G.R. No. 175005 ; April 30, 2008
THE ESTATE OF POSEDIO ORTEGA, Represented by his wife, MARIA C. ORTEGA, petitioner, vs. THE COURT OF APPEALS, ST. VINCENT SHIPPING, INC., AND/OR ENGR. EDWIN M. CRISTOBAL, respondents.

FACTS

Posedio Ortega was hired as a Second Engineer by St. Vincent Shipping, Inc. under a 12-month contract commencing March 4, 2003. Within weeks of boarding the vessel M/V Washington Trader, he fell ill, was diagnosed with small cell lung cancer in Belgium, and was medically repatriated to the Philippines on May 10, 2003. He subsequently died from the illness on July 30, 2003. His estate, represented by his wife, filed a claim for death benefits, damages, and attorney’s fees before the labor arbiter, which ruled in their favor, finding the illness work-related.
The National Labor Relations Commission (NLRC) affirmed the labor arbiter’s decision. However, the Court of Appeals reversed, holding that Ortega’s lung cancer was not an occupational disease nor proven to have been aggravated by his working conditions. It noted his history of heavy smoking and found that his employment contract had already terminated upon his medical repatriation prior to his death.

ISSUE

Whether the estate of Posedio Ortega is entitled to death benefits under the POEA Standard Contract.

RULING

No. The Supreme Court denied the petition, affirming the Court of Appeals. For death benefits to be compensable under the POEA Standard Contract, two elements must concur: (1) the death must occur during the term of employment, and (2) the illness must be work-related. The Court held the first element was absent. Applying Section 18 of the Standard Contract, Ortega’s employment was terminated upon his medical repatriation on May 10, 2003. His death on July 30, 2003, occurred after the termination of his contract. Consequently, the claim for death benefits fails.
The Court further addressed the work-relatedness of the illness. While illnesses not listed under the contract are disputably presumed work-related, this presumption was successfully rebutted. The medical evidence, including a history of heavy smoking and the rapid progression of the cancer shortly after deployment, indicated the disease was pre-existing and not caused or aggravated by his brief period of work onboard. The “fit to work” certification issued pre-employment is merely routinary and does not rule out pre-existing conditions. Thus, even applying a liberal interpretation of the contract in favor of seafarers, the claim cannot be granted as the fundamental requirement of death during the term of employment was not met.