Title
Supreme Court
Remigio vs. National Labor Relations Commission
Case
G.R. No. 159887
Decision Date
Apr 12, 2006
Seafarer’s heart ailment deemed compensable under POEA SEC; permanent total disability affirmed due to 120+ days incapacity, despite alternate work possibility.

Case Summary (G.R. No. 159887)

Employment Contract and Incident

On November 27, 1997, Remigio entered into a contract of employment with Respondent Agency, which represented Respondent Principal. This contract outlined that standard employment conditions for seafarers set forth by the Philippine Overseas Employment Administration (POEA) would apply. Remigio worked as a Musician II on the vessel "SS Enchanted Isle" and began his employment after passing a pre-employment medical examination. On March 16, 1998, while in Cancun, Mexico, he experienced severe chest pains, leading to a series of medical evaluations culminating in a triple coronary artery bypass surgery on April 2, 1998.

Medical Treatment and Employment Status

Remigio was hospitalized for an extended period and, upon recovery, was ultimately deemed “not fit for sea duty” by his cardiologist. After being repatriated to the Philippines on April 23, 1998, he was referred for further evaluation by the agency’s designated medical facility. He later formally demanded payment for unpaid wages, sickness allowance, and permanent total disability benefits, which the Respondent declined.

Proceedings Before Labor Arbiter and NLRC

Remigio subsequently filed a complaint, and the Labor Arbiter awarded him US$3,400.00 in sickness allowance but denied the claim for disability benefits, citing that the 1996 POEA Standard Employment Contract did not classify his cardiac issues as compensable. The NLRC affirmed the Labor Arbiter's decision in full, leading Remigio to appeal to the Court of Appeals. The appellate court also upheld the prior decisions, primarily finding insufficient evidence to establish that Remigio's heart condition was work-related and directly caused a permanent disability.

Issue of Permanent Total Disability Benefits

The Supreme Court highlighted that the key question was whether Remigio was entitled to permanent total disability benefits. The Court noted that while the Labor Arbiter and the CA found that the heart ailment was not listed as compensable under the 1996 POEA SEC, they failed to recognize the non-exclusivity of the schedule. The Court determined that the illness need not be categorized as an occupational disease for Remigio to be entitled to benefits under the contract.

Application of Labor Code Concepts

In assessing the situation, the Court applied principles from the Labor Code pertaining to disability benefits. It elaborated on the standard that recognizes permanent total disability as resulting from an inability to perform gainful employment beyond 120 days. The discussion clarified that a disability is evaluated on the basis of the individual’s earning capacity rather than solely on medical documentation of physical inability.

Court Findings and Conclusion

The Supreme Court found Remigio suffered from permanent total disability because medical evaluations indicated he was unfit for his specific job as a drummer for a significant length of time (11 to 13 months). The Court

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