G.R. No. 175894 November 14, 2008
NYK-FIL SHIP MANAGEMENT INC., and/or JOSEPHINE J. FRANCISCO and TMM CO. LTD, TOKYO, JAPAN, petitioners, vs. ALFONSO T. TALAVERA, respondent.

FACTS

Alfonso T. Talavera (respondent) was employed as a fitter by NYK-Fil Ship Management, Inc. and/or Josephine J. Francisco for TMM Co., Ltd. on board the M.T. Tachiho. His duties involved moving heavy equipment. After starting work in June 2003, he experienced back pains and was diagnosed with ureteric colic and urinary tract infection in Oman. He was repatriated on August 17, 2003. The company-designated clinic, Sachly International Health Partners, Inc. (SHIP), diagnosed him with lumbar strain, plantar fasciitis, and urinary tract infection. After therapy and an MRI, SHIP specialists deemed him fit for sea duty. Respondent sought a second opinion from an orthopedic expert who diagnosed him with lumbar spondylopathy and lumbar disk protrusion at L5-S1, declared him unfit for further sea duties, and recommended a Grade 8 partial permanent disability under the POEA Contract. Petitioners denied his claim for disability benefits based on the company doctor’s assessment. Respondent filed a complaint for disability benefits, illness allowance, damages, and attorney’s fees. The Labor Arbiter awarded him 100% disability compensation ($88,000) and attorney’s fees, finding him not yet fit for duty. Petitioners received the decision on July 13, 2005, and filed their Memorandum on Appeal with the NLRC on July 26, 2005, arguing the period lapsed on July 25, a special holiday. The NLRC dismissed the appeal as filed out of time, based on a Registry Return Card showing receipt on July 12, 2005. Petitioners filed a Motion for Reconsideration with a Post Office certification and later a Petition for Certiorari before the Court of Appeals, which was dismissed for failure to show proper authorization for the verification and certification of non-forum shopping signed by their Vice President, Marcelo R. Rañeses. Petitioners filed the present Petition, attaching a Secretary’s Certificate ratifying Rañeses’s actions.

ISSUE

The primary procedural issue was whether a new board resolution was required for the verification in the Petition for Certiorari when a previous resolution authorized the corporate officer to act “at any stage” of the case. The substantive issue pertained to the timeliness of the appeal and the entitlement to disability benefits.

RULING

The Supreme Court ruled that the ratification by NYK-Fil of the unauthorized verification and certification substantially complied with legal requirements, curing any defect. On the timeliness of the appeal, the Court held that the Registry Return Card indicating receipt on July 12, 2005, was more credible than the contrary evidence presented by petitioners. However, the Court relaxed procedural rules in the interest of substantial justice due to the partial merit of petitioners’ appeal. On the merits, the Court recognized the seafarer’s right to a second medical opinion under the POEA Contract and the governing CBA. It found that respondent’s illness, lumbar disk disease, was work-related given his duties as a fitter involving heavy labor. The Court noted that the company-designated physician’s assessment of “fit to work” was contradicted by the specialist’s finding of “unfit for further sea duties.” Applying the 2000 POEA Standard Employment Contract, the Court held that respondent’s disability was compensable. It modified the Labor Arbiter’s award, finding that the orthopedic specialist’s assessment of a Grade 8 impediment under the contract was more accurate than a 100% disability rating. Thus, the Court awarded disability benefits corresponding to Grade 8 (33.59% of US$50,000), plus attorney’s fees.