G.R. No. 206113 - Sharpe Sea Personnel, Inc. vs. Mabunay, Jr.

Case Digest (G.R. No. 206113)
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Facts:

Parties and employment arrangement

Sharpe Sea Personnel, Inc. (Sharpe Sea), Monte Carlo Shipping (Monte Carlo), and Moises R. Florem, Jr. (Florem) were the petitioners.
Macario Mabunay, Jr. (Mabunay) was the respondent.
Sharpe Sea acted as an agent for C.F. Sharp & Company Pte. Ltd/Monte Carlo, and Florem acted as Sharpe Sea’s fleet manager.
On March 23, 2009, Mabunay entered into a contract of employment with Sharpe Sea for nine (9) months aboard M/V Larisa as an oiler, with a total monthly salary of US$1,083.00.
Mabunay boarded M/V Larisa on April 14, 2009.

The accident, early reporting, and continued work

On April 15, 2009, Mabunay slipped and hit his back on the purifier while cleaning the second floor of the engine room.
Mabunay lost consciousness when he fell.
When Mabunay awoke, his back was numb and he had difficulty getting up.
That night, Mabunay informed a certain 2nd Engineer Castro of the accident.
The 2nd Engineer Castro directed Mabunay to continue his assigned duties.
Despite persistent pain and numbness in his legs, Mabunay continued working from April 16, 2009 to April 18, 2009.
Mabunay received permission for a medical checkup only when Chief Engineer Manuel De Leon allowed him to have a checkup when the ship docked in Nanjing, China.

Nanjing Hospital diagnosis and medical repatriation

On April 23, 2009, Mabunay was brought to Nanjing Hospital for a medical checkup.
Mabunay was diagnosed with chest and spinal column bone damage.
His attending physician declared him unfit to work.
On April 29, 2009, Mabunay was medically repatriated to Manila.

Company-designated physician treatment and interim care

On April 30, 2009, Mabunay reported to Sharpe Sea’s office and was told to report to Dr. Nicomedes G. Cruz (Dr. Cruz), the company-designated physician.
From April 30, 2009 to June 3, 2009, Mabunay was confined at Manila Doctors Hospital.
Mabunay was diagnosed with:

Cervical Spondylosis, C4C5
Thoracolumbar Spondylosis
Mild chronic compression fracture of T12 & L1 vertebral bodies

Mabunay was provided a cervical collar and lumbosacral corset.
Mabunay was told to continue physical therapy.
Mabunay was advised to return on July 7, 2009 for further checkup.
On August 14, 2009, after it was noted that Mabunay was not responding to physical therapy, Dr. Cruz recommended a discectomy for decompression with fusion and bone grafting and fixation of cervical plates and screws.
On November 24, 2009, Mabunay underwent surgery, and Dr. Cruz observed that Mabunay “tolerated the procedure well.”
On December 5, 2009, Mabunay was discharged from the hospital.

Filing of complaint and private orthopedic consultations

On January 21, 2010, Mabunay filed a complaint for the payment of medical expenses, total disability benefits, damages, and attorney’s fees against Sharpe Sea, Monte Carlo, and Florem.
On June 3, 2010, Mabunay sought the opinion of Dr. Alan Leonardo R. Raymundo (Dr. Raymundo), an orthopedic surgeon.
Dr. Raymundo diagnosed herniated disc, C4-C5 and opined that Mabunay was unfit to work as a seaman in his present condition.
On July 2, 2010, Mabunay consulted Dr. Rommel F. Fernando (Dr. Fernando).
Dr. Fernando found Mabunay unfit to work and certified that Mabunay remained UNFIT TO WORK until further workups and treatment could be done.

Labor Arbiter ruling

On September 14, 2010, the Labor Arbiter ruled in Mabunay’s favor and directed Sharpe Sea to pay permanent and total disability benefits.
The Labor Arbiter concluded that both the company-designated physicians and Mabunay’s private physicians found Mabunay unfit for sea duty because he still needed regular medical checkups and treatment.
The Labor Arbiter rejected Sharpe Sea’s claim that its company-designated physicians assessed Mabunay with a Grade 8 disability rating because it was not supported by the records.
The Labor Arbiter emphasized that from April 23, 2009 (when Mabunay was found unable to work in Nanjing) up to July 2, 2010 (when Dr. Fernando examined him and still found him unable to work), more than 240 days had elapsed.
The Labor Arbiter stated that, even disregarding Mabunay’s private physicians’ assessment, Mabunay had proven he was unable to perform his function as an oiler for more than 120 days, which constituted permanent disability warranting total and permanent disability benefits.
The Labor Arbiter denied claims for medical expenses and future medical expenses for lack of factual bases.
The Labor Arbiter dismissed Sharpe Sea’s argument that it should not be liable in light of an Affidavit of Assumption of Responsibility executed with Benhur Shipping Corporation (Benhur).
The Labor Arbiter ruled that Mabunay was not privy to the agreement between Sharpe Sea and Benhur, and thus Sharpe Sea remained liable.
The dispositive portion ordered Sharpe Sea to pay US$60,000.00 as permanent and total disability benefits plus 10% attorney’s fees; it denied other claims.

NLRC proceedings and modification

Sharpe Sea and Mabunay appealed to the NLRC.
On June 22, 2011, the NLRC affirmed with modification by deleting attorney’s fees.
The NLRC upheld the Labor Arbiter’s finding that the records lacked evidence supporting Sharpe Sea’s claim of a Grade 8 disability rating by the company-designated physicians.
The NLRC found that Mabunay adequately proved from private physicians that he was unfit for work.
The NLRC dismissed Mabunay’s claims for reimbursement of medical expenses and future medical expenses because Mabunay failed to substantially corroborate the claim beyond computations he or his private physicians prepared.
The NLRC dismissed claims for moral damages and attorney’s fees.
The NLRC ruled that Florem could not be held personally liable absent evidence that he had a direct hand in denying Mabunay’s disability claims.

NLRC resolution on motion for reco...(Subscriber-Only)

Issues:

Disability compensation under the POEA-SEC

Whether the Grade 8 disability rating of the company-designated physician should be upheld over the contrary findings of Mabunay’s private physicians.

Whether Mabunay’s disability compensation depended on the injury or illness being suffered during employment and assessed by the company-designated physician under the POEA-SEC.

Whether the seafarer’s inability to perform his job for more than 120 days could be found to merit total and permanent disability under the Labor Code (specifically Art. 192(c)(i)) notwithstanding the POEA-SEC’s disability compensation scheme.

Whether the POEA-SEC required a company-designated physician to conduct medical evaluation and provide disability grading, and whether failure to utilize the POEA-SEC’s procedure for resolving disagreements with the company-designated physician bound the seafarer to the Grade 8 rating.

Whether the Labor Arbiter and appellate tribunals properly treated company physicians’ failure to issue a final and definite assessment within the prescribed period as entitling the seafarer to total and permanent disability.

Damages and attorney’s fees

Whether there was sufficient basis for the award of moral damages, exemplary damages, and attorney’s fees based on petitioners’ alleged bad faith.

Whether petitioners co...(Subscriber-Only)

Ruling:

(Subscriber-Only)

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