Title
Palisoc vs. Easways Marine, Inc.
Case
G.R. No. 152273
Decision Date
Sep 11, 2007
Seafarer Mars C. Palisoc, unable to work for over 120 days due to illness, was awarded permanent disability benefits by the Supreme Court, affirming the Labor Code's applicability to seafarers and the 120-day rule for disability claims.
seafarer
medical condition
disability benefits
A

Case Digest (G.R. No. 244214-15)

Facts:

  • Background of Employment and Deployment
    • The foreign principal, East West Marine PTE, Ltd., hired Mars C. Palisoc as 4th Engineer through its agent, Easways Marine, Inc.
    • The petitioner’s contract, approved by the Philippine Overseas Employment Agency (POEA), provided:
      • A basic monthly salary of US$600.
      • Overtime pay of US$370 per month.
      • Vacation leave pay of US$60.
    • On 11 August 1996, petitioner was deployed on board the vessel M/V Dragon (Mekong) Sentosa for a period of 12 months.
  • Medical Incident and Subsequent Treatment
    • On 6 March 1997, while in Saigon, Vietnam, petitioner fell ill and was diagnosed with left renal colic or gallstone impairment at Cho Raz Hospital in Ho Chi Minh City.
    • Petitioner was later transferred to Seacare Maritime Medical Centre in Singapore where a Medical Report dated 17 March 1997 noted:
      • Petitioner was fit to return to ship.
      • He should continue medication/treatment as prescribed.
      • He required a seven-day period of rest on board.
    • On 23 March 1997, respondents repatriated petitioner to Manila for further medical treatment.
  • Medical Management and Certification
    • Upon arrival in Manila, petitioner’s treatment was referred to Christian Medical Clinic, Inc. under the supervision of Medical Director Dr. Lyn dela Cruz-de Leon.
    • Dr. Akihito Quiambao, the company-designated physician, initially attended to petitioner.
    • On 16 May 1997, petitioner underwent a laparoscopic cholecystectomy (gallbladder removal) at Delos Santos Medical Center, with all hospital and operation expenses paid by the respondents.
    • Although petitioner underwent follow-up treatment for over 120 days, when he requested an assessment of his disability grade:
      • Dr. Quiambao refused to assess his disability.
      • Instead, Dr. dela Cruz-de Leon issued a fit-to-work certificate on 20 August 1997 attesting that petitioner was fit to work.
    • Seeking another medical opinion, petitioner engaged Dr. Teopisto A. Rigonan who, on 23 August 1997, issued a handwritten medical certificate rating petitioner with an Impediment Grade of (6) based on the POEA Impediment Grading Scale.
  • Claims, Demand, and Preliminary Adjudication
    • On 1 September 1997, petitioner, through his counsel, sent a demand letter to respondents seeking:
      • Payment of US$25,000 as a disability benefit under Section 30-A of the POEA-SEC.
      • Full settlement of the sickness allowance due.
      • Reimbursement for medical expenses.
    • Respondents' refusal led petitioner to file an action before the Arbitration Branch of the National Labor Relations Commission (NLRC) against both respondents and Capt. Macario Terencio.
  • Proceedings at the Labor Arbiter and NLRC
    • The Labor Arbiter, in the 28 September 1998 Decision, ruled in favor of petitioner by awarding:
      • Disability benefits of US$25,000 payable in peso equivalent at the rate on the date of payment.
      • Medical reimbursement amounting to P1,659.80 plus attorney’s fees.
      • Captain Macario Terencio was absolved of liability.
    • Key findings by the Labor Arbiter included:
      • Dr. Quiambao’s failure to issue a fit-to-work certificate within 120 days was interpreted as an indication that petitioner was not yet fit to resume duties.
      • Dismissal of the doctor's fit-to-work certificate issued by Dr. dela Cruz-de Leon due to its issuance in her capacity as Medical Director without the necessary co-signature of Dr. Quiambao.
    • On appeal, the NLRC modified the Labor Arbiter’s decision (29 December 1999) by:
      • Ordering respondents to reimburse petitioner for medicine purchase expenses (P1,659.80).
      • Dismissing all other claims on the basis that petitioner had already received full sickness wages and that there was no obligation under the POEA-SEC for further assessment on disability.
    • A motion for reconsideration filed by petitioner was denied by the NLRC on 22 May 2000.
    • Petitioner then sought a petition for certiorari before the Court of Appeals, which dismissed the petition in its 13 July 2001 Decision and again denied reconsideration in its 21 February 2002 Resolution.
  • Court of Appeals Findings
    • The Court of Appeals held that:
      • The petitioner’s terms of employment are governed by the POEA-SEC.
      • Articles 191 and 192 of the Labor Code (regarding Temporary and Permanent Total Disability Benefits under the Employees Compensation and State Insurance Fund) are not applicable since petitioner was not covered by these benefits.
      • Disability benefits for seafarers under Section 30-A of the POEA-SEC must be assessed by a company-designated physician.
      • No proper assessment of petitioner’s disability was made by a company-designated physician as Dr. dela Cruz-de Leon’s certificate, though issued with knowledge and approval of Dr. Quiambao, was not sufficient.
      • The removal of petitioner’s gallbladder did not fall within compensable injuries, diseases, or illnesses under Appendix 1 of the POEA-SEC.

Issues:

  • Application of the Labor Code's Definition of Permanent Total Disability to Seafarers
    • Whether Article 192(c)(1) of the Labor Code, which provides for permanent total disability following more than 120 days of temporary total disability, applies to seafarers.
  • Assessment of Disability and the Role of the Company-Designated Physician
    • Whether the conduct and findings of the company-designated physician, particularly regarding the fit-to-work certification, should be given full credence.
    • The issue of whether a medical certificate issued by a physician not designated by the company (i.e., Dr. Rigonan’s certificate) should be admitted.
  • Entitlement to Disability Benefits
    • Whether petitioner is entitled to disability benefits under the POEA-SEC based on his inability to work for more than 120 days.
    • Whether the failure to have a disability grade properly assessed by the company-designated physician impacts petitioner’s claim for benefits.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)
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