In New Filipino Maritime Agencies Inc. v. Despabeladeras, the Supreme Court clarified the requirements for seafarers’ disability claims, emphasizing the importance of adhering to post-employment medical examination (PEME) protocols. The Court ruled that a seafarer’s failure to complete medical treatment with a company-designated physician, as required by the POEA-SEC, could result in the denial of permanent disability benefits. However, the seafarer is still entitled to temporary total disability benefits during the period of treatment.

When Medical Abandonment Impacts a Seafarer’s Right to Disability Benefits

Michael D. Despabeladeras, a seafarer, sustained an injury while working on board a vessel. He was repatriated to the Philippines and underwent medical treatment with a company-designated physician. However, he discontinued his treatment before a final assessment could be made. Subsequently, Despabeladeras filed a claim for permanent total disability benefits, which was initially granted by the Labor Arbiter (LA) but later reversed by the National Labor Relations Commission (NLRC). The Court of Appeals (CA) reinstated the LA’s decision, prompting the employer to seek recourse with the Supreme Court. The central legal question revolves around whether Despabeladeras was entitled to permanent total disability benefits despite his failure to complete the prescribed medical treatment and obtain a final assessment from the company-designated physician.

The Supreme Court, in resolving the dispute, delved into the intricacies of the POEA-SEC and relevant jurisprudence. It emphasized that the 120-day rule, often cited in disability cases, should not be applied rigidly. Rather, its application must consider the specific circumstances of each case, particularly the parties’ compliance with their contractual duties and obligations as laid down in the POEA-SEC and any applicable Collective Bargaining Agreement (CBA). The Court cited the landmark case of Vergara v. Hammonia Maritime Services, Inc., which clarified that the 120-day period could be extended up to a maximum of 240 days if the seafarer required further medical attention. The initial 120-day period serves as a period of temporary total disability, during which the seafarer receives his basic wage until he is declared fit to work or his temporary disability is acknowledged to be permanent.

Building on this principle, the Court underscored the importance of the company-designated physician’s assessment in determining the nature and extent of the seafarer’s disability. Section 20(B)(3) of the POEA-SEC mandates that upon sign-off from the vessel for medical treatment, the seafarer is entitled to sickness allowance until he is declared fit to work or the degree of permanent disability has been assessed by the company-designated physician. However, this period shall not exceed 120 days. The Court found that Despabeladeras’ failure to complete his medical treatment with Dr. Cruz prevented the latter from issuing a final assessment of his disability. This failure was deemed a breach of his duties under the POEA-SEC, which states that no compensation and benefits 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.

Moreover, the Court highlighted that Despabeladeras filed his complaint for permanent total disability benefits prematurely. He did so while he was still under the care of the company-designated specialist and without waiting for the latter’s assessment of his condition. This premature filing indicated that no cause of action for total and permanent disability benefits had yet accrued. The medical certificate he secured from Dr. Catapang, who was not a designated company physician, was deemed insufficient to establish his claim. The Supreme Court has consistently held that the company-designated physician is primarily entrusted with the task of assessing a seafarer’s disability. A procedure exists to contest these findings.

The Court distinguished the case from other rulings, such as Crystal Shipping, Inc. v. Natividad, where the seafarer was completely unable to work for three years and was indisputably unfit for sea duty. In contrast, Despabeladeras’ injury was gradually improving under the care of the company-designated orthopedic surgeon. As per the medical report, his range of motion was full, and his left hand had a good hand grip. This situation warranted continued treatment and the expectation of a potential fit-to-work declaration. The court stated that,

xxx This declaration of permanent total disability after the initial 120 days of temporary total disability cannot, however, be simply lifted and applied as a general rule for all cases in all contexts. The specific context of the application should be considered, as we must do in the application of all rulings and even of the law and of the implementing regulations.

In light of these considerations, the Supreme Court reversed the CA’s decision, holding that Despabeladeras was not entitled to permanent total disability benefits. The Supreme Court also cited the case of Splash Philippines, Inc. v. Ruizo, where it was held that such a refusal negated the payment of disability benefits. However, the Court acknowledged that he was entitled to income benefits for temporary total disability during the extended period of his treatment, which lasted for 166 days. This entitlement was computed from his repatriation on August 28, 2009, until February 10, 2010, when he last visited the company-designated orthopedic surgeon.

FAQs

What was the key issue in this case?	The key issue was whether the seafarer was entitled to permanent total disability benefits despite failing to complete medical treatment with the company-designated physician and obtain a final assessment.
What is the 120-day rule in seafarer disability cases?	The 120-day rule refers to the initial period after repatriation during which a seafarer is considered under temporary total disability and receives sickness allowance. This period can be extended up to 240 days if further medical treatment is required.
What is the role of the company-designated physician?	The company-designated physician is primarily responsible for assessing the seafarer’s disability and issuing a final assessment of their fitness to work or the degree of permanent disability.
What happens if a seafarer abandons medical treatment?	If a seafarer abandons medical treatment without a valid reason, it may be considered a breach of their duties under the POEA-SEC, potentially leading to the denial of disability benefits.
Can a seafarer consult other doctors?	Yes, a seafarer has the right to seek a second opinion from other doctors. However, the assessment of the company-designated physician generally takes precedence.
What is the significance of the Vergara case?	Vergara v. Hammonia Maritime Services, Inc. clarified that the 120-day rule should not be rigidly applied and that the period could be extended up to 240 days if further medical treatment is required.
What benefits is a seafarer entitled to during temporary total disability?	During temporary total disability, the seafarer is entitled to sickness allowance equivalent to their basic wage until they are declared fit to work or a permanent disability assessment is made.
What is the POEA-SEC?	The Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC) is a standard contract of employment prescribed by the POEA for Filipino seafarers working on foreign vessels.

This case serves as a crucial reminder of the obligations and procedures outlined in the POEA-SEC and the importance of adhering to medical assessment and treatment protocols. Seafarers seeking disability benefits must diligently comply with these requirements to ensure their claims are properly evaluated and processed. This ruling reinforces the need for clear communication and cooperation between seafarers, employers, and company-designated physicians to facilitate fair and just outcomes in disability compensation cases.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: New Filipino Maritime Agencies Inc. vs. Michael D. Despabeladeras, G.R. No. 209201, November 19, 2014