Facts:
On July 4, 2018, the Supreme Court resolved a
Petition for Review on Certiorari filed by
Yialos Manning Services, Inc.,
Overseas Shipmanagement S.A.,
Raul Vicente Perez, and
Minerva Alfonso (collectively, petitioners) assailing the
Decision dated May 18, 2016 and
Resolution dated September 14, 2016 of the Court of Appeals (CA) in
CA-G.R. SP No. 126554. The CA had affirmed the
Resolutions dated May 15, 2012 and
July 9, 2012 of the National Labor Relations Commission (NLRC), which granted
respondent Ramil G. Borja permanent total disability benefits and attorney’s fees.
Borja was employed as an oiler by
Yialos Manning Services, Inc., for and on behalf of its principal
OSSA, for a period of nine months, and he boarded the vessel
M/V Thetis on April 20, 2010. On November 9, 2010, after maintenance work and lifting a metal plate, Borja felt pain in the buttocks radiating down the back of his leg; he was referred to a company physician in Taixing, China, who diagnosed inter-vertebral protrusion, declared him unfit to work for three months, and advised temporary palliative care or bed rest for one month. He was medically repatriated on November 25, 2010 and, upon reporting to petitioners’ office, was referred to
Marine Medical Services at
Metropolitan Medical Center (MMC) on November 27, 2010. Dr. Robert D. Lim diagnosed
lumbar strain and advised continuation of medication and physical therapy at a nearer hospital or at
University of Perpetual Help – Dr. Jose Tamayo Medical Center (UPH-DJTMC); Borja reported monthly for re-evaluation. Borja underwent an
EMG test on January 27, 2011 at UPH-DJTMC, which indicated chronic bilateral L5-S1 radiculopathies likely secondary to lumbar canal stenosis, and on April 15, 2011, Dr. William Chuasuan of MMC issued a disability rating of
Grade 11 corresponding to slight rigidity with one-third loss of motion or lifting power of the trunk. Borja continued therapy at UPH-DJTMC due to continued back pain, demanded reimbursement of medical expenses and payment of total permanent disability, and petitioners denied the claims. Consequently, Borja filed a complaint with the Labor Arbiter on July 7, 2011 for salaries or wages for the unexpired portion of the contract, disability benefits, moral and exemplary damages, and attorney’s fees. During conciliation, the parties agreed to refer Borja for a third medical opinion, but Borja allegedly backed out of the agreement. Borja then consulted Dr. Manuel C. Jacinto, Jr. on August 20, 2011, who diagnosed chronic low back pain with L5-S1 radiculopathy and declared Borja physically unfit to return to work, suffering from total permanent disability. On February 9, 2012, Labor Arbiter Cheryl M. Ampil awarded total permanent disability benefits, reasoning that permanent total disability is tested by inability to perform customary work for more than 120 days, extendible up to 240 days at the option of the petitioner or company-designated physician, and that petitioners did not extend treatment, while disability was assessed on April 15, 2011—149 days after repatriation—thus entitling Borja to permanent total disability and attorney’s fees. Petitioners appealed to the NLRC, arguing that disability is not determined merely by lapse of days, that the company-designated physician’s grading is the standard, that the POEA-SEC does not embody a permanent unfitness clause automatically triggered by time, and that attorney’s fees are not justified absent malice or bad faith. On May 15, 2012, the NLRC dismissed the appeal and, on July 9, 2012, denied reconsideration. The CA dismissed petitioners’ certiorari petition, finding no grave abuse of discretion and holding that Borja was still undergoing therapy even after the 240-day period, with no showing of sea duty resumption or employment after filing, and that Borja was compelled to litigate due to petitioners’ failure to satisfy a valid claim. Petitioners then insisted before the Supreme Court that Borja’s disability was only
Grade 11 based on the company-designated physician’s certification and that the CA erred in awarding total permanent disability merely because the rating was issued after the 120 days. Borja countered that he was entitled to permanent total disability and attorney’s fees based on the medical findings supporting total permanent disability.
Issues:
Whether Borja is entitled to
total permanent disability benefits.
Ruling:
Ratio:
Doctrine: