Gere vs. Anglo Eastern Jurisprudence On Labor Law
Gere vs. Anglo Eastern Jurisprudence On Labor Law
Gere vs. Anglo Eastern Jurisprudence On Labor Law
G.R. No. 226656, April 23, 2018 - ARNEL T. GERE, Petitioner, v. ANGLO-EASTERN
CREW MANAGEMENT PHILS., INC. AND/OR ANGLO-EASTERN CREW MANAGEMENT
(ASIA), LTD., Respondents.; G.R. No. 226713, April 23, 2018 - ANGLO-EASTERN CREW
MANAGEMENT PHILS., INC. AND/OR ANGLO-EASTERN CREW MANAGEMENT (ASIA),
LTD., Petitioners, v. ARNEL T. GERE, Respondent.
SECOND DIVISION
DECISION
REYES, JR., J.:
To require the seafarer to seek the decision of a neutral third-party physician without
primarily being informed of the assessment of the company-designated physician is a
clear violation of the tenets of due process, and shall not be countenanced by the
Court.
The Case
Consolidated in this case are the Petitions for Review on Certiorari under Rule 45 of the
Rules of Court filed (1) by Arnel T. Gere (petitioner) against Anglo-Eastern Crew
Management Phils., Inc. and Anglo-Eastern Crew Management (Asia), Ltd. (hereinafter
collectively referred to as the "respondents") in G.R. No. 226656, and (2) by
respondents against the petitioner in G.R. No. 226713.
The petitions challenge before the Court the Decision1 of the Court of Appeals (CA) in
CA-G.R. SP No. 142422, promulgated on April 21, 2016, which affirmed with
modification the Decision2 and Resolution3 of the Panel of Voluntary Arbitrators in AC-
971-RCMB-NCR-MVA-123-11-11-2014 dated May 29, 2015 and August 25, 2015,
respectively. The latter decision and resolution granted total and permanent disability
benefits in favor of the petitioner.
Likewise challenged is the subsequent Resolution of the CA4 promulgated on August 26,
2016, which upheld the earlier CA decision.
On January 4, 2014, the petitioner suffered an accident while performing his duties on
board the vessel. According to the findings of the CA the petitioner was placing a rat
guard on the headline of the vessel when he accidentally stepped on a bulwark support
causing him to lose his balance and to eventually land awkwardly and heavily on his
right arm.8 The petitioner was immediately referred to a medical facility in Trinidad and
Tobago, where he was subjected to x-ray and the placement of a cast over the affected
arm.9
Due to this, on January 10, 2014, the petitioner was repatriated to the Philippines for
medical reasons. He was confined at the Marine Medical Services-the respondents'
accredited medical services provider, consequently referred to Dr. Ferdinand R. Bernal,
an orthopedic surgeon at the Cardinal Santos Medical Center, and underwent different
medical examinations, which thereafter disclosed the impression: "Closed Complete
Fracture, Right Radius, Undisplaced."10
From that moment until August 27, 2014, the petitioner underwent different medical
examinations, procedures, and treatments on the injured arm and, subsequently, on his
hips.11
The point of divergence in the statement of facts between the parties arose from the
issuance-or non-issuance-of the disability grading of the petitioner's injury.
On the basis of the foregoing, the petitioner asked the respondents to pay him disability
benefits based on the CBA between AMOSUP and the respondents. The latter denied the
claim.
Hence, on the strength of the provisions under the CBA,18 the petitioner filed a Notice
to Arbitrate before the Office of the Panel of Voluntary Arbitrators of the National
Conciliation and Mediation Board (NCMB). After the failure of the parties to arrive at an
amicable settlement, the panel rendered its Decision on May 29, 2015 in favor of the
petitioner. The dispositive portion of the NCMB Decision reads:
WHEREFORE, ALL THE ABOVE CONSIDERED, a Decision is hereby promulgated
directing the respondents, jointly and severally, to pay complainant the following
amounts:
SO ORDERED.19
Aggrieved the respondents appealed the NCMB decision before the CA, which later on
modified the same. The fallo of the appellate court's decision reads:
WHEREFORE, premises considered, the Petition is PARTLY GRANTED. The Decision
dated 29 May 2014 and Resolution dated 25 August 2015 of the Panel of Voluntary
Arbitrators in AC-971-RCMBNCR-MVA-123-11-11-2014 are
hereby AFFIRMED with MODIFICATIONS, such that
SO ORDERED.20
Both parties were unsatisfied with the appellate court's decision. Hence, the instant
petitions.
The Issues
The petitioner anchors his plea of the partial reversion of the CA decision on the
following ground:
WITHOUT A DEFINITE AND FINAL ASSESSMENT OF THE PETITIONER'S FITNESS TO
WORK OR PERMANENT DISABILITY; THE LAW STEPS IN TO CONSIDER THE DISABILITY
TO BE PERMANENT AND TOTAL WHICH ENTITLES HIM TO FULL, DISABILITY BENEFITS
UNDER THE CBA.21
On the other hand, the respondents put forth the following grounds:
III. CONTRARY TO THE RULING OF THE COURT OF APPEALS, THE PRESENT STATE
OF LAW AND JURISPRUDENCE MANDATES THAT A SEAFARER'S DISABILITY
ASSESSMENT BE BASED SOLELY ON THE DISABILITY GRADINGS UNDER THE
POEA-STANDARD EMPLOYMENT CONTRACT, AS REAFFIRMED IN THE 6 APRIL
2016 CASE OF SCANMAR MARITIME SERVICES, INC. V. CONAG.
IV. IN ANY EVENT, PRIVATE RESPONDENT IS NOT ENTITLED TO TOTAL AND
PERMANENT DISABILITY BENEFITS, AS THE DEGREE OF HIS DISABILITY WAS
DETERMINED WITHIN THE 240-DAY PERIOD PROVIDED BY THE LABOR CODE.
In essence, while there is no question that the petitioner did indeed suffer an injury
during the course of his employment with the respondents, both parties now ask the
Court whether or not such injury is compensable under Philippine law.
In particular, the parties herein seek the guidance of the Court to answer whether or
not the company-designated physician was able to issue a final disability grading of the
petitioner's injury within 240 days from the moment of his medical attention. If not,
then, as the petitioner asserted, his injury would be considered final and permanent
insofar as compensation is concerned; if so, then the disability grading issued by the
company-designated physician would stand.
Moreover, the Court is called upon once again to determine whether or not the referral
to a third doctor is mandatory in the event of disagreement between the company-
designated physician and the seafarer's personal physician.
The rise of the Filipino as the preferred seafarer worldwide place emphasis on the
importance of their effort to uplift Philippine economy. As such, much importance is
accorded to the safety and the well-being of the country's workers who unselfishly
contribute their time and devotion to the country and their families. To this end,
Philippine jurisprudence regarding the disability claims of Filipino seafarers has come a
long way. The Court has evolved with the times, as it were, to answer and face the
challenges that befall the Filipino worker.
Among the most controversial issues that concern seafarers are the so-called 120-day
or 240-day rules for the determination of disability.
Initially, there was confusion as to the application of the 120-day period found in Article
192(c)(1) of the Labor Code vis-a-vis the application of the 240-day period found in
Section 2, Rule X of the Amended Rules on Employees' Compensation Implementing
Title II, Book IV of the Labor Code.
xxxx
(1) Temporary total disability lasting continuously for more than one hundred twenty
days, except as otherwise provided in the Rules; (Emphasis and underscoring supplied)
On the other hand, the implementing rules provide that:
Sec. 2. Period of entitlement. - (a) The income benefit shall be paid beginning on the
first day of such disability. If caused by an injury or sickness it shall not be paid longer
than 120 consecutive days except where such injury or sickness still requires
medical attendance beyond 120 days but not to exceed 240 days from onset of
disability in which case benefit for temporary total disability shall be paid. However,
the System may declare the total and permanent status at anytime after 120 days of
continuous temporary total disability as may be warranted by the degree of actual loss
or impairment of physical or mental functions as determined by the
System.23 (Emphasis and underscoring supplied)
The Court, in recognizing these provisions, and for the final resolution of any confusion
that may arise therefrom, formulated guidelines in the case of Elburg Shipmanagement
Phils., Inc. vs. Quiogue, Jr.,24 as cited in the recent case of Paulino M. Aldaba vs. Career
Philippines Ship-Management, Inc. Columbia Ship Management Ltd., and/or Verlou
Carmelino25 As it now stands, the rules to be followed are:
This section states that, in the event that a seafarer suffers a worker
related/aggravated illness or an injury during the course of his/her employment, it is
the company-designated physician's medical assessment that shall control the
determination of the seafarer's disability grading. Should the seafarer's personal
physician disagree, then the matter shall be referred to a neutral third party physician,
who shall then issue a final and binding assessment. The provision reads:
Section 20 [B]. Compensation and Benefits for Injury or Illness
xxxx
2. x x x x
However, if after repatriation, the seafarer still requires medical attention arising from
said injury or illness, he shall be so provided at cost to the employer until such time as
he is declared fit or the degree of his disability has been established by the company-
designated physician.
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 his permanent disability has been assessed by the company-designated
physician, but in no case shall this period exceed one hundred twenty (120) days.
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 as 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.
Again, this process is mandatory. And, at the risk of sounding repetitive, it could only
begin from the moment of proper notice to the seafarer of his medical assessment by
the company-designated physician. To require the seafarer to seek the decision of a
neutral third party physician without primarily being informed of the assessment of the
company-designated physician is a clear violation of the tenets of due process, and
shall not be countenanced by the Court.
In the present case, the Court finds that the evidence presented by the respondents to
prove to this Court that they have actually given the petitioner a copy of the medical
assessment fail to convince. For a full discourse, the following are the documents
alluded to by the respondents in their petition:
1. A letter dated April 28, 2014, issued by Dr. Bernal and addressed to Dr. Lim, the
company-designated physician, indicating an interim disability grading of "Grade
10 - loss of grasping power."29 The full contents of the letter reads:
"4/28/14
Dear Dr. Lim,
I will meet to see the patient at least every 2 weeks to monitor his
condition.
He will be re-evaluated on May 16, 2014 for repeat x-ray of his forearm
and I will re-assess patient.
Thank you.
(sgd)
Ferdinand R. Bernal, (sic)"30 (Emphasis supplied)
2. A letter dated August 12, 2014, issued by Dr. Bernal and addressed to Dr. Lim,
the company-designated physician, suggesting a final disability grading of
"Grade 10 ankylosed wrist in normal position."31 It reads:
Thank you.
(sgd)
Ferdinand R. Bernal, MD"32
In this regard, we would appreciate it if you could discuss the matter with
Mr. Gere and inform us of your/your client's decision in order to progress
the matter.
Kindest regards
Delia V. Andrada
Joint Manager - Personal Injury Division"34
First, both interim and final disability ratings were, as correctly pointed out by the
petitioner, mere suggested disability ratings. If anything, the import of these
documents could only be regarded as an internal communication between the
company-designated physician and his consulting physician regarding the treatment of
herein petitioner. More so, none of the foregoing documents prove that the petitioner
was properly informed of the assessment. Indeed, both the interim and final disability
grading mentioned above were in fact written by the attending physician, Dr. Bernal,
and addressed not to the petitioner but to the company-designated physician.
Second, the only instance when it could be shown that the petitioner was informed of
his disability grading was through the communication between the respondents, as
represented by Ms. Delia V. Andrada, joint manager of the Personal Injury Division, and
the petitioner's counsel, Atty. Valmores.
However, all that this document showed was that the petitioner was informed of his
disability grading only after he has initiated an action against the respondents before
the Panel of Arbitrators.35 In the Court's perusal of the evidence submitted by the
respondents, it was only on September 17, 2014 that he was informed of the disability
grading-five days after the filing of the Notice to Arbitrate-which, coincidentally, was
already 250 days after his medical repatriation.
The effect of this failure by the respondents to furnish the petitioner a copy of his
medical certificate militates gravely against the respondents cause.
To begin with, without this proper notice, the 120-day and 240-day rule would have
stepped in by operation of law. Insofar as the petitioner is concerned, there was no
issuance of a final medical assessment regarding his disability. For all intents and
purposes, Elburg Shipmanagement Phils., Inc. rules that the petitioner's disability has
already become permanent and total.
This is in addition to the fact that the records do not contain any document, not even
any argument, that offer any justification why the 120-day period should be extended
to 240 days as required by Elburg Shipmanagement Phils., Inc. There simply was no
explanation why the disability grading was not issued within the shorter time, and why
it necessitated an extension to the longer period.
Secondly, without the proper notice, the petitioner was not given thy opportunity to
evaluate his medical assessment. Again, insofar as he was concerned, the disability
grading of his personal physician was the only disability grading available to him prior
to the filing of the case before the Panel of Arbitrators. In this instance, the mandatory
referral to a neutral third doctor could not have been applicable. Indeed, from the
perspective of the petitioner, there was absolutely no assessment by the
company-designated physician to contest. As such, there was no impetus to
seek a neutral third doctor.
That the respondents now harp on the conflict-resolution procedure not only self-
serving but is also a selfish invocation of a rule which the respondents so easily
disregarded earlier on. And this, the Court could not accede to.
Moreover, considering that the respondents failed to inform the petitioner of the
assessment of the company-designated physician, it would be the height of injustice if
the Court were to uphold the former's disability grading of the petitioner's injury. Such
an action would firmly go against the guidelines that the Court has already set in Elburg
Shipmanagement Phils., Inc.
Therefore, for the respondents' failure to inform the petitioner of his medical
assessment within the prescribed period, the petitioner's disability grading is, by
operation of law, total and permanent.
This thus brings the discourse of this case to the CBA between AMOSUP and the
respondents. The provisions of the CBA are clear: (1) only when the disability grading is
at 50% or more, or (2) only when the company-designated physician certifies that the
seafarer is medically unfit to continue work-even if the disability grading is less than
50%-could the seafarer be entitled to total and permanent disability benefits in
accordance with the medical unfitness clause. As Article 20.1.4 of the CBA provides:
20.1.4. Permanent Medical Unfitness
A seafarer whose disability is assessed at 50% or more under the POEA Employment
Contract shall, for the purpose of this paragraph be regarded as permanently unfit for
further sea service in any capacity and entitled to 100% compensation, as follows:
US$151,470.00 for senior officers, US$121,176.00 for junior officers and US$90,882.00
for ratings (effective 2012); US$155,257.00 for senior officers, US$124,205.00 for
junior officers and US$93,154.00 for ratings (effective 2013); and US$159,914.00 for
senior officers, US$127,932.00 for junior officers, US$95,949.00 for ratings (effective
2014). Furthermore, any seafarer assessed at less than 50% disability under the
contract but certified as permanently unfit for further sea service in any capacity by the
company doctor, shall also be entitled to 100% compensation.36
In the present case, even the petitioner's personal physician assessed him only at
Grade 8 disability grading. According to the schedule of disability allowances indicated
in the POEA Contract, this impediment grade translates to only 33.59%,37 which
definitely falls short in the 50% requirement of Article 20.1.4 of the CBA. On the other
hand, neither did the company-designated physician issue a certification that the
petitioner was medically unfit to continue performing his seafaring duties. On these
grounds, the medical unfitness clause of the CBA finds no application.
Nonetheless, the petitioner is not without any benefit to lean back om The POEA
contract provides that seafarers suffering from total and permanent disability are
entitled to 120% of US$50,000.00, or a total of US$60,000.00. Indeed, the Court of
Appeals is correct in applying the provisions of the POEA contract rather than the
provisions of the CBA when it said:
As correctly argued by Petitioners, the permanent medical unfitness clause under the
parties' CBA awarding a total and permanent disability benefit of US$95,949.00 does
not apply to private respondent because neither the company doctor nor his own
doctor assessed his disability at 50% or more. Moreover, while the permanent
medical unfitness clause provides that any seafarer assessed at less than 50% disability
is entitled to full compensation, the same clause mandates that the certification
must be made by the company doctor which is not the situation in the present
case.38 (Emphasis and underscoring supplied, citations omitted)
The Court finds that no further elucidation is necessary to this categorical ruling.
Carpio, Acting C. J., (Chairperson), Peralta, Perlas-Bernabe, and Caguioa, JJ., concur.
Endnotes:
2Rollo (G.R. No. 226656), pp. 256-273, rollo (G.R. No. 226713), Vol. 1, pp. 453-470.
3Rollo (G.R. No. 226656), p. 275, rollo (G.R. No. 226713), Vol. 1, p. 532.
4Rollo (G.R. No. 226656), pp. 399-401, rollo (G.R. No. 226713), Vol. 1, pp. 34-36.
8 Id. at 13.
9 Id.
10 Id.
11 Id. at 13-15.
12 Id. at 233.
13 Id. at 409.
17 Id.
20 Id. at 32.