G.R. No. 130772 November 19, 1999
WALLEM MARITIME SERVICES, INC., and WALLEM SHIP MANAGEMENT, LTD., petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and ELIZABETH INDUCTIVO, respondents.

FACTS

Faustino Inductivo was hired as a utilityman by Pan-Fil Co. Inc., the manning agent for Wallem Ship Management Ltd., in May 1993. His contract was for ten months aboard the “MT Rowan.” In November 1993, Wallem Maritime Services, Inc. took over as the local manning agent. On January 17, 1994, barely two months before his contract’s expiration, Faustino was discharged. His Seaman’s Book stated the cause as “mutual consent, on completion of 8 months and 5 days.” He returned to the Philippines and, two days later, was hospitalized in Nueva Ecija, complaining of coughing and chest pains. His condition deteriorated, leading to multiple hospital transfers. He was diagnosed with advanced illness and died on April 23, 1994.
Before his death, his wife, Elizabeth Inductivo, inquired with petitioners about sickness benefits. She was denied, with petitioners asserting Faustino was discharged by mutual consent, not medically, and that he failed to report his sickness within 72 hours of arrival as required by the POEA contract, thus forfeiting any claim. Elizabeth filed a complaint for sickness, insurance, and later, death benefits.

ISSUE

Whether the death of Faustino Inductivo is compensable under the POEA Standard Employment Contract, notwithstanding the “mutual consent” discharge notation and the alleged failure to comply with the 72-hour reporting requirement.

RULING

Yes, the death is compensable. The Supreme Court affirmed the NLRC’s decision, dismissing the petition. The legal logic centers on a liberal interpretation of the POEA contract in favor of seafarers and the substantial compliance with reporting requirements. The Court found that the illness which caused death was contracted during the employment period. The designation “mutual consent” in the discharge documents did not conclusively prove the absence of a medical reason for repatriation, especially given the rapid onset of severe symptoms immediately upon his return. The Court noted the failure of petitioners to refute the claimant’s assertion that the repatriation was due to Faustino’s deteriorating health, as petitioned by the crew.
Regarding the 72-hour reporting rule, the Court ruled that strict compliance could not be reasonably expected under the circumstances. Faustino’s immediate priority upon arrival, given his grave condition, was to seek medical treatment and be with his family in Nueva Ecija, not to travel to Manila to report to the agency. Furthermore, the Court held that Elizabeth’s visit to the petitioners in February 1994 to claim leave wages and inquire about sickness benefits constituted sufficient actual notice of his condition, thereby substantially complying with the contractual intent. The POEA contract is a labor standard designed for the protection of seafarers, and its provisions must be construed liberally in their favor. Consequently, the death benefits, children’s allowances, and burial expenses were rightfully awarded, with Wallem Maritime Services, Inc. being held jointly and severally liable with its principal, Wallem Ship Management Ltd.