was medically repatriated and not due to the end of his contract. His nine-month contract was only in its eighth month when he was repatriated. The respondents' presentation of the "EOD" (end of duty) on the Sign Off Crew Reporting Details was insufficient to prove completion of contract, especially absent any justification for the contract's pre-termination. The Court cited jurisprudence in Marlow Navigation Phils., Inc. v. Quijano and Daño v. Magsaysay Maritime Corporation where premature repatriation due to unexpired contracts led to the rejection of the employer's defense. Furthermore, Section 18(B)(1) of the POEA-SEC allows termination of employment upon disembarkation for medical reasons, which aligns with Celestino's situation, including the incident report of him being found unconscious and subsequent diagnosis of an eye injury. On compliance with the three-day mandatory reporting requirement: The Court found that Celestino complied with the requirement by reporting to Pacific Manning within two days of repatriation. It reiterated the principle that when a seafarer asserts compliance and the agency denies it, the seafarer's claim is given more weight, as the POEA-SEC requirements are reciprocal. The burden to prove referral to a company-designated physician rests on the employer, not the seafarer, as established in Apines v. Elburg Shipmanagement Philippines, Inc.. The respondents' failure to refer Celestino to a company-designated physician, despite having access to his medical records, was deemed an inaction that could not shield them from liability. The Court held that the absence of a post-employment medical examination, when not due to the seafarer's fault, cannot bar his claim, citing Interorient Maritime Enterprises, Inc. v. Remo. On whether Celestino's medical condition is work-related and compensable: The Court determined that Celestino suffered an illness during his employment contract, evidenced by the MRI findings of an eye injury and subsequent diagnoses after being found unconscious on board. Regarding work-relatedness, the Court noted that under Section 20(A) of the POEA-SEC, a seafarer's compliance with the procedure presupposes a valid assessment from the company-designated physician. Since no such assessment was issued within the 120-day period, Celestino was deemed totally and permanently disabled by operation of law, as there was nothing for him to contest. The Court cited Phil-Man Marine Agency, Inc. v. Dedace, Jr. and Kestrel Shipping Co., Inc. v. Munar, emphasizing that permanent total disability does not require absolute helplessness but rather the inability to pursue one's gainful occupation without serious discomfort or danger. On entitlement to attorney's fees: The Court found the respondents' claim that Celestino was not entitled to attorney's fees to be without merit. It cited Article 2208(8) of the New Civil Code and jurisprudence in Salas v. Transmed Manila Corporation and Razonable, Jr. v. Maersk-Filipinas Crewing, Inc., which allow for the award of attorney's fees in actions for indemnity under employer's liability laws.

Main Doctrine

A seafarer who is medically repatriated and reports to the employer within the mandatory three-day period, but is not referred to a company-designated physician due to the employer's inaction or refusal, is not barred from claiming disability benefits. The absence of a post-employment medical examination under such circumstances, when not due to the seafarer's fault, converts the disability to permanent and total by operation of law.

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