G.R. No. 231773 . March 11, 2019
CESAR C. PELAGIO, PETITIONER, VS. PHILIPPINE TRANSMARINE CARRIERS, INC., CARLOS SALINAS, AND NORWEGIAN CREW MANAGEMENT A/S, RESPONDENTS.

FACTS

Petitioner Cesar C. Pelagio was hired as a Motorman by respondent Philippine Transmarine Carriers, Inc. He was repatriated on March 2, 2010, after experiencing medical issues diagnosed as “Myositis.” The company-designated physician treated him and issued a medical report on July 27, 2010, providing an interim assessment of a Grade 11 disability. A subsequent report dated August 5, 2010, reiterated this potential Grade 11 rating. Pelagio later consulted an independent physician, Dr. Manuel Fidel M. Magtira, who assessed him with a Grade 8 disability and declared him permanently unfit for work. Pelagio filed a claim for permanent total disability benefits, arguing his inability to work beyond 120 days entitled him to such.
The Labor Arbiter awarded Pelagio benefits corresponding to a Grade 11 disability. The National Labor Relations Commission (NLRC) reversed this, awarding permanent total disability benefits, finding no final assessment from the company doctor as the August 5, 2010 report was not initially in the records. The Court of Appeals annulled the NLRC decision and reinstated the Labor Arbiter’s ruling, giving credence to the company-designated physician’s Grade 11 assessment contained in the July 27 and August 5, 2010 reports.

ISSUE

Whether the Court of Appeals correctly reinstated the Labor Arbiter’s decision awarding permanent partial, not permanent total, disability benefits.

RULING

Yes, the Court of Appeals was correct. The Supreme Court denied the petition and affirmed the CA’s decision. The legal logic centers on the proper application of the rules for disability assessment under the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) and relevant jurisprudence. The Court emphasized that the mere lapse of 120 or 240 days does not automatically result in a permanent total disability classification. The crucial factor is whether the company-designated physician issued a final assessment within the prescribed periods.
In this case, the company-designated physician issued a final assessment of a Grade 11 disability (permanent partial) within the 240-day period, as evidenced by the July 27, 2010 and August 5, 2010 medical reports. The August 5 report, which confirmed the Grade 11 rating, was issued well within the 240-day period from Pelagio’s repatriation. This final assessment trumps the claim of permanent total disability based solely on the passage of time. Furthermore, when there is a conflict between the findings of the company-designated physician and a seafarer’s chosen doctor, the procedure under the POEA-SEC is for the parties to jointly refer the matter to a third, mutually-agreed physician. Pelagio’s refusal to abide by this procedure meant the company doctor’s assessment, which was issued timely and based on extensive treatment, must prevail. Therefore, Pelagio was only entitled to the disability benefits corresponding to the assessed Grade 11 impediment.