Title
Supreme Court
Esplago vs. Naess Shipping Philippines, Inc.
Case
G.R. No. 238652
Decision Date
Jun 21, 2021
**Case Summary:**

Case Summary (G.R. No. 238652)

Proceedings Before Labor Arbiter and NLRC

Petitioner filed for disability benefits and sickness wages under Section 20(A) of the POEA-SEC and Articles 191–193 of the Labor Code. The Labor Arbiter awarded US$60,000 for total and permanent disability, US$2,664 for sickness wages, and US$6,266.40 for attorney’s fees. The NLRC affirmed on July 15, 2013; its denial of reconsideration on August 30, 2013 solidified the award.

Court of Appeals Decision

On appeal, respondents argued petitioner’s cataracts were age‐related, not work‐related, and challenged the absence of a binding third-doctor assessment under the POEA-SEC. The CA held that failure to pursue a jointly designated third opinion violated Section 20(A)(3) of the POEA-SEC and warranted outright dismissal. It annulled the NLRC decision and denied ancillary claims for sickness wages and attorney’s fees.

Issue on POEA-SEC Compliance and Disability Assessment

Whether CA correctly reversed the NLRC by enforcing the POEA-SEC requirement for a third-doctor referral and by accepting the company‐designated physician’s fit-to-work certificate issued within the allowable period.

Legal Framework on Seafarers’ Compensation and Disability

Under the 1987 Constitution’s social justice mandate, seafarers’ compensation rights derive from the Labor Code (Art. 191–193; Art. 198[c][1]), its IRR (Rule X), and the POEA-SEC:
• Temporary total disability arises upon work‐related injury or illness and is compensated up to 120 days, extendible to 240 days if justified by continued medical necessity.
• A company‐designated physician must issue a definitive disability grading within 120 days; failure without justification automatically converts to permanent total disability.
• Seafarers may secure a private physician’s opinion; conflicting assessments trigger a mandatory third-doctor appraisal, whose findings are final and binding.

Analysis of Company-Designated Physician’s Assessment

Petitioner reported to the company‐designated physician promptly upon repatriation. He underwent continuous treatment, including left‐eye surgery on January 6, 2012, and multiple follow-up consultations. On May 7, 2012—within 240 days—the company‐designated physician declared him fit to resume sea duties. Respondents documented extensive medical interventions and specialist reports, justifying extension beyond 120 days. In accordance with precedents (Vergara v. Hammonia; Elburg Shipmanagement v. Quiogue; Olidana v. Jebsens), the extended period applied and the assessment was timely. The absence of unjustified delay barred an automatic conversion to permanent disability.

Failure to Confer with Third Doctor and Its Consequences

Although petitioner obtained an adverse private opinion, Section 20(A)(3) of the 2010 POEA-SEC mandated a joint selection


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