G.R. No. 214132 , February 18, 2015
Sealanes Marine Services, Inc./Arklow Shipping Netherland and/or Christopher Dumatol, Petitioners, vs. Arnel G. Dela Torre, Respondent.

FACTS

Respondent Arnel G. Dela Torre was hired by petitioner Sealanes Marine Services, Inc., for its foreign principal Arklow Shipping Netherland, as an able seaman, covered by a Collective Bargaining Agreement (Dutch CBA). On August 1, 2010, during a rescue boat drill, he injured his lower back and was repatriated. He underwent medical treatment and rehabilitation with the company-designated physician. On March 10, 2011, the company-designated physician assessed him with a Grade 11 disability (slight rigidity or one-third loss of motion or lifting power of trunk). This assessment was issued more than 240 days after his repatriation on August 4, 2010. The respondent continued physical therapy sessions beyond this period and was unable to return to his work as a seafarer. He filed a complaint for disability benefits. The Labor Arbiter awarded him US$80,000.00 as total permanent disability benefits under the Dutch CBA, which was affirmed by the National Labor Relations Commission and the Court of Appeals. The petitioners contested, arguing the award should be based on the Grade 11 partial disability assessment per the POEA-SEC and the CBA.

ISSUE

Whether the respondent is entitled to total permanent disability benefits despite the company-designated physician’s assessment of a Grade 11 partial disability.

RULING

Yes. The Supreme Court denied the petition and affirmed the award of total permanent disability benefits. The Court ruled that under Article 192(c)(1) of the Labor Code and Section 2, Rule X of the Amended Rules on Employee Compensation, a temporary total disability lasting continuously for more than 120 days, extendable to 240 days if medical treatment is required, is deemed total and permanent if the seafarer remains unable to work. The company-designated physician must declare fitness to work or assess permanent disability within these periods. Here, the Grade 11 assessment was issued on March 10, 2011, more than 240 days from repatriation (August 4, 2010). The respondent’s continued treatment beyond 240 days, without being declared fit to work, rendered his disability total and permanent. The Court harmonized the POEA-SEC with the Labor Code, citing Kestrel Shipping Co., Inc. v. Munar, and held that the expiration of the 240-day period without a final assessment entitles the seafarer to total permanent disability benefits. The Dutch CBA provision for maximum disability benefits was thus applicable. The Court also upheld the solidary liability of the local manning agency, its foreign principal, and its president under the POEA-SEC and the Labor Code.