Case Summary (G.R. No. 229228)
Employment and Medical Background
Alacre was employed on March 12, 2012, with a specified contract duration of six months and a salary of US$648.00. During his employment, he experienced shoulder pain, was diagnosed with a right shoulder and hand joint sprain, and underwent medical treatment upon his repatriation to the Philippines on July 8, 2012. Following a series of medical evaluations, the company-designated physician declared him with an interim disability grading of Grade 10, indicating significant impairment in shoulder mobility.
Development of Disability Claims
Faced with a lack of improvement, Alacre consulted an orthopedic specialist, Dr. Venancio P. Garduce, who determined that he could no longer work as a seaman and recommended a higher disability grading of Grade 3. After surgery on February 13, 2013, Alacre sought recovery of permanent total disability benefits through legal means.
Labor Arbiter's Decision
On February 21, 2014, Labor Arbiter Jaime M. Reyno ruled in favor of Alacre, awarding him US$60,000 in total permanent disability benefits and attorney’s fees, after concluding that the company-designated physician had failed to provide a definitive assessment, thus rendering his condition permanently disabling. The Labor Arbiter concluded that the applicable collective bargaining agreement (CBA) had expired, making the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) the governing law.
National Labor Relations Commission (NLRC) Ruling
Petitioners appealed this Decision to the NLRC, which, on August 29, 2014, reversed the Labor Arbiter's ruling, citing that the CBA remained effective due to a lack of termination notice and deferred ruling on the disability claim pending resolution of a claim before the Danish National Board of Industrial Injuries (NBII). Following a motion for reconsideration that was also denied, Alacre subsequently initiated a petition for certiorari with the Court of Appeals (CA) arguing that the NLRC had acted with grave abuse of discretion.
Court of Appeals Decision
The CA ruled on July 13, 2016, favoring Alacre and reinstating the Labor Arbiter's Decision. The court found that the disability unknown was total and permanent given the failure of the company-designated physician to make a definitive decision within the 240-day timeframe, and affirmed the notion of off-setting any amounts received from the NBII against the POEA-SEC benefits.
Legal Arguments Raised by Petitioners
In its certiorari petition, TORM Shipping raised several arguments alleging errors by the CA, including claims that Alacre had filed his complaint prematurely while pursuing benefits under Danish law, that the company-designated physician’s assessment should limit disability claims, and that provisions in the CBA related to off-setting had been ignored.
Court's Analysis and Ruling
The Supreme Court found merit in TORM Shipping's petition, characterizing the issues involving the applicability of the CBA and Alacre's disability grading as central to the dispute. It ruled that the CBA remained effective beyond its stated duration, emphasizing that no termination notice had been presented, thereby establishing its governing terms, especially
...continue readingCase Syllabus (G.R. No. 229228)
Background of the Case
- This case involves a Petition for Review on Certiorari filed under Rule 45 of the Rules of Court by TORM Shipping Philippines, Inc., and TORM against Pamfilo A. Alacre, seeking to annul a Decision of the Court of Appeals (CA) dated July 13, 2016, and its subsequent Resolution dated January 11, 2017.
- The CA's Decision had granted Alacre's petition for certiorari, annulled the earlier rulings of the National Labor Relations Commission (NLRC), and reinstated the Labor Arbiter's (LA) Decision from February 21, 2014.
Antecedent Facts
- Pamfilo A. Alacre was employed as a Fitter by TORM Shipping Philippines, Inc. for a six-month contract aboard the vessel Torm Kristina, with a salary of US$648.00 per month.
- Alacre underwent a Pre-Employment Medical Examination and was deemed fit to work before his embarkation on March 12, 2012.
- In July 2012, while on duty, Alacre experienced pain in his right shoulder, leading to a diagnosis of "Right shoulder sprain, right hand joint sprain."
- Following his repatriation on July 8, 2012, he was examined by the company-designated physician and underwent treatments from July to October 2012.
- A Medical Report on October 29, 2012, noted an interim disability grading of "Grade 10," indicating significant limitations.
- Alacre continued therapy and, due to persistent pain, sought a second opinion from Dr. Venancio P. Garduce, Jr., who recommended a Grade 3 disability grading after surgery on February 13