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DECISION
PERALTA , J : p
Before the Court is a petition for review on certiorari seeking the reversal and
setting aside of the Decision 1 and Resolution 2 of the Court of Appeals (CA), dated
February 25, 2015 and August 18, 2015, respectively, in CA-G.R. SP No. 133128. The
assailed CA Decision reversed the October 21, 2013 3 and November 21, 2013 4
Resolutions of the National Labor Relations Commission (NLRC), which, in turn,
a rmed the July 26, 2013 Decision 5 of the Labor Arbiter (LA) in NLRC NCR OFW [M]-
00-10-16061-12 and denied petitioners' subsequent Motion for Reconsideration. 6 The
LA Decision dismissed herein respondents' complaint for the payment of death and
other benefits, salaries as well as damages. AIDSTE
The pertinent factual and procedural antecedents of the case are as follows:
On September 16, 2011, herein petitioners employed Ricardo Ganal (Ganal) as an
oiler aboard the vessel MV Stadt Hamburg in accordance with the provisions of the
Philippine Overseas Employment Administration (POEA)-Standard Employment
Contract, which was executed by and between the parties. On September 20, 2011, he
commenced his employment.
Around 7 o'clock in the evening of April 15, 2012, a party was organized for the
crewmen of MV Stadt Hamburg while the ship was anchored at Chittagong,
Bangladesh. After nishing his shift at 12 midnight, Ganal joined the party. Around 3
o'clock in the morning of April 16, 2012, the ship captain noticed that Ganal was already
drunk so he directed him to return to his cabin and take a rest. Ganal ignored the ship
captain's order. Thus, a ship o cer, a security watchman and a member of the crew
were summoned to escort Ganal to his cabin. The crew members attempted to
accompany him back to his cabin but he refused. They then tried to restrain him but he
resisted and, when he found the chance to escape, he ran towards the ship's railings
and, without hesitation, jumped overboard and straight into the sea. The crew members
immediately threw life rings into the water towards the direction where he jumped and
the ship o cer sounded a general alarm and several alarms thereafter. Contact was
also made with the coast guard and the crew members searched for Ganal, to no avail.
Ganal was later found dead and oating in the water. The subsequent medico-legal
report issued by the Philippine National Police showed that the cause of his death was
asphyxia by drowning.
However, it is equally settled that one of the exceptions to the above rule is when
the factual ndings of the quasi-judicial agencies concerned are con icting or contrary
with those of the CA. 1 2
Considering that the factual ndings of the LA and the NLRC are opposed to
those of the CA, it behooves this Court to look into the evidence presented to resolve
the present petition.
It is settled that the employment of seafarers, including claims for death
bene ts, is governed by the contracts they sign at the time of their engagement. 1 3 As
long as the stipulations in said contracts are not contrary to law, morals, public order,
or public policy, they have the force of law between the parties. 1 4 Nonetheless, while
the seafarer and his employer are governed by their mutual agreement, the POEA Rules
and Regulations require that the POEA-Standard Employment Contract be integrated
with every seafarer's contract. 1 5
Thus, in case of death of the seafarer, Section 20 (B) of the Standard Terms and
Conditions Governing the Overseas Employment of Filipino Seafarers On-Board Ocean-
Going Ships, as amended in 2010, provides as follows:
B. COMPENSATION AND BENEFITS FOR DEATH
1. In case of work-related death of the seafarer, during the term of his
contract, the employer shall pay his bene ciaries the Philippine currency
equivalent to the amount of Fifty Thousand US dollars (US$50,000) and an
additional amount of Seven Thousand US dollars (US$7,000) to each child
under the age of twenty-one (21) but not exceeding four (4) children, at the
exchange rate prevailing during the time of payment.
2. Where death is caused by warlike activity while sailing within a declared
war zone or war risk area, the compensation payable shall be doubled. The
employer shall undertake appropriate war zone insurance coverage for this
purpose.
3. It is understood and agreed that the bene ts mentioned above shall be
separate and distinct from, and will be in addition to whatever bene ts which
the seafarer is entitled to under Philippine laws from the Social Security System,
Overseas Workers Welfare Administration, Employee's Compensation
Commission, Philippine Health Insurance Corporation and Home Development
Mutual Fund (Pag-IBIG Fund).
4. The other liabilities of the employer when the seafarer dies as a result of
work-related injury or illness during the term of employment are as follows:
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a. The employer shall pay the deceased's bene ciary all
outstanding obligations due the seafarer under this Contract.
b. The employer shall transport the remains and personal
effects of the seafarer to the Philippines at employer's expense
except if the death occurred in a port where local government laws
or regulations do not permit the transport of such remains. In case
death occurs at sea, the disposition of the remains shall be
handled or dealt with in accordance with the master's best
judgment. In all cases, the employer/master shall communicate
with the manning agency to advise for disposition of seafarer's
remains.
c. The employer shall pay the bene ciaries of the seafarer the
Philippine currency equivalent to the amount of One Thousand US
dollars (US$1,000) for burial expenses at the exchange rate
prevailing during the time of payment.
Under the above-quoted provisions of the Standard Terms and Conditions
Governing the Overseas Employment of Filipino Seafarers On-Board Ocean-Going
Ships, as amended, the death of a seafarer by reason of any work-related injury or
illness during the term of his employment is compensable.
On the other hand, Section 20 (D) of the same Standard Terms and Conditions
states that:
D. No compensation and bene ts shall be payable in respect of any injury,
incapacity, disability or death of the seafarer resulting from his willful or
criminal act or intentional breach of his duties, provided however, that the
employer can prove that such injury, incapacity, disability or death is directly
attributable to the seafarer.
Also, under Article 172 of the Labor Code, which may also be made applicable to
the present case, the compensation for workers covered by the Employees
Compensation and State Insurance Fund are subject to the limitations on liability, 1 6 to
wit:
Art. 172. Limitations of liability. — The State Insurance Fund shall be liable
for the compensation to the employee or his dependents except when the
disability or death was occasioned by the employee's intoxication, willful intent
to injure or kill himself or another, notorious negligence, or otherwise provided
under this Title.
As de ned under the above-cited Standard Terms and Conditions, work-related
injury, or in this case, death, is any injury arising out of and in the course of employment.
The words "arising out of" refer to the origin or cause of the accident and are
descriptive of its character, while the words "in the course of" refer to the time, place,
and circumstances under which the accident takes place. 1 7 By the use of these words,
it was not the intention of the legislature to make the employer an insurer against all
accidental injuries which might happen to an employee while in the course of the
employment, but only for such injuries arising from or growing out of the risks peculiar
to the nature of work in the scope of the workmen's employment or incidental to such
employment, and accidents in which it is possible to trace the injury to some risk or
hazard to which the employee is exposed in a special degree by reason of such
employment. 1 8 Risks to which all persons similarly situated are equally exposed and
not traceable in some special degree to the particular employment are excluded. 1 9 EcTCAD
As a nal note, it is true that the bene cent provisions of the Standard
Employment Contract are liberally construed in favor of Filipino seafarers and their
dependents. 2 8 The Court commiserates with respondents for the unfortunate fate that
befell their loved one; however, the Court nds that the factual circumstances in this
case do not justify the grant of death benefits as prayed for by them as beneficiaries.
4. Id. at 188-189.
5. Id. at 128-134.
6. Id. at 180-185.
7. Rollo, pp. 19-20.
8. Crewlink, Inc. v. Teringtering, et al., 697 Phil. 302, 309 (2012).
9. Id.
10. Id.
11. Id.
12. General Milling Corporation v. Viajar, 702 Phil. 532, 540 (2013).
13. C.F. Sharp Crew Management, Inc., et al. v. Legal Heirs of the late Godofredo Repiso, G.R.
No. 190534, February 10, 2016.
14. Id.
15. Id.
16. Mabuhay Shipping Services, Inc. v. National Labor Relations Commission, 271 Phil. 142,
147 (1991).
17. Sy v. Philippine Transmarine Carriers, Inc., et al., 703 Phil. 190, 199 (2013), citing Iloilo Dock
& Engineering Co. v. Workmen's Compensation Commission, 135 Phil. 95, 110-113
(1968).
18. Amedo v. Olabarrieta, 95 Phil. 33, 36 (1954), citing Afable, et al. v. Singer Sewing Machine,
Co., 58 Phil. 39, 42 (1933).
19. Id.
28. Great Southern Maritime Services, Corporation, et al. v. Surigao, et al., 616 Phil. 758, 767
(2009).