Pacific Ocean Manning v. Bobiles
MODIFICATIONFacts
The Antecedents: Respondent Nicolas F. Bobiles was hired as a pumpman on the vessel Nordic Vega. He underwent pre-employment medical tests and was declared fit to work. During his employment, while inspecting welded pumps, he experienced a back injury that caused severe pain radiating from his shoulder to his waist, rendering him incapable of working. He was medically disembarked in India and subsequently repatriated to the Philippines. Medical examinations revealed "L2-L3" Instability and later, "L4-L5" Disc Herniation, LS Radiculopathy. Despite undergoing physiotherapy, Bobiles showed no favorable prognosis. A second opinion from another doctor declared him permanently disabled and unfit to work as a seaman. Petitioners maintained that the injury was not a result of an accident and that the company doctor's assessment was a Grade 11 disability. Grievance proceedings ensued, and Bobiles sought payment for total permanent disability, unpaid sick wages, damages, and attorney's fees. Procedural History: The National Conciliation and Mediation Board (NCMB) ruled in favor of Bobiles, ordering petitioners to pay total permanent disability compensation and attorney's fees. The Court of Appeals (CA) affirmed with modification, reducing the disability compensation to USD 60,000.00 but maintaining the award of attorney's fees. The CA noted that the company-designated physician issued a final disability assessment late, thus by operation of law, Bobiles was considered to have total and permanent disability. The Petition: Petitioners assailed the CA's decision, arguing that Bobiles refused referral to a third doctor, that there was justification for extending medical treatment, and that Bobiles was not entitled to attorney's fees. Respondent countered that the company physician's failure to issue a timely assessment resulted in permanent total disability and that he was entitled to damages and attorney's fees for being compelled to litigate.
Issue(s)
Whether respondent is entitled to total and permanent disability benefits. Whether the award of attorney's fees is proper.
Ruling
The Court PARTLY GRANTED the petition. The award of USD 60,000.00 or its equivalent in Philippine pesos was affirmed, subject to 6% legal interest from finality of the decision until full payment. The award of attorney's fees was DELETED.
Ratio Decidendi
On the entitlement to total and permanent disability benefits: The Court reiterated that the company-designated physician must issue a final medical assessment within 120 days from the seafarer's report. If this period is extended to 240 days, it must be with sufficient justification. In this case, the company-designated physician's assessment on September 4, 2017, was not considered final. The failure to issue a final and valid assessment within the extended period transforms the temporary total disability to permanent total disability by operation of law. Therefore, respondent is deemed to have total and permanent disability. On the award of attorney's fees: The Court clarified that attorney's fees under Article 111 of the Labor Code are recoverable only in cases of unlawful withholding of wages, not for disability claims. Article 2208(2) of the Civil Code requires litigation or expenses incurred in relation to third persons, which was not present here. Article 2208(8) of the Civil Code applies only to actions for indemnity under workmen's compensation and employer's liability laws, not to claims based on contract. The Court found no factual, legal, or equitable justification for attorney's fees, especially since petitioners covered respondent's treatment costs and sickness allowances. Thus, the award of attorney's fees was deleted.
Main Doctrine
Attorney's fees under Article 111 of the Labor Code are recoverable only where there is unlawful withholding of wages, not in cases involving only indemnification claims for disability or death. Attorney's fees under Article 2208(2) of the Civil Code require litigation or expense in relation to third persons, not just against the erring defendant. Article 2208(8) of the Civil Code applies only to actions for indemnity under workmen's compensation and employer's liability laws, not under contract. The failure of the company-designated physician to issue a final and valid medical assessment within the extended 240-day period transforms the temporary total disability to permanent total disability, regardless of the disability grade.