G.R. No. 200258. October 03, 2018.
PHILIPPINE HAMMONIA SHIP AGENCY, NARCISSUS L. DURAN, DORCHESTER MARITIME LIMITED, PETITIONERS, V. FERDINAND Z. ISRAEL, RESPONDENT.

FACTS

Respondent Ferdinand Z. Israel was hired as a Bosun by petitioners. While on duty, he accidentally fell, injuring his right shoulder. He was repatriated on September 11, 2005, and referred to company-designated physicians. After undergoing treatment and physical therapy, Dr. Mylene Cruz-Balbon declared him “Fit to Resume Sea Duties” on January 31, 2006. Petitioners, however, refused to re-employ him or pay disability benefits.
Respondent consulted his own physicians, Dr. Jose Pujalte, Jr. and Dr. Renato Punas, who diagnosed him with conditions including severe arthritis and a rotator cuff tear. Dr. Punas declared him “Unfit for Seaman duty” with a 60% reduction in work capacity. Respondent filed a complaint for disability compensation, moral and exemplary damages, and attorney’s fees.

ISSUE

Whether respondent is entitled to total and permanent disability benefits.

RULING

Yes. The Supreme Court denied the petition and affirmed the awards of the lower tribunals. The core legal logic hinges on the application of the 120-day rule for assessing disability under the POEA-SEC and relevant jurisprudence. The company-designated physician issued a fit-to-work certification only on January 31, 2006, which was 142 days after respondent’s repatriation on September 11, 2005. Critically, the physicians did not provide a definitive assessment of respondent’s disability nor justify any extension of the treatment period within the initial 120-day period mandated by law.
Following the doctrine established in Crystal Shipping, Inc. v. Natividad, the failure of the company-designated physician to issue a final assessment within the 120-day period results in the seafarer’s disability being deemed permanent and total. The Court also cited Elburg Shipmanagement Phils., Inc. v. Quiogue, Jr., which clarified that while an assessment can be extended to 240 days if justified, no such justification was presented here. The mere issuance of a fit-to-work certification after 142 days, without a prior interim assessment within 120 days, was insufficient. Consequently, respondent was legally considered to have suffered permanent total disability, entitling him to the corresponding benefits.
The Court also upheld the award of attorney’s fees, finding that respondent was compelled to litigate to protect his rights. However, the claims for moral and exemplary damages were denied for lack of sufficient evidence of bad faith on the part of the petitioners.