G.R. No. 210634 , January 14, 2015
NORIEL R. MONTIERRO, Petitioner, vs. RICKMERS MARINE AGENCY PHILS., INC., Respondent.

FACTS

Petitioner Noriel Montierro was hired by respondent Rickmers Marine Agency Phils., Inc. as an Ordinary Seaman. In May 2010, while on board the vessel, he injured his right knee after losing his balance and twisting his legs. He was examined in Spain, found unfit for duty, and repatriated to the Philippines on June 2, 2010. He reported to the company-designated physician, Dr. Natalio G. Alegre II, on June 4, 2010. An MRI revealed a meniscal tear, and he underwent surgery on July 29, 2010. On September 3, 2010 (the 91st day of treatment), Dr. Alegre issued an interim disability grade of 10. After continued treatment, Dr. Alegre issued a final assessment on January 3, 2011 (the 213th day of treatment), confirming a Disability Grade of 10. Meanwhile, on December 3, 2010, Montierro filed a complaint for permanent total disability compensation, relying on a Medical Certificate from his personal physician, Dr. Manuel C. Jacinto, recommending total permanent disability. The Labor Arbiter ruled in favor of Montierro, applying the 120-day rule from Crystal Shipping and awarding total permanent disability benefits. The NLRC affirmed. The Court of Appeals partially granted Rickmers’ petition, applying the 240-day rule from Vergara and downgrading the award to Grade 10 permanent partial disability benefits, while also deleting the award of attorney’s fees.

ISSUE

1. Whether the 120-day rule or the 240-day rule applies to this case.
2. Whether the opinion of the company-designated physician or the seafarer’s personal physician should prevail.
3. Whether Montierro is entitled to attorney’s fees.

RULING

1. The 240-day rule applies. The Court, citing Kestrel Shipping Co. Inc. v. Munar, held that if the maritime compensation complaint was filed prior to October 6, 2008 (the date of the Vergara ruling), the 120-day rule applies; if filed from October 6, 2008 onwards, the 240-day rule applies. Montierro filed his complaint on December 3, 2010, which is after October 6, 2008; hence, the 240-day rule governs. Under this rule, the company-designated physician has 120 days, extendable to 240 days if justified, to issue a final assessment. Here, Dr. Alegre issued an interim disability grade on the 91st day (within the initial 120 days) and a final assessment on the 213th day (within the 240-day period). Therefore, Montierro’s condition cannot be deemed a permanent total disability.
2. The opinion of the company-designated physician prevails. The Court reiterated the procedure under the 2000 POEA-SEC: the company-designated physician assesses the seafarer’s fitness; if the seafarer’s personal physician disagrees, the parties may jointly agree on a third doctor whose decision is final and binding. This procedure must be strictly followed. Montierro preempted this procedure by filing a complaint without resorting to the agreed third-doctor referral mechanism. Consequently, the assessment of the company-designated physician stands.
3. Montierro is not entitled to attorney’s fees. The Court found no sufficient showing of bad faith on the part of Rickmers. Its persistence in the case was based on an erroneous conviction of the righteousness of its cause, anchored on the recommendation of the company-designated physician, and does not constitute gross and evident bad faith required for an award of attorney’s fees.