In a significant ruling, the Supreme Court has clarified the rights of seafarers regarding disability benefits. The Court emphasized that if a company-designated doctor fails to issue a final disability assessment within 120 days (or an extended period if justified), a seafarer’s temporary disability can legally become a permanent total disability. This means seafarers are entitled to full compensation if their medical condition prevents them from returning to work within the specified timeframe, even if initially assessed with a lower disability grade. This decision reinforces the protection of seafarers’ rights under Philippine law, ensuring they receive adequate support when illness or injury prevents them from continuing their maritime careers.

Navigating the Seas of Sickness: Balatero’s Fight for Seafarer’s Disability

Constancio Caderao Balatero, a seasoned seafarer, found himself in a legal battle over disability benefits after developing severe coronary artery disease (CAD) during his employment. After experiencing chest pains and shortness of breath while working aboard MV MSC Flaminia, Balatero was diagnosed with uncontrolled hypertension and CAD. He underwent angioplasty and was later declared fit to work by the company-designated physician, albeit with lifelong medical maintenance. Disagreeing with this assessment, Balatero sought a second opinion, leading to conflicting medical findings and a dispute over his entitlement to permanent total disability benefits. The central legal question was whether Balatero’s condition warranted full disability compensation, considering the conflicting medical opinions and the procedural requirements under the POEA-SEC.

The case unfolded as Balatero filed a complaint with the National Labor Relations Commission (NLRC), seeking permanent total disability compensation, sickness allowance, damages, and attorney’s fees. He argued that the strenuous nature of his sea duties and unhealthy working conditions contributed to his illnesses. The Labor Arbiter (LA) sided with Balatero, awarding him US$60,000.00 in disability benefits, plus attorney’s fees. The LA emphasized that the assessments of both company-designated physicians and those consulted by the seafarer should be evaluated on their merits. Furthermore, the stressful working conditions aboard the ship likely contributed to or aggravated Balatero’s condition. The NLRC affirmed the LA’s decision, highlighting Balatero’s length of service and the lack of assurance from company-designated physicians regarding his full recovery.

However, the Court of Appeals (CA) partially reversed these rulings, granting Balatero only US$20,900.00, corresponding to a Grade 7 disability rating. The CA reasoned that Balatero failed to comply with the mandatory procedure of consulting a third doctor to resolve the conflicting medical assessments. The CA also questioned the credibility of Balatero’s chosen physician’s findings, stating that the assessment was based on a single consultation and lacked sufficient supporting evidence. This decision prompted both Balatero and the respondents to file separate petitions for review on certiorari with the Supreme Court.

In analyzing the case, the Supreme Court focused on the procedural and substantive aspects of disability claims for seafarers. The Court emphasized the importance of Section 20(A)(3) of the 2010 POEA SEC, which outlines the procedure for resolving conflicting medical assessments. This section states that if the seafarer’s doctor disagrees with the company-designated doctor’s assessment, a third doctor may be jointly agreed upon, and their decision will be final and binding. However, the Court clarified that referral to a third doctor is not mandatory. If the parties fail to appoint a third doctor, labor tribunals and courts must evaluate the merits of the conflicting medical assessments.

Building on this principle, the Court examined the timeline of Balatero’s medical assessments. It noted that the company-designated doctor’s final disability rating was not issued within 120 days from Balatero’s repatriation. Moreover, the respondents failed to seek an extension to further determine Balatero’s fitness to work. In this context, the Court cited Article 192 of the Labor Code, which states that temporary total disability shall be deemed permanent and total if it lasts continuously for more than 120 days. Here’s how the POEA-SEC provides for disability assessment:

If the 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.

Applying this legal framework, the Court determined that Balatero’s partial disability had legally become total and permanent. As such, the issue of non-referral to a third doctor was rendered inconsequential. The Court then proceeded to assess the merits of the conflicting medical findings, as instructed in Dalusong v. Eagle Clarc Shipping Philippines, Inc., et al. Here’s the meat of the legal discussion:

[A] partial and permanent disability could, by legal contemplation, become total and permanent. The Court in Kestrel Shipping Co., Inc. v. Munar held that the declaration by the company-designated physician is an obligation, the abdication of which transforms the temporary total disability to permanent total disability, regardless of the disability grade.

The Court contrasted Dr. Lara-Orencia’s thorough assessment with the respondents’ lack of explanation for their Grade 7 disability rating. Dr. Lara-Orencia considered the tests and procedures performed on Balatero, his health status, and the POEA SEC’s listing of CAD and uncontrolled hypertension as occupational diseases. Ultimately, she concluded that Balatero could not return to his job as 3rd Officer. Because of this, the Court was compelled to reinstate the LA and NLRC’s ruling granting Balatero permanent total disability compensation.

Notably, the Court also referred to Department of Health (DOH) Administrative Order (A.O.) No. 2007-0025, which recommends against issuing fit-to-work certifications to seafarers with cardiovascular conditions requiring more than two maintenance medicines or causing significant disability. Balatero fell within this category, further supporting his claim for permanent total disability. Consequently, the Supreme Court partially granted Balatero’s petition, setting aside the CA’s decision and reinstating the LA and NLRC’s ruling awarding him US$60,000.00 in disability benefits, plus attorney’s fees.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer was entitled to permanent total disability benefits despite the company-designated doctor’s assessment of a lower disability grade, considering the seafarer’s inability to work beyond 120 days.
What is the POEA-SEC?	The POEA-SEC refers to the Philippine Overseas Employment Administration Standard Employment Contract, which governs the employment terms and conditions of Filipino seafarers. It outlines the rights and obligations of both the seafarer and the employer.
What happens if the company doctor and my own doctor disagree?	The POEA-SEC provides a process where a third, independent doctor can be jointly selected to provide a final, binding assessment. However, if no third doctor is chosen, labor tribunals and courts must evaluate the conflicting medical assessments.
What is considered a permanent total disability?	Under the Labor Code, a temporary total disability becomes permanent and total if it lasts continuously for more than 120 days. This means the seafarer is unable to perform their usual sea duties.
What did the Supreme Court decide?	The Supreme Court ruled in favor of the seafarer, stating that because his condition prevented him from working for more than 120 days, he was entitled to permanent total disability benefits. The Court also considered the findings of his chosen physician and DOH guidelines.
Why did the CA decision get overturned?	The CA was overturned because it focused primarily on the lack of a third doctor’s opinion without sufficiently considering the extended period of disability and the seafarer’s inability to work. The Supreme Court clarified that referral to a third doctor is not mandatory.
What is DOH A.O. No. 2007-0025?	DOH Administrative Order No. 2007-0025 provides guidelines from the Department of Health regarding medical certifications for seafarers, recommending against issuing fit-to-work certifications for those with certain cardiovascular conditions.
Am I entitled to attorney’s fees?	The seafarer was entitled to attorney’s fees as he had to litigate to defend and enforce his rights. Because he had to pursue litigation to protect his rights, the attorney’s fees was awarded.

The Supreme Court’s decision in this case reaffirms the rights of Filipino seafarers to receive just compensation for work-related disabilities. By clarifying the procedural requirements and emphasizing the importance of timely medical assessments, the Court has strengthened the protection afforded to seafarers under Philippine 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: Balatero v. Senator Crewing, G.R. No. 224565, June 21, 2017