Title
Supreme Court
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. 134774)
Expanded Legal Reasoning Model

Facts:

  • Employment and Engagement
    • On October 8, 2013, Benhur Shipping Corporation, on behalf of its foreign principal Sun Marine Shipping S.A., engaged Alex PeAaredonda Riego as Chief Cook aboard the ocean-going vessel “MV Hikari I.”
    • The Contract of Employment was executed under the Philippine Overseas Employment Association-Standard Employment Contract (POEA-SEC) with a term of 12 months and a basic monthly salary of US$535.00 for a 48-hour work-week, including provisions for overtime and vacation leave with pay.
  • Onset of Medical Problems and Initial Evaluations
    • In the first week of December 2013, while on board, respondent experienced abdominal and lower back pain. He was initially examined in Thailand and was given medications before being recommended for repatriation for further medical evaluation.
    • Upon his arrival in the Philippines on December 15, 2013, respondent was immediately referred by BSC to Marine Medical Services where he was attended by the company-designated physician, Dr. Robert D. Lim, who conducted a series of medical examinations.
  • Series of Medical Examinations and Reports
    • On December 16, 2013, Dr. Lim issued the first Medical Report recommending further tests including a gastroscopy, ultrasound, and an MRI to assess respondent’s condition.
    • Subsequent evaluations were made on December 17 and December 26, 2013, with findings indicating a normal gastro-enterologic work-up but persistent lower back discomfort.
    • The examinations revealed that respondent was diagnosed with Hiatal Hernia in combination with a disc pathology (L4-L5, L5-S1 Disc Bulge); however, radiological studies (x-ray and MRI) consistently showed only mild lumbar spondylosis and no significant progression of disc bulge.
    • On January 16, 2014, further evaluation by an orthopedic surgeon and physiatrist confirmed that respondent was symptomatically stable from a gastro-enterologic and orthopedic standpoint, and he even signed a Certificate of Fitness to Work.
    • On February 10, 2014, despite persistent symptoms such as pain radiating to the left lower extremity, the MRI revealed no new abnormalities, prompting recommendations for continued rehabilitation and medication.
    • Progress notes dated February 22 and March 8, 2014, further indicated persistent lower back pain, muscle spasms, and tight hamstrings.
    • On March 28, 2014, it was noted that the company-designated physician had terminated respondent’s medical treatment.
    • On May 12, 2014, a neurologist from MMG Hospital (Dr. Esmeralda) opined that respondent might require neurosurgical evaluation for possible nerve compression.
    • Crucially, on May 26, 2014, the company-designated physician issued his final Medical Report, stating that respondent still suffered lower back pain with sensory deficits, and assigned a Grade 11 disability (a 1/3 loss of lifting power) under the POEA schedule. A subsequent certification on May 30, 2014 affirmed that medical attention was still being rendered during this period.
  • Private Medical Opinion and Requests for a Third Opinion
    • Dissatisfied with the company-designated assessment, respondent sought a second opinion from his chosen physician, Dr. Fidel M. Magtira, who on June 5, 2014 declared respondent permanently disabled and unfit to work in any capacity.
    • Acting on this second opinion, respondent, through his legal counsel, sent a letter on June 11, 2014 informing petitioners of his permanent disability and requesting that they assume the cost of further medical treatment.
    • A follow-up letter dated June 25, 2014 reiterated his request for referral to a third doctor to resolve the conflicting opinions between the company-designated physician and his own doctor, citing the divergence in assessments.
  • Proceedings Before Labor and Quasi-Judicial Bodies
    • The Labor Arbiter (LA), in a decision rendered on February 27, 2015, granted respondent disability benefits amounting to US$7,465.00 (based on the Grade 11 disability assessment) plus a 10% attorney’s fee, finding that the injury was unquestionably work-related.
    • The National Labor Relations Commission (NLRC) affirmed the LA’s decision on July 16, 2015, holding that respondent’s condition did not justify a permanent and total disability claim under Grade 1 disability, since there was insufficient evidence (such as the need for crutches or incontinence) to support such severe grading.
    • The Court of Appeals (CA) later reversed the NLRC decision in its September 30, 2016 Decision, awarding respondent total and permanent disability benefits of US$60,000.00 and affirming a 10% attorney’s fee, noting that the company-designated physician’s failure to issue a proper final medical assessment within the prescribed 120-day period (or satisfactorily extend it) rendered respondent’s disability conclusively total and permanent.
    • The petitioners subsequently filed an appeal by certiorari challenging this award, contending that the mere lapse of the 120-day period did not justify the grant of permanent and total disability benefits, and that disability should be determined solely by the POEA-SEC grading system.

Issues:

  • Whether the company-designated physician’s failure to render a final, valid medical assessment within the mandated 120-day period (or justifiably extended up to 240 days) automatically renders the respondent’s disability permanent and total.
  • Whether the extension of the treatment period to 240 days without a proper final medical assessment should lead to a presumption of permanent and total disability.
  • Whether the petitioners’ failure to act upon respondent’s request for referral to a third medical opinion under the conflict resolution mechanism provided by the POEA-SEC affects the validity of the disability assessment.
  • How the conflicting medical opinions between the company-designated physician and respondent’s chosen physician should be reconciled in light of existing jurisprudence and the provisions of the POEA-SEC.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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