GR 161104; (September, 2006) (Digest)
G.R. No. 161104 ; September 27, 2006
NYK-FIL SHIP MANAGEMENT INC. and/or NYK SHIP MANAGEMENT HK., LTD., petitioners, vs. THE NATIONAL LABOR RELATIONS COMMISSION AND LAURO A. HERNANDEZ, respondents.
FACTS
Petitioners hired respondent Lauro A. Hernandez as a boatswain for an eight-month contract. He passed the pre-employment medical examination (PEME) and declared no history of rheumatism or joint trouble. Twenty-five days after boarding the vessel, respondent was hospitalized due to high fever and severe hip pain. He was diagnosed with septic arthritis and avascular necrosis of the left hip. After extensive treatment, including a total hip replacement surgery in February 2000, the company-designated orthopedic surgeon opined that respondent would be symptom-free for daily living but could not resume heavy seafaring work, suggesting a disability grading. Respondent filed a complaint for total permanent disability benefits. Petitioners argued the claim was premature and that the illness was pre-existing and not work-related.
ISSUE
Whether respondent Hernandez is entitled to total and permanent disability benefits under the Philippine Overseas Employment Administration (POEA) Standard Employment Contract.
RULING
Yes. The Supreme Court granted the petition in part, affirming the award of disability benefits but recalculating the amount. The legal logic rests on the interpretation of the POEA contract and the presumption of compensability. Under the contract, an illness not listed in Section 32 is disputably presumed work-related if it occurs during the term of the contract. Respondent’s illness manifested during his employment, and petitioners failed to rebut the statutory presumption that it was work-related. The Court emphasized that the inability to perform one’s customary work for more than 120 days constitutes total and permanent disability. The company physician’s assessment that respondent could not resume his seafaring duties due to his mechanical hip joint, despite being able to manage daily activities, established that he lost his capacity to continue his former line of work. This constitutes total and permanent disability for compensation purposes. The Court modified the NLRC’s award to conform to the correct disability grade and the applicable rate at the time the contract was executed.