Title
Sharpe Sea Personnel, Inc. vs. Mabunay, Jr.
Case
G.R. No. 206113
Decision Date
Nov 6, 2017
Seafarer injured on duty; company failed to issue final disability assessment within 120/240 days, leading to permanent disability ruling and damages.

Case Summary (G.R. No. 167684)

Applicable Law

The legal framework governing this case includes the 2000 Philippine Overseas Employment Administration (POEA) Standard Employment Contract (SEC) and relevant provisions of the Labor Code of the Philippines.

Factual Background

Macario G. Mabunay, Jr. entered into a contract of employment with Sharpe Sea on March 23, 2009, as an oiler on the M/V Larisa, earning a monthly salary of $1,083. Shortly after embarkation, on April 15, 2009, he sustained a serious injury while working in the engine room. Following his accident, he was diagnosed with significant spinal damage, leading to his medical repatriation on April 29, 2009.

Medical Evaluation and Treatment

Following his return to Manila, Mabunay was evaluated by a company-designated physician, Dr. Nicomedes G. Cruz, and underwent various medical assessments and treatments, including surgeries. Despite recommendations for surgery and ongoing therapies, concerns remained about his fitness to continue working as a seafarer. This prompted an extended period during which he was considered unfit for duty.

Labor Arbiter's Initial Findings

On January 21, 2010, Mabunay filed a complaint against the petitioners for medical expenses and compensation for total disability. The Labor Arbiter later ruled in favor of Mabunay, emphasizing the lengthy period during which both company-designated and personal physicians deemed him unfit, subsequently granting permanent and total disability benefits. The Labor Arbiter rejected Sharpe Sea's assertion of a Grade 8 disability rating as unsupported by the records.

NLRC and Court of Appeals Decisions

The National Labor Relations Commission (NLRC) modified the Labor Arbiter's decision, awarding Mabunay a lower compensation based on a purported Grade 8 disability rating identified by Dr. Cruz, which had not been established in initial hearings. Subsequently, the Court of Appeals acknowledged procedural deficiencies in the NLRC's handling of the submissions and restored the Labor Arbiter's ruling while awarding additional damages to Mabunay for the manner in which the respondents handled his case.

Supreme Court Findings

The Supreme Court assessed whether the Grade 8 disability rating from the company physician was to be favored over independent medical evaluations. It confirmed that the absence of a conclusive assessment from Dr. Cruz after an extended period meant that Mabunay was to be classified as permanently and totally disabled. The Court ruled that the company-designated physicians' failure to provide a definitive rating necessitated the acceptance of Mabunay’s condition as permanently disqualifying him from work under the applicable labor standards.

Damages and Awards

The Supreme Court upheld the findings that petitioners acted in bad faith in failing to issue timely assessments and submitting documents belatedly. The Court awarded Mabunay a total of $60,000 in disability benefits, i

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