G.R. No. 181112 ; June 29, 2010
INTERORIENT MARITIME ENTERPRISES, INC., INTERORIENT ENTERPRISES, INC., and LIBERIA AND DOROTHEA SHIPPING CO., LTD., Petitioners, vs. LEONORA S. REMO, Respondent.

FACTS

Lutero Remo was deployed as a Cook-Steward on November 10, 1998, under a POEA-approved contract. During the fifth month of his contract, he experienced severe abdominal and chest pains and was repatriated on April 19, 1999, diagnosed with atrial fibrillation and congestive heart failure. After reporting to the agency, he allegedly received no medical assistance. He underwent treatment for Chronic Atrial Fibrillation, Cardiomegaly, and other ailments. Despite a failed subsequent pre-employment medical examination, he received a notice for possible redeployment. Lutero died on August 28, 2000, from hypertensive cardiovascular disease. His widow, Leonora Remo, filed a claim for death benefits, sickness allowance, and damages.
Petitioners denied liability, asserting Lutero concealed a pre-existing illness during his application and medical exam. They presented an “Acknowledgment and Undertaking” signed after repatriation where he allegedly admitted a pre-existing condition and discharged them from liability. They argued death benefits were not due as Lutero died over a year after his contract expired and he had misrepresented his health.

ISSUE

Whether the respondent is entitled to death benefits and other claims under the POEA Standard Employment Contract despite the seafarer’s death occurring after the contract term and the petitioners’ claim of concealment of a pre-existing illness.

RULING

Yes, the respondent is entitled to the claims. The Supreme Court affirmed the Court of Appeals’ decision, ruling that the death was compensable. The legal logic hinges on the presumption of work-relatedness under Section 20(B)(6) of the POEA contract, which states that an illness causing death within 120 days from repatriation is presumed work-related. While Lutero died beyond this period, the presumption is not conclusive. The Court applied the principle that where the seafarer’s work conditions contributed to the aggravation of the illness, the death remains compensable. The nature of Lutero’s work as a cook-steward, involving long hours and stressful conditions, was found to have aggravated his hypertensive cardiovascular disease.
Regarding the alleged concealment, the Court ruled that the “Acknowledgment and Undertaking” document was insufficient to prove wilful misrepresentation. The employer bears the burden to prove such concealment, which petitioners failed to do convincingly. Furthermore, Lutero had passed the rigorous pre-employment medical examination, creating a presumption of good health at the time of deployment. The employers had the opportunity to thoroughly screen him, and his passing the PEME reinforced the conclusion that his illness was aggravated by his work. Thus, the petitioners were held jointly and severally liable for the death benefits and other allowances as awarded by the CA.