Title
NAESS Shipping Phil., Inc. vs. National Labor Relations Commission
Case
G.R. No. 73441
Decision Date
Sep 4, 1987
A seafarer’s death, possibly by suicide after killing a coworker, was ruled compensable under an employment contract, as it lacked exclusions for suicide or fault.

Case Digest (G.R. No. 78350)
Expanded Legal Reasoning Model

Facts:

  • Employment Relationship and Contractual Provisions
    • NAESS Shipping Philippines, Inc. employed Pablo Dublin under an employment contract incorporated with the Special Agreement between the International Workers Federation (ITF) and NAESS Shipping (Holland) B.V.
    • The Special Agreement, as part of the ITF Collective Bargaining Agreement, stipulated payment of “CASH BENEFITS” as compensation for “loss of life” and was applicable to seafarers under NAESS.
    • Specific provisions included:
      • Article 8 of the Special Agreement noting the incorporation of the ITF-approved Collective Bargaining Agreement.
      • Paragraph 17 detailing cash benefits:
        • To immediate next of kin – US$24,844.00.
        • To each dependent child under the age of 18 – US$7,118.00.
  • Incident on Board the Vessel
    • On the night of September 3, 1983, while MV DYVI PACIFIC was en route from Santos, Brazil to Port Said, Egypt:
      • A quarrel ensued onboard between crew members.
      • Pablo Dublin, the vessel’s chief steward, fatally stabbed Rodolfo Fernandez, the second cook.
    • Immediately after the incident:
      • Dublin either jumped or fell overboard.
      • An alarm was raised and the vessel combed the surrounding seas.
      • Dublin’s floating body was briefly sighted but then disappeared; despite a search that lasted until 6:00 a.m., his body was never recovered.
  • Claims for Death Benefits
    • Dublin’s widow, Zenaida, who was supported by one child, collected an amount under Clause A of the ITF Collective Bargaining Agreement (P75,000.00).
    • She further filed a complaint with the Philippine Overseas Employment Administration (POEA) against NAESS for additional compensation benefits amounting to US$74,512.00.
    • NAESS, in its answer:
      • Denied liability based on the argument that suicide was not compensable.
      • Asserted that the employment contract did not make it the insurer of Dublin’s life.
      • Claimed that paying benefits in circumstances of alleged suicide would improperly reward self-inflicted death.
  • Proceedings and Decisions of Administrative Bodies
    • After submission of the case based on position papers:
      • The POEA rendered judgment in favor of the complainant (widow), ordering NAESS to pay:
        • Compensation benefits totaling US$31,962.00.
        • Attorneys’ fees amounting to US$3,196.00, or their Philippine peso equivalents.
    • NAESS filed a motion for reconsideration:
      • The motion was referred to the National Labor Relations Commission (NLRC).
      • The NLRC treated it as an appeal and dismissed it for lack of merit while affirming the POEA decision.
    • NAESS then petitioned the Supreme Court for certiorari, alleging grave abuse of discretion and lack or excess of jurisdiction by the POEA and NLRC.

Issues:

  • Compensability of Death Benefits
    • Whether a death caused by an act of suicide (or an incident of self-inflicted harm) is compensable under the employment contract.
    • Whether the contract’s provisions on “loss of life” inherently cover cases where the death results from the employee’s own hand.
  • Interpretation and Application of Contractual Terms
    • Whether the POEA and NLRC correctly interpreted the contract’s literal terms, which did not explicitly condition death benefits on the absence of self-inflicted acts.
    • Whether NAESS can introduce an extraneous limitation (i.e., excluding suicide) despite the clear wording of the agreement.
  • Procedural and Jurisdictional Concerns
    • Whether the decisions of the POEA and NLRC involved grave abuse of discretion or lack/excess of jurisdiction in awarding the benefits.
    • The propriety of awarding attorneys’ fees when such a provision was not explicitly provided in the employment contract.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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