In Hoegh Fleet Services Phils., Inc. v. Turallo, the Supreme Court affirmed that a seafarer is entitled to total and permanent disability benefits if the company-designated physician fails to provide a final assessment within the prescribed 120 to 240-day period. The Court clarified that an ‘interim’ assessment does not suffice as a final determination of disability. This ruling protects the rights of Filipino seafarers by ensuring timely and definitive medical evaluations, entitling them to just compensation if their ability to work at sea is compromised.

When Timely Medical Assessments Determine a Seafarer’s Right to Full Disability Benefits

The case originated from a claim filed by Bernardo M. Turallo against his employer, Hoegh Fleet Services, after he experienced pain while working as a Messman on board a vessel. Despite undergoing medical examinations and treatment, a final and definitive assessment of his disability was not issued by the company-designated physician within the mandatory period. The central legal question revolved around whether the interim assessments provided by the company doctor were sufficient to determine Turallo’s disability grading, and consequently, the amount of compensation he was entitled to receive.

The facts of the case reveal that Turallo was hired by Hoegh Fleet Services as a Messman. During his employment, he reported experiencing pain. Upon his return to Manila, he was examined by company-designated physicians who diagnosed him with several conditions and recommended surgeries. While Turallo underwent treatment, the company-designated physician provided an ‘interim’ assessment indicating a Grade 8 disability but did not issue a final and definitive assessment within the 120 to 240-day period prescribed by the POEA-SEC. This failure to provide a final assessment became the crux of the legal dispute.

The legal framework governing this case is primarily the Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC), which sets the terms and conditions of employment for Filipino seafarers. Section 32 of the POEA-SEC is particularly relevant, as it outlines the conditions under which a seafarer may be considered totally and permanently disabled. The Labor Code of the Philippines and related jurisprudence also play a crucial role in interpreting the provisions of the POEA-SEC, ensuring that seafarers’ rights are protected.

The Supreme Court, in resolving the dispute, emphasized the importance of the company-designated physician’s role in providing a timely and definitive assessment. Citing Kestrel Shipping Co., Inc. v. Munar, the Court reiterated that:

Indeed, under Section 32 of the POEA-SEC, only those injuries or disabilities that are classified as Grade 1 may be considered as total and permanent. However, if those injuries or disabilities with a disability grading from 2 to 14, hence, partial and permanent, would incapacitate a seafarer from performing his usual sea duties for a period of more than 120 or 240 days, depending on the need for further medical treatment, then he is, under legal contemplation, totally and permanently disabled.

Building on this principle, the Court underscored that the failure of the company-designated physician to provide a final assessment within the prescribed period results in the seafarer being deemed totally and permanently disabled. The Court found that the ‘interim’ assessment provided in Turallo’s case did not meet the requirement of a final and definite assessment, thus entitling him to total and permanent disability benefits.

In addressing the issue of attorney’s fees, the Court acknowledged that Article 111 of the Labor Code sets a limit on the amount of attorney’s fees that may be recovered. While the Labor Code allows for attorney’s fees equivalent to 10 percent of the amount recovered, the Court clarified that this serves only as the maximum allowable amount. The Court has the discretion to award a lower amount depending on the circumstances of the case. In this instance, the Court deemed five percent (5%) of the total monetary award as a more appropriate amount for attorney’s fees, considering the legal expenses incurred by Turallo in pursuing his claim.

The practical implications of this ruling are significant for Filipino seafarers. It reinforces the obligation of employers to ensure that company-designated physicians provide timely and definitive medical assessments. This protects seafarers from potential delays or ambiguities that could deprive them of just compensation for their disabilities. Additionally, the clarification on attorney’s fees ensures that seafarers are fairly compensated for the legal expenses they incur while safeguarding against excessive fees.

FAQs

What was the key issue in this case?	The key issue was whether the seafarer was entitled to total and permanent disability benefits when the company-designated physician failed to issue a final assessment within the prescribed period.
What does "total and permanent disability" mean in this context?	It means the seafarer is unable to perform his usual sea duties for more than 120 or 240 days due to an injury or illness, or if the company doctor fails to give a final assessment within that period.
What is the role of the company-designated physician?	The company-designated physician must provide a final assessment of the seafarer’s fitness to work or permanent disability within 120 to 240 days from initial examination.
What happens if the company doctor fails to issue a final assessment on time?	If the company-designated physician fails to provide a final assessment within the prescribed period, the seafarer is deemed totally and permanently disabled.
What is the POEA-SEC?	The POEA-SEC is the Philippine Overseas Employment Administration Standard Employment Contract, which governs the terms and conditions of employment for Filipino seafarers.
How much can a seafarer recover in attorney’s fees?	Article 111 of the Labor Code sets a maximum of 10% of the recovered amount, but the court can award a lower amount as deemed appropriate.
What was the outcome of this case?	The Supreme Court affirmed the award of total and permanent disability benefits to the seafarer but modified the attorney’s fees to five percent of the total monetary award.
Why is a timely assessment important for seafarers?	A timely assessment ensures that seafarers receive just compensation and benefits if their ability to work at sea is compromised due to injury or illness.

This case serves as a reminder of the importance of adhering to the timelines and requirements set forth in the POEA-SEC to protect the rights of seafarers. The ruling emphasizes the need for clear and definitive medical assessments to ensure that seafarers receive the compensation they are entitled to under the law.

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: HOEGH FLEET SERVICES PHILS., INC. VS. BERNARDO M. TURALLO, G.R. No. 230481, July 26, 2017