In Phil-Man Marine Agency, Inc. vs. Dedace, the Supreme Court affirmed that if a company-designated physician fails to provide a complete and definitive medical assessment within 120 days of a seafarer’s repatriation, the seafarer is deemed to have a total and permanent disability. This ruling underscores the importance of timely and thorough medical evaluations in protecting the rights and welfare of Filipino seafarers, ensuring they receive the compensation and benefits they are entitled to under the law. It emphasizes the employer’s responsibility to ensure that medical assessments are conducted promptly and accurately.

Lost at Sea? How a Seafarer’s Sepsis Claim Navigated Legal Waters

Aniano P. Dedace, Jr., a seafarer employed by Phil-Man Marine Agency, Inc., experienced recurring abdominal pains while working aboard the vessel M/V APL Shanghai. After being diagnosed with disseminated sepsis with multiple liver abscesses in Singapore, he was repatriated to the Philippines and referred to a company-designated physician, Dr. Nicomedes G. Cruz. The central legal question was whether Dedace’s illness was work-related and, consequently, whether he was entitled to permanent disability benefits under the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC).

The Labor Arbiter (LA) initially ruled against Dedace, stating that his illness was not work-related and therefore not compensable, only granting him sickness allowance. The National Labor Relations Commission (NLRC) affirmed this decision, citing Dr. Cruz’s opinion that the illness was not work-related. However, the Court of Appeals (CA) reversed these decisions, holding that the petitioners failed to overcome the disputable presumption that Dedace’s illness was work-related. The CA emphasized that Dr. Cruz did not provide a sufficient explanation for his conclusion.

The Supreme Court upheld the CA’s decision, highlighting the importance of the company-designated physician’s role in assessing the seafarer’s medical condition within the prescribed 120-day period. The Court emphasized that this assessment must be complete, definite, and adequately explained. According to Section 20(B)(3) of the POEA-SEC:

Section 20. B. COMPENSATION AND BENEFITS FOR INJURY OR ILLNESS. 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.

Building on this provision, the Court noted that the company-designated physician’s failure to issue a final and comprehensive assessment within the 120-day period effectively renders the seafarer totally and permanently disabled. This is because the POEA-SEC places a significant responsibility on the employer and their designated physician to promptly and accurately assess the seafarer’s condition.

In this case, Dr. Cruz’s reply, stating that Dedace’s illness was not work-related, was deemed inadequate. The Court pointed out that Dr. Cruz based his opinion on the view of an unnamed gastroenterologist and failed to provide his own substantiated assessment. Moreover, neither Dr. Cruz nor the gastroenterologist offered a clear explanation for their conclusion, which made it difficult to determine why Dedace’s illness was not considered work-related.

The Court also addressed the argument that Dedace failed to present substantial evidence to prove a causal connection between his work conditions and his illness. However, the Court clarified that this requirement does not apply when the company-designated physician fails to make a proper assessment within the 120-day period. In such cases, the seafarer is not obligated to consult with another physician or present additional medical evidence.

Furthermore, the Court underscored that the award of attorney’s fees was justified in this case. According to Article 2208 of the Civil Code, attorney’s fees can be awarded when a party is compelled to litigate to protect their rights. Since Dedace was forced to file a claim before the NLRC and subsequently appeal to higher courts to secure his disability benefits, he was entitled to recover attorney’s fees equivalent to ten percent (10%) of the total monetary award.

FAQs

What was the key issue in this case?	The key issue was whether the seafarer, Aniano P. Dedace, Jr., was entitled to permanent disability benefits due to an illness contracted during his employment, and whether the company-designated physician’s assessment was sufficient under the POEA-SEC.
What is the 120-day rule for seafarer medical assessments?	The 120-day rule requires the company-designated physician to provide a complete and definite medical assessment of the seafarer’s condition within 120 days from the date of repatriation; failure to do so results in the seafarer being deemed totally and permanently disabled.
What happens if the company doctor doesn’t provide a proper assessment?	If the company-designated physician fails to provide a complete and explained assessment within 120 days, the seafarer is deemed totally and permanently disabled, and the burden shifts to the employer to prove otherwise.
Is an illness presumed work-related for seafarers?	Under the POEA-SEC, illnesses not listed under Section 32 are disputably presumed to be work-related; the employer must present evidence to overcome this presumption.
Can a seafarer claim attorney’s fees in these cases?	Yes, attorney’s fees can be awarded if the seafarer is forced to litigate to protect their rights due to the employer’s refusal to pay disability benefits.
What is the significance of a gastroenterologist’s opinion in this case?	The gastroenterologist’s opinion was deemed immaterial because the company-designated physician did not rely on it to make an informed medical assessment.
What does ‘permanent total disability’ mean in this context?	Permanent total disability refers to a condition that prevents the seafarer from returning to their previous work or any other gainful employment, entitling them to disability benefits.
What are the employer’s responsibilities regarding medical assessments?	Employers must ensure that seafarers receive prompt and thorough medical assessments from company-designated physicians within the mandated timeframe, and must provide clear and substantiated reasons for any denial of benefits.

In conclusion, the Supreme Court’s decision in Phil-Man Marine Agency, Inc. vs. Dedace reinforces the importance of adherence to the POEA-SEC guidelines and the protection of seafarers’ rights. The ruling serves as a reminder for employers to ensure prompt and thorough medical assessments are conducted, and that any denial of benefits is based on clear and substantiated medical evidence.

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: Phil-Man Marine Agency, Inc. vs. Dedace, G.R. No. 199162, July 04, 2018