G.R. No. 179169 ; March 3, 2010
LEONIS NAVIGATION CO., INC. and WORLD MARINE PANAMA, S.A., Petitioners, vs. CATALINO U. VILLAMATER and/or The Heirs of the Late Catalino U. Villamater, represented herein by Sonia Mayuyu Villamater; and NATIONAL LABOR RELATIONS COMMISSION, Respondents.

FACTS

Private respondent Catalino U. Villamater was hired as Chief Engineer for the ship MV Nord Monaco, owned by petitioner World Marine Panama, S.A., through petitioner Leonis Navigation Co., Inc., as local manning agent. He executed an employment contract on June 4, 2002, incorporating the POEA Standard Terms and Conditions. He passed his Pre-Employment Medical Examination (PEME) and was deployed on June 26, 2002. Around four months later, in October 2002, Villamater suffered intestinal bleeding, was given a blood transfusion, and later experienced weakness, weight loss, and intermittent intestinal pain. He was diagnosed in Hamburg, Germany with Obstructive Adenocarcinoma of the Sigmoid, with multiple liver metastases, and other conditions. He was repatriated under medical escort and referred to company-designated physicians in the Philippines, who confirmed the diagnosis and advised six cycles of chemotherapy. One company-designated physician opined that the condition “appears to be not work-related” but suggested a disability grading of 1. During his chemotherapy, Villamater filed a complaint before the NLRC Arbitration Branch for permanent and total disability benefits, reimbursement of medical expenses, and damages. The Labor Arbiter ruled in favor of Villamater, declaring his illness compensable and awarding US$60,000.00 as permanent total disability benefits plus attorney’s fees. Both parties appealed to the NLRC, which dismissed the appeals and affirmed the Labor Arbiter’s decision. The NLRC denied petitioners’ motion for reconsideration. Petitioners filed a petition for certiorari under Rule 65 before the Court of Appeals (CA). The CA dismissed the petition, noting that the NLRC resolution had become final and executory and that the award had been executed. Petitioners filed the present petition for review on certiorari.

ISSUE

The primary substantive issue is whether Villamater’s illness (Obstructive Adenocarcinoma of the Sigmoid) is compensable under the POEA Standard Contract, i.e., whether it is work-related. Procedural issues were also raised regarding the finality of the NLRC decision and its effect on the petition for certiorari.

RULING

The Supreme Court denied the petition. On the procedural issues, the Court held that the finality of the NLRC decision and its execution did not render the petition for certiorari before the CA moot and academic, as a petition for certiorari under Rule 65 can be filed within 60 days from notice of the assailed resolution. However, the Court found no grave abuse of discretion by the NLRC. On the substantive issue, the Court ruled that Villamater’s illness is compensable. The Court applied the disputable presumption that an illness occurring during the term of the contract is work-related, as per the POEA Standard Contract. The petitioners failed to overcome this presumption. The Court noted that Villamater passed his PEME and was fit for duty, but his illness manifested just four months into his contract. The nature of his work as Chief Engineer, involving exposure to chemicals, fumes, and stressful conditions, could have contributed to the development or aggravation of his colon cancer. The Court cited medical authorities stating that risk factors for colorectal cancer include exposure to certain chemicals and a high-fat diet, which could be related to a seafarer’s working and living conditions. Therefore, the NLRC did not commit grave abuse of discretion in awarding disability benefits. The award of attorney’s fees was also upheld as Villamater was compelled to litigate to enforce his valid claim.