Title
Supreme Court
Jebsens Maritime, Inc. vs. Mirasol
Case
G.R. No. 213874
Decision Date
Jun 19, 2019
Seafarer awarded permanent disability benefits after company failed to issue final medical assessment within 120 days, affirming entitlement under POEA rules.

Case Digest (G.R. No. 213874)
Expanded Legal Reasoning Model

Facts:

  • Procedural and Pleading Background
    • A Complaint was filed on November 8, 2012, by Edgardo Malate Mirasol against respondents Jebsens Maritime, Inc., Star Clippers Ltd., and/or Maria Theresa Lunzaga.
    • The complaint sought:
      • Total and permanent disability benefits amounting to US$60,000.00 pursuant to the POEA Standard Employment Contract.
      • Moral and exemplary damages.
      • Four months’ basic wages.
      • Sickness allowance.
      • Attorney’s fees.
    • The Position Paper filed by complainant on December 17, 2012, alleged:
      • The entitlement to total permanent disability benefits due to work-related illness.
      • That the illness, involving epididymitis that evolved into testicular cancer, was not pre-existing as proven by a clean pre-employment medical examination.
      • The claim for moral damages, exemplary damages, and attorney’s fees due to the respondents’ bad faith.
    • An Addendum Supplement dated December 27, 2012, stressed:
      • The mandatory provision of a 120-day sickness allowance.
      • That the denial of such allowance was a sign of bad faith warranting further damages.
  • Factual Background and Medical History
    • Respondent’s Employment and Health
      • The respondent was employed as a First Cook onboard the vessel Royal Clipper.
      • Prior to employment, he underwent and passed a mandatory pre-employment medical examination.
    • Onset of Illness and Medical Findings
      • The respondent began experiencing pain in his right testicle on his 10th day onboard, which raised concerns about his health.
      • Subsequent medical examinations revealed:
        • Signs of epididymitis and the presence of a solid mass in his right testicle.
        • The recommendation for a radical orchiectomy (removal of the affected testicle).
    • Treatment and Interim Assessments
      • The respondent was repatriated on August 4, 2012.
      • On August 29, 2012, company-designated physicians issued a Medical Report which:
        • Noted the possibility of malignancy in the right testicle.
        • Indicated that treatment was “in progress” with a scheduled follow-up appointment.
      • Further medical intervention took place:
        • The respondent was admitted at Manila Doctors Hospital on October 18, 2012.
        • A radical orchiectomy was performed on October 19, 2012, and the respondent was subsequently discharged on October 23, 2012.
      • A final and definite assessment of his fitness to work or a conclusive disability rating was never rendered by the company-designated physicians.
  • Decisions and Rulings in the Lower Forums
    • Labor Arbiter (LA) Decision (January 31, 2013)
      • Found the respondents liable for permanent and total disability benefits (US$60,000.00) and sickness allowance (US$2,580.00).
      • Awarded attorney’s fees equivalent to 10% (US$6,258.00) of the total award.
      • Determined that the respondent acquired epididymitis and testicular cancer while onboard due to declared fitness at pre-employment, compounded by exposure to adverse work conditions.
    • National Labor Relations Commission (NLRC) Resolution
      • On a subsequent appeal, the NLRC:
        • Partly granted the appeal by modifying the disability compensation to US$7,465.00 based on a Grade II disability rating.
        • Affirmed the awards for sickness allowance and attorney’s fees.
      • Reasoned that the testicular cancer was not work-related given the short period (10 days) before symptoms appeared.
      • Nonetheless, acknowledged that the loss of one testicle warranted compensation.
    • Court of Appeals (CA) Decision
      • Granted a petition for certiorari that nullified the NLRC Resolutions and reinstated the LA Decision.
      • Held that the failure of company-designated physicians to issue a final and definite assessment on the respondent’s fitness to work or disability rating entitles him to permanent and total disability benefits.
      • Affirmed the awards for sickness allowance and attorney’s fees.
      • Denied the subsequent petition for reconsideration by the petitioner.

Issues:

  • Whether the Court of Appeals (CA) seriously erred in ruling that the respondent is entitled to permanent and total disability benefits pursuant to Section 32 of the POEA Standard Employment Contract.
    • The contention centered on whether the short duration (10 days) between report and symptom onset refuted a work-related cause.
    • Whether the failure of the company-designated physicians to render a definitive assessment automatically entitles the respondent to full benefits.
  • Whether the CA gravely erred in awarding attorney’s fees to the respondent.
    • The argument questioned if the recovery of attorney’s fees was warranted under the employer’s liability provisions and established jurisprudence.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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