G.R. No. 249567 . September 29, 2021.
Hartman Crew Phils., (Formerly Associated Shipmanagement, Inc.) and Sea Giant Shipmanagement, Ltd., Petitioners, vs. Randy V. Acabado, Respondent.

FACTS

Randy V. Acabado was hired as a Wiper by Hartman Crew Phils., the manning agent for principal Sea Giant Shipmanagement Ltd. On August 23, 2015, while working onboard M/T Gaschem Rhone, he injured his knees. After a subsequent slip and fall, he reported a “locking” sensation in his right knee. An x-ray in Singapore revealed a meniscus tear. He was repatriated on August 29, 2015, and referred to the company-designated physician, Dr. Natalio Alegre II. Acabado underwent surgery on his right knee on September 16, 2015. Dr. Alegre issued a series of progress reports, with the 13th Progress Report dated January 16, 2016, assessing a disability grading of Grade 10. The 20th Progress Report dated March 31, 2016, reiterated this Grade 10 rating, and treatment was discontinued. Petitioners offered disability benefits based on this grade. Acabado, however, consulted other physicians who diagnosed meniscal tears in both knees. He filed a complaint for permanent total disability benefits without first seeking a third-doctor opinion under the POEA-SEC procedure. The Labor Arbiter granted total permanent disability benefits. The NLRC reversed, awarding benefits based on Grade 10. The Court of Appeals reinstated the Labor Arbiter’s award of total permanent disability benefits, ruling that the company-designated physician failed to issue a final and definite assessment within the 120/240-day period.

ISSUE

Whether the Court of Appeals correctly held petitioners liable to pay respondent permanent total disability benefits and attorney’s fees.

RULING

Yes, the Court of Appeals is correct. The petition is denied.
The Supreme Court applied the 120/240-day rule from Elburg Shipmanagement Phils., Inc., et al. v. Quiogue. The company-designated physician must issue a final medical assessment within 120 days from the seafarer’s repatriation. If justified, this period may be extended to 240 days. Failure to issue a final assessment within these periods results in the seafarer’s disability being deemed permanent and total.
In this case, Acabado was repatriated on August 29, 2015. The company-designated physician issued the 13th Progress Report with a Grade 10 rating on January 16, 2016, within the 120-day period. However, the physician continued treatment and issued another report on March 31, 2016 (the 20th Progress Report), which still indicated a Grade 10 disability but did not state it was final. The Court found that the physician failed to issue a final and definitive assessment of Acabado’s disability grading within the 240-day period, which ended on April 25, 2016. The March 31, 2016 report, issued before the 240-day deadline, was not a final assessment as it did not declare Acabado’s condition as permanent and that no further treatment was needed. Consequently, Acabado is conclusively presumed to be suffering from permanent total disability, entitling him to the corresponding benefit of US$60,000.00.
The award of attorney’s fees equivalent to 10% of the award is proper under Article 2208 of the Civil Code, as Acabado was compelled to litigate to protect his interest.