In BARKO INTERNATIONAL, INC. v. ALCAYNO, the Supreme Court affirmed that a seafarer’s inability to work for over 120 days due to a work-related illness constitutes permanent total disability, regardless of a company-designated physician’s declaration of fitness to work. This ruling emphasizes the importance of actual incapacity over formal medical assessments, protecting seafarers’ rights to disability benefits. The decision underscores the principle that disability compensation aims to support workers unable to earn a living due to health issues stemming from their employment.

When a Seafarer’s Health Falters: Can a ‘Fit to Work’ Certification Deny Just Compensation?

Eberly S. Alcayno, an able-bodied seaman, was employed by Fuyo Kaiun Co. Ltd. through its local manning agent, Barko International, Inc. After passing his Pre-Employment Medical Examination (PEME), Alcayno began working on the M/V Cape Iris in December 2005. Just a month into his service, he started experiencing a stiff neck and swelling in his right jaw. His condition worsened, leading to his sign-off in Egypt in February 2006, where he was diagnosed with a severe neck infection and uncontrolled diabetes by Dr. Michael H. Mohsen.

Upon repatriation to the Philippines, Dr. Nicomedes G. Cruz, the company-designated physician, diagnosed Alcayno with uncontrolled diabetes mellitus and tuberculous adenitis. Despite undergoing a six-month anti-tuberculosis treatment, Alcayno’s condition led him to consult a private physician, Dr. Regina Pascua Barba, who confirmed the diagnosis and recommended continuous treatment until January 2007. Seeking compensation for his condition, Alcayno filed a complaint for disability benefits, medical expenses, and damages against Barko International, Inc., arguing that his illness was contracted during his employment and rendered him permanently disabled.

Barko International, Inc. countered Alcayno’s claim by presenting a medical evaluation from Dr. Cruz, dated August 17, 2006, stating that Alcayno’s condition was well-controlled and that he was fit to resume work. This declaration of fitness was made within 240 days from Alcayno’s repatriation. The Labor Arbiter (LA) initially ruled in favor of Alcayno, but the National Labor Relations Commission (NLRC) reversed this decision, stating that there was no substantial evidence to prove that the tuberculosis was contracted during his employment.

The Court of Appeals (CA) then reversed the NLRC’s resolution, reinstating the LA’s decision. The CA emphasized that the incapacity to work, resulting in impaired earning capacity, is what warrants compensation, not the injury or illness itself. The CA cited jurisprudence stating that an ailment occurring during employment is presumed to be caused by it, unless proven otherwise. The petitioners argued that the inability to work for a period of 120 days to a maximum of 240 days is only a temporary total disability, which becomes “permanent” only when declared so by the company physician within the prescribed period or upon expiration of the 240-day period without a declaration.

The central legal issue revolved around whether Alcayno was entitled to permanent total disability benefits, considering the conflicting medical assessments and the declaration of fitness to work by the company-designated physician. The Supreme Court had to determine if the actual incapacity of the seafarer should take precedence over the physician’s assessment, especially in light of the seafarer’s prolonged inability to resume his duties.

The Supreme Court upheld the Court of Appeals’ decision, finding that Alcayno’s inability to perform his customary work for more than 120 days constituted permanent total disability. The Court emphasized that the primary consideration is the seafarer’s actual incapacity to work, rather than the specific injury or illness. This aligns with the purpose of disability compensation, which is to provide financial support to workers unable to earn a living due to work-related health issues. The court stated, “what is important is that he was unable to perform his customary work for more than 120 days which constitutes permanent total disability, and not the actual injury itself.”

The Supreme Court also addressed the issue of conflicting medical opinions. Despite the company-designated physician’s declaration that Alcayno was fit to work, the Court gave greater weight to the fact that Alcayno was unable to resume his duties due to his illness. The Court noted the suspicious nature of the “fit to work” certification, suggesting it was an attempt to circumvent the law and deny Alcayno his rightful compensation. This decision highlights the importance of protecting seafarers from potentially biased medical assessments that prioritize the employer’s interests over the employee’s health and well-being.

Moreover, the Court reaffirmed the applicability of the doctrine in Crystal Shipping, Inc. v. Natividad, which states that a seafarer’s continuous inability to work due to a work-related illness for more than 120 days constitutes a permanent total disability. The Court rejected the petitioners’ reliance on Vergara v. Hammonia Maritime Services, Inc., which introduced a different interpretation of disability claims, as it was promulgated after Alcayno’s complaint was filed. Applying the principle of prospectivity, the Court held that Vergara should not retroactively strip Alcayno of his cause of action for total and permanent disability.

The Supreme Court’s decision has significant implications for seafarers and their employers. It reinforces the principle that disability compensation should be based on the actual impact of an illness or injury on a seafarer’s ability to work. This emphasis on practical incapacity serves as a crucial safeguard against employers attempting to avoid their obligations through formalistic medical assessments. In effect, it prioritizes the worker’s welfare and ensures that they receive the necessary support during times of hardship. It also clarifies the timeline for assessing disability claims, ensuring that seafarers are not unfairly disadvantaged by subsequent changes in legal interpretation. The decision also serves as a reminder to employers and company-designated physicians to prioritize the health and well-being of seafarers over financial considerations.

This ruling also offers guidance on the application of various jurisprudence and laws related to the rights and protection of seafarers. This guarantees that their rights are protected in the event that they become ill or injured while working at sea. Here is the text from POEA Memorandum Circular No. 09, Series of 2000, Section 32-A (18):

Under Section 32-A (18) of the POEA Memorandum Circular No. 09, Series of 2000, “Pulmonary Tuberculosis” shall be considered as an occupational disease in “any occupation involving constant exposure to harmful substances in the working environment in the form of gases, fumes, vapors and dust.”

In the end, this case sets a precedent for future disability claims, emphasizing the seafarer’s inability to work. It reinforces the need for a fair and just compensation system that protects the rights and welfare of seafarers, who often face hazardous working conditions and are vulnerable to illness and injury.

FAQs

What was the key issue in this case?	The key issue was whether Eberly S. Alcayno was entitled to permanent total disability benefits despite a company physician declaring him fit to work. The court considered whether Alcayno’s prolonged inability to work due to his illness constituted permanent disability.
What was the Supreme Court’s ruling?	The Supreme Court ruled in favor of Alcayno, affirming that his inability to work for more than 120 days due to a work-related illness constituted permanent total disability. This was upheld regardless of the company physician’s assessment.
What is the significance of the 120-day period?	Under the prevailing jurisprudence at the time, a seafarer’s inability to work for more than 120 days due to a work-related illness is considered a permanent total disability. This entitles them to disability benefits.
What is the role of the company-designated physician?	The company-designated physician assesses the seafarer’s medical condition. However, the court emphasized that the actual incapacity to work is more critical than the physician’s assessment.
What if there are conflicting medical opinions?	In case of conflicting medical opinions, the court will consider all evidence. They prioritize the seafarer’s actual condition and inability to work over potentially biased assessments.
What is the principle of prospectivity?	The principle of prospectivity means that new laws and jurisprudence apply to future cases, not retroactively. The court applied this principle by not applying a later ruling that would have stripped Alcayno of his accrued disability benefits.
What is the purpose of disability compensation?	The purpose of disability compensation is to provide financial support to workers who are unable to earn a living due to work-related health issues. This ensures they can meet their basic needs during times of hardship.
What is considered an occupational disease for seafarers?	Pulmonary Tuberculosis is considered an occupational disease for seafarers, specifically when their occupation involves continuous exposure to harmful substances. This includes gases, fumes, vapors, and dust.

The Supreme Court’s decision in BARKO INTERNATIONAL, INC. v. ALCAYNO serves as a crucial precedent for seafarers seeking disability benefits. It underscores the importance of actual incapacity over formal medical assessments and protects the rights of seafarers to receive just compensation for work-related illnesses. The ruling provides clarity and reinforces the need for a fair and equitable system that prioritizes the well-being of maritime 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: BARKO INTERNATIONAL, INC. v. ALCAYNO, G.R. No. 188190, April 21, 2014