G.R. No. L-21335 December 17, 1966
Aboitiz Shipping Corporation, petitioner, vs. Vivencia Ando Pepito, and the minors, Lolita, Alberto, Nelson, Marylen and Maria, all surnamed Pepito represented by their mother, the respondent Vivencia Ando Pepito, respondents.

FACTS

Between the night of November 30 and the early morning of December 1, 1961, Demetrio Pepito, a crew member of the M/V P. Aboitiz, disappeared while the vessel was on a voyage from Surigao to Tandag. On December 26, 1961, the petitioner received a letter from respondent Vivencia Ando Pepito notifying it that Demetrio Pepito was reported missing and believed dead. On January 12, 1962, the respondents filed a notice and claim for death benefits with the Regional Office of the Department of Labor. The petitioner received the claim on February 15, 1962, and on February 16, 1962, filed an employer’s report controverting the claim, alleging Pepito disappeared while off duty when the vessel was near Bucas Grande Island. On March 21, 1962, the Regional Administrator issued an award for death benefits to the respondents, ruling that the right to compensation was not controverted within the statutory period. The Workmen’s Compensation Commission affirmed this award. The petitioner sought review via certiorari.

ISSUE

1. Whether the petitioner’s controversion was filed beyond the period provided by law.
2. Whether the non-controversion constitutes an admission of the fact of death.
3. Whether the award without a hearing on the fact of death violates due process.
4. Whether the presumption of death under Article 391(3) of the Civil Code is applicable.

RULING

1. Yes, the controversion filed on February 16, 1962, was beyond the statutory periods (14 days from the date of accident or 10 days from knowledge thereof), as the petitioner knew of the disappearance on December 1, 1961, and received formal notice on December 26, 1961.
2. No, the non-controversion admits only the factual allegation that Demetrio Pepito was lost or missing, not the legal conclusion that he is actually dead. Non-controversion in compensation cases admits facts, not conclusions of law.
3. Yes, the award made without giving the petitioner an opportunity to be heard on the debatable fact and circumstances of death violates the constitutional right to due process. The award is nullified.
4. The case is remanded to the Workmen’s Compensation Commission for a hearing to determine: (a) whether Demetrio Pepito is alive; (b) whether he should be presumed dead under Article 391(3) of the Civil Code, given that more than four years have elapsed since his disappearance under circumstances of danger; and (c) the circumstances of death if he is found or presumed dead. The employer-employee relationship and that the incident arose out of and in the course of employment are conceded.