Title
Imperial Victory Shipping Agency vs. National Labor Relations Commission
Case
G.R. No. 84672
Decision Date
Aug 5, 1991
Seaman presumed dead after ship sank; father sought death benefits. NLRC awarded P130k, but Supreme Court reduced to P50k, ruling timely filing, no laches, and manning agent's solidary liability.

Case Summary (G.R. No. 84672)

Facts and Procedural History

Tomas Fanega, Sr. filed a claim for death benefits with the Philippine Overseas Employment Administration (POEA) on December 16, 1985, citing the death of his son, who was one of the Filipino crew members presumed dead after the sinking. The POEA initially received an offer from the ship’s insurer (P & I Club) for death benefits amounting to P52,500. However, his counsel advised against accepting this offer, suggesting the potential for greater recovery if pursued through a different legal avenue abroad. Unfortunately, Fanega Sr. was unable to collect insurance benefits in Greece due to the alleged bankruptcy of the insurance company, prompting his claim with the POEA. After hearings, the POEA ruled against Fanega Sr., finding reasons of laches and the pendency of the foreign claim. This decision was affirmed by the NLRC on December 11, 1987.

NLRC Decision and Reversal

Upon filing a motion for reconsideration, the NLRC reversed its original decision on May 30, 1988. The key rationale for this reversal centered on the acknowledgment that Fanega Sr. faced obstacles in collecting due compensation from the foreign insurer, which did not bar him from recovering under the POEA Standard Employment Contract. The NLRC emphasized the right of a claimant to choose their forum for recovery and declared that rejecting the earlier offer from the insurer did not negate the right to pursue legal action against the employer.

Petitioner's Arguments

The petitioner contended that the NLRC had committed grave abuse of discretion by reversing the dismissal and that the previous decision was already final and executory. They argued that because the respondent's appeal was not filed within the prescribed period—falling on a weekend—the respondent's motion should have been dismissed. Moreover, the petitioner claimed that the doctrine of laches barred recovery since significant time had elapsed and their ability to respond had been prejudiced due to changes in circumstances surrounding the case.

Legal Principles and Rulings

The Supreme Court addressed the legal concepts of laches and prescription, asserting that laches cannot be invoked against the enforcement of a legal right when the claim was filed within the statutory period. The ruling clarified that the three-year prescriptive period was satisfied, highlighting that petitioner’s changed circumstances could not function as a defense against an otherwise valid claim for recovery.

Burden of Proof

An essential aspect of the case analyzed by the Supreme Court involved the burden of proof, which rested with the petitioner to substantiate their defense against the claims of double recovery and the effects of the foreign action. The Court upheld that the mere assertion of pendency by the petitioner did not establish grounds to bar recovery, particularly as no evidence disproving the respondent’s assertions was presented.

Compensation Benefits

In affirming part of the NLRC's decision with modi

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