G.R. No. 195598, June 25, 2014
TEEKAY SHIPPING PHILIPPINES, INC., TEEKAY SHIPPING LIMITED and ALEX VERCHEZ, Petitioners, vs. EXEQUIEL O. JARIN, Respondent.

FACTS

Petitioner Teekay Shipping Philippines, Inc. (Teekay Phils.), a domestic manning agency, hired respondent Exequiel O. Jarin as Chief Cook on July 6, 2006, for an eight-month contract with a basic monthly salary of US$722.40. He was deployed on July 9, 2006, onboard M.T. Erik Spirit. During the third week of February 2007, while the vessel was in Canada, Jarin complained of swelling in his elbows and was diagnosed with rheumatoid arthritis. He was treated with steroid-based medications, which caused side effects. He completed his contract and was repatriated on March 24, 2007.
Upon arrival, Jarin reported to the petitioners and was referred to company-designated physicians. A series of medical reports from these physicians diagnosed him with rheumatoid arthritis, cushingnoid features secondary to steroid intake, and chronic obstructive pulmonary disease (COPD). The physicians opined that his rheumatoid arthritis was an auto-immune disease and not work-related, and that his COPD was likely due to his history of smoking. On August 17, 2007, a private and confidential evaluation from a company physician stated Jarin was “no longer recommended for further sea duties.” On September 13, 2007, he was issued a clearance marked “UNFIT PEME” and “NO LONGER RECOMMENDED FOR FURTHER SEA DUTIES NON WORK REL.” Jarin subsequently became a partial disability pensioner of the SSS and filed a complaint before the NLRC on April 18, 2008, claiming permanent total disability benefits, sickness allowance, and damages.
The Labor Arbiter ruled in favor of Jarin, awarding US$50,000.00 as disability benefit and US$2,889.60 as sickness allowance. Both parties appealed. The NLRC reversed the Labor Arbiter, ruling that the petitioners successfully overturned the disputable presumption that the illness was work-related through consistent medical reports, and noted Jarin’s failure to seek a counter-opinion from his own physician. The Court of Appeals reinstated the Labor Arbiter’s ruling, finding Jarin adduced substantial evidence that his working conditions increased the risk of contracting rheumatoid arthritis, and awarded US$60,000.00 as permanent disability benefits, sickness allowance, and attorney’s fees.

ISSUE

Whether respondent Exequiel O. Jarin is entitled to permanent total disability benefits and sickness allowance under the POEA-SEC.

RULING

Yes, the Supreme Court denied the petition and affirmed the Court of Appeals’ Decision with modification regarding the attorney’s fees. The Court held that Jarin’s rheumatoid arthritis, an illness not listed under Section 32 of the POEA-SEC, is disputably presumed work-related under Section 20(B)(4). The petitioners failed to present substantial evidence to overcome this presumption. The company-designated physicians’ categorical declarations that the illness was not work-related were insufficient; they did not explain how the nature of Jarin’s duties or working conditions could not have caused or aggravated his condition. The Court emphasized that what must be established is a reasonable work connection, not direct causation. Jarin’s sworn narration that he worked long hours, was exposed to extreme temperatures, and carried heavy loads, which stressed his joints, provided reasonable basis to conclude his work increased the risk of developing the ailment. Furthermore, the company’s issuance of an “UNFIT” clearance and the physician’s recommendation that he was no longer fit for sea duties constituted constructive dismissal and confirmed his permanent total disability. The award of US$60,000.00 as permanent total disability benefits and US$2,889.60 as sickness allowance was upheld. However, the award of attorney’s fees was deleted for lack of factual and legal basis, as there was no showing that the petitioners acted in gross and evident bad faith in refusing to satisfy Jarin’s claims.