G.R. No. 163838 September 25, 2008
WALLEM MARITIME SERVICES, INC. and WALLEM SHIPMANAGEMENT HONGKONG LIMITED, Petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and TIBURCIO D. DELA CRUZ, Respondents.

FACTS

Petitioners Wallem Maritime Services, Inc. (WMSI), as manning agent, and Wallem Shipmanagement Hongkong Limited (WSHL) hired respondent Tiburcio D. dela Cruz as a messman under a nine-month employment contract. He was deployed on November 1, 1999. In March 2000, respondent complained of pain in his left groin radiating to his lower back. He was examined in Fujairah by petitioners’ accredited physician, who issued a medical certificate declaring him unfit for sea duties. Consequently, he was repatriated on March 22, 2000. From March 23, 2000, to November 22, 2000, respondent was treated at Metropolitan Hospital by company-designated physicians, with petitioners covering the costs and paying sickness allowance for 120 days (March 23 to July 24, 2000). On November 22, 2000, Dr. Robert D. Lim issued a medical report stating respondent was “asymptomatic” and “fit to resume sea duties.” Respondent signed a Certificate of Fitness for Work, releasing petitioners from liability. On August 2, 2001, respondent filed a complaint for permanent total disability benefits, claiming the fit-to-work report was false. He relied on the earlier unfit-to-work certificate from Fujairah and an OWWA Impediment Grade report rating him at Grade 6 (50% disability). The Labor Arbiter dismissed the complaint, giving credence to Dr. Lim’s report. The NLRC reversed, awarding US$25,000.00 as disability benefits, finding the Fujairah certificate and the fact petitioners never re-hired him as substantial evidence of continued unfitness. The Court of Appeals affirmed the NLRC decision but deleted the attorney’s fees.

ISSUE

Whether respondent is entitled to permanent total disability benefits.

RULING

Yes, respondent is entitled to permanent total disability benefits. The Supreme Court affirmed the CA and NLRC decisions. The Court held that under Section 20(B)(3) of the POEA-SEC, the company-designated physician must declare the seafarer fit to work or assess the degree of permanent disability within 120 days from sign-off for medical treatment. Failure to do so within this period, unless extended by justified exceptions, renders the disability total and permanent. In this case, respondent was repatriated on March 22, 2000. The 120-day period ended on July 20, 2000. Dr. Lim’s fit-to-work assessment was issued only on November 22, 2000, well beyond the 120-day period, without any showing that respondent required further medical treatment that justified the delay. Consequently, respondent’s disability became total and permanent by operation of law. The OWWA Impediment Grade report, while not controlling, corroborated his condition. The award of US$25,000.00 as disability benefits was proper.