G.R. No. 225425, January 29, 2020
Wilhelmsen Smith Bell Manning, Inc., Wilhelmsen Ship Management Ltd., and Fausto R. Preysler, Jr., Petitioners, vs. Franklin J. Villaflor, Respondent.

FACTS

Respondent Franklin J. Villaflor was hired by petitioners as a Third Engineer. During his contract in March 2013, while lifting heavy engine parts during maintenance, he felt severe back pain and was medically repatriated. Upon examination in Manila, the company-designated physician diagnosed him with a back condition and advised continued treatment. On July 9, 2013, a company-designated orthopedic surgeon, Dr. Chuasuan, issued a letter stating respondent’s prognosis was “guarded,” he had reached maximum medical improvement, and assessed a Grade 8 disability (2/3 loss of lifting power). Despite this, the company physician continued to require medications and rehabilitation for over a year. On July 21, 2014, respondent’s personal physician, Dr. Jacinto, declared him totally and permanently disabled and unfit for work. Respondent filed a complaint for disability benefits. Petitioners argued his condition was a recurrence of a pre-existing back problem for which he had previously claimed disability benefits from a former employer. The Labor Arbiter and NLRC dismissed the complaint, finding the injury not work-related and noting respondent’s lack of good faith due to his prior claim. The Court of Appeals reversed, ruling the condition was work-aggravated and constituted total and permanent disability, awarding benefits and attorney’s fees.

ISSUE

Whether or not respondent is entitled to total and permanent disability benefits.

RULING

Yes, the respondent is entitled to total and permanent disability benefits. The Supreme Court affirmed the CA’s ruling with modification, imposing legal interest on the awards.
The Court ruled that: (1) Respondent’s pre-existing condition was aggravated by his work duties as a Third Engineer, which included lifting heavy materials, making it compensable. Petitioners were aware of his medical history as he disclosed it during his pre-employment medical examination (PEME) and still declared him fit and hired him. (2) Respondent is deemed totally and permanently disabled. The company-designated physician’s Grade 8 assessment was not final and definitive as it was issued alongside a “guarded” prognosis and respondent was still required to undergo treatment for over 240 days from repatriation without a final assessment on his fitness or disability. This failure to issue a final assessment within the 120/240-day period results in a conclusive presumption of total and permanent disability. (3) The prior disability claim against a former employer does not bar a new claim if the current injury is work-related or aggravated. (4) Attorney’s fees were properly awarded as respondent was forced to litigate. The monetary awards shall earn legal interest at 6% per annum from the finality of the decision until full payment.