G.R. No. 198408, November 12, 2014
CONCHITA J. RACELIS, Petitioner, vs. UNITED PHILIPPINE LINES, INC. and/or HOLLAND AMERICA LINES, INC., and FERNANDO T. LISING, Respondents.

FACTS

Rodolfo L. Racelis was recruited by respondent United Philippine Lines, Inc. for its principal, Holland America Lines, Inc., to serve as “Demi Chef De Partie” on board the vessel MS Prinsendam under a four-month contract starting January 25, 2008. He had been repeatedly contracted by the respondents since 1985. During his last contract, Rodolfo experienced severe ear pain and high blood pressure, causing him to collapse while on duty. He was medically repatriated on February 20, 2008. Upon arrival in Manila, he was diagnosed by a company-designated physician with Brainstem (pontine) Cavernous Malformation. He underwent surgery but developed complications and died on March 2, 2008. The respondents, through an e-mail from a certain Dr. Abaya, claimed the illness was congenital and not work-related. Petitioner Conchita J. Racelis, Rodolfo’s surviving spouse, filed a complaint for death benefits, burial assistance, moral and exemplary damages, and attorney’s fees. The Labor Arbiter ruled in her favor, awarding death benefits under the ITWF-CBA. The NLRC affirmed this decision. The Court of Appeals reversed the NLRC, holding that Rodolfo’s death did not occur during the term of his employment as his contract ceased upon medical repatriation, and that his illness was not proven to be work-related.

ISSUE

Whether or not the Court of Appeals erred in annulling the NLRC’s grant of death benefits to petitioner.

RULING

Yes, the Court of Appeals erred. The Supreme Court reinstated the NLRC decision granting death benefits.
The Court ruled that the death of the seafarer is work-related. Although Brainstem (pontine) Cavernous Malformation is not listed as an occupational disease under Section 32-A of the 2000 POEA-SEC, Section 20(B)(4) provides that illnesses not listed are disputably presumed as work-related. This presumption places the burden on the employer to prove the illness is not work-related. The respondents failed to rebut this presumption. The e-mail from Dr. Abaya was unsigned and uncertified, thus lacking evidentiary value. Furthermore, the company-designated physician’s certificate did not categorically state the illness was not work-related but only that it “may have pre-existed.” This is insufficient to overcome the legal presumption.
The Court also ruled that the death occurred during the term of the employment contract. The contract was not automatically terminated upon medical repatriation. Section 18(B) of the 2000 POEA-SEC provides that the employer’s liability for medical treatment and disability benefits continues until the seafarer is declared fit or the degree of disability is assessed. Since Rodolfo died while undergoing medical treatment for an illness that supervened during his contract, his death is deemed to have occurred during the term of his employment. The Court emphasized the constitutional policy to afford full protection to labor and the principle that doubts in the interpretation of labor contracts should be resolved in favor of the seafarer.
Therefore, petitioner is entitled to death benefits under the ITWF-CBA in the amount of US$60,000.00, burial assistance of US$1,000.00, and attorney’s fees equivalent to 10% of the total award.