Case Summary (G.R. No. 160444)
Petitioner
Wallem Maritime Services, Inc., responsible for crew placement, wages and medical oversight under the POEA Standard Employment Contract.
Respondent
Ernesto C. Tanawan, a Filipino seafarer employed as a dozer driver, claiming disability benefits for foot and eye injuries.
Key Dates
• May 12, 1997 – Employment contract begins.
• November 22, 1997 – Foot injury aboard vessel; multiple fractures diagnosed in Malaysia.
• November 28, 1997 – Repatriation to the Philippines.
• December 1, 1997 – Company-designated physician (Dr. Lim) evaluates foot injury.
• March 31, 1998 – Private physician (Dr. Saguin) classifies foot disability as Grade 12.
• April 7, 1998 – Bone grafting and pinning of 5th metatarsal.
• May 21, 1998 – Dr. Lim pronounces Tanawan fit to work.
• August 25, 1998 – Tanawan undergoes private eye evaluation (Grade 7 disability).
• January 21, 2000 – Labor Arbiter awards disability benefits.
• June 13, 2001 – NLRC reverses Labor Arbiter.
• November 29, 2002 – Court of Appeals reinstates Labor Arbiter.
• August 29, 2012 – Supreme Court issues final decision.
Applicable Law
1987 Philippine Constitution; 1996 POEA Standard Employment Contract, Section 20(B) governing compensation for injury or illness; pertinent jurisprudence on seafarer disability benefits and mandatory reporting.
Factual Background
Tanawan’s contract entitled him to US$355 basic monthly wage, overtime pay and vacation leave pay. On November 22, 1997, while lifting a steel plate aboard M/V Eastern Falcon, he sustained multiple fractures to the left foot. He was treated abroad, repatriated on November 28, 1997 and underwent evaluation and treatment under company-designated physician Dr. Robert D. Lim from December 1, 1997 to May 21, 1998. During this period he received sickness allowances. Concerned about his disability grading, Tanawan consulted private physician Dr. Rimando Saguin (March 31, 1998) who classified the foot injury as Grade 12. Separately, in August 1998 he sought evaluation for a right-eye condition allegedly resulting from paint thinner exposure on October 5, 1997; ophthalmologist Dr. Bunuan classified that disability as Grade 7.
Procedural History
Tanawan filed for disability benefits before the NLRC, claiming US$5,225 for the foot injury, US$20,900 for the eye injury, sickness allowances, damages and attorney’s fees. The Labor Arbiter (January 21, 2000) awarded both disability claims and attorney’s fees. The NLRC reversed and dismissed the complaint (June 13, 2001). The Court of Appeals annulled the NLRC decision and reinstated the Labor Arbiter’s award (November 29, 2002).
Issues
- Whether the POEA Standard Employment Contract is binding law between seaman and manning agent.
- Whether the company-designated physician has exclusive authority to declare fitness or disability.
- Whether failure to report an alleged injury within three days bars entitlement to disability benefits.
Supreme Court’s Ruling
- The POEA Standard Employment Contract, incorporated into every seafarer’s engagement, has the force of law so long as its provisions do not contravene public policy.
- Section 20(B) of the 1996 POEA SEC mandates submission to a company-designated physician within three working days after repatriation to determine fitness or degree of disability. This examination is not conclusive; a seafarer may obtain a second opinion and have that report evaluated on its merits.
Case Syllabus (G.R. No. 160444)
Facts of the Case
- On May 12, 1997, petitioner Wallem Maritime Services, Inc., acting as local agent of Scandic Ship Management, Ltd., engaged respondent Ernesto C. Tanawan as dozer driver aboard M/V Eastern Falcon for 12 months under the 1996 POEA Standard Employment Contract.
- Tanawan’s compensation included a basic salary of US$355.00/month, overtime pay of US$2.13/hour, and vacation leave pay of US$35.00/month.
- On November 22, 1997, Tanawan’s left foot was injured when a steel plate slipped and struck it; x-rays revealed multiple fractures of the left toes and metatarsals.
- He was treated in Malaysia, repatriated on November 28, 1997, and presented himself on December 1, 1997 to Dr. Robert D. Lim—the company-designated physician—at Metropolitan Hospital.
- From December 1, 1997 to May 21, 1998, Dr. Lim provided immobilization, cast removal, motion exercises, partial weight bearing, physical therapy, and ultimately declared Tanawan “fit to work.”
- While still under treatment, on March 31, 1998, Tanawan consulted Dr. Rimando Saguin, who graded the foot injury as Grade 12 permanent disability under the POEA Schedule of Disability.
- Separately, on August 25, 1998, Tanawan sought evaluation of a right-eye injury from Dr. Hernando D. Bunuan and ophthalmologist Dr. Tim Jimenez, who diagnosed retinal detachment with vitreous hemorrhage and graded it as Grade 7 permanent disability.
- Tanawan filed a complaint on November 26, 1998 with the NLRC seeking disability benefits for both injuries, sickness allowance, damages, and attorney’s fees.
Procedural History
- January 21, 2000: The Labor Arbiter awarded Tanawan US$5,225.00 for the foot injury and US$20,900.00 for the eye injury, plus attorney’s fees, dismissing other claims.
- June 13, 2001: The NLRC reversed the Labor Arbiter, dismissed Tanawan’s complaint for lack of merit.
- November 29, 2002: The Court of Appeals annulled the NLRC decision and reins