SECOND DIVISION
G.R. No. 204262, June 07, 2017
MARIO C. MADRIDEJOS, Petitioner, v. NYK-FIL SHIP MANAGEMENT, INC., Respondent.
D E C I S I O N
LEONEN, J.:
Illnesses not listed as an occupational disease under Section 32 of the 2000 Philippine Overseas Employment Administration Amended Standard Terms and Conditions Governing the Employment of Filipino Seafarers on Board Ocean-Going Vessels are disputably presumed to be work-related.1 However, seafarers must prove through substantial evidence the correlation between their illness and the nature of their work for their claim for disability benefits to prosper.
This Petition for Review on Certiorari2 assails the Resolutions dated September 26, 20123 and November 6, 20124 of the Court of Appeals in CA-G.R. SP No. 125529. The Court of Appeals ruled that the National Labor Relations Commission did not commit grave abuse of discretion in dismissing Mario Madridejos' (Madridejos) complaint for disability benefits.5
Petitioner Madridejos was a Filipino seafarer6 hired by respondent NYK-Fil Ship Management, Inc. (NYK-FIL),7 a registered local manning agency operating by virtue of Philippine laws8 for its foreign principal, International Cruise Services, Limited.9
On March 25, 2010, Madridejos signed an employment contract with NYK-FIL as a Demi Chef for the vessel "Crystal Symphony/Serenity."10 The employment contract was effective for a period of 10 months with a basic monthly salary of US$1,055.00, an overtime rate of US$4.00 per hour beyond 70 hours, and vacation leave with pay amounting to 10% of his total income.11
On April 10, 2010, Madridejos commenced to work aboard the vessel.12 Two (2) weeks after, or on April 28, 2010, he claimed that he suddenly slipped on a metal stairway and fell down, hitting his abdomen and chest on a metal pipe.13 He was brought to the ship doctor and was diagnosed to have a "sebaceous cyst to the right of the umbilicus."14
The next day, Madridejos was treated at Spire Southampton Hospital in Hampshire, England.15 Under a local anesthesia, his cyst was removed, and the lesion was closed with three (3) stitches.16
After two (2) months, or on July 5, 2010, NYK-FIL terminated Madridejos' services through its foreign principal.17 The notice of termination18 read:
Madridejos was repatriated to the Philippines on July 6, 2010.20
TO: MR. MARIO MADRIDEJOS, #324 D/CHEF DE PARTIE MAIN GALLEY FROM: HERBERT DOPPLER, HOTEL DIRECTOR VICTOR CONCEICAO, FOOD AND BEVERAGE MANAGER CC: CAPTAIN ICMA, OSLO VICE CAPTAIN EXECUTIVE CHEF/CREW ACCOUNTANT DATE: JULY 5, 2010 RE: TERMINATION OF CONTRACT WITH INTERNATIONAL CRUISE SERVICES LIMITED
We regret to inform you that we have made the decision to discontinue your employment agreement. Hence, this letter serves as a formal, written termination of your contract with [International Cruise Services, Limited].
With reference to Item No. 7 in your "Employment Agreement", which states, "...First time EMPLOYEES shall be subject to a probationary period of three (3) months following commencement of service during which this AGREEMENT can be terminated by either party without cause at any time upon fourteen (14) days prior written notice", you are hereby given immediate notice effective today, Monday, July 5, 2010, which falls within the parameters outlined in your contract.
Your salary will be paid accordingly through and including July 18, 2010. Your sign off will take place in Istanbul, Turkey, on Monday, July 5, 2010. A flight ticket has been arranged to your home airport in Manila, Philippines, and the company will shoulder your repatriation expenses.19
Dr. A. FedorowiezOn July 6, 2010,25 he arrived in Manila, Philippines. The following day, he allegedly reported to NYK-FIL "for a medical referral to the company doctor." However, he did not get any referral letter since he was told that his illness was not work-related.26
Ships Surgeon
M/S Crystal Serenity
Dear Dr. Fedorowiez,
Re: Mr. Mario MADRIDEJOS - d.o.b. 04/09/61
C/o Denholm Ship Agency Ltd Liner House, Test Road, Eastern Docks
Southampton Hampshire SO4 3GE
Thank you very much for referring along this gentleman who works on your ship who has a sebaceous cyst to the right of the umbilicus. I explained the diagnosis to this gentleman in clinic today. He has had symptoms of aching and discomfort and we therefore proceeded to excise this lesion under local anaesthetic at the Spire Hospital Southampton today. The diagnosis of sebaceous cyst was confirmed and he has three interrupted nylon sutures to close the wound.
I would be very grateful if you could arrange for the sutures to be removed in approximately ten days' time and I have discharged him back to your care.
Yours sincerely
(Dictated by Mr. Byrne but sent unsigned to avoid delay)24
This is to certify that Mr. Mario Madridejos, male, married, a resident of Paete, Laguna, was seen and examined in this clinic from July 7, 2010 up to present, with the following findings and/or diagnosis:Due to his alleged "very slow healing process," the four (4) months of medical coverage included in his employment contract with NYK-FIL expired.29 However, he still continued his medication as advised by Dr. Españo.30
• Sebaceous Cyst (Right Umbilicus)
Physical findings ha[ve] been noted with POEA Disability Grade 7-Moderate Residuals of Disorders of the Intra-abdominal organs, but due to the severity and deterioration of injury/illness[,] he is entitled under P.O.E.A. Disability Grade 1 for Severe Residuals of Impairment of intra-abdominal organs which requires aid and attendance that will unable [sic] worker to seek any gainful employment.
Due to his medical condition[,] he is permanently unfit for further sea service in any capacity. Such injury/illnesses are work[-]related since exposed to toxic and hazardous material. Continuous medications and follow-up is advised . . . 28
This is to certify that I have examined Mr. Mario Madridejos, male[,] married, in this clinic on September 16, 2010 and up to the present with following finding[s] and diagnosis of Sebaceous Cyst (Right Umbilicus) [.]Madridejos argued that NYK-FIL ignored his repeated demands.33 He was then prompted to file a complaint "for disability benefits, payment of medical expenses, damages, and attorney's fees"34 against NYK-FIL before the labor arbiter.35
Physical findings ha[ve] been noted with POEA Disability Grade 7-Moderate Residuals of Disorders of the Intra-abdominal Organ but due to the [sjeverity and deterioration of injury/illness, he is entitled under P.O.E.A Disability Grade 1 for Severe Residuals of Impairment of Intra-Abdominal organ which requires aid and attendance that will unable [sic] worker to seek any gainful employment.
Due to his medical condition[,] he is permanently unfit for further sea service in any capacity. Such injury/illness are work[-]related since exposed to toxic and hazardous materials. Advised continuous medications and follow-up check-up[.]32
Compensability of illness. Under the relevant contract: Compensability of the illness or death of [a] seaman need not depend on whether the illness was total or partial permanent disability. It is sufficient that the illness occurred during the effectivity of the employment contract.Due to his medical condition[,] he is permanently unfit for further sea service in any capacity. Such injury/illnesses are work[-]related since exposed to toxic and hazardous materials. Continuous medications and follow[-]up is advised.
Even assuming that the ailment was contracted prior to employment, this would not deprive the seaman of compensation benefits. For what matters is that his work had contribute[d], even in a small degree, to the development of the disease and in bringing about his Intra-abdominal organs which requires aid and attendance that will unable [sic] workers to seek gainful employment.
IN VIEW OF THE FOREGOING, respondent Agency is directed to pay the complainant an amount equivalent to Grade 7 or US$ 20,900.Both parties assailed the decision of Labor Arbiter Demaisip before the National Labor Relations Commission.48 Madridejos asserted that Labor Arbiter Demaisip "erred in assessing him with only a Grade 7 disability" and claimed that "it should have been Grade 1 or permanent/total disability."49 On the other hand, NYK-FIL averred that Labor Arbiter Demaisip failed to consider the termination of contract as the real cause behind Madridejos' repatriation.50
SO ORDERED.47
Well then, knowing fully [sic] well that he was repatriated on July 6, 2010 because his service contract had already been terminated, why then as he alleged would he go to his local agency for a medical referral to their company doctor? He said that he was denied. But of course; in the first place he was not their employee anymore, but more importantly he was not even sick as he had been working quite well the past several months. But now he is back, and sad part of it is that he was out of work. So he opted for the cyst story. It is not really difficult to see, however that Madridejos' claim of being sick is an afterthought.59 (Emphasis supplied)The National Labor Relations Commission ruled further that Madridejos' cyst was not work-related since it was "simply a slow-growing pea-size[d] sac growth under the skin" that grew as a consequence of infection and caused "clogging of sebaceous glands."60 "It can develop in any part of the body, and at times it just simply disappears."61 The dispositive portion of the National Labor Relations Commission's decision provided:
WHEREFORE, premises considered, complainant Madridejos' appeal is hereby DISMISSED for lack of merit, while that of respondents' is granted, the assailed decision is reversed and set aside, and the complaint herein for disability benefits is likewise DISMISSED for lack of merit.On April 30, 2012, the National Labor Relations Commission's Resolution63 denied Madridejos' Motion for Reconsideration.64
SO ORDERED.62 (Emphasis in the original)
By local anesthesia, it simply means that the operation or excision was merely superficial or skin-deep. It is nothing more serious tha[n] excision or extraction of boil or "pigsa" in the vernacular. The only difference of the sebaceous cyst from boil, is that in the former, what is being extracted is sebum/keratin or "sebo" in the vernacular and in the latter is pus or "nana" in the vernacular. This explains why only local anesthesia is necessary.95NYK-FIL insists that it has terminated Madridejos' services pursuant to Item 7 of his Employment Agreement and not because of his illness.96 "[H]e was repatriated . . . three (3) months after his cyst was removed."97 His silence on the events that transpired between his operation and repatriation confirms NYK-FIL's claim that "[Madridejos] was not repatriated for medical reason[s] but rather due to a valid termination of... [his] probationary employment."98
[I]n fact, several days prior to the termination of his contract, complainant was involved in an accident while lifting and carrying kitchen equipment aboard the vessel, he accidentally slipped in a metal stairway.125 (Emphasis supplied)Similarly, a perusal of the records shows that he contested neither the existence of the termination letter nor the authenticity of his signature on it.126
Section 20: COMPENSATION AND BENEFITSMadridejos was diagnosed with sebaceous cyst to the right of his umbilicus during the effectivity of his contract as evinced by the findings139 of Dr. Byrne. Conformably, Labor Arbiter Demaisip affirmed that Madridejos' illness was acquired during the term of his employment contract.140 Disputed, however, is whether Madridejos' sebaceous cyst was work-related.
. . . .
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 . . . (Emphasis supplied)
Section 32-A. OCCUPATIONAL DISEASESA sebaceous cyst is not included under Section 32148 or 32-A149 of the 2000 Philippine Overseas Employment Agency Standard Employment Contract. However, the guidelines expressly provide that those illnesses not listed in Section 32 "are disputably presumed as work[-]related."150
For an occupational disease and the resulting disability or death to be compensable, all of the following conditions must be satisfied:The following diseases are considered as occupational when contracted under working conditions involving the risks described herein.
- The seafarer's work must involve the risks described herein;
- The disease was contracted as a result of the seafarer's exposure to the described risks;
- The disease was contracted within a period of exposure and under such other factors necessary to contract it;
- There was no notorious negligence on the part of the seafarer.
It is simply a slow-growing pea-size[d] sac growth under the skin that develops as a result of infection, clogging of sebaceous glands (oil gland), or around foreign bodies, such as earrings. It can develop in any part of the body, and at times it just simply disappears.167Madridejos insists that he suffered an injury in his upper extremities due to an accident that he had encountered "while doing grinding works . . . on board the vessel."168 He alleges that this incident had caused the development of his cyst.169
Endnotes:
1 POEA Memorandum Circular No. 009-00 (2000), sec. 20(b).
2Rollo, pp. 12-53.
3Rollo, pp. 54-55. The Resolution was penned by Associate Justice Amy C. Lazaro-Javier and concurred in by Associate Justices Mariflor P. Punzalan Castillo and Edwin D. Sorongon of the Sixteenth Division, Court of Appeals, Manila.
4 Id. at 56. The Resolution was penned by Associate Justice Amy C. Lazaro-Javier and concurred in by Associate Justices Mariflor P. Punzalan Castillo and Edwin D. Sorongon of the Former Sixteenth Division, Court of Appeals, Manila.
5 Id. at 55.
6 Id. at 328, NYK-Fil Ship Management, Inc.'s Position Paper.
7 Id. at 13. Also referred to as NFSMI which stands for NYK-Fil Ship Management, Inc.
8 Id. at 328.
9 Id. at 288 and 328.
10 Id. at 288.
11 Id. at 350, Contract of Employment.
12 Id. at 164, NLRC Decision. The NLRC Decision has no page 3.
13 Id.
14 Id.
15 Id.
16 Id.
17 Id.
18 Id. at 358, Notice of Termination.
19 Id.
20 Id. at 165.
21 Id. at 295, Position Paper (for the Complainant).
22 Id.
23 Id. at 291.
24 Id. at 357.
25 Id. at 319.
26 Id. at 291.
27 Id. at 291-292.
28 Id. at 292, Position Paper (for the Complainant).
29 Id. at 293, Position Paper (for the Complainant).
30 Id.
31 Id.
32 Id. at 294, Position Paper (for the Complainant).
33 Id. at 295.
34 Id. at 282, Labor Arbiter's Decision.
35 Id. at 295.
36 Id. at 333, NYK-FIL's Position Paper.
37 Id. at 332.
38 Id. at 333-334.
39 Id. at 352-353. Item 7 of International Cruise Services, Ltd. Crystal Cruises Hotel Personnel Terms and Conditions provides:
. . . .40 Id. at 334.
- First-time EMPLOYEES shall be subject to a probationary period of three (3) months following commencement of service during which this AGREEMENT can be terminated by either party without cause at any time upon fourteen (14) days prior written notice. If the AGREEMENT is terminated in the probationary period by the EMPLOYER, the repatriation costs should be shouldered by the EMPLOYER. Thereafter either party may terminate this AGREEMENT without cause upon one (1) month written notice. An EMPLOYEE that terminates his contract before the expiry date, or demands to leave his employment without giving proper notice, will be responsible for his own repatriation costs. The probation period shall not apply to EMPLOYEES previously engaged by the EMPLOYER within a one (1) year period prior to the execution of this AGREEMENT. EMPLOYER may in lieu of providing the requisite notice, pay to the EMPLOYEE the Minimum Income to which the EMPLOYEE would be entitled during the notice period. If an EMPLOYEE in Group A1-B terminates this AGREEMENT during service on board and the EMPLOYEE signs off in accordance with the approved vacation plan, the term of notice shall apply from the date of signing off.
41 Id. at 336.
42 Id.
43 Id. at 282-285.
44 Id. at 284.
45 Id. at 284-285.
46 Id. at 285.
47 Id.
48 Id. at 163-167, NLRC Decision. See also rollo, pp. 241-274, Petitioner's Memorandum on Appeal and rollo, pp. 198-240, Respondent's Notice of Appeal with Memorandum of Appeal.
49 Id. at 163.
50 Id. at 164.
51 Id. at 163-167.
52 Id. at 166.
53 Id. at 165.
54 Id.
55 Id. at 286-326.
56 Id. at 359-372.
57 Id. at 165.
58 Id.
59 Id.
60 Id. at 166.
61 Id.
62 Id.
63 Id. at 168-169.
64 Id. at 170-195, Motion for Reconsideration (of the Decision dated 30 March 2012).
65 Id. at 121-162.
66 Id. at 123.
67 Id. at 123.
68 Id. at 54-55.
69 Id. at 54.
70 Id.
71 Id. at 55.
72 Id. at 54.
73 Id. at 55.
74 Id. at 56.
75 Id. at 57-74, Motion for Reconsideration.
76 Id. at 12-53.
77 Id. at 38.
78 Id. at 39.
79 Id.
80 Id. at 42.
81 Id. at 44.
82 Id. at 46.
83 Id. at 47.
84 Id.
85 Id. at 48.
86 Id. citing Maunlad Transport, Inc. et al. v Manigo, 577 Phil. 319 (2008) [Per J. Austria-Martinez, Third Division].
87 Id. at 49.
88 Id.
89 Id. at 405-406.
90 Id. at 407-438.
91 Id. at 411. "Petitioner alleged on page 10 of the Petition that on 28 April 2010, he was involved in an accident while lifting and carrying Kitchen Equipment aboard the vessel when he accidentally slipped in the metal stairway. According to him, he suddenly felt episodic chest pain and abdominal pains radiating up to the right upper extremity as electric shock. For the alleged incident, Petitioner ties his "SEBACEOUS CYST" to claim disability benefits."
92 Id.
93 Id. at 412.
94 Id.
95 Id. at 412-413.
96 Id. at 411.
97 Id. at 413.
98 Id.
99 Id.
100 Id. at 414.
Section 20: Compensation and Benefits
. . . .
B. Compensation and Benefits for Injury or Illness
. . . .For this purpose, the seafarer shall submit himself to a post-employment medical examination by a company-designated physician within three working days upon his return except when he is physically incapacitated to do so, in which case, a written notice to the agency within the same period is deemed compliance. Failure of the seafarer to comply with the mandatory reporting requirement shall result in his forfeiture of the right to claim the above benefits.
- 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.
101 Id. at 433.
102 Id. at438-A.
103 Id. at 439-446.
104 Id. at 439.
105 Id. at 440.
106 Id.
107 Id. at 441.
108 Id. at 442.
109 Id.
110 Id. at 447.
111 Id. at 480-497, Petitioner's Memorandum; rollo, pp. 448-479, Respondent's Memorandum.
112 Id. at 456.
113 Id. at 487.
114 Id. at 165.
115 Id. at 54.
116Career Philippines Shipmanagement, Inc. v. Serna, 700 Phil. 1, 9 (2012) [Per J. Brion, Second Division].
117 Id.
118 Id. at 9-10.
119 Id. at 10.
120Rollo, p. 488.
121Javier v. Philippine Transmarine Carriers, Inc., 738 Phil. 374, 384 (2014) [Per J. Brion, Second Division].
122Rollo, p. 456
123 Id. at 358.
124 Id. at 359-372, Reply (to Respondents' Position Paper).
125 Id. at 359.
126 Id. at 456-457.
127 Id. at 165.
128 Id.
129 Id.
130 Id. at 429.
131 Id. at 319.
132 Id. at 164.
133 Id. at 413.
134 Id. at 164.
135Monana v. MEC Global Shipmanagement and Manning Corp., 746 Phil. 736, 745 (2014) [Per J. Leonen, Second Division].
136 Id.
137 The Amended Standard Terms and Conditions governing the Employment of Filipino-Seafarers on Board Ocean-Going Vessels were adopted on June 14, 2000.
138Rollo, p. 288 and 329.
139 Id. at 357.
Re: Mr. Mario MADRIDEJOS . . .
. . . .
Thank you very much for referring along this gentleman who works on your ship who has a sebaceous cyst to the right of the umbilicus. I explained the diagnosis to this gentleman in clinic today. (Emphasis supplied)
140 Id. at 284.
141Dayo v. Status Maritime Corp., 751 Phil. 778, 785 (2015) [Per J. Leonen, Second Division].
142 Id.
143Rollo, p. 488.
144 Id. at 465-466.
145 Id. at 466.
146 Id. at 464.
147 POEA Memorandum Circular No. 9 (2000) or the Amended Standard Terms and Conditions Governing the Employment of Filipino Seafarers on Board Ocean-Going Vessels
148 Schedule of Disability or Impediment for Injuries Suffered and Diseases Including Occupational Diseases or Illness Contracted
149 Occupational Diseases
150 Id. at Section 20(B)
151Dayo v. Status Maritime Corp., 751 Phil. 778, 789 (2015) [Per J. Leonen, Second Division] citing Magsaysay Maritime Services v. Laurel, 707 Phil. 210 (2013) [Per J. Mendoza, Third Division].
152 Id.
153Jebsen Maritime, Inc. v. Ravena, 743 Phil. 371, 388 (2014) [Per J. Brion, Second Division].
154 Id.
155 Id.
156Talosig v. United Philippine Lines, Inc., 739 Phil. 774, 783 (2014) [Per CJ. Sereno, First Division].
157 Id.
158Quizora v. Denholm Crew Management (Philippines), Inc., 676 Phil. 313, 327 (2011) [Per J. Mendoza, Third Division].
159 Id.
160 Id.
161 Id.
162 See Sebacious cysts, available at <http://www.nevdgp.org.au/info/murtagh/pdf/SEBCYSTS010216.pdf. (Last visited April 7, 2017).
163 Id.
164 Id.
165 Id.
166 Id.
167Rollo, p. 55.
168 Id. at 44.
169 Id.
170 Id. at 480-497.
171 Id. at 490.
172 Id.
173 Id. at 47.
174 Id.
175Francisco v. Bahia Shipping Services, Inc., 650 Phil. 200, 206 (2010) [Per J. Carpio-Morales, Third Division].
176NYK-Fil Ship Management Inc. v. National Labor Relations Commission, 534 Phil. 725, 739 (2006) [Per J. Carpio-Morales, Third Division].
177Rollo, p. 473.
178Magsaysay Maritime Corporation v. National Labor Relations Commission, 630 Phil. 352, 369 (2010) [Per J. Brion, Second Division].
179 Id.
180Francisco v. Bahia Shipping Services, Inc., 650 Phil. 200, 207 (2010) [Per J. Carpio-Morales, Third Division].