Title
Abosta Shipmanagement Corp. vs. Delos Reyes
Case
G.R. No. 215111
Decision Date
Jun 20, 2018
Seafarer declared fit to work by company doctor after hernia surgery; independent physician deemed him permanently unfit. SC ruled company doctor’s assessment prevails due to failure to refer to a third doctor, denying disability benefits.

Case Summary (G.R. No. 215111)

Factual Antecedents

On March 30, 2010, respondent Delos Reyes was employed as a bosun aboard the vessel MV Stellar Daisy for a nine-month duration by petitioner Abosta. Prior to boarding, he underwent a Pre-Employment Medical Examination and was declared fit to work. In July 2010, he experienced pain in his groin and was subsequently diagnosed in Korea with an inguinal hernia. Following this diagnosis, he was repatriated for further medical evaluation. The company-designated physician subsequently recommended surgical intervention, which was performed on August 23, 2010. After being discharged two days later, Delos Reyes was initially declared fit to work on September 2, 2010.

Medical Assessments and Disability Claim

However, on July 19, 2011, respondent consulted Dr. Li-Ann Lara-Orencia, who diagnosed him as permanently unfit to work, attributing a Grade 1 disability to his condition. Dr. Orencia's findings highlighted the risk of recurrence associated with physical labor, particularly the heavy lifting required in his role. Consequently, on July 20, 2011, Delos Reyes filed a Complaint for Disability Benefits, Damages, and Attorney's Fees.

Ruling of the Labor Arbiter

The Labor Arbiter dismissed Delos Reyes's complaint on December 29, 2011, favoring the assessment of the company-designated physician over that of Dr. Orencia. The Arbiter noted the reliability of the company physician's assessment, which was based on several months of treatment versus the independent physician's assessment issued nearly a year post-repatriation.

Ruling of the National Labor Relations Commission

Delos Reyes appealed this decision, but on June 29, 2012, the National Labor Relations Commission (NLRC) upheld the Labor Arbiter's ruling. The NLRC noted the absence of a third-party medical opinion, which according to the Philippine Overseas Employment Administration (POEA) contract was necessary to overturn the initial fit-to-work assessment by the company-designated physician.

Ruling of the Court of Appeals

Undeterred, Delos Reyes sought elevation to the Court of Appeals through a Petition for Certiorari. On March 26, 2014, the CA overturned the prior rulings, declaring him entitled to total and permanent disability compensation. It favored Dr. Orencia's assessment, emphasizing that the nature of his illness substantially impeded his ability to perform his duties as a bosun, which entailed physical exertion.

Petitioners' Arguments

In their petition, the petitioners asserted that Delos Reyes's claim for total and permanent disability benefits was unfounded due to a lack of credible medical evidence proving his Grade 1 disability. They contended that Dr. Orencia's assessment lacked a basis in her own diagnosis and cited her as insufficiently qualified to evaluate Delos Reyes's condition adequately. They further argued that the CA should have prioritized the medical opinion of the company-designated physician.

Respondent's Argument

Delos Reyes countered that the company-designated physician's assessment should not be viewed as final or conclusive due to the conflicting opinion from Dr. Orencia. He posited that total disability encompasses an inab

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