The Supreme Court held that a seafarer is entitled to permanent and total disability benefits when the company-designated physician fails to provide a definite assessment of the seafarer’s fitness to work or permanent disability within the 240-day period. This ruling emphasizes the responsibility of employers to ensure timely and accurate medical evaluations for their employees. It serves as a reminder that the absence of a timely assessment can lead to the presumption of permanent and total disability, safeguarding the rights of seafarers.

From Ship to Shore: How a Messman’s Injury Led to a Landmark Ruling on Seafarer’s Rights

This case revolves around Pastor Quiambao, a messman employed by Centennial Transmarine, Inc. While working on board the MV Bonnie Smithwick, Pastor sustained an injury to his upper back while carrying heavy food provisions. After initial treatment, he was diagnosed with lumbar muscular spasm and disc degeneration. Upon repatriation to the Philippines, he was referred to a company-designated physician, Dr. Leticia Abesamis, who initially diagnosed him with thoraco lumbar spine nerve impingement. Despite undergoing treatment and evaluation, Dr. Abesamis did not issue a final assessment regarding Pastor’s fitness to work or the extent of his disability within the 120 or extended 240-day period. This lack of assessment became the central issue in determining Pastor’s entitlement to disability benefits.

Pastor argued that the lapse of 120 days, later extended to 240 days, without a disability grading from the company-designated physician, coupled with his worsening lumbar pain, rendered him permanently unfit for sea duties. He supported his claim with a medical certificate from the Seamen’s Hospital attesting to his unfitness for sea service due to a work-related total disability. Centennial Transmarine, on the other hand, contended that Pastor failed to prove that his spinal disc degeneration was work-related. They further argued that inability to work for more than 120 days does not automatically entitle a seafarer to full disability benefits without a Grade I disability assessment.

The Labor Arbiter ruled in favor of Pastor, stating that his illness was presumed work-related and compensable, since Centennial Transmarine failed to rebut this presumption. The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter’s decision, emphasizing that the proximate cause of Pastor’s injury was the accident he experienced while on duty. The Court of Appeals (CA) also upheld the decision, noting that Pastor’s ailment developed in the course of his employment and progressed due to the conditions of his job as a messman. Centennial Transmarine then appealed to the Supreme Court, raising several issues, including the nature of Pastor’s illness, its work-relatedness, and the basis for awarding disability benefits.

The Supreme Court addressed the issue of whether Pastor’s illness was work-related and compensable. The Court noted that Centennial Transmarine initially referred to Pastor’s ailment as osteoarthritis in their pleadings before the labor tribunals. The Court emphasized that statements made in pleadings are considered judicial admissions and cannot be contradicted by the party making the admissions.

“It is settled that statements made in the pleadings in the course of judicial proceedings are considered judicial admissions. Judicial admissions cannot be controverted by the party making the admissions. They are conclusive and legally binding as against the pleader who cannot subsequently take a position contrary to or inconsistent with what was pleaded.”

Moreover, the Court clarified that in medical terms, spinal disc degeneration and osteoarthritis can be considered the same. Degenerative disc disease leads to the breakdown of intervertebral discs, causing bone-on-bone friction, ultimately resulting in osteoarthritis. The Court found that Pastor’s medical records indicated he was suffering from lumbar spondylosis, which is essentially osteoarthritis of the spine. Crucially, the Court found no evidence that the company-designated physician had ever rendered an assessment stating that Pastor’s illness was not work-related.

Building on this principle, the Court emphasized that a seaman’s entitlement to disability benefits is governed not only by medical findings but also by law and contract. The POEA-SEC, which governs the employment contract between Pastor and Centennial Transmarine, specifies that an injury or illness must be work-related and must have arisen during the term of the seafarer’s employment contract to be compensable. Section 32-A of the POEA-SEC lists occupational diseases, including osteoarthritis, which is compensable if contracted under specific conditions, such as joint strain from carrying heavy loads or unduly heavy physical labor. Given Pastor’s duties as a messman involved carrying heavy loads, the Court agreed with the lower tribunals that his work caused or aggravated his illness, making it work-related and compensable.

The Court then turned to the crucial issue of whether Pastor’s disability should be considered permanent and total. Article 192(c)(1) of the Labor Code provides that temporary total disability lasting continuously for more than 120 days is deemed total and permanent. Rule X, Section 2 of the Amended Rules on Employees Compensation extends this period to 240 days if the injury or sickness requires medical attendance beyond 120 days. In the landmark case of Vergara v. Hammonia Maritime Services, Inc., the Supreme Court clarified that a temporary total disability becomes permanent when declared so by the company-designated physician within the allowed period or upon the expiration of the maximum 240-day medical treatment period in the absence of a declaration of fitness or permanent disability.

In Pastor’s case, the Court noted that he was repatriated on September 18, 2006, and received a diagnosis from Dr. Abesamis on October 6, 2006. However, Dr. Abesamis never issued a definite assessment of Pastor’s fitness to work or a declaration of permanent disability within the 240-day period. Centennial Transmarine even admitted that no disability grading had been issued by Dr. Abesamis as of June 25, 2007, which was 281 days after Pastor’s repatriation. Therefore, the Court concluded that Pastor’s condition remained unresolved after the 240-day period, and his disability was deemed permanent and total. As a result, the Supreme Court upheld the award of US$78,750.00 in disability compensation to Pastor, as provided under the AMOSUP/ITF TCCC CBA that governed his employment contract.

Finally, the Court addressed the award of 10% attorney’s fees. The Court cited Article 2208 of the Civil Code, which justifies the award of attorney’s fees in cases where the defendant’s act or omission compels the plaintiff to litigate to protect their interest and in actions for indemnity under workmen’s compensation and employer’s liability laws. Since Pastor was compelled to litigate to claim his rightful disability benefits, the award of attorney’s fees was deemed appropriate.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer is entitled to permanent and total disability benefits when the company-designated physician fails to provide a definite assessment within the 240-day period. This case underscores the obligations of maritime employers regarding timely medical assessments of their employees.
What is the significance of the 240-day period?	The 240-day period is the maximum time allowed for the company-designated physician to assess a seafarer’s fitness to work or declare a permanent disability. If no assessment is made within this period, the seafarer’s disability is deemed permanent and total.
What is the POEA-SEC?	The POEA-SEC refers to the Philippine Overseas Employment Administration Standard Employment Contract. It contains the standard terms and conditions governing the employment of Filipino seafarers on board ocean-going vessels and outlines the rights and obligations of both the seafarer and the employer.
What constitutes a work-related illness under the POEA-SEC?	A work-related illness is any sickness resulting in disability or death as a result of an occupational disease listed under Section 32-A of the POEA-SEC, with the conditions set therein satisfied. For osteoarthritis, this includes occupations involving joint strain from carrying heavy loads or unduly heavy physical labor.
What is a judicial admission?	A judicial admission is a statement made in pleadings during judicial proceedings. It is considered conclusive and legally binding against the party making the admission, preventing them from taking a contrary position later in the case.
What is the basis for awarding attorney’s fees in this case?	Attorney’s fees were awarded because the seafarer was compelled to litigate to claim his rightful disability benefits. Article 2208 of the Civil Code justifies awarding attorney’s fees in such cases.
How does this ruling impact maritime employers?	This ruling reinforces the need for maritime employers to ensure timely and accurate medical assessments for their employees. Failure to do so can result in the seafarer being deemed permanently and totally disabled, leading to significant financial liabilities for the employer.
What is the meaning of the term spondylosis?	Spondylosis is a term used to describe osteoarthritis of the spine. It involves degenerative changes in the spine, which can cause pain and stiffness.
What if the company-designated doctor’s assessment conflicts with that of an independent physician?	The court will consider the findings of both physicians, but the company-designated physician’s assessment is generally given more weight initially. However, if the company-designated physician fails to provide a timely or thorough assessment, the independent physician’s findings may become more persuasive.

This case serves as a critical reminder of the importance of adhering to the established timelines for medical assessments in maritime employment. The Supreme Court’s decision reinforces the protection afforded to seafarers, ensuring that their rights to disability benefits are upheld when employers fail to meet their obligations.

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: Centennial Transmarine, Inc. vs. Pastor M. Quiambao, G.R. No. 198096, July 08, 2015