®
‘Republic ofthe Philippines
Supreme Court
‘Manila
SECOND DIVISION
INTERCREW SHIPPING G.R. No. 229299
AGENCY, INC, STAR
EMIRATES MARINE SERVICES Present
ANDIOR GREGORIO ORTEGA,
Petitioners, PERLAS-BERNABE, $.A./,
Chairperson,
HERNANDO,
INTING,
versus = DELOS SANTOS and
GAERLAN, J,
Promuleated!
OFRECINO B. CALANTOC,
Respondent. 0B JUL
DECISION
INTING,
‘This is a Petition for Review on Certiorari' under Rule 45 of the
1997 Rules of Civii Procedure that seeks to annul and set aside the
Decision’ dated November 27, 2017 and the Resolution’ dated May 10,
2018 of the Court 0” Appeals (CA) in CA-GR. SP No. 141153, and to
reinstace the Decisina’ dated March 31, 2015 of the National Labor
Relations Commission (NLRC) dismissing the complaint for disability
‘compensation for lace of merit.
Zac aowa enter fe Cu) wi
Zen Cate apn caiDesison a GRNo.2390%0
The Ameoedents
‘On March 14, 2008, Intererew Philippines Agency, Ine. (Intererew
Shipping) hired Offecino B. Calantoc (respondent) for its foreizn
principal, Star Emirates Marine Services (Star Emirates), as fourth
fngincer for a period, of 12 months with abasic monthly salary: of
1US$700.00. As such, respondent underwent a pre-employment medical
‘examination and was declared “fit for sea duty,” despite his high blood
pressure.*
(On March 20, 2008, respondent was deployed to join the vessel
MY Oryx, Four months into his contrat, respondent already
experienced a sluring of speech, weakness on his right side, and wes
agnosed with a mild stroke. However, he still continued his work on
board the vessel, but he later on requested to be repattated when his
condition worsened.’
On July 14, 2008, respondent arrived in the Philippines. He
immediately reported to Intererew Shipping, Star Emirates and Gregorio
nega, as the PresidenvGeneral Manager of Intererew Shipping
(collectively, ptitionsrs) and requested for medical assistance, but to ho
avail. Respondent made several requests, but-were repeatedly refsed
"He was then constrained te consult a doctor at his own expense”
‘On January £9, 2009, respondent then underwent a Magnetic
Resonance Imaging (MRI) examination which revealed a lange
convexity meningion a tumor in the let frontoparietal region. On the
samme date, respondent was admitted to the University of Santo Tomas
Hospital due to dhsphasia: He was also assessed with meningioma, left
parietal convexity, hypertension stage 2. On respondent's 10" day in the
hospital, he underwent a surgery on his skull, ie, a “Tf fromtoparieral
‘craniotomy for excision of meningioma and duraplast).™
* 1.015. Minion ator at eo embed cnr he tn pn cod
Fett ll va Tecmo mening emt wel ance once te
‘prominent ated 3)Desision a GRNo. 259209
Respondent now claimed that because of hs illness he was unable
to retum to his customary work as a seafiver for more than 120 days,
Petitioners repeatedly refused to grant him disability benefits, Thus, he
filed a complaint clsiming éissbility compensation, payment of medical
‘expenses, damages, and attomey's fees"
Petitioners, on the other hand, asserted that there was no accident
‘or medical incident that happened on board the vessel during the period
‘of respondent's employment; that respondent only requested to be signed
off duc to @ pre-existing high blood pressure; that upon respondent's
arrival, he was relemed to the company-designated physician, but
fefused to undergo post-employment medical examination; and that
Fespondent opted to collet his final pay and infact, executed a release in
petitioners favor.
For the petitioners, respondent failed to prove that he suffered a
Work-related illness during the term. of his employment that
respondent's claim had already been rendered stale by his inaction for
{v0 years as when he was repatriated on July 15, 2008 and only filed the
‘complaint on December 21, 2010."
Ruling ofthe Labor Arbiter (LA)
On August 28, 2014, LA Jaime M, Reyno rendered a Decision”,
the dispositive portion of which reads
WHEREFORE, promises considered, jalgment is herchy
endered ordering Intrerew Shipping. Ageny/Str Emies maine
Services Gresorn Ortega to pny’ complainant Ofesino B Calntoe
‘he amount of SIXTY THOUSAND US DOLLARS ($60.00000)
‘epresentng fll disability benef plus en peer (109) heen a2
snd for atomey’s fer,
Respondent are likewise abet pay emplainan the anoint
of 557,062.50 as medial veimbursmit pis the amount a
[US62,800 0 as icknes wage
Allo laims are dismised
SOORDIRED."Decision H GRNo. 230099
Ruling ofthe NLRC
On March 3! 2015, the NLRC rendered a Decision, with
Commissioner Nieves F. Vivar-De Castro, dissenting. The dispositive
Portion of the Decision reads inthis wise:
WHEREFORE, premises considers, the appeal is
GRANTED; anche assed Decision of the Labor Arbiter s SET
ASIDE, The complaint is hereby DISMISSED for ok of mari
SOORD! RED."
Respondent then fled » Motion for Reconsideration.”
On May 15, 21
Resolution."
the NLRC denied the motion through a
In his Petition for Cerviorar under Rule 68 of the Rules of Court,
before the CA, respondent raised the following. grinds for the later
consideration, fo wit
L THE NLRC] (SixrA DIVISION) GRAVELY
ABUSED [THE'R] DISCRETION AMOUNTING TO LACK OR
EXCESS OF JURISDICTION IN SETTING ASIDE THE
DECISION OF THE HONORABLE {LA
TLE (NLRC) (SIXTH DIVISION) GRAVELY
ABUSED [THEIR] DISCRETION AMOUNTING TO LACK OR
EXCESS OF JURISDICTION, DISENTITLING [RESPONDENT]
‘TO PERMANENT TOTAL DISABILICY BENEFITS() MEDICAL
REIMBURSEMENT AND FULL SICKNESS ALLOWANCE AS
STATED IN THE CONTRACT AND THE POEA STANDARD
EMPLOYMENT CONTRACT,
|. THE NLRC] (SIXTH DIVISION) GRAVELY
ABUSED [THEIR] DISCRETION AMOUNTING TO LACK O&
EXCESS OF JURISDICTION DISMISSING "THE CASEDecision a GRNp. 239209
DISENTITLING [RESPONDENT] TO DAMAGES AND
ATTORNEY'S FES™
Ruling ofthe CA
2017, the CA rendered the assailed Decision”
finding. merit in the petition. It approved the Dissenting Opinion of
Commissioner Nieves E. Vivar-De Castzo as to why respondent's iness
is compensable. The dispositive portion oF the assailed Decision reads as
follows:
WHEREFORE, premises considered, he instant Petition is
horety GRANTED. Accordingly the Decision ated 31 March 2013
‘and Resoltion ued 15 May 2015 rendered by the Nationa Labor
Relations Commsion is heeby ANNULLED and SET ASIDE and
he Devsion of the Cabor Aber dated 28 August 204 i8
REINSTATED with MODIFICATION, in that atoms Tes in the
!mount of one th asand US dollars (USI, 00000) os eqivlen fn
Philippine pesos, computed tthe exchange rate peving at he tine
‘or atl payment should be pa,
The monetary jument dv 1 the pene shall er legal
interest at the rate ots percent (94 ox annum oon finaly ofthe
Dectston unt ily st,
SO ORDERED.
Feeling agarieved, petitioners filed a Motion’ for
Reconsideration,
On May 10, 2018, the CA issued the assailed Resolution” denying
the motion,
Hence the instant petition
Issues
THAT RESPONDENTSEAFARER'S SIGN. OFF FROM THE
\VESSEL WAS DUE TO WORK-RELATED MEDICAL GROUNDS
CANNOT BE PRESUMED. RECORDS OF THIS CASE REVEALDecision 6 GN, 259200
‘THAT RESPONDENT SIGNED OFF ON 15 JULY 2008 DUE TO
HIS VOLUNTARY REQUEST
CIRCUMSTANCES. SUBSEQUENT TO RESPONDENT'S. SIGN
OFF BELIE THE CLAIM, RESPONDENT DID NOt DEMAND
FOR POST-EM LOYMENT MEDICAL EXAMINATION WITHIN
3 DAYS FROM ARRIVAL ~ INSTEAD IIE RECEIVED HIS FINAL
WAGES ON 22 JULY 2008, IN. SUPPORT OF HIS CLAIM
RESPONDENT PRESENTED A MEDICAL ABSTRACT DATED
20 FEBRUARY 2009, 7 MONTHS “AFTER HIS. SIGN. OFF,
MEANWHILE, "THE COMPLAINT FOR. DISABILITY
COMPENSATION WAS FILED ONLY ON 26 JANUARY 2011
ALMOST 3 YEARS AFTER SIGN OFF,
‘THERE 1S NO PROOF ON RECORD THAT RESPONDENT'S
ALLEGED ILLSESS 18 WORK-RELATED, UNDER THE POFA
CONTRACT, ONLY WORK-RELATED ILLNESSES SUTFERED
DURING THE ERM OF EMPLOYMENT ARE COMPENSABLE.
WORK-RELATION CANNOT BE PRESUMED. NO LESS THAN
THE SUPREM: COURT HAS RULED THAT THE BURDEN OF
PROOF TO PROVE WORK-RELATION BELONGS TO. THE
SEAFARER WI DIS CLAIMING COMPENSATION.
THE CLAIM WAS DENIED BY PETITIONERS OW JUST AND
VALID “GROUNDS. RESPONDENT IS NOT ENTITLED TO
ATTORNEY'S Flas nthe vial)
Our Ring
The petition is without meri
“Preliminarily, the Court stresses the distinet_approach in
reviewing @ CAs rung ina labor case, In a Rule 45 review, the Coit
‘examines the eorresiess of the CA’s Decision in contrast with the
review of jurisdictional errors under Rule 65. Furthermore, Rule 43
limits the review to questions of law. In ruling for legal correctness the
Court views the CA Decision in the same context thet the petition
for certiorari was prsented to the CA. Hence, the Court has to examine
the CA's Decision from the prism of whether the CA correctly
determined the presence or absence of grave abuse of discretion in the
NLRC devision.”
>» Pai: PhtyeineTvemarine Cag, G:, No 2177, Noh 1,219 UST
"Sri Monger Se Ou 13, 1220) sing Cares
ngs Coast, APL. O16,Decision 7
GRNo. 239299
“In labor cases, grave abuse of discretion may be ascribed to the
NLRC when its findings and conclusions are not supported. by
substantial evidence. which refers to that amount of relevant evidence
that a reasonable mind might accept as adequate to justify a eonelusion
‘Thus, if the NLRC's ruling has bass in the evidence and the applicable
law and jurisprudence, then no grave abuse of discretion exists and the
CA should so declare and, accordingly, dismiss the petition.”
Here, the CA found that the NLRC committed grave abuse of
iseretion amounting to lack of jurisdiction when it granted petitioner's
appeal before it. The Court defines grave abuse of discretion ay sch
capricious and whimsical exercise of judgment as is equivalent to lack of
Jurisdiction * It must be patent and gross as to amount to an evasion of a
Positive duty or a virual refusal to perform a duty enjoined by fawy oto
‘ct at all in contemplation of law, as where the power is exercised
arbitrary and despotic manner by reason of passion and hostility
Given the forezoing, the Court finds that the CA did not ere in
ascribing grave abuie of discretion on the part of the NLRC as the
laters finding that there is no sufficient evidence in te ease to conelude
‘that respondent suffered from a work-related iliness and is. therefore, not
entitled to permaner and total disability benefits is obviously not in
accord with evidence on record and settled legal principles of labor law.
ln this ease, respondent executed his employment contract with
petitioners on March 14, 2008. Thus, the provisions of the 2000
Philippine Overseas Employment Administration-Standard Employment
Contract (POEA-SEC)” are applicable and should govern the parties’
relations,
Section 20(8X5) ofthe 2000 POEA-SEC pros
SECTION 20, COMPENSATION AND BENEFITS
', COMPENSATION AND BENEFITS FOR INJURY OF ILLNESS
Scena ora SoeDesison 8 GRNo. 239209
The lables ofthe employer when the sairer sles work-related
{injury rites during the term a his contract area lls
6. tn case of present otal oe pai isabiliy ofthe sear cased
by either injure illess the sefner shall be compensted ft
cordance with se scale of benefits enurited in Section 22 of
his Conta: Computation of his benefits arin fom am ile of
sca shall be aovemed by the rates andthe rates of compensation
applicable tthe time the hes or dseise was conta
Given the foregoing provision, there ate two elements that must,
concur before an injury oF illness is considered compensable: frst that
the injury or illness must be work-related; and second, that the work.
related: injury or illness must have existed during the term of
the seafarers! employment contract.”
‘The “work-related injury,” under the 2000 POEA-SEC, is defined
8s “injuryies)”resu fing in disability or death arising out of and in the
course of employment; “work-related ilness” is defined as “any sickness
resulting 10 disability’ or death as a result of an occupational disease
listed under Section 39-A of thi contract with the conditions set thee
satisfied,” to wit
1. The seafarers work must involve th sks described herein:
2- The disease was contacted a 9 res ofthe seafiers expose to
the deseribed ss
5. The discase was contract within + pied of esposure and unor
eh oer ators necessty to contac ad
4 There was no orious negligence onthe prof the seafare
In this case, i i undisputed that inthe Pte-Emplayment Medical
Examination (PEMEY” of respondent, under his medical history, he
suffered from or hac been told that he has a high blood pressure. It
Tikewise beyond dispute that tespondent's mild cerebro- vascular accident
es ley Seni 6 a A 7
Maris PLS on” PME OT ~Decision ° GRNo, 239200
oF stroke is s compensable disease under Section 32-A of the 2000
POEA-SEC, as correctly found by the NLRC."
However, the Court adheres to th findings ofboth the LA and the
CCA that petitioners, despite knowing that respondent fas a high blood
Pressure, gave the inter a clean bill of health, through the former's
accredited clini, before deployment which leads to a conclusion that
‘Whatever illness respondent suffers on board the vessel is work-related
It goes without saying, too, that respondent's work as a seafaer could
have attributed to the development of his meningioma”
In the words of the LA, “[w}hile om hoa the vessel, (respondent)
is exposed fo extremes in temperature brought about by the harshness of
s0@ travel and the elements ofthe sea and has mo choice of the food that
‘they eat because whatever are their provisions, the same shall be served
‘othem.
Further, the Court adopts the CA's approval of Commissioner
Nieves B. Vivar-de Castro's Dissenting Opinion, which reads:
Moreover. the Complainant’ hypertension, while pre=
sinting is mecely” one of the fctrs tht cased his stke
Convery, “the nature and ‘conions of the Complaints
employment also took put inthe resukig ilnss which hed
sulered, These cde, sap stated bythe Labor Air gu, he
Complainants exposure to extreme tetpeatres Drought aus bythe
harshness of sen ireland the elements of these, the quali ad
‘ondton of the ood he ate, a Well the sin and ses ta he
Dnt sufer brought shout by his dais and tsks on Bead ths
‘esse Otherwise sate, such hatte and conttons of work tthe
very east inresed the rik of contacting the ins, ov agsavatd
his recs nypertension that lest sso, an for which he
should be compenssad therefor As cali mentioned tht the work
contibuted ever to a small degice to fo the development or
‘aggravation of: disease fs enough to vara compensation. wx
may no be amis oot at hij that othe lack
of proper mee treatment alr hi reptraton, the Compas
‘medical conden waronad which imately ed to ¢ Ring of
-Meningioma.a kind of bran tune which i fen described sow
agowing x x x. To my mind. despite having boon discovered
iagnosed sx (6; months ater he Complaina's eatin, the aidDesision o GaN. 239209
ios nevetsss manifested a the i instance when he sued &
ssroke whilon bard the vensh x33”
‘Thus, the Court adheres to Commissioner Nieves E. VivarDe
Castro in saying that petitioners having engaged the respondent. as
hypersensitive as he is, they should now accept the liability for his
‘ensuing ailment in the course of his employment."
{It is not required that an emptoyee must be in perfect health when
‘he contracted the iliness to be able to recover disability compensation.”
Ieis equally tue, thot while the employer is not the insurer of the health
‘of the employees, once he takes the employees as he finds them, then he
already assumes the risk of liability.”
In sum, despite respondents pre-existing high blood pressure oF
hypertension, he was still intially declared fit for sea euty during his
PEME. Therefore, his meringiomo is presumed to have been brought
aboot by the nature of his employment and occurred during and in the
‘course of his employment. This goes without saying that respondents
¢ntitted to total and permanent disability benefits because, as aply found
by both the abor arbiter and the CA, he wold not be able to recume to
his position as a fou th engineer o, at least, be hited by other maritime
employers.
Section 20(8 X6) ofthe POEA-SEC mandates the employer to pay
the seafarer disabil'y benefits for his permanent total .or partial
Aisability caused by the work-related illness or injury once’ there is
already a finding of permanent either total or partial disability within the
120-day period or the 240-day period.” A permanent disability
essentially means a permanent reduction of the eating power of &
Seafarer to perform future sea or on beard duties and. permanent
disability benefits serve as a means 1o alleviate the seafarers financial
condition on account of the level of injury or illness he incurred or
contracted."
ching Sea pment ond Pra. nv: MLR 38 PS, 914 00,Decision 4" GRNo. 239209
‘A reading of the three kinds of liabilities under Section 20(B) of
the POEA-SEC mans that the POEA-SEC intended. to make. the
employer liable for (1) the seafarer's sickness allowance equivalent to
his basie wage in addition to the medical treatment that they: must
provide the Seafarer with at theit cost; and (2) seafiree’s permanent total
‘or artil disability as finally determined by the company-designated
physician
‘The Court retiocinated that while Section 20 of the POEA-
SEC did not state on clear terms that the employer's liabilities are
‘cumulative in nature, which means so say thatthe employer is fable for
the sickness allowance, medical expenses and disability benefits, it does
not, however; state iat the compensation and benefits are alternative oF
‘thet the grant of one negates the grant af the others. This interpretation,
in fat, is in accord with the constitutional policy that guarantees full
protection to labor, both loeal and overseas.
‘Time and again, the Court is clear that the POEA-SEC is imbued
‘with public interest, Accordingly, its provisions must be construed furl,
feasonably, and liberally in favor of the seafarer in the pursuit of his
employment on board ogean-going vessels.”
All told, the Court finds it proper the award to respondent of the
following amounts, to. wit: (1)US$60,000.00 as permanent total
lsability benefit (2)US82,800.00 as. sickness allowances" (3)
557,062.50 as medical expenses” and (4) USSI,000.00 as attorney's
fees.
Inaccordance with Nacar x Gallery Frames, the monetary
awards shall eam a legal interest of 6% per annum computed {rom
finality ofthe Decision in this case until full satisfaction thereof,
Them 27013,2 GRNo.
9299
WHEREFORE, the petition is DENIED. The Decision dated
November 27, 2017 and the Resolution dated May 10,2018 of the Court
‘of Appeals in CA-G.R. SP No, 141153 are AFFIRMED.
SO ORDERED,
——
HENKIIEAN PaOL B. INTING
“Assoclate Justice
We CONCUR!
ESTELA M. PERLAS-BERNABE
Senior Associate Justice
Chairperson |
PRUT L. HERNANDO rDGARbo 1. DELOS SANTOS
Associate Justice
Ral
Associate Justice
samanh SRIAN
Associate Iustice
ATTESTATION
attest thatthe conclusions inthe above Deis
in consultation before the ease was assigned
of the Cours Divis"xn,
1 had heen reached
to the waiter of the opinion
ESTELAM. PRRLAS-BERNABE
Senior Associate Justice
ChairpersonDecision 8 GRNo. 239290
CERTIFICATION
Pursuant to Section 13, Ariele VII oF the Consiuion and the
Division Chairperson's Attestation, {ceri that the conclusions in the above
Deckon ha sen eased in consultation hee the ase ws signe ois
‘writer ofthe opinion ofthe Court's Divisig.
t \
DIOSDADO M. PERALTA,
Chief ustice