Title
Pacific Ocean Manning, Inc. vs. Castillo
Case
G.R. No. 230527
Decision Date
Jun 14, 2021
Seafarer Castillo sought total disability compensation under CBA after knee injury; SC ruled Grade 7 disability under POEA-SEC, awarding $20,900 plus attorney’s fees.

Case Digest (G.R. No. 230527)

Facts:

Pacific Ocean Manning, Inc., Barker Hill Enterprises, S.A., and Elmer Pulumbarit v. Feliciano M. Castillo, G.R. No. 230527, June 14, 2021, Supreme Court First Division, Caguioa, J., writing for the Court.

Feliciano M. Castillo (respondent) was employed as a fitter by Pacific Ocean Manning, Inc. for its foreign principal Barker Hill Enterprises, S.A. His employment was governed by the POEA-SEC and the ITF/IBF TCC AMOSUP CBA. Castillo boarded MT Tequila on May 9, 2012 and first consulted the on-board doctor on October 25, 2012 complaining of right knee pain; the on-board physician diagnosed “Damage of the Meniscus of the Right Knee” and Castillo was repatriated to the Philippines on October 28, 2012.

After repatriation Castillo was seen by company-designated and personally-appointed physicians. On October 30, 2012 company-designated Dr. Tiong Sam Lim diagnosed chondromalacia patella (patellofemoral syndrome) and prescribed rehabilitation. Between December 2012 and March 2013 Castillo had follow-ups. On March 27, 2013 personally-appointed Dr. Manuel Magtira assessed partial permanent disability, Grade 10. Company-designated Dr. Fidel Chua issued an interim Grade 10 on April 11, 2013 and, on May 8, 2013, a final company assessment also declared the condition work-related with Grade 10. Subsequent consultations included an August 2, 2013 note discontinuing physiotherapy, and an October 2, 2013 personally-appointed Dr. Venancio Garduce report giving Grade 6.

The parties agreed to a jointly-chosen third physician, Dr. Edsel Arandia, whose independent assessment diagnosed valgus knee with moderate-severe degenerative osteoarthritis and rated Castillo as Grade 7 with the recommendation that he was “unfit to work as a seaman.” Petitioners offered to pay US$20,900.00 (Grade 7 under the POEA-SEC) but Castillo rejected it and claimed entitlement to US$93,154.00 under the CBA, alleging the injury was caused by an accident (he “bumped” his knee on a stair).

Castillo filed a complaint before the Labor Arbiter (LA). The LA (Labor Arbiter Romelita N. Rioflorido) awarded total and permanent disability compensation under the CBA in the amount of US$93,154.00 plus 10% attorneys’ fees, finding the “bumping” an accident and emphasizing loss of earning capacity. The National Labor Relations Commission (NLRC) reversed in a Resolution dated June 26, 2015, holding Dr. Arandia’s Grade 7 finding final and binding and awarding US$20,900.00 under the POEA-SEC; the NLRC nonetheless maintained 10% attorneys’ fees. Castillo’s motion for reconsideration before the NLRC was denied.

Castillo then filed a Rule 65 petition for certiorari with the Court of Appeals (CA). The CA granted the petition, reversed the NLRC, and reinstated the LA Decision, holding that Dr. Arandia’s statement that Castillo was “unfit to work as a seaman” equated to total and permanent disability and that the stair “bumping” constituted an accident under the CBA. Petitioners sought review via a Rule 45 Pe...(Pro-only)

Issues:

  • May a Rule 45 petition raise and have the Court consider a new factual allegation first asserted in the petitioner's/appellee’s Comment before the Supreme Court (i.e., whether the Court may entertain Castillo’s late allegation that he was not furnished a company physician’s final report until the CA record)?
  • Whether the Court of Appeals correctly awarded Castillo total and permanent disability compensation under the CBA (US$93,154.00) and attorneys’ fees, or whether the POEA-SEC governs and the third doctor’s Grade 7 finding controls, limit...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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