Title
Prudential Shipping and Management Corp. vs. Sta. Rita
Case
G.R. No. 166580
Decision Date
Feb 8, 2007
The Supreme Court ruled that beneficiaries are not entitled to death and sickness benefits since the seaman died post-employment contract termination and the sickness allowance was already disbursed.
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Case Digest (G.R. No. 166580)

Facts:

  • Prudential Shipping and Management Corporation (PSMC) and Zenith Shipping Investment, Ltd. (ZSIL) are the petitioners.
  • Emerlinda A. Sta. Rita and Rene A. Sta. Rita are the respondents.
  • Virgilio C. Sta. Rita was hired as an oiler on May 5, 1999, with a 12-month contract and a monthly salary of US$335.00.
  • He underwent a pre-employment medical examination and was deemed fit for sea duty, despite a mild left axis deviation noted in his ECG.
  • Virgilio boarded the M/V Gulfwind on May 20, 1999, but fell ill during his service.
  • Diagnosed with an umbilical hernia on March 3, 2000, in New Orleans, he was advised to avoid heavy lifting and undergo surgery.
  • He was repatriated to Manila on March 8, 2000, and diagnosed with a peri-umbilical mass due to ascites.
  • After surgery on March 24, 2000, he was discharged on March 29, 2000, and signed a "Certificate of Fitness for Work" on June 20, 2000.
  • Virgilio was admitted to the Philippine General Hospital on February 13, 2001, with severe health issues and died on March 18, 2001.
  • His death was attributed to cardiopulmonary arrest due to metabolic acidosis and hepatocellular carcinoma.
  • Emerlinda and Rene filed a complaint for death compensation and other claims on June 5, 2001.
  • The Labor Arbiter ruled in favor of the respondents, but the NLRC reversed this decision, leading to an appeal to the Court of Appeals, which reinstated the Labor Arbiter's ruling.
  • The petitioners subsequently filed a petition for review before the Supreme Court.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court granted the petition, reversing the Court of Appeals' decision and reinstating the NLRC ruling.
  • The Court held that the respondents were not entitled to death benefits as Virgilio's employment had already been terminated at ...(Unlock)

Ratio:

  • The Supreme Court stated that under the POEA Standard Employment Contract, death benefits are payable only if the seafarer dies during the term of his contract.
  • Virgilio's employment was deemed terminated upon his repatriation on March 8, 2000, and he...continue reading

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