G.R. No. 204101 , July 2, 2014
THE LATE ALBERTO B. JAVIER, as substituted by his surviving wife, MA. THERESA M. JAVIER, and children, KLADINE M. JAVIER, CHRISTIE M. JAVIER, JALYN M. JAVIER, CANDY GRACE M. JAVIER and GLIZELDA M. JAVIER, Petitioners, vs. PHILIPPINE TRANSMARINE CARRIERS, INC. and/or NORTHERN MARINE MANAGEMENT, LTD., Respondents.

FACTS

Alberto B. Javier was hired as a pumpman by Philippine Transmarine Carriers, Inc. for its principal Northern Marine Management, Ltd. on March 3, 2003. This was his 20th contract with the respondents, and he was declared “fit for work” after a Pre-employment Medical Examination (PEME). On November 10, 2003, while on board, he suffered severe headache, dizziness, vomiting, and weakness. He was confined in Texas, diagnosed with hypertension, and repatriated on November 23, 2003. In the Philippines, he was treated by the company-designated physician and underwent coronary artery bypass surgery on March 30, 2004. He was discharged on April 14, 2004, but the company doctor neither declared him fit to work nor assessed his disability grade. A private doctor, Dr. Efren Vicaldo, later assessed him with “impediment grade 1” and declared him “unfit to resume work as seaman in any capacity.” Alberto filed a complaint for disability benefits, illness allowance, reimbursement of medical expenses, damages, and attorney’s fees. The Labor Arbiter granted his claims. The NLRC affirmed but modified the decision, ordering the deduction of sickness allowance and medical expenses from the total monetary award based on an April 12, 2004 Certification allegedly signed by Alberto acknowledging full payment. Alberto died on November 1, 2005, and was substituted by his heirs. The Court of Appeals affirmed the NLRC’s resolution. The petitioners (heirs) argue before the Supreme Court that medical expenses and sickness allowance are separate from disability benefits and should not be deducted, and that the respondents failed to prove payment of the sickness allowance.

ISSUE

Whether the medical expenses and sickness allowance should be deducted from the disability benefits awarded to the seafarer.

RULING

No. The Supreme Court ruled that medical expenses, sickness allowance, and disability benefits are separate and distinct benefits under the Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC). The employer’s obligation to provide medical attention at its cost and to pay a sickness allowance is in addition to the liability for disability benefits once the seafarer’s permanent disability is established. The Court found that the respondents failed to substantiate their claim that they had fully paid the sickness allowance, as the April 12, 2004 Certification was of questionable authenticity and no vouchers or receipts were presented. Furthermore, the petitioners’ failure to appeal the Labor Arbiter’s denial of the claim for reimbursement of medical expenses did not bar the Court from reviewing the issue, as it was intertwined with the legal question of deductibility. The CA decision was reversed. The respondents were ordered to pay the petitioners the total monetary award without any deduction for alleged payments of sickness allowance and medical expenses.