Title
HFS Philippines, Inc. vs. Pilar
Case
G.R. No. 168716
Decision Date
Apr 16, 2009
Seafarer diagnosed with depression and gastric ulcer during employment; entitled to disability benefits under POEA contract, not CBA, as illnesses were work-related.

Case Summary (G.R. No. 168716)

Applicable Law

The governing laws in this case consist of the Collective Bargaining Agreement (CBA) between the Associated Marine Officers and Seamen's Union of the Philippines (AMOSUP) and the Norwegian Shipowner's Association, alongside relevant provisions under the Philippine Overseas Employment Agency (POEA) rules and regulations. Particularly, the provisions concerning Article 12 on disability compensation and Article 10 regarding sickness and injury benefits are central to the dispute.

Employment Details and Medical Conditions

Ronaldo R. Pilar was engaged as a crew member on the Norwegian vessel M/V Hual Triumph under a nine-month contract, beginning on October 4, 2001. Following his boarding the vessel, he developed various health issues including major depression and a gastric ulcer, leading to repatriation on April 3, 2002, after medical evaluation in Japan. His continued medical treatment and evaluations indicated that he remained unfit for work even after returning to the Philippines.

Legal Proceedings Initiated

On November 27, 2002, Pilar filed a complaint with the National Labor Relations Commission (NLRC) asserting underpayment of medical benefits and disability compensation. The NLRC referred the case to the National Conciliation and Mediation Board (NCMB), where a favorable decision was rendered in July 2004, granting Pilar disability compensation under Article 12 of the CBA.

Petitioners' Arguments and Court of Appeals Decision

Petitioners challenged the NCMB's decision in the Court of Appeals, arguing that Pilar’s claim for disability compensation was erroneous as his depression did not result from an accident as required by Article 12 of the CBA. The Court of Appeals ruled that while Pilar could not claim disability benefits under the CBA, he was entitled to stipulations outlined in Section 32 of the employment contract, establishing that any illness contracted during employment warranted sick pay.

Supreme Court's Analysis and Ruling

The Supreme Court affirmed the lower court's decision, emphasizing that compliance with the CBA is integral to the employment contract. They ruled that while Pilar was not entitled to disability compensation under Article 12 because his illnesses did not stem from an accident or marine peril, he could still claim sick pay under Article 10 and Section 20(

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