Case Digest (G.R. No. 204307)
Facts:
Orient Hope Agencies, Inc. and/or Zeo Marine Corporation v. Michael E. Jara, G.R. No. 204307, June 06, 2018, Supreme Court Third Division, Leonen, J., writing for the Court.Michael E. Jara (respondent) was hired as an engine cadet by Orient Hope Agencies, Inc., on behalf of its foreign principal Zeo Marine Corporation, and served on board M/V Orchid Sun under a ten‑month contract. The vessel sank off Muscat on July 12, 2007, and Jara sustained injuries to his left arm and left leg; he was treated in Oman, repatriated to the Philippines and admitted to Metropolitan Hospital on August 3, 2007. He underwent knee operations on August 28, 2007 and January 9, 2008, and was last seen by the company‑designated clinic on March 17, 2008.
On May 29, 2008, Assistant Medical Coordinator Dr. Mylene Cruz Balbon (noted by Medical Coordinator Dr. Robert D. Lim) issued a one‑page letter stating that, based on the last follow‑up, Jara’s “suggested disability grading is Grade 11 stretching leg or ligaments of a knee resulting in instability of the joint.” Jara had filed a complaint with the Labor Arbiter on March 6, 2008, claiming entitlement to permanent and total disability benefits of US$60,000.00.
Labor Arbiter Daniel J. Cajilig, in an August 29, 2008 Decision, relied solely on the company‑designated physician’s assessment and awarded a Grade 11 disability equivalent of US$7,465.00 plus 10% attorney’s fees, denying other claims. The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter on September 30, 2009 and denied Jara’s motion for reconsideration on December 10, 2009, concluding there was no evidence to overturn the company physician’s Grade 11 finding.
Jara filed a Petition for Certiorari under Rule 65 with the Court of Appeals (CA). The CA, in an August 15, 2012 Decision (Special Fourth Division), reversed the NLRC and awarded permanent and total disability benefits of US$60,000.00 plus 10% attorney’s fees, reasoning that the company‑designated physician’s assessment was rendered after more than 120 days from repatriation and thus the disability became permanent and total; it denied petitioners’ motion for reconsideration. Petitioners filed a Petition for Review on Certiorari (Rule 45) with the Supreme Court, contesting (inter alia) the CA’s application of the 120/240‑day rule, the sufficiency and timeliness of the company‑designated physician’s Grade 11 report, the non‑compliance with the POEA‑SEC third‑doctor procedure, and the propriety of awarding permanent and total benefits and other damages.
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Issues:
- Whether respondent Michael E. Jara is entitled to permanent and total disability compensation despite a Grade 11 disability grading by the company‑designated physician.
- Whether respondent is entitled to moral and exemplary damages and ...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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