Title
Benhur Shipping Corp. vs. Riego
Case
G.R. No. 229179
Decision Date
Mar 29, 2022
Seafarer diagnosed with work-related illness; employer failed to issue final disability assessment or refer to third doctor, leading to Supreme Court ruling granting total and permanent disability benefits.

Case Digest (G.R. No. 229179)

Facts:

Benhur Shipping Corporation/Sun Marine Shipping S.A. and Edgar B. Bruselas, petitioners, v. Alex Penaredonda Riego, respondent, G.R. No. 229179, March 29, 2022, First Division, Gesmundo, C.J., writing for the Court. The petition is an appeal by certiorari under Rule 45 from the Court of Appeals' decision in CA-G.R. SP No. 142911.

Respondent was engaged by Benhur Shipping Corporation (BSC) on October 8, 2013 as Chief Cook aboard MV Hikari I under a POEA-Standard Employment Contract (POEA-SEC). While onboard in early December 2013 he developed abdominal and lower back pain, was examined in Thailand, recommended for repatriation, and arrived in the Philippines on December 15, 2013. He was referred to the company-designated physician, Dr. Robert D. Lim, and underwent serial examinations, diagnostic studies including MRIs (December 16, 2013 and February 10, 2014), rehabilitation, and intermittent treatment through May 2014. Company-designated medical notes recorded diagnoses including hiatal hernia and L4–L5, L5–S1 disc bulge; progress notes showed ongoing low back pain radiating to the left leg and sensory deficits.

On May 26, 2014 the company-designated physician issued a Final Medical Report stating that, if entitled to disability, respondent’s grading remained at Grade 11 (1/3 loss of lifting power). On May 30, 2014 the company clinic nevertheless issued a certification that respondent’s evaluation and treatment continued to be ongoing. Respondent secured a second opinion from Dr. Fidel M. Magtira, who on June 5, 2014 (and again after an MRI on July 2, 2014) declared him permanently disabled and permanently unfit to work as a seafarer. Respondent’s counsel sent letters dated June 11 and June 25, 2014 requesting referral to a third doctor under the POEA-SEC; petitioners did not initiate the third-doctor process. Respondent filed a complaint on July 28, 2014 for total and permanent disability benefits, damages, and attorney’s fees.

Before the Labor Arbiter (LA), the LA issued a February 27, 2015 Decision partially granting the complaint and ordered payment of US$7,465.00 pursuant to Grade 11 (1/3 loss of lifting power) as determined by the company-designated physician, plus 10% attorney’s fees. The National Labor Relations Commission (NLRC) affirmed the LA in its July 16, 2015 Decision, holding that respondent’s condition did not meet Grade 1 (total and permanent) criteria and that the company-designated physician’s assessment was more credible than Dr. Magtira’s single-consultation opinion. The NLRC denied reconsideration in an August 28, 2015 Resolution.

Respondent sought certiorari from the Court of Appeals. In CA-G.R. SP No. 142911 the CA, by decision dated September 30, 2016 (and denial of reconsideration on January 6, 2017), reversed the NLRC and awarded respondent total and permanent disability benefits of US$60,000.00 plus 10% attorney’s fees, reasoning principally that the company-designated physician failed to render a valid final assessment within the 120-day period (and that the assessment actually issued after 156 days was suspect), and that the absence of a timely and valid final assessment rendered the seafarer’s disability conclusively permanent and total.

Petitioners filed a Rule 45 petition before the Supreme Court seeking reversal of the CA decision, arguing (inter alia) that mere lapse of...(Subscriber-Only)

Issues:

  • Did the Court of Appeals err in disregarding the company-designated physician’s Grade 11 final assessment issued after the 120-day period and in treating respondent’s disability as permanent and total by operation of law?
  • Did petitioners’ failure to act on respondent’s letters requesting referral to a third doctor relieve respondent of the third-doctor requirement and permit the tribunals to resolve the conflicting medical opinions?
  • Was respondent entitled to total and permanent disability benefits, and what monetary relief (includi...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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