Franklin Baker Co. of the Philippines v.

Alillana 21 SCRA 1247

September 11, 2016

By Steve Louie C. Corpuz

Facts

Salvador Abrigo, an employee of Franklin Baker Company of the Philippines filed a claim for
compensation with the Regional Office No. 5, Department of Labor, for his disability from work during
the periods: February 26 to July 15, 1957; October 22 to October 26, 1967, and November 29, 1958 to
May 31, 1959 when he retired from the service allegedly due to “psychoneurosis”. On March 27, 1963,
the hearing officer ruled that Abrigo’s illness was traceable to his work and therefore compensable. On
April 15, 1963, Abrigo filed before the said petition for review and was denied but the entire records of
the case were ordered elevated to the Worksmen’s Compensation Commission. On March 21, 1964,
Abrigo filed a motion for reconsideration of the said decision praying that it be modified to extend the
period of paid coverage from February 26, 1957 up to at least August 12, 1960. On April 17, 1964 the
Commission en banc resolve to dismiss the said motion for reconsideration. Abrigo issued checks in
amounts stated in January 27, 1964 decision of the Workmen’s Compensation Commission. However,
with respect to the check in the amount of P358.55 payable to Abrigo, Workmen’s Compensation
Commission deducted therefrom P118.75 represents a benefit born out of a collective bargaining
agreement between the employers and its workers.

Issue

Whether or not the deduction of 118.75 previously paid by Workmen’s Compensation Commission to
Abrigo under its non-occupational accident and sickness disability benefit plan from the compensation
benefits awarded by Workmen’s Compensation Commission is proper.

Held

Yes. The court rendered that an agreement between an employer and and employee that pay payments
voluntarily made shall be deemed as an advance payment deductible from any compensation which
may be awarded by the Workmen’s Compensation Commission is not illegal and must be given effect.
Furthermore, physician’s and employer’s reports on Abrigo’s sickness revealed that the amount of
p118.75 previously paid by Workmen’s Compensation Commission to its non-occupational accident and
sickness disability benefit plan was not specifically for the headache and dizziness as psychoneurosis.
Hence, Workmen’s Compensation Commission made payment therefore covered by the benefit plan.
The court cannot be deluded and be deceived by the fact that Abrigo signed a “Satisfaction of Award or
Decision” which may be construed as a waiver. The decision of Workmen’s Compensation Commission
ordering the payment of Abrigo is already final considering that Abrigo did not appeal therefrom. As
bourne out by facts, Abrigo only filed a motion for reconsideration of the said decision which however
was denied by the Commission en banc in a resolution dated April, 1964. Needless to say, the decision
having become final, compliance therewith had likewise become legally mandatory. Therefore, Abrigo’s
subsequent act of deducting motu propio is totally unwarranted. Wherefore, the petition is hereby
denied.