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LABOR CODE CASE

The Seafarers Protection Act (RA 10706) aims to protect Filipino seafarers from exploitation by prohibiting ambulance chasing, which involves soliciting claims for excessive fees. Violators face fines and imprisonment, and the law mandates that fees for representation in labor disputes cannot exceed 10% of the awarded compensation. The Act emphasizes the need for education and legal assistance for seafarers to prevent ambulance chasing practices.
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0% found this document useful (0 votes)
7 views

LABOR CODE CASE

The Seafarers Protection Act (RA 10706) aims to protect Filipino seafarers from exploitation by prohibiting ambulance chasing, which involves soliciting claims for excessive fees. Violators face fines and imprisonment, and the law mandates that fees for representation in labor disputes cannot exceed 10% of the awarded compensation. The Act emphasizes the need for education and legal assistance for seafarers to prevent ambulance chasing practices.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Seafarer’s Protection; New Law Against ●​ Any fees charged for such services

Ambulance Chasing must not be deducted from the


-​ RA 10706 monetary claims awarded to seafarers
-​ Nov 26, 2016 or their heirs.
-​ Ambulance Chasing = Criminal
Offense Regulation of Fees

●​ Contracts between seafarers (or their


Law Summary
heirs) and representatives for recovery
Purpose and Policy Declaration
of claims must adhere to fee
●​ The Act is known as the "Seafarers limitations.
Protection Act." ●​ Fees for representation in labor
●​ It aims to promote and protect Filipino disputes should not exceed ten percent
seafarers seeking overseas (10%) of the awarded compensation or
employment. benefit.
●​ The State recognizes the exploitation ●​ The term "fees" refers to the total
of seafarers by unscrupulous compensation for services rendered by
individuals, particularly in cases of the representative.
accidents, illness, or death.
●​ The Act seeks to eliminate unfair Penalties for Violations
practices, specifically ambulance ●​ Violators of the prohibition on
chasing, which involves charging
ambulance chasing face fines ranging
excessive fees under false promises of
from fifty thousand pesos (₱50,000) to
large monetary awards.
one hundred thousand pesos
(₱100,000).
Prohibition on Ambulance Chasing
●​ Imprisonment for a term of one (1) to
●​ Engaging in ambulance chasing is two (2) years may also be imposed.
declared unlawful. ●​ Collusion in the act of ambulance
●​ This includes soliciting claims from chasing incurs the same penalties.
seafarers or their heirs for monetary
recovery against employers. Implementation and Regulation
●​ The act of solicitation can be direct or
●​ The Secretary of Labor and
through an agent.
Employment is tasked with creating
implementing rules and regulations

1
within ninety (90) days of the Act's for or represents the seafarer or his/her heirs
approval. shall not exceed 10% of the compensation or
benefit awarded to the seafarer or his/her heirs.
●​ Coordination is required with the
Maritime Industry Authority (MARINA)
and the Philippine Overseas
3.5.a An Instance of Ambulance Chasing
Employment Administration (POEA) for Even before R.A. No. 10706 was passed,
effective implementation. ambulance chasing had been happening,
illustrated in a 2018 decision of the Supreme
Court.
Repealing Clause
The respondent lawyer and the representatives
●​ Any existing laws, orders, issuances,
offered their legal services to the OFW, who
decrees, rules, or regulations that was still in the hospital, to claim compensation
conflict with the provisions of this Act benefits for injuries suffered at work. ​
are repealed or modified accordingly.
The claimant was awarded indemnity
amounting to US$80,000. Of this amount, the
Effectivity lawyers collected 35% from their clients. Apart
from this, the lawyers charged 35% as an
●​ The Act takes effect fifteen (15) days attorney's fee from a settlement award of about
after publication in the Official Gazette $60,000 in a tort case.
or in at least two newspapers of
The OFW filed a complaint with the Integrated
general circulation.
Bar of the Philippines for "ambulant chasing,”
among other charges.

ELEMENT OF THE OFFENSE The Supreme Court imposed suspension from


1) a person or his agent solicits from a seafarer the practice of law for two years with a warning.
or his heirs, the pursuit of a claim against the The Court declared that "ambulance chasing"
employer of the seafarer; or the solicitation of almost any kind of
business by an attorney, personally or through
(2) such claim is for the purpose of recovery of an agent, in order to gain employment is
monetary award or benefits arising from proscribed. The Court en banc concluded that
accident, illness or death, including legal the lawyer-respondents violated their client's
interest; and trust and thereby committed gross misconduct

(3) the pursuit of the claim is in exchange of an


amount or fee which shall be retained or
deducted from the monetary award or benefit
granted or awarded to the seafarers or their
heirs. R.A. No. 10706 also provides that the
total compensation for the person who appears

2
Ambulance chasing is a term used to describe ●​ The ISWAN organization has
lawyers who try to get clients by persuading launched a campaign against
people who have been injured to sue the ambulance chasing in the Philippines
responsible party. The term is also known as ●​ The Supreme Court of the Philippines
barratry. has encouraged people to file
complaints against ambulance chasers
How it works

●​ Lawyers who practice ambulance


Ambulance chasing is the act of persuading a
chasing may contact people who
seafarer to sue their employer for a monetary
have been injured in an accident and
claim in exchange for a commission. It is
convince them to sue the responsible
illegal in the Philippines and is covered by the
party
Seafarers' Protection Act (Republic Act No.
●​ The goal is to get the injured person
10706).
to claim money from the responsible
party
What happens if a seafarer is the victim of
ambulance chasing?
Why it's considered unethical
●​ The seafarer can file a complaint with
●​ Ambulance chasing is considered
the Supreme Court or the IBP
unethical because it can lead to large
●​ The court can impose disciplinary
settlements for minor injuries
measures on lawyers who violate the
●​ It can also drive companies to seek
Code of Professional Responsibility
other employees

What measures are in place to prevent


Legal action
ambulance chasing?
●​ The American Bar Association
●​ Education: Educate seafarers about
prohibits lawyers from soliciting
their rights and protections
clients who they know or suspect
●​ Legal assistance: Provide free legal
need legal services
assistance to seafarers
●​ In Michigan, ambulance chasing is
●​ Disability grading: Establish a clear
strictly forbidden
process for determining disability
In the Philippines grading or fitness to work

3
●​ Seafarers lounges: Establish courts and the Integrated Bar of the Philippines
seafarers lounges or hubs in key (IBP).
strategic areas

Ambulance Chasing Plagues Filipino “Lawyers who take advantage of overseas


Seafarers
Filipino workers including seafarers have no
Philippine government agencies are on the place in the justice system,” he insisted.
warpath against ambulance chasers and

members of the legal profession who are


By definition, ambulance chasing occurs when
alleged to practice it. But are Filipino seafarers
lawyers or their subordinates actively go after
and maritime lawyers really guilty of ambulance
victims of accidents or individuals involved in
chasing or are they only asserting their
potentially big legal issues with the intent to file
economic and human rights guaranteed under
cases on their behalf to get the biggest
the law?
settlement possible.

Ambulance chasing as a threat


Ambulance chasing is against the Code of
In November 2022, Philippine Supreme Court
Professional Responsibility that lawyers swore
Chief Justice Alexander G. Gesmundo met with
to. Lawyers are said to be “ambulance chasing
heads of the newly-formed Department of
when they persuade their clients to file charges
Migrant Workers (DMW) and said the court is
against their employers instead of negotiating
stepping up its campaign against ambulance
with them”. Under the law, ambulance chasing
chasers.
specifically involving seafarers is prohibited

under Republic Act No. 10706 or the Seafarers


“The judiciary will not tolerate lawyers who prey
Protection Act.
on seafarers and other overseas Filipino

workers (OFWs) through ambulance chasing,”


Jebsen Garrido, executive director of
he said. He added that victims of ambulance
Positibong Marino, a non-government
chasers should file appropriate and verified
organization supporting seafarers coping with
complaints against these lawyers with the

4
HIV and AIDS, said his group warned its Migrant Department Assistant Secretary,

beneficiaries against ambulance chasers. Jerome Pampolina, said it was urgent to

address ambulance-chasing, especially in the

Garrido said: “Ambulance chasers can either maritime sector.

be individuals or groups. They promised

exorbitant claims or awards on cases that they “We hope for the sake of our hardworking

fabricated against the manning agencies and OFWs, measures to instill discipline among

their principals, and they charged excessive lawyers against ambulance chasing and other

fees against the entitlements of the seafarers unethical acts should be implemented strictly,”

should they succeed in the lower labor courts. he said.

“Inevitably, seafarers were left with the barest, Chief Justice Gesmundo for his part said the

most minimal amount from the claims. If their High Court is prepared to suspend or disbar

claims were truly valid and legal, all claims lawyers who violated the Code of Professional

should go to the seafarer with a legitimate Responsibility. The proposed Code of

disability.” Professional Responsibility and Accountability

is currently being revised.

He said a repercussion of successful claims

achieved through ambulance chasing methods Francesco Gargiulo, CEO, International

is a cause for alarm. Maritime Employers Council (IMEC), has

earlier said ambulance chasing does real

“Foreign employers are beginning to explore damage to the maritime industry in the

other manning supply countries for seafarers Philippines.

from other nationalities. They are also being

more stringent when it comes to the He said ambulance-chasing lawyers are among

pre-employment medical examination (PEME) the reasons why operators decided to explore

and the age limit,” he said. alternative manpower sources. This, he said,

was true during the height of the COVID-19

5
pandemic, and operators were forced to

“temporarily look elsewhere.”

He added that many of those temporary

arrangements were now less problematic than

returning to the old source of manpower, and

this was a warning the Philippines should heed.

In its 2021 review, the IMEC said there had

been a small decline in the share of global

supply for Filipino ratings in favor of Indian

ratings since 2015. The Indian sub-continent

also overtook the Philippines as the number

one supplier of officers in 2017.

But is there really a basis to accuse all

maritime lawyers who assisted seafarers in

seeking claims of being ambulance chasers? Is

it all just about the money?

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