Title
Escarcha vs. Leonis Navigation Co., Inc.
Case
G.R. No. 182740
Decision Date
Jul 5, 2010
Seafarer’s death two years post-repatriation deemed non-compensable; pre-existing AIDS not work-related, benefits denied, repayment ordered.

Case Summary (A.C. No. 9018)

Antecedent Facts

Eduardo entered into a one-year employment contract with the respondents on February 16, 1999, earning a base monthly salary of US$950. He underwent a Pre-Employment Medical Examination (PEME) and was declared fit to work, subsequently boarding the vessel on March 11, 1999. However, he fell ill by April 1999 while aboard. Upon reaching New Orleans on May 3, 1999, he was evaluated and diagnosed with advanced mycobacterium tuberculosis, advanced HIV disease, and other serious conditions. After repatriation on June 17, 1999, he continued treatment at San Lazaro Hospital but ultimately succumbed to his illnesses on June 9, 2001. The death certificate listed pneumonia as the immediate cause of death, with AIDS identified as an underlying condition.

The Labor Arbitration Rulings

The complaint for death benefits was initially dismissed by Labor Arbiter Jose G. de Vera, who concluded that Eduardo’s illnesses were pre-existing, based largely on his admission to a foreign nurse about his concealed HIV status. Conversely, the National Labor Relations Commission (NLRC) overturned this decision, arguing that the evidence presented regarding pre-existing conditions was inadequate and determined that Eduardo's working environment could have aggravated his illnesses due to exposure to various toxic substances as a First Engineer.

The CA Decision

The Court of Appeals (CA) later reviewed the NLRC's decision and ruled that death from a pre-existing illness is not compensable. The CA criticized the reliance on PEME results, asserting that they may not accurately reflect a worker's health status, particularly for conditions like HIV. The CA posited that the petitioners failed to establish a connection between Eduardo’s work and his illnesses, denying the claims for compensation. Subsequent motions for reconsideration by the petitioners were denied.

The Petition for Review on Certiorari

In the Supreme Court, the petitioners claimed the CA erred by denying death benefits, arguing that the PEME demonstrated Eduardo's health status before employment and that pneumonia and tuberculosis should be considered compensable illnesses. The respondents countered that benefits are not payable if death occurs after the contract's term or if the worker concealed pertinent health information.

The Court's Ruling

The Supreme Court upheld the CA's ruling, emphasizing that under the 1996 Philippine Overseas Employment Agency (POEA) Standard Employment Contract, the only condition for lineage to death benefits is that the death must occur during the term of employment. With Eduardo’s contract effectively terminated upon his repatriation on June 17, 1999, and his death occurring nearly two years later, the claim became invalid.

The Collective Bargaining Agreement

The petitioners also referenced a Collective Bargaining Agreement (CBA) that stipulated death benefits, but the Court determined that since Eduardo did not die aboard the ship or during transit to or from it, the provisions of the CBA were inapplicable to his situation.

Work-relatedness Issues

While the petitioners contended that the work-relatedness of Eduardo's death was irrelevant due to the earlier provisions of the 1996 POEA-SEC, the Court noted the tempo

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