G.R. No. 208896-97 - Ricasata vs. Cargo Safeway, Inc.

Edren Ricasata was hired in June 2009 as an engine fitter for M.V. Uni Chart, a vessel owned by Evergreen Marine Corporation, Ltd. (Taiwan).
His employment was facilitated by Cargo Safeway, Inc., the local manning agency representing the shipowner in the Philippines.
He was deployed for a nine‑month contract with a basic monthly salary of US$704 and declared fit for sea duty without restrictions.
Ricasata embarked the vessel on 2 August 2009 and was assigned to work in the engine room, handling noisy equipment under a regular eight-to-five shift schedule.

In November 2009, Ricasata experienced severe ear pain and reported it to the Chief Engineer; however, his request for a medical check-up was denied.
A similar episode occurred on 10 January 2010 when he again requested a medical check-up but was likewise denied.
By March 2010, a reliever took over his position, leading to his eventual disembarkation on 19 March 2010 at Coco Solo, Panama.
Ricasata returned to the Philippines on 23 March 2010.

On 29 March 2010, he underwent an Audiogram at the Seamen’s Hospital, which later served as a basis for his claim.
The Audiogram indicated severe hearing loss, which was corroborated by a subsequent diagnosis from Dr. Li-Ann Lara-Orencia.
Dr. Lara-Orencia diagnosed him with “Permanent Medical Unfitness with a Disability Grade 1” due to a “profound hearing loss,” thereby establishing a potential work-related disability.

On 21 July 2010, Ricasata filed a case before the National Labor Relations Commission against Cargo Safeway and Evergreen Marine, seeking disability benefits, moral and exemplary damages, legal interest, and attorney’s fees.
The respondents moved to dismiss and refer the case for voluntary arbitration, citing the collective bargaining agreement (CBA) covering the employment.
The case was submitted to a Panel of Arbitrators comprised of a chairman and two members, which eventually rendered a decision on 22 December 2011.
The Panel of Arbitrators ruled that, although Ricasata’s hearing loss was work-related and compensable under the POEA-SEC, his claim for U.S.$89,100 was excessive and adjusted the award to U.S.$51,000 for disability benefits along with an allowance for sickness and applicable penalties for early termination of his contract.

Both parties appealed the Panel’s decision to the Court of Appeals in separate petitions:

In CA-G.R. SP No. 122937, Ricasata sought an increase in back disability benefits and sick allowance.
In CA-G.R. SP No. 123015, Cargo Safeway and Evergreen Marine sought reversal of the arbitration award.

The Court of Appeals consolidated the petitions in a Resolution dated 27 November 2012.
The appellate court ruled that claims to disability benefits are governed by both law and contract, emphasizing that:

The work-related injury or illness must have occurred during the term of the contract.
Mandatory reporting requirements for a post-employment medical examination by a company-designated physician were not complied with by Ricasata.

The Court of Appeals findings led to a decision denying Ricasata’s claims for disability benefits, sickness allowance, and attorney’s fees while affirming his entitlement to unearned wages, earned leave pay, and basic wages corresponding to the unserved portion of his contract.

After a motion for reconsideration was denied on 25 July 2013, Ricasata filed a petition for review before the Supreme Court.
Ricasata contended that the Court of Appeals erred in its application of the mandatory medical examination rule and in its interpretation of the contractual provisions governing the terms of employment and repatriation.

Whether Ricasata was able to finish his employment contract despite his early disembarkation.

Examination of the contractual terms, particularly the one-and-a-half month shortfall relative to the nine‑month contract.
Assessment of the flexibility provision under the CBA regarding termination timing.

Whether Ricasata is entitled to disability benefits, sickness allowance, and attorney’s fees.

Compliance with the mandatory requirement to undergo a post-employment medical examination by a company-designated physician within three days upon repatriation.
The sufficiency and admissibility of the evidence presented (the Audiogram and the medical certificate by Dr. Lara-Orencia) to substantiate his claim for work-related disability.