The Supreme Court ruled that a seafarer’s claim for permanent total disability benefits was premature because it was filed while the seafarer was still undergoing treatment by the company-designated physicians and before a final medical assessment was made. The Court emphasized the importance of adhering to the procedures outlined in the POEA-SEC regarding medical assessments and the resolution of conflicting medical opinions. This decision highlights the need for seafarers to follow the prescribed steps in pursuing disability claims to ensure their claims are valid and considered by the relevant authorities.

Sailing Too Soon? A Seafarer’s Premature Quest for Disability Benefits

This case revolves around Jakerson G. Gargallo, a seafarer who sustained an injury while working on board a vessel. He sought permanent total disability benefits, but the Supreme Court ultimately sided with Dohle Seafront Crewing (Manila), Inc., Dohle Manning Agencies, Inc., and Mr. Mayronilo B. Padiz, finding that Gargallo’s claim was filed prematurely. This decision underscores the importance of following established procedures for medical assessments and dispute resolution in maritime employment contracts.

The facts of the case indicate that Gargallo was hired as a wiper and, during his employment, suffered an injury to his left arm while lifting heavy loads. After repatriation, he was examined and treated by company-designated physicians, who later declared him fit to work. Dissatisfied with this assessment, Gargallo sought an independent medical opinion, which contradicted the company physician’s findings. However, before securing this independent assessment and while still undergoing treatment, Gargallo filed a complaint seeking permanent total disability benefits.

The Labor Arbiter (LA) initially ruled in favor of Gargallo, awarding him disability benefits. The National Labor Relations Commission (NLRC) affirmed the LA’s ruling but reduced the amount of the award. However, the Court of Appeals (CA) reversed the NLRC’s decision, dismissing Gargallo’s complaint. The CA emphasized that the claim was premature because Gargallo was still under medical treatment and had not yet complied with the procedure for resolving conflicting medical opinions, as required by the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC).

The Supreme Court, in affirming the CA’s decision, reiterated that the entitlement of seafarers to disability benefits is governed by law and contract, specifically Articles 197 to 199 of the Labor Code, Section 2 (a), Rule X of the Rules implementing Title II, Book IV of the said Code, and the POEA-SEC. The Court highlighted the importance of Section 20 (A) of the 2010 POEA-SEC, which outlines the employer’s liabilities when a seafarer suffers a work-related injury or illness. A key provision of this section is that the employer must provide medical attention until the seafarer is declared fit or the degree of disability has been established by the company-designated physician.

Furthermore, the POEA-SEC stipulates a process for resolving disagreements between the company-designated physician and the seafarer’s chosen doctor. Specifically, it states:

If a doctor appointed by the seafarer disagrees with the assessment, a third doctor may be agreed jointly between the Employer and the seafarer. The third doctor’s decision shall be final and binding on both parties.

The Court emphasized that this procedure must be followed to ensure a fair and objective assessment of the seafarer’s condition. The failure to comply with this procedure can be detrimental to the seafarer’s claim. The court cited the case of Ace Navigation Company v. Garcia, reiterating the principle from Vergara v. Hammonia Maritime Services, Inc., that the company-designated physician is given a period of 120 days, extendable to 240 days, to assess the seafarer’s condition and make a declaration regarding disability. This timeline is critical in determining when a seafarer can be considered permanently disabled.

In Gargallo’s case, the Court found that his claim was filed prematurely because he was still undergoing treatment within the 240-day period, and no final assessment had been made. Moreover, he had not yet consulted his own doctor at the time of filing the complaint. The Supreme Court noted that he only sought an independent medical opinion more than two months after filing his claim, further solidifying the finding of prematurity. The Supreme Court also emphasized that Gargallo failed to comply with the prescribed procedure under the POEA-SEC regarding the joint appointment of a third doctor to resolve the conflicting medical opinions.

The Court cited Veritas Maritime Corporation v. Gepanaga, Jr., to emphasize the importance of adhering to the mandated conflict-resolution procedure under the POEA-SEC and the CBA. Non-compliance with this procedure militates against the seafarer’s claims and results in the affirmance of the fit-to-work certification of the company-designated physician. Furthermore, the Court highlighted that the company-designated physicians had examined, diagnosed, and treated Gargallo from his repatriation until he was assessed as fit to work after 194 days of treatment.

In contrast, the independent physician examined Gargallo only once, more than two months after he filed his claim. The Court stated that under these circumstances, the assessment of the company-designated physician should be given more credence because it was arrived at after months of medical attendance and diagnosis. The Court also acknowledged that Gargallo was entitled to income benefits for temporary total disability during the extended period of treatment, which lasted for 194 days from his repatriation. This entitlement is provided under Section 2 (a), Rule X of the Rules implementing Title II, Book IV of the Labor Code.

The Supreme Court clarified that respondent Dohle Seafront President Padiz could not be held solidarity liable for the monetary awards, absent any showing that he acted beyond the scope of his authority or with malice. The Court reiterated that in the absence of malice and bad faith, a corporate officer cannot be made personally liable for corporate liabilities. Finally, regarding Gargallo’s claim for attorney’s fees, the Court stated that while respondents had not been shown to have acted in gross and evident bad faith, Gargallo was entitled to an award of attorney’s fees equivalent to ten percent of the total award at the time of actual payment, as he was forced to litigate to protect his rights.

FAQs

What was the key issue in this case?	The key issue was whether the seafarer’s claim for permanent total disability benefits was premature, given that it was filed while he was still undergoing medical treatment and before the company-designated physician had issued a final assessment.
What is the POEA-SEC?	The Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) is a standard set of provisions that is deemed incorporated in every seafarer’s contract of employment. It outlines the rights and obligations of both the seafarer and the employer.
What is the role of the company-designated physician?	The company-designated physician is responsible for examining, diagnosing, and treating the seafarer after repatriation due to a work-related injury or illness. They must also assess the seafarer’s fitness to work and determine the degree of disability, if any.
What happens if the seafarer disagrees with the company-designated physician’s assessment?	If the seafarer disagrees with the company-designated physician’s assessment, the POEA-SEC provides a procedure for resolving the conflict. A third doctor may be agreed upon jointly by the employer and the seafarer, and the third doctor’s decision shall be final and binding on both parties.
What is the 240-day rule?	The 240-day rule refers to the period within which the company-designated physician must assess the seafarer’s condition and make a declaration regarding disability. This period starts from the date of repatriation and can be extended if further medical treatment is required.
What is the effect of filing a claim prematurely?	Filing a claim prematurely, before the company-designated physician has made a final assessment and before exhausting the procedure for resolving conflicting medical opinions, can result in the dismissal of the claim.
What are income benefits for temporary total disability?	Income benefits for temporary total disability are payments made to the seafarer during the period of medical treatment when they are unable to work. These benefits are provided under the Labor Code and the POEA-SEC.
Can a corporate officer be held personally liable for corporate liabilities?	Generally, a corporate officer cannot be held personally liable for corporate liabilities unless there is a showing that they acted beyond the scope of their authority or with malice.
Is a seafarer entitled to attorney’s fees in disability claims?	A seafarer may be entitled to attorney’s fees if they are forced to litigate to protect their rights and interests. The attorney’s fees are typically equivalent to ten percent of the total award.

In conclusion, the Supreme Court’s decision in this case underscores the importance of adhering to the procedural requirements outlined in the POEA-SEC and other relevant laws and contracts when pursuing disability claims. Seafarers must ensure that they comply with the prescribed steps for medical assessments and dispute resolution to avoid the dismissal of their claims. The Court’s ruling provides valuable guidance for both seafarers and employers in navigating the complex landscape of maritime employment and disability benefits.

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: Jakerson G. Gargallo v. Dohle Seafront Crewing, G.R. No. 215551, September 16, 2015