Title
Supreme Court
Benhur Shipping Corp. vs. Riego
Case
G.R. No. 229179
Decision Date
Mar 29, 2022
Seafarer diagnosed with work-related illness; employer failed to issue final disability assessment or refer to third doctor, leading to Supreme Court ruling granting total and permanent disability benefits.

Case Summary (G.R. No. 229179)

Background Facts

Riego was employed as a Chief Cook aboard the MV Hikari I, under a contract providing for a one-year term. After experiencing abdominal and lower back pain while onboard, he was repatriated for further medical attention and treated by several physicians. His medical assessments indicated various diagnoses, culminating in a report asserting he had a Grade 11 disability due to a one-third loss of lifting power, as determined by a company-designated physician.

Initial Rulings

The Labor Arbiter (LA) ruled in favor of Riego, awarding disability benefits based on the assessment by the company-designated physician. The National Labor Relations Commission (NLRC) affirmed this decision, noting no evidence of total disability as defined under the POEA-SEC.

Court of Appeals Ruling

The Court of Appeals reversed the NLRC's decision, declaring Riego permanently disabled and entitled to total disability benefits. The appellate court emphasized the lack of a final assessment within 120 days, which warranted a classification of his condition as permanent and total disability.

Supreme Court's Review

When the petition was brought before the Supreme Court, the central issue pertained to whether Riego suffered a total and permanent disability. Despite the company's arguments asserting the validity of the physician's assessments, the Court recognized the procedural implications of delayed medical assessments.

Evaluation of Medical Assessments

The Supreme Court referenced previous rulings, particularly in Elburg Shipmanagement Phils., Inc. v. Quiogue, outlining the burdens placed on the company-designated physician to issue conclusive assessments within specified timelines. It was found that the company-designated physician failed to provide a valid assessment within the required 240-day period, conclusively indicating Riego’s disability as permanent and total.

Conflict Resolution Mechanism

The Court highlighted the importance of the conflict resolution provisions within the POEA-SEC, detailing the responsibilities of both the employee and employer when faced with conflicting medical opinions. It held that due process requires both parties to engage in good-faith discussions to resolve conflicts over med

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