G.R. No. 215313 , October 21, 2015
OLIMPIO O. OLIDANA, PETITIONER, VS. JEBSENS MARITIME, INC., RESPONDENT.

FACTS

Petitioner Olimpio O. Olidana was employed as a chief cook by respondent Jebsens Maritime, Inc. On March 22, 2011, he entered into a six-month employment contract. In September 2011, while cooking, he accidentally bumped a kettle of hot water, injuring his left hand. He reported it to the vessel’s master. On October 8, 2011, he felt acute pain and swelling in his left hand and was diagnosed with Tendinitis. His condition worsened, and when the vessel docked in Yokohama, Japan, he was hospitalized and underwent incision and drainage for an abscess on his left palm. He was repatriated on November 18, 2011.
Within three days, he reported to Jebsens and was referred to company-designated physicians. On March 27, 2012, the company doctors issued two reports: a “DISABILITY GRADING” report assessing his condition as a Grade 10 disability (loss of grasping power for small objects) under the POEA-SEC, and an “11th and FINAL SUMMARY MEDICAL REPORT” stating he was “NOT FIT FOR DUTY” and recommending “CASE CLOSURE.” Jebsens offered US$10,075.00 based on the Grade 10 rating, which Olidana rejected. Olidana sought a second opinion from his chosen doctor, Dr. Renato P. Runas, who opined that he had a permanent disability, with total loss of left hand function, making him unfit for work as a seaman/cook.
Jebsens argued that Olidana concealed his Diabetes Mellitus during his pre-employment medical examination, which was a risk factor for his condition and not work-related. The dispute was brought before the Panel of Voluntary Arbitrators (VA), which awarded Olidana permanent total disability benefits of US$120,000.00 under the loss of profession clause in the CBA. The Court of Appeals modified the VA award, ruling that Olidana only had a Grade 10 partial disability and was entitled to US$24,180.00. Olidana filed this petition.

ISSUE

Whether the Court of Appeals erred in not awarding permanent total disability benefits to Olidana under the loss of profession clause in the CBA and in ruling that he was only entitled to US$24,180.00 based on a Grade 10 disability rating.

RULING

The Supreme Court granted the petition, reversed the Court of Appeals, and reinstated the VA’s award of permanent total disability benefits.
The Court held that Olidana suffered from permanent total disability. The company-designated physicians’ final medical report declaring him “NOT FIT FOR DUTY” and recommending “CASE CLOSURE” was a clear assessment of his permanent medical unfitness. This final report prevailed over the disability grading report, as it represented the definitive conclusion after extensive treatment. The Court emphasized that disability should be understood not merely as a medical condition but as the loss of earning capacity. Since Olidana’s injury prevented him from performing his customary work as a chief cook for more than 120 days, and both the company doctors and his personal doctor confirmed his unfitness, he was deemed permanently and totally disabled.
The Court rejected Jebsens’ argument about concealed Diabetes Mellitus, noting that the company doctors’ diagnosis did not link his hand condition to diabetes. Furthermore, the loss of profession clause in the CBA, which provided for compensation if a seafarer is unable to work in his usual occupation as a result of injury, was applicable. Olidana’s inability to work as a chief cook due to his hand injury entitled him to permanent total disability benefits under the CBA. The 120-day rule was applied, and the failure of the company-designated physician to provide a fit-to-work assessment within the statutory period reinforced the finding of permanent total disability.