OSM Maritime Services, Inc. v. Go
REVERSALFacts
The Antecedents: Respondent Nelson A. Go (Go), an Oiler/Motorman for petitioner OSM Maritime Services, Inc. (OSM), experienced dizziness, vomiting, chest pain, and shortness of breath while onboard. He was medically repatriated in 2015. The company-designated physician diagnosed him with hypertension, Meniere's Disease, and myofascial spasm but certified him fit to resume sea duties. However, during his Pre-Employment Medical Examination (PEME), the company physician declared him unfit to resume sea duties due to Meniere's Disease, a condition of unknown origin causing progressive deafness, ringing in the ears, and vertigo. Go consulted his own physician, Dr. Radentor Viernes, who issued a medical certificate stating that Go's condition was work-related and work-aggravated due to exposure to loud noises, heat, and harmful chemicals inherent in his job, and that he was no longer fit to work as a seaman. Procedural History: Go filed a complaint for permanent and total disability benefits. The labor arbiter found his illness work-related and compensable, granting him partial disability benefits of USD 3,366.00 plus 10% attorney's fees. Go appealed to the National Labor Relations Commission (NLRC), which ruled that his condition was not work-related but retained the award of USD 3,702.60 because OSM did not appeal. Go then elevated the case to the Court of Appeals (CA), which reversed the NLRC ruling, awarding Go permanent and total disability benefits of USD 90,000.00 plus 10% attorney's fees. OSM petitioned this Court. The Petition: This Court initially denied OSM's petition, affirming the grant of full disability benefits but deleting the award of attorney's fees, finding no bad faith on OSM's part. Go filed a Motion for Partial Reconsideration, arguing that attorney's fees were proper because OSM refused to pay disability benefits despite the company physician's assessment of unfitness, compelling him to litigate. OSM countered that they were diligent in providing medical attention and treatment.
Issue(s)
Whether Nelson A. Go is entitled to claim attorney's fees.
Ruling
The Motion for Partial Reconsideration is GRANTED. The Decision of this Court dated February 17, 2021, is AFFIRMED with MODIFICATION. Petitioner OSM Maritime Services, Inc. is ORDERED to PAY respondent Nelson A. Go permanent disability benefits in the amount of USD 90,000.00 or its equivalent in Philippine currency at the time of payment and attorney's fees equivalent to ten percent (10%) thereof. The total monetary award shall earn legal interest at the rate of six percent (6%) per annum from the finality of this Resolution until fully paid.
Ratio Decidendi
On the entitlement to attorney's fees: The Court finds the motion for partial reconsideration meritorious and reinstates the award of attorney's fees. Firstly, the labor arbiter had awarded Go partial disability benefits and attorney's fees equivalent to 10% thereof. Only Go appealed to the NLRC; OSM did not file an appeal. This failure rendered the labor arbiter's ruling final and executory as to OSM, including the award of attorney's fees. Therefore, OSM is precluded from assailing the grant of attorney's fees. Secondly, even if this procedural bar were overlooked, the records show that OSM refused to pay disability compensation despite the company-designated physician's own assessment that Go was unfit to resume sea duties. Consequently, Go was compelled to litigate to secure the payment of his disability claims. Citing Chan v. Magsaysay Maritime Corp., the Court held that attorney's fees may be awarded to a seafarer compelled to litigate to satisfy a claim for disability benefits, even without a finding of malice or bad faith on the employer's part. Thus, the award of attorney's fees is proper as Go was compelled to litigate to recover what was rightfully due him.
Main Doctrine
Attorney's fees may be awarded to a seafarer who was compelled to litigate to recover disability benefits, even in the absence of a finding of malice or bad faith on the part of the employer, particularly when the employer fails to appeal a favorable ruling from the labor arbiter, rendering the award final and executory as to them.