SECOND DIVISION
G.R. No. 226103, January 24, 2018
GENERATO M. HERNANDEZ, Petitioner, v. MAGSAYSAY MARITIME CORPORATION, SAFFRON MARITIME LIMITED AND/OR MARLON R. ROÑO, Respondents.
D E C I S I O N
PERALTA, J.:
This petition for review on certiorari under Rule 45 of the Rules of Court (Rules) seeks to reverse the April 6, 2016 Decision1 and August 1, 2016 Resolution2 of the Court of Appeals (CA) in CA-G.R. SP No. 140581, which set aside the February 4, 2015 Decision3 and March 3, 2015 Resolution4 of the National Labor Relations Commission (NLRC), affirming with modification the November 18, 2014 Decision5 of the Labor Arbiter (LA).
The facts6 appear as follows:
[Petitioner] alleges: that he has been under the employ of respondent agency since 1991 and was rehired consistently by the said agency (Annex "D"); that on February 28, 2012, he was hired by respondent agency to work on board "MV Saga Sapphire" as Head Wine Waiter for a period of six (6) months with a basic monthly salary of US$623.00 (Annex "B"); that he underwent a thorough pre-employment medical examination by the company[-]designated doctors and was declared "fit for sea duty" (Annex "B"); that he departed on March 3, 2012, to join his assigned vessel and everything went well without any trouble until on November 16, 2012 when he had an accident; that he was then lifting a box of wine when the vessel suddenly rolled causing him to lose his balance; that he fell on the floor with his back hitting the steel pavement; that he felt a sharp snap on his lower back accompanied by extreme pain radiating down to his lower extremities; that the ship doctor gave him a pain reliever and recommended his medical repatriation with a view to physiotherapy; that he was repatriated on December 22, 2012 and upon arrival he reported to respondents' office for post employment medical examination; that he was referred to the company-designated physicians at the Manila Doctors Hospital where he underwent MRI; that the results of the MRI revealed Lumbar Spondylosis, Disc Protrusion, and Disc Bulges; that he underwent extensive physical therapy from January 8, 2013 until his latest medical evaluation on March 11, 2013 and considered [petitioner] for disability assessment of slight rigidity or one[-]third loss of lifting power (Annex "F-3"); that [petitioner] sought consult (sic) from Dr. Rogelio P. Catapang, Jr., Orthopaedic Surgeon and Traumatology expert and in his medical report, he stated:"xxx He has tenderness over the spinal process and para spinal muscle; he has difficulty going up and down the stairs. Straight leg[-]raising noted at the right; no atrophy of the leg muscles. Deep tendon reflexes are normoactive and noted with difficulty of carrying and bending. Patient was advised to continue physiotherapy and to modify activities of daily living, avoid lifting heavy objects and high impact exercises.
xxx
Mr. Hernandez continues to complain and suffer low back pain. Diagnosis: the pain is made worse by prolonged standing and bending. He has difficulty in climbing up and down the stairs. He has lost his pre-injury capacity and is UNFIT to work back at his previous occupation. "
[Petitioner] further avers that despite the conclusive findings of physical disabilities, his plea for assistance from the respondents was denied alleging that they have no liability whatsoever. His request for sickness allowance was likewise denied. Hence, this present complaint.
Respondents, on the other hand, admitted the fact of [petitioner's] employment on board the vessel "MV Saga Sapphire" as Head Wine Waiter and alleges the following: that the contract was for a term of six (6) months; that [petitioner] joined the vessel on March 2, 2012 and disembarked from the vessel on December 18, 2013 (Annex "2"); that [petitioner] complained of lumbar back pain and was given ibuprofen gel and paracetamol for relief; that the x-ray on his pelvis or lumbar spine showed no abnormality; that he was later on disembarked for medical treatment (Annex "3"); that after his repatriation, [petitioner] was referred to the company physician[,]Dr. Benigno A. Agbayani[,] of the Manila Doctors Hospital who recommended MRI (Annex "4"); that the MRI results showed [petitioner] was suffering Mild Disc Herniation; that on March 8, 2013, [petitioner] was assessed a partial permanent disability grade 11 – slight rigidity or one[-]third loss of lifting power (Annex "6")[.]7
WHEREFORE, premises considered, the assailed Decision and Resolution of the NLRC are hereby SET ASIDE, and in lieu thereof, a new one is rendered ordering petitioners to jointly and severally pay private respondent Seven Thousand Four Hundred Sixty[-]Five US Dollars (US$7,465.00) in its equivalent in Philippine Peso at the prevailing rate of exchange at the time of actual payment.
SO ORDERED.10
By so acting, Rosales proceeded in a manner contrary to the terms of his contract with INC in challenging the company doctor's assessment; he failed to signify his intent to submit the disputed assessment to a third doctor and to wait for arrangements for the referral of the conflicting assessments of his disability to a third doctor.
Significantly, no explanation or reason was ever given for the omission to comply with this mandatory requirement; no indication whatsoever is on record that an earnest effort to secure compliance with the law was made; Rosales immediately filed his complaint with the LA. As we recently ruled in Bahia Shipping Services, Inc., et al. v. Crisante C. Constantino, when the seafarer challenges the company doctor's assessment through the assessment made by his own doctor, the seafarer shall so signify and the company thereafter carries the burden of activating the third doctor provision.
To definitively clarify how a conflict situation should be handled, upon notification that the seafarer disagrees with the company doctor's assessment based on the duly and fully disclosed contrary assessment from the seafarer's own doctor, the seafarer shall then signify his intention to resolve the conflict by the referral of the conflicting assessments to a third doctor whose ruling, under the POEA-SEC, shall be final and binding on the parties. Upon notification, the company carries the burden of initiating the process for the referral to a third doctor commonly agreed between the parties. In Bahia, we said:In the absence of any request from him (as shown by the records of the case), the employer-company cannot be expected to respond. As the party seeking to impugn the certification that the law itself recognizes as prevailing, Constantino bears the burden of positive action to prove that his doctor's findings are correct, as well as the burden to notify the company that a contrary finding had been made by his own physician. Upon such notification, the company must itself respond by setting into motion the process of choosing a third doctor who, as the POEA-SEC provides, can rule with finality on the disputed medical situation.18
The POEA Standard Employment Contract and the CBA clearly provide that when a seafarer sustains a work-related illness or injury while on board the vessel, his fitness or unfitness for work shall be determined by the company-designated physician. If the physician appointed by the seafarer disagrees with the company-designated physician's assessment, the opinion of a third doctor may be agreed jointly between the employer and the seafarer to be the decision final and binding on them.
Thus, while petitioner had the right to seek a second and even a third opinion, the final determination of whose decision must prevail must be done in accordance with an agreed procedure. Unfortunately, the petitioner did not avail of this procedure; hence, we have no option but to declare that the company-designated doctor's certification is the final determination that must prevail. x x x21
Earlier, we called attention to a compensation system provided by the POEA-SEC which is often ignored or overlooked in maritime compensation cases. This system is found in Section 32 of the POEA-SEC which provides for a schedule of disability compensation, in conjunction with Section 20(B)6. To our mind, the reason why this compensation system is often ignored or disregarded is the fixation on the 120-day rule and the notion that an "unfit-to-work" or "inability-to-work" assessment should be awarded permanent total disability compensation even when the seafarer is given a disability grading in accordance with Section 32 of the POEA-SEC. x x x A NOTE in Section 32 of the POEA-SEC declares that "any item in the schedule classified under Grade 1 shall be considered or shall constitute total and permanent disability." Any other grading, therefore, constitutes only as temporary total disability.
Considering that the POEA-SEC embodies the terms and conditions governing the employment of Filipino seafarers onboard ocean-going vessels, it is about time that the schedule of disability compensation under Section 32 is seriously observed. A step towards this direction had already been taken by way of the Court's clarificatory Resolution dated February 12, 2007 in Crystal Shipping where we declared that admittedly, the POEA-SEC (1996) does not measure disability in terms of number of days but by gradings only. x x x30
3. That this Conditional Satisfaction of Judgment is without prejudice to herein respondents' Petition for Certiorari pending with the Court of Appeals entitled, "MAGSAYSAY MARITIME CORPORATION, SAFFRON MARITIME LIMITED AND MARLON R. ROÑO vs. NATIONAL LABOR RELATIONS COMMISSION (FOURTH DIVISION) AND GENERATO M. HERNANDEZ" and/or any appeal/remedy available to both parties.33
EFFECT OF REVERSAL OF EXECUTED JUDGMENT. – Where the executed judgment is totally or partially reversed or annulled by the Court of Appeals or the Supreme Court, the Labor Arbiter shall, on motion, issue such orders of restitution of the executed award, except wages paid during reinstatement pending appeal.35
Endnotes:
1 Penned by Associate Justice Agnes Reyes-Carpio, with Associate Justices Romeo F. Barza (now Presiding Justice of the Court of Appeals) and Amy C. Lazaro-Javier concurring; rollo, pp. 11-20.
2Id. at 22-24.
3Id. at 106-120.
4Id. at 122-124.
5Id. at 237-243, 261-266.
6 The factual antecedents narrated by the LA was adopted by the NLRC, the CA, and the petitioner (See rollo, pp. 12-13, 32-33, 107-108, 237-239).
7Rollo, pp. 237-239; 261-262.
8 730 Phil. 162 (2014).
9 712 Phil. 507 (2013).
10Rollo, pp. 19-20. (Emphasis in the original)
11 See Phil. Hammonia Ship Agency, Inc., et al. v. Dumadag, supra note 9, at 521-522.
12Leonis Navigation Co., Inc. v. Obrero, G.R. No. 192754, September 7, 2016, 802 SCRA 341, 355.
13 See Talaroc v. Arpaphil Shipping Corporation, et al., G.R. No. 223731, August 30, 2017, citing Kestrel Shipping Co., Inc., et at. v. Munar, 702 Phil. 717, 737-738 (2013). See also Marlow Navigation Philippines, Inc., et at. v. Osias, 773 Phil. 428, 446 (2015).
14Leonis Navigation Co., Inc. v. Obrero, supra note 12.
15Scanmar Maritime Services, Incorporated v. Conag, G.R. No. 212382, April 6, 2016, 789 SCRA 1, 13 and Magsaysay Maritime Corp., et al. v. Simbajon, 738 Phil. 824, 843 (2014).
16 See Leonis Navigation Co., Inc. v. Obrero, supra note 12, at 355.
17 744 Phil. 774 (2014).
18INC Navigation Co. Philippines, Inc., et al. v. Rosales, supra, at 787-788. (Citation omitted; emphasis in the original).
19Talaroc v. Arpaphil Shipping Corporation, et al., G.R. No. 223731, August 30, 2017; MST Marine Services (Philippines), Inc., et al. v. Asuncion, G.R. No. 211335, March 27, 2017; Garino v. Southfield Agencies, Inc., et al., G.R. No. 227007, January 9, 2017; Leonis Navigation Co., Inc. v. Obrero, G.R. No. 192754, September 7, 2016, 802 SCRA 341; Scanmar Maritime Services, Incorporated v. Conag, G.R. No. 212382, April 6, 2016, 789 SCRA 1; Arboleda, Jr. v. Centennial Transmarine, Inc., et al., G.R. No. 221357, January 25, 2016; Maersk-Filipinas Crewing, Inc., et al. v. Jaleco, 770 Phil. 50 (2015); Magsaysay Maritime Corp., et al. v. Panogalinog, 764 Phil. 212 (2015); Tagalog v. Crossworld Marine Services Inc., et
al. 761 Phil. 270 (2015); Cagatin v. Magsaysay Maritime Corp., et al., 761 Phil. 64 (2015); Carcedo v. Maine Marine Philippines, Inc., et al., 758 Phil. 166 (2015); Veritas Maritime Corp., et al. v. Gepanaga, Jr., 753 Phil. 308 (2015); Daraug v. KGJS Fleet Management Manila, Inc., et al., 750 Phil. 949 (2015); Montierro v. Rickmers Marine Agency Phils., Inc., 750 Phil. 937 (2015); Bahia Shipping Services, Inc., v. Hipe, Jr., 746 Phil. 955 (2014); INC Navigation Co. Philippines, Inc., et al. v. Rosales, supra note 17; Bahia Shipping Services, Inc., et al. v. Constantino, 738 Phil. 564 (2014); Magsaysay Maritime Corp., et al. v. Simbajon, 738 Phil. 824 (2014); Splash Philippines, Inc., et al. v. Ruizo, 730 Phil. 162 (2014); and Ayungo v. Beamko Shipmanagement Corp., et al., 728 Phil. 244 (2014).
20 588 Phil. 895 (2008).
21Vergara v. Hammonia Maritime Services, Inc., et al., supra, at 914.
22Ibarreta v. Philippine Transmarine Carriers, Inc., et al., G.R. No. 209796, June 25, 2014 (3rd Division Resolution).
23 See Veritas Maritime Corp., et al. v. Gepanaga, Jr., supra note 19; Daraug v. KGJS Fleet Management Manila, Inc., et al., 750 Phil. 949 (2015); and INC Navigation Co. Philippines, Inc., et al. v. Rosales, supra note 17.
24Oriental Shipmanagement Co., Inc., et al. v. Ocangas, G.R. No. 226766, September 27, 2017
25 See Oriental Shipmanagement Co., Inc., et al. v. Ocangas, supra.
26Rollo, pp. 201-203.
27Id. at 157.
28 See Bahia Shipping Services, Inc., et al. v. Constantino, supra note 19, at 574.
29Leonis Navigation Co, Inc. v. Obrero, supra note 12, at 351.
30Splash Philippines, Inc., et al. v. Ruizo, supra note 8, at 178-179. In relying on the aforesaid pronouncement, TSM Shipping Phils., Inc., et al. v. Patiño (G.R. No. 210289, March 20, 2017) recently concluded:Section 32 of the POEA-SEC provides for a schedule of disability compensation which is often ignored or overlooked in maritime compensation cases. Section 32 laid down a Schedule of Disability or Impediment for Injuries Suffered and Diseases including Occupational Diseases or Illness Contracted, in conjunction with Section 20 (B)(6) which provides that in case of a permanent total or partial disability, the seafarer shall be compensated in accordance with Section 32. Section 32 further declares that any item in the schedule classified under Grade 1 shall be considered or shall constitute total and permanent disability. Therefore, any other grading constitutes otherwise. We stressed in Splash Philippines, Inc. v. Ruizo that it is about time that the schedule of disability compensation under Section 32 be seriously observed.
31Rollo, p. 379.
32 The parties jointly filed a pleading before the NLRC entitled "Conditional Satisfaction of Judgment Award with Urgent Motion to Cancel and Release Appeal Bond (All Without Prejudice to Respondents' Pending Petition for Certiorari in the Court of Appeals" (Id. at 379-386).
33Rollo, p. 380. (Underscoring and emphasis in the original)
34 See Philippine Transmarine Carriers, Inc., et al. v. Pelagio, 766 Phil. 504, 518 (2015).
35 Emphasis supplied. See Philippine Transmarine Carriers, Inc. v. Legaspi, 710 Phil. 838, 849-850 (2013).