Title
Sea Power Shipping Enterprises, Inc. vs. Salazar
Case
G.R. No. 188595
Decision Date
Aug 28, 2013
Seafarer died six months post-repatriation; SC denied death benefits due to lack of work-related illness proof but upheld illness benefits, moral damages, and attorney’s fees.

Case Summary (G.R. No. 208480)

Background Facts

Armando was employed as an Able Seaman on 11 April 2003 and boarded the M/V Magellan on 20 April 2003. After completing his term and a three-month extension, he returned to the Philippines on 8 September 2004. Soon after his return, he was hospitalized with pneumonia and, later, diagnosed with lung carcinoma with brain metastases. He died on 1 March 2005, six months post-repatriation. His widow, Nenita P. Salazar, filed for death benefits and other allowances under the Philippine Overseas Employment Administration (POEA) Contract.

Legal Actions Taken

Nenita filed a collection suit for various benefits which included hospitalization expenses, burial expenses, death benefits, minor child’s allowance, and moral damages. The Labor Arbiter initially denied her claims, contending that benefits under the POEA Contract required the seafarer’s death or illness to be work-related and to occur during the term of employment. The National Labor Relations Commission (NLRC) later awarded illness benefits but denied death benefits, prompting Salazar to appeal the decision.

Ruling of the Court of Appeals

The Court of Appeals (CA) reversed the decisions of the Labor Arbiter and the NLRC, ruling that Armando's death was compensable as it was the result of a work-related illness. This was supported by the reasoning that he had been deemed fit to work initially, had been exposed to hazardous conditions, and was hospitalized shortly after returning home. The CA awarded Salazar death benefits, child allowance, and burial expenses, which led to the petitioners' appeal.

Supreme Court Analysis

The Supreme Court reviewed whether the CA correctly asserted that the LA and NLRC had abused their discretion in refusing to award death benefits. The governing provisions came from the POEA Contract, particularly Section 20(A) and Section 32-A, which articulate the conditions under which death benefits can be awarded.

Death Benefits Under Section 20(A)

Section 20(A) stipulates that death benefits are granted only for work-related deaths occurring during the term of the seafarer’s contract. Since Armando died six months post-repatriation, the Court affirmed the finding that his beneficiaries were not entitled to death benefits based on this provision.

Disputable Presumption Under Section 20(B)(4)

Despite the CA's reliance on Section 20(B)(4), which provides that unlisted illnesses are disputably presumed to be work-related, the Supreme Court found this presumption insufficient in Salazar's case because the CA failed to verify that Armando contracted his illness due to his work. The discussions of causation were deemed lacking as there was no substantial evidence linking his work conditions to his lung cancer.

Requirements for Compensat

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