G.R. No. 243399 . July 06, 2022.
C.F. Sharp Crew Management Inc. and/or Reederei Claus-Peter Offen (GmbH & Co.), Petitioners, vs. Roberto B. Daganato, Respondent.

FACTS

Respondent Roberto B. Daganato was hired by petitioner C.F. Sharp Crew Management Inc. as Chief Cook for six months on board the MV Vancouver Express, owned by co-petitioner Reederei. His employment contract incorporated the provisions of the ITF Collective Bargaining Agreement (CBA). On December 27, 2014, while carrying heavy provisions, Daganato slipped and fell, causing persistent lower back pain. He was medically repatriated on January 10, 2015. Subsequent MRI and CT scans revealed lumbar spine conditions, including disc bulge and spondylosis. Despite undergoing spinal surgery and physiotherapy, his condition did not improve.
Daganato consulted an independent physician, Dr. Manuel Magtira, who issued a medical report dated July 30, 2015, declaring him permanently unfit for sea duties due to his back condition. Daganato then claimed total and permanent disability benefits from petitioners, who ignored his demand. This prompted Daganato to file a complaint before the Panel of Voluntary Arbitrators (PVA). The PVA ruled in his favor, awarding disability benefits. The Court of Appeals affirmed the PVA’s decision with modification, prompting petitioners to elevate the case to the Supreme Court.

ISSUE

Whether respondent Roberto B. Daganato is entitled to total and permanent disability benefits under the ITF Collective Bargaining Agreement.

RULING

Yes, the Supreme Court denied the petition and affirmed the Court of Appeals’ decision. The Court held that Daganato is entitled to total and permanent disability benefits. The legal logic centered on the assessment of disability and the binding nature of the company-designated physician’s failure to issue a final assessment within the prescribed period.
Petitioners argued that Daganato’s disability was only partial, as their company-designated physician had earlier assessed a Grade 8 disability. However, the Court found that this assessment was not issued within the mandatory 120/240-day period from Daganato’s repatriation as required by law. Since no final assessment was provided within this period, Daganato’s disability was deemed total and permanent. The Court emphasized that the seafarer is not required to wait indefinitely for an assessment; the failure of the employer to comply with the statutory timeframe results in the entitlement to total disability benefits.
Furthermore, the Court gave credence to the independent medical evaluation of Dr. Magtira, which clearly stated Daganato was permanently unfit for sea duties. This opinion was consistent with the medical findings and Daganato’s own account of his incapacity to resume work. The Court also noted that the ITF CBA, which was part of his contract, provided for a higher benefit amount than the standard Philippine Overseas Employment Administration contract, and this CBA provision was controlling. Therefore, petitioners were jointly and severally liable to pay Daganato the disability benefits as stipulated in the CBA.