In Jessie V. David vs. OSG Shipmanagement Manila, Inc., the Supreme Court ruled in favor of a seafarer, reinforcing the principle of presumed work-relatedness for illnesses not explicitly listed in the POEA-SEC. The court emphasized that unless substantial evidence proves otherwise, illnesses suffered during a seafarer’s contract are presumed to be work-related. This decision clarifies the burden of proof on employers to disprove this presumption, particularly when the employer has already acknowledged a disability and provided sickness allowance. This landmark case underscores the importance of protecting the rights and welfare of Filipino seafarers, ensuring they receive just compensation for work-related illnesses.

Crude Exposure: When a Seafarer’s Cancer Claims Compensation

This case revolves around Jessie David, a seafarer who contracted malignant fibrous histiocytoma (MFH), now known as undifferentiated pleomorphic sarcoma (UPS), during his employment. Despite initial uncertainty from company-designated physicians about the work-relatedness of his condition, David was certified with a Grade I disability by his employer. The central legal question is whether David’s illness is compensable under the Philippine Overseas Employment Agency Standard Employment Contract (POEA-SEC), considering the disputable presumption of work-relatedness and the employer’s certification of disability.

The legal framework for this case is primarily anchored on Section 20(B) of the POEA-SEC, which outlines the liabilities of employers when a seafarer suffers a work-related injury or illness. A crucial aspect is the disputable presumption established in Section 20(B)(4), stating that illnesses not listed in Section 32 of the contract are presumed to be work-related. This presumption is designed to protect Filipino seafarers, aligning with Executive Order No. 247, which mandates the POEA to secure the best terms and conditions for overseas Filipino workers.

Building on this principle, the Supreme Court examined whether David’s MFH/UPS could be linked to his work environment. David’s duties as a Third Officer on a crude tanker involved overseeing the loading, stowage, securing, and unloading of cargoes, which meant frequent exposure to crude oil. Crude oil contains hazardous chemicals, including sulphur, vanadium, arsenic compounds, hydrogen sulphide, carbon monoxide, and benzene. These substances have been linked to an increased risk of developing cancerous masses. The court noted that it is not necessary for the employment to be the sole cause of the illness, but only that there is a reasonable connection between the disease and the work that could have contributed to its development or aggravation.

In contrast to the disputable presumption, respondents argued that David failed to provide substantial evidence proving a causal link between his work and his illness. They relied on the opinion of the company physician who, they claimed, confirmed the absence of a work-related connection. However, the Supreme Court found that this opinion was neither definitive nor conclusive. The court highlighted the significance of the employer’s certification that David had a Grade I disability. This certification, the Court reasoned, should be interpreted as an acknowledgment of the work-related nature of the illness, especially since employers typically do not certify the gravity of an illness unless it is related to employment.

The Court referenced the certification issued by OSG Manila stating:

C E R T I F I C A T I O N
TO WHOM IT MAY CONCERN:
This is to certify that MR. JESSIE V. DAVID, a resident of Block 3 Lot 4, NWSA Compound Tondo, Manila, has been given a permanent disability Grade of One (1) by Marine Medical Services.
This certification is being issued 28th day of June 2007 for whatever legal purpose it may serve him best.

Additionally, the court emphasized that the employer’s subsequent act of providing sickness allowance to David further corroborated the work-relatedness of his illness, and noted the following:

SECTION 20.   COMPENSATION AND BENEFITS. —
B. COMPENSATION AND BENEFITS FOR INJURY OR ILLNESSES
The liabilities of the employer when the seafarer suffers work-related injury or illness during the term of his contract are as follows:
3. Upon sign-off from the vessel for medical treatment, the seafarer is entitled to sickness allowance equivalent to his basic wage until he is declared fit to work, or the degree of permanent disability has been assessed by the company-designated physician, but in no case shall this period exceed one hundred twenty (120) days.

The Supreme Court ultimately sided with David. The Court reasoned that the respondents failed to rebut the disputable presumption of work-relatedness adequately. The court considered David’s exposure to hazardous chemicals, the ambiguous medical opinions, and, most importantly, the employer’s own certification of his Grade I disability. The Court underscored that substantial evidence, not proof beyond reasonable doubt, is sufficient to establish liability in labor cases. The findings of the Labor Arbiter (LA) and the National Labor Relations Commission (NLRC) were thus upheld.

This ruling has significant implications for Filipino seafarers. It reinforces the protective intent of the POEA-SEC and the importance of the disputable presumption in favor of seafarers. Moreover, it clarifies that an employer’s certification of disability can be a strong indication of work-relatedness, even if medical opinions are not conclusive. The case serves as a reminder to employers of their responsibilities towards seafarers’ health and well-being and the need to provide just compensation for work-related illnesses.

FAQs

What was the key issue in this case?	The central issue was whether Jessie David’s illness (Malignant Fibrous Histiocytoma) was work-related and thus compensable under the POEA-SEC, despite conflicting medical opinions. The Court considered the disputable presumption of work-relatedness and the employer’s certification of disability.
What is the POEA-SEC?	The Philippine Overseas Employment Agency Standard Employment Contract (POEA-SEC) is a standard contract that governs the employment of Filipino seafarers. It outlines the rights and responsibilities of both the seafarer and the employer, including provisions for compensation and benefits in case of injury or illness.
What is the disputable presumption of work-relatedness?	Under the POEA-SEC, illnesses not explicitly listed as occupational diseases are disputably presumed to be work-related if contracted during the seafarer’s employment. This means the burden shifts to the employer to prove that the illness is not work-related.
What kind of evidence is needed to prove an illness is work-related?	In labor cases, substantial evidence is required, which means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. This is a lower standard than proof beyond a reasonable doubt.
What was the significance of the employer’s certification in this case?	The employer’s certification stating that David had a Grade I disability was considered a strong indication of the work-related nature of his illness. The court reasoned that employers typically do not certify the gravity of an illness unless it is related to employment.
What chemicals found in crude oil were relevant to the case?	The court noted that crude oil contains sulphur, vanadium, arsenic compounds, hydrogen sulphide, carbon monoxide, and benzene. Exposure to these chemicals has been linked to an increased risk of developing cancerous masses.
Did the company physician’s opinion matter?	While the company physician’s opinion was considered, the court found it neither definitive nor conclusive. The absence of a clear, unambiguous statement disproving work-relatedness weighed against the employer.
What is the practical implication of this case for seafarers?	This case reinforces the protection of Filipino seafarers’ rights by upholding the disputable presumption of work-relatedness and emphasizing the importance of employer certifications. It makes it more difficult for employers to deny compensation for illnesses contracted during employment.

The Supreme Court’s decision in Jessie V. David vs. OSG Shipmanagement Manila, Inc. serves as a strong reminder of the protective measures afforded to Filipino seafarers under the POEA-SEC. By upholding the disputable presumption of work-relatedness and giving weight to employer certifications, the Court has strengthened the rights of seafarers to receive just compensation for illnesses contracted during their employment. This ruling underscores the importance of a fair and equitable application of labor laws to safeguard the well-being of overseas Filipino workers.

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: JESSIE V. DAVID VS. OSG SHIPMANAGEMENT MANILA, INC., G.R. No. 197205, September 26, 2012