G.R. No. 236570 , June 14, 2021
LEMUEL DEOCAMPO, PETITIONER, VS. SEACREST MARITIME MANAGEMENT, INC., NORDIC TANKERS MARINE A/S DENMARK AND GEZIEL DE GUZMAN, RESPONDENTS.

FACTS

Petitioner Lemuel Deocampo was hired by respondent Seacrest Maritime Management, Inc. for its principal, Nordic Tankers Marine A/S Denmark, as a Fitter on board MT Harbour Clear. His employment was covered by a Contract of Employment incorporating an ITF/IBF CBA and the POEA-SEC. On March 3, 2015, while on board, he complained of dizziness, fainted, and was found to have increased blood pressure. He was diagnosed in Spain with Acute Vestibular Syndrome of Peripheral Origin and was repatriated to Manila on April 5, 2015. The company-designated physician, Dr. Alegre, diagnosed him with Syncope and Benign Paroxysmal Positional Vertigo. Medical tests revealed elevated cholesterol, “mild to moderate conductive hearing loss on both ears,” and a brain MRI scan result stating “Consider Gliosis or Chronic Lacunar Infarct, Left Corona Radiata.” On August 12, 2015 (129 days from repatriation), Dr. Alegre issued a 12th and Final Progress Report stating the vertigo was “refractory to treatment and persistent” and assessed a disability Grade 12 under the POEA Contract. Dissatisfied, Deocampo consulted an independent cardiologist, Dr. Galvez, who diagnosed him with “Cerebrovascular Accident with Infarct on his Lacunar Area” and declared him “unfit to work in any capacity as a seaman.” Deocampo’s claims for disability benefits were denied, prompting him to file a case before the Panel of Voluntary Arbitrators (PVA). The PVA ruled in his favor, awarding total and permanent disability benefits under the CBA, unpaid sick leave pay, and attorney’s fees. The Court of Appeals reversed the PVA, holding that Deocampo was only entitled to Grade 12 partial disability benefits, affirming the sick leave pay but deleting the attorney’s fees.

ISSUE

1. Whether the Court of Appeals erred in affirming the company-designated physician’s assessment of partial disability.
2. Whether the Court of Appeals erred in granting partial disability despite Deocampo’s condition remaining unresolved for more than 240 days.
3. Whether the Court of Appeals erred in deleting the award of attorney’s fees.

RULING

The Supreme Court granted the petition, reversed the Court of Appeals Decision, and reinstated the PVA’s award of total and permanent disability benefits with modifications.
1. On the disability assessment: The Court held that the company-designated physician, Dr. Alegre, failed to issue a valid final and definite assessment within the 120/240-day period. His August 12, 2015 report merely stated the vertigo was “refractory to treatment and persistent” and gave a Grade 12 rating under an inapplicable category (Abdomen). This was not a definitive assessment of fitness or permanent disability but an acknowledgment of an unresolved condition. A final assessment must state whether the seafarer is fit to work or the degree of permanent disability. Dr. Alegre’s report did not do this. Furthermore, the chosen disability grade was erroneous as Deocampo’s conditions (vertigo, hearing loss, cerebral infarct) relate to the nervous system and sense organs, not abdominal disorders.
2. On the 120/240-day period: The Court ruled that since no valid final assessment was issued by the company-designated physician within the 120-day period, and Deocampo’s illness remained unresolved, the 120-day period extended to 240 days. Dr. Alegre’s August 12 report was issued on the 129th day. However, even by the 240th day (November 30, 2015), no new or valid final assessment was issued. The failure of the company-designated physician to give a definitive assessment within the 240-day period results in the seafarer’s disability being deemed permanent and total, regardless of any justifying circumstances. Therefore, Deocampo’s disability is permanent and total.
3. On attorney’s fees: The Court reinstated the award of attorney’s fees. The respondents’ failure to pay Deocampor’s valid claims for disability and sick leave benefits compelled him to litigate to protect his rights, justifying the award under Article 2208 of the Civil Code.
DISPOSITIVE:
Respondents Seacrest Maritime Management, Inc. and Nordic Tankers Marine A/S Denmark were ordered to pay petitioner, jointly and severally: (a) permanent and total disability benefits of US$129,212.00; (b) sick leave pay of US$369.00; and (c) attorney’s fees equivalent to ten percent (10%) of the total monetary award. Legal interest of six percent (6%) per annum was imposed on the total judgment award from the finality of the decision until full satisfaction.