G.R. No. L-28030 - Imperial Insurance, Inc. vs. De los Angeles

On February 3, 2010, respondent Clarito A. Manzano entered into a contract of employment with petitioners Philippine Transmarine Carriers Inc. and/or Marin Shipmanagement Limited, being hired as an oiler for an eight-month period on board the vessel Maersk Danang.
The employment was additionally covered by the Overriding Total Crew Cost Fleet Agreement (TCC CBA) executed between the International Transport Workers’ Federation and petitioner Transmarine Carriers, Inc.
Prior to deployment, respondent underwent a pre-employment medical examination (PEME) and was declared fit for sea duty without any restrictions.

The respondent boarded the ship on March 27, 2010, and commenced his duties which involved physically strenuous tasks such as pushing, pulling, lifting, and carrying heavy items.
In the third week of July 2010, while performing his duties, respondent allegedly slipped and fell from an elevated height, initially landing on his right knee, which led to severe pain not only in his knee but also on the right side of his body and in his lumbar region.

Due to persistent pain, on August 2, 2010, respondent was brought to a hospital in Elizabeth, New Jersey, and attended by Dr. Baljit S. Sappal who diagnosed him with “soft tissue injury, arthralgia, effusion” after an x-ray examination showed no fracture or dislocation.
A follow-up on August 9, 2010 at the East Houston Regional Medical Center by Dr. George Griffin noted further details: small joint effusion, slight lateral displacement of the patella, thinning of the lateral patellar facet cartilage with increased signal suggesting chondromalacia, and recommended clinical correlation for lateral tracking abnormality.
Despite advisories to minimize weight-bearing on the injured knee, respondent resumed work.

In September 2010, while entering the engine room, respondent claimed he was struck by a metal door—opened by a co-worker—and suffered pain on his right shoulder and back.
On November 27, 2010, at Badr Al Samaa Group of Hospital and Polyclinics in the Sultanate of Oman, he was examined and diagnosed with costochondritis and myalgia in his right shoulder.
Following repatriation (contract ended) on December 3, 2010, respondent underwent a post-employment medical examination first by a company-designated physician (albeit with a procedural requirement to obtain a Cocolife card) and later on December 15, 2010, at St. Luke's Medical Center by Dr. Randolph M. Molo, who ordered further imaging (including MRI) that revealed additional injuries involving the right upper extremity and the lumbosacral spine.

Despite months of physical therapy following extensive medical treatment, respondent continued to experience persistent pain.
On August 10, 2010, respondent consulted Dr. Renato P. Runas who, through detailed examination, noted:

Persistent swelling in the right knee with inability to squat and atrophy of the quadriceps and calf muscles,
Limited movement and restricted shoulder abduction (only reaching 90 degrees) due to pain,
Tension and spasm in the paraspinal muscles resulting in limited trunk movement.

Dr. Runas concluded that respondent was permanently unfit for sea duties with permanent partial disability, prompting his claim for disability benefits.

On April 11, 2011, respondent filed a Notice to Arbitrate before the National Conciliation and Mediation Board (NCMB).
After unsuccessful attempts at reaching an amicable settlement, the parties agreed on voluntary arbitration on October 15, 2011.
The NCMB rendered a decision on June 20, 2012, directing the petitioners to pay the respondent disability benefits plus 10% as attorney’s fees, amounting to a total of US$137,500.00 based on the TCC CBA.

The petitioners elevated the case before the Court of Appeals (CA), contesting the NCMB’s application of the TCC CBA and the 240-day presumptive disability rule.
The CA, after reviewing the evidences and submissions from both parties, affirmed the NCMB’s decision, noting that:

The injuries had not been conclusively proven to be accident-related as required under the TCC CBA,
There was an absence of a certification by the company-designated physician regarding respondent’s fitness to work, thus justifying the application of the 240-day rule.

A subsequent Motion for Reconsideration filed by the petitioners was denied in a Resolution dated December 10, 2013.

Whether a seafarer who completed his employment contract without any explicit medical complaint on board or immediately upon arrival in the Philippines is entitled to claim disability benefits.
Whether the injuries sustained by the respondent qualify as being caused by an “accident” as defined under the TCC CBA, given the conflicting evidences regarding the origin of his knee and shoulder injuries.
Whether the failure of the company-designated physician to issue a timely certification regarding the respondent’s fitness for sea duty should transform the respondent’s temporary total disability into permanent disability, thereby entitling him to statutory and contractual compensation.