In Jon A. Pastor v. Bibby Shipping Philippines, Inc., the Supreme Court held that a seafarer is entitled to permanent total disability benefits when the company-designated physician fails to issue a final and definitive assessment of the seafarer’s condition within the extended 240-day period. This ruling underscores the importance of timely medical assessments in protecting the rights of seafarers who suffer work-related injuries or illnesses, ensuring they receive just compensation for their disabilities.

Lost at Sea: Can a Seafarer Claim Total Disability After a Late Diagnosis?

Jon A. Pastor, employed as an Assistant Butcher by Bibby Shipping Philippines, Inc., sustained injuries during a lifeboat drill aboard the vessel Thomson Celebration. After being repatriated and undergoing medical treatment, a dispute arose regarding the extent of his disability. The company-designated physician’s final assessment was issued beyond the 240-day period, leading to the central legal question: Does this delay entitle Pastor to permanent total disability benefits?

The case hinges on Section 20(A) of the 2010 POEA-SEC, which outlines the responsibilities of employers and company-designated physicians in cases of work-related injuries or illnesses suffered by seafarers. This section mandates that the company-designated physician must provide a definite assessment of the seafarer’s fitness or degree of disability within 120 days from repatriation. This period can be extended up to 240 days if further medical attention is required. The critical aspect is the timeliness and definiteness of the medical assessment, which dictates the seafarer’s entitlement to disability benefits.

The Supreme Court has consistently emphasized the significance of adhering to these timelines. In Elburg Shipmanagement Philippines, Inc. v. Quiogue, Jr., the Court summarized the rules regarding the company-designated physician’s duty:

1. The company-designated physician must issue a final medical assessment on the seafarer’s disability grading within a period of 120 days from the time the seafarer reported to him;
2. If the company-designated physician fails to give his assessment within the period of 120 days, without any justifiable reason, then the seafarer’s disability becomes permanent and total;
3. If the company-designated physician fails to give his assessment within the period of 120 days with a sufficient justification (e.g. seafarer required further medical treatment or seafarer was uncooperative), then the period of diagnosis and treatment shall be extended to 240 days. The employer has the burden to prove that the company-designated physician has sufficient justification to extend the period; and
4. If the company-designated physician still fails to give his assessment within the extended period of 240 days, then the seafarer’s disability becomes permanent and total, regardless of any justification.

In Pastor’s case, the final assessment was issued beyond the 240-day period. The Court noted that the company-designated physician’s report indicated that Pastor still required continuous physical therapy. This acknowledgment invalidated the assessment as a final determination of his fitness or degree of disability within the prescribed period. The Supreme Court sided with the NLRC in this matter.

Respondents argued that the assessment made beyond 240-days was a reconfirmation of one that was previously done. The Supreme Court did not give credence to this report because it was presented only during certiorari, and respondents did not provide justification as to why the report was not presented at the earliest opportunity.

The implications of this ruling are significant for seafarers and employers alike. Seafarers must be aware of their rights under the POEA-SEC and the importance of timely medical assessments. Employers must ensure that company-designated physicians comply with the prescribed timelines to avoid automatic reclassification of temporary disabilities to permanent and total disabilities. The Court emphasized that compliance with the third doctor referral procedure is only relevant when there is a timely and definite assessment from the company-designated physician. Here, there was none.

The ruling reinforces the principle that disability compensation is not solely about the injury itself, but also about the resulting incapacity to work and the impairment of earning capacity. Total disability refers to an employee’s inability to perform their usual work, while permanent disability denotes an inability to perform the job for more than 120 or 240 days. In disability compensation,

it is not the injury which is compensated, but rather it is the incapacity to work resulting in the impairment of one’s earning capacity.

The court affirmed that attorney’s fees are warranted in this case. Citing Article 2208 of the Civil Code which provides when attorney’s fees and expenses of litigation can be recovered.

The absence of a timely and definite medical assessment from the company-designated physician automatically transforms a temporary total disability into a permanent total disability. The POEA-SEC provisions are in place to protect the rights and well-being of seafarers. When these regulations are not followed, the courts will intervene to ensure that seafarers receive the compensation they are entitled to. This decision serves as a reminder of the importance of adhering to established procedures and respecting the rights of seafarers.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer is entitled to permanent total disability benefits when the company-designated physician fails to issue a final assessment within the extended 240-day period.
What is the significance of Section 20(A) of the POEA-SEC?	Section 20(A) outlines the responsibilities of employers and company-designated physicians regarding medical assessments and disability compensation for seafarers. It mandates timely and definite assessments to determine the seafarer’s fitness or degree of disability.
What happens if the company-designated physician fails to issue an assessment within the prescribed period?	If the company-designated physician fails to issue a final assessment within the 120 or 240-day period, the seafarer’s temporary total disability is transformed into a permanent total disability by operation of law.
What is the third doctor referral procedure?	The third doctor referral procedure is a mechanism for resolving disagreements between the seafarer’s doctor and the company-designated physician. A third doctor, jointly agreed upon, makes a final and binding decision.
When does the third doctor referral procedure apply?	The third doctor referral procedure applies only when there is a timely and definite assessment from the company-designated physician that the seafarer contests.
What is the difference between total and permanent disability?	Total disability refers to the inability to perform one’s usual work, while permanent disability signifies an inability to perform the job for more than 120 or 240 days, regardless of whether the individual loses the use of any body part.
Why was the seafarer awarded attorney’s fees in this case?	The seafarer was awarded attorney’s fees because he was compelled to litigate to satisfy his claims for disability benefits, as provided under Article 2208 of the Civil Code.
What is the maximum allowable benefit based on the CBA Compensation Scale in this case?	The maximum allowable benefit provided under the CBA Compensation Scale is US$80,000.00.

The Supreme Court’s decision in Jon A. Pastor v. Bibby Shipping Philippines, Inc. serves as a crucial reminder of the protections afforded to seafarers under Philippine law. The ruling emphasizes the importance of timely and definitive medical assessments by company-designated physicians, safeguarding the rights of seafarers to receive just compensation for work-related injuries and illnesses.

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: JON A. PASTOR, PETITIONER, V. BIBBY SHIPPING PHILIPPINES, INC./ CREW LINK INC./CSS CRUISE SHIP SOLUTIONS LTD., AND/OR JONATHAN M. PALMA, RESPONDENTS., G.R. No. 238842, November 19, 2018