G.R. No. 247778 - Palada vs. Crossworld Marine Services Kapal , Ltd.

On May 6, 2016, Crossworld Marine Services, Inc., on behalf of its foreign principal Kapal (Cyprus) Limited, hired petitioner Jerome D. Palada as an ordinary seaman aboard the vessel MIV Eurocargo Venezia.
The employment contract was governed by the ITALIAN CBA for NON DOMS and the applicable POEA-SEC provisions, with a contract duration of eight months.
Petitioner was deployed on board the vessel on May 20, 2016.

On July 11, 2016, while loading and parking a trailer on board the vessel, petitioner was accidentally struck by a moving vehicle.
Immediate first aid was administered, and petitioner was subsequently transported to a medical facility in Malta, where he was diagnosed with “trauma successive dorsal contusion of lumbo sacral spine.”
Despite receiving medication, petitioner continued to experience persistent pain in his back, leading to his repatriation on July 18, 2016.

Upon repatriation, petitioner was referred to Marine Medical Services and examined by company-designated physician Dr. Rodolfo P. Bergonio from July 21 to October 27, 2016.

Initial diagnosis included soft tissue contusion, involvement of the upper thoracic cage and left anterior chest wall, and a chronic mild T4 compression fracture.
Petitioner was advised to undergo formal physical therapy and take prescribed pain and muscle relaxant medications.

On October 27, 2016, company-designated physician Dr. Margarita Justine O. Bondoc issued an interim assessment:

She determined a Grade 11 disability rating, indicating slight rigidity or a 1/3 loss of lifting power of the trunk.

Subsequently, on November 8, 2016, Dr. Bergonio provided a fit-to-work assessment, declaring petitioner fit from an orthopedic standpoint based on a Functional Assessment allegedly done by Dr. Basuil.
Dissatisfied with conflicting evaluations, petitioner consulted an independent physician, Dr. Manuel Fidel M. Magtira, an orthopedic surgeon at the Armed Forces of the Philippines Medical Center, who opined that petitioner was “permanently UNFIT in any capacity to resume his sea duties as a Seaman.”

Petitioner filed a complaint for payment of disability benefits against the respondents with the National Conciliation and Mediation Board (NCMB) after an unsuccessful attempt at amicable settlement.
The Panel of Voluntary Arbitrators, in its Decision dated April 2, 2018, ruled in favor of petitioner:

Awarding a total and permanent disability benefit of US$60,000.00 (or its peso-equivalent) plus attorney’s fees.
This award was based on the failure of the company-designated physicians to provide a definite and final assessment of petitioner’s fitness to work within the mandated periods.

Respondents, however, challenged this decision by filing a Petition for Review with the Court of Appeals (CA) under Rule 43.

On February 18, 2019, the CA reversed and set aside the decision and resolution of the Panel of Voluntary Arbitrators.
The CA ruled that:

Petitioner’s Grade 11 disability rating (indicating only a 12% disability or slight rigidity) as established by Dr. Bondoc should prevail.
The conflicting fit-to-work assessment of Dr. Bergonio, especially in the absence of a third medical opinion, undermined petitioner’s claim of total and permanent disability.

Consequently, petitioner was declared not totally and permanently disabled.
The CA ordered petitioner to pay disability compensation of USD7,465 (aligned with a Grade 11 disability) plus interest, while deleting the award of full disability benefit and attorney’s fees.

Whether the CA erred in giving deference to the assessments of the company-designated physicians, particularly the interim Grade 11 disability rating by Dr. Bondoc and the subsequent fit-to-work declaration by Dr. Bergonio.
Whether the CA should have recognized that conflicting and inconclusive assessments amount to a failure to provide a definite and final evaluation.

Whether the CA committed an error by not holding that petitioner’s disability should be deemed total and permanent due to the failure of the company-designated physicians to issue a final medical assessment within the legally required 120-day to 240-day period.