G.R. No. 215904 & 216165, January 10, 2019
EDGAR L. TORILLOS, Petitioner, vs. EASTGATE MARITIME CORPORATION, ET AL., Respondents. (Consolidated Cases)

FACTS

Edgar Torillos, a Chief Cook, was hired by Eastgate Maritime Corporation under a POEA-approved contract and an IBF CBA. After a fit PEME, he boarded the vessel in December 2010. In November 2011, he experienced severe back and leg pain. He was medically repatriated in December 2011 and diagnosed by company-designated physicians with Lumbar Spondylosis and other degenerative spinal conditions. On April 19, 2012, the company doctor issued a medical report stating the illness was degenerative and pre-existing, assessing an interim Grade 8 disability. Torillos filed a complaint for permanent total disability benefits in May 2012. Subsequently, his personal physician declared him unfit for sea duty.
The Labor Arbiter awarded Torillos US$118,800 under the CBA, ruling his condition was total and permanent. The NLRC reversed, limiting the award to a Grade 8 disability under the POEA-SEC. The Court of Appeals reinstated the award of disability benefits but at the lower amount of US$60,000, finding Torillos entitled to permanent total disability benefits under the law, not the CBA’s higher “accident” provision.

ISSUE

Whether Edgar Torillos is entitled to permanent total disability benefits, and if so, under what legal framework and amount.

RULING

Yes, Torillos is entitled to permanent total disability benefits in the amount of US$60,000 under the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) and relevant jurisprudence, not under the CBA’s provision for accident-related injuries.
The legal logic proceeds from the established principle that a seafarer’s disability is not assessed solely by a medical grade but by his incapacity to perform his customary work for more than 120 days. The company-designated physician failed to issue a final, definitive assessment within the 120/240-day treatment period mandated by law. The April 19, 2012 report was merely an “interim” grading, and no final assessment was issued thereafter. This failure results in the seafarer being deemed permanently and totally disabled.
The Court clarified that Torillos’s claim is governed by the POEA-SEC, not the CBA’s higher benefit for “accident.” His illness, lumbar spondylosis, is an occupational disease listed under the POEA-SEC. For it to be compensable, the conditions of Section 32-A must be satisfied: (a) the work involved risk factors; (b) the disease was contracted during the term of his contract; and (c) his work contributed to the aggravation of the disease. The Court found these conditions met, noting his long service of 15 years and the strenuous nature of his duties as a cook, which involved heavy lifting. The award of attorney’s fees was upheld due to the employer’s unwarranted refusal to pay valid claims.