G.R. No. 214578 . July 06, 2021
BSM CREW SERVICE CENTRE PHILS., INC., AND/OR BERNHARD SCHULTE SHIPMANAGEMENT (DEUTSCHLAND) GMBH & CO KG, AND ELPIDIO HENRY FETIZA, PETITIONERS, VS. JAY C. LLANITA, RESPONDENT.

FACTS

Respondent Jay C. Llanita, a seafarer employed by petitioner BSM Crew Service Centre Phils., Inc., suffered injuries from a boiler explosion on board MV “LISSY SCHULTE” on May 10, 2010. He was medically repatriated on May 21, 2010, and underwent treatment by the company-designated physician. On August 13, 2010, the physician assessed Llanita with a combined disability grading of Grade 10 (ankylosis of one shoulder) and 50% of Grade 14 (scar on the right leg), amounting to US$11,010.00. This assessment was reiterated in a medical report dated September 25, 2010. On September 24, 2010, one day before the September 25 report, Llanita filed a complaint before the Labor Arbiter claiming entitlement to permanent and total disability benefits, arguing he was still unfit for duty after more than 120 days from repatriation. During the complaint’s pendency, Llanita consulted a private doctor, Dr. Ramon Y. Te, Jr., whose medical certificate dated March 1, 2011, advised continued rehabilitation but did not declare Llanita unfit for work or permanently and totally disabled. The Labor Arbiter awarded partial disability benefits based on the company physician’s assessment. The NLRC affirmed this decision. The Court of Appeals reversed, awarding Llanita total permanent disability benefits of US$60,000.00, ruling that the company-designated physician’s failure to issue a final assessment within 120 or 240 days created a conclusive presumption of total and permanent disability.

ISSUE

Whether the Court of Appeals erred in awarding total and permanent disability benefits to respondent Jay C. Llanita.

RULING

Yes. The Supreme Court REVERSED and SET ASIDE the Decision and Resolution of the Court of Appeals and REINSTATED the Decision of the NLRC. The Court held that the company-designated physician issued a valid and timely final disability assessment within the 240-day period allowed under the law, specifically on August 13, 2010, which was within 120 days from Llanita’s repatriation on May 22, 2010. This assessment, reiterated on September 25, 2010, indicated only a partial disability (Grade 10 and 50% of Grade 14). The Court emphasized that the mere lapse of 120 days does not automatically result in a total and permanent disability award if a timely assessment is made. Furthermore, Llanita failed to present substantial evidence, such as a contrary assessment from his chosen physician declaring him unfit for work or permanently disabled, to rebut the company-designated physician’s findings. The private doctor’s certificate only recommended continued therapy and did not constitute a definitive disability assessment. Therefore, Llanita was only entitled to the partial disability benefits as initially awarded by the Labor Arbiter and NLRC.