GR 259982; (October, 2024) (Digest)
G.R. No. 259982 , October 28, 2024
PACIFIC OCEAN MANNING, INC. AND/OR V. SHIPS UK LTD./NORDIC AMERICAN TANKERS LIMITED, PETITIONERS, VS. NICOLAS F. BOBILES, RESPONDENT.
FACTS
Respondent Nicolas F. Bobiles was hired by petitioner Pacific Ocean Manning, Inc. (POMI), the local agent for foreign principal V. Ships UK Ltd., as a pumpman on board the vessel Nordic Vega. His employment contract was covered by a CBA and the POEA-SEC. On January 27, 2017, while lifting equipment on board, Bobiles felt a snap in his back, causing severe pain. He was eventually repatriated to the Philippines on February 28, 2017. The company-designated physician initially assessed his disability as Grade 11. Bobiles sought a second opinion from his own doctor, who declared him permanently disabled and unfit to work as a seaman. Grievance proceedings before the NCMB failed to reach a settlement. The NCMB ruled in favor of Bobiles, awarding him total permanent disability compensation of US$102,308.00 plus attorney’s fees. The Court of Appeals affirmed the NCMB decision with modification. Petitioners filed the present Petition for Review.
ISSUE
The primary issue resolved by the Supreme Court pertains to the propriety of awarding attorney’s fees in a seafarer’s disability compensation case.
RULING
The Supreme Court DENIED the petition and AFFIRMED the CA Decision with MODIFICATION, deleting the award of attorney’s fees. The Court clarified the rules on attorney’s fees in worker disability indemnification cases:
1. Attorney’s fees under Article 111 of the Labor Code are recoverable only in cases of unlawful withholding of wages, not in claims for disability or death indemnity.
2. Attorney’s fees under Article 2208(2) of the Civil Code require that the litigation or incurrence of expense be in relation to third persons. Merely being compelled to litigate to protect one’s interest against the other party to the contract is insufficient.
3. Attorney’s fees under Article 2208(8) of the Civil Code are recoverable only in actions for indemnity under workmen’s compensation and employer’s liability laws, not under a contract of employment.
The Court held that Bobiles’ claim was based on his employment contract and the CBA, not under employer’s liability laws. Therefore, the award of attorney’s fees had no legal basis and was deleted. The award of total permanent disability compensation was upheld.