G.R. No. 239055 , March 11, 2020
Richie P. Chan, Petitioner, vs. Magsaysay Maritime Corporation, CSCS International NV and/or Ms. Doris Ho, Respondents.

FACTS

Petitioner Richie P. Chan was engaged by respondents as a fireman on board Costa Voyager-D/E. On April 2013, he slipped and hit his right knee during a boat drill, causing severe pain. After initial treatment onboard, he was repatriated on May 13, 2013. The company-designated physician diagnosed him with gouty arthritis with meniscal tear (right knee) and advised surgery, which petitioner initially refused. On August 16, 2013, the physician noted he had attained maximum medical cure with a Disability Grade 10 assessment. Petitioner later agreed to surgery, performed on August 27, 2013. On October 29, 2013, the company-designated physician issued a final assessment stating petitioner had reached maximum medical improvement, with the disability grade remaining at Grade 10. Due to persistent pain, petitioner consulted an independent physician, who declared him unfit for sea duty. Petitioner filed a complaint for permanent total disability benefits. The Labor Arbiter ruled in his favor, awarding US$60,000. The NLRC affirmed with an award of attorney’s fees. The Court of Appeals reversed, holding petitioner was only entitled to Grade 10 disability benefits.

ISSUE

1. Is the October 29, 2013 medical assessment of the company-designated physician complete, final and definite?
2. Is referral to a third doctor mandatory?
3. Is petitioner entitled to total and permanent disability benefits?

RULING

1. No, the October 29, 2013 assessment was not a valid final assessment. A final and definite disability assessment must contain a complete evaluation of the seafarer’s medical condition, a definite declaration of fitness or permanent disability, and the exact disability rating. The assessment merely stated the disability grade “remains at Grade 10” without a categorical declaration of fitness to work or a discussion of the implications on his capacity to resume seafaring duties. It was therefore an interim assessment.
2. No, referral to a third doctor is not mandatory under the circumstances. The conflict-resolution procedure presupposes that the seafarer is actually furnished a copy of the final assessment, which enables him to seek a second opinion. Here, petitioner was not officially furnished a copy of the final assessment; he only obtained it from respondents’ position paper. Consequently, he was not duty-bound to seek a second opinion and refer the conflict to a third doctor.
3. Yes, petitioner is entitled to total and permanent disability benefits. The company-designated physician failed to issue a valid final assessment within the 120/240-day period. Petitioner was repatriated on May 13, 2013. The 240-day period ended on January 8, 2014. No valid final assessment was issued by then. Petitioner’s persistent condition, confirmed by his independent physician, rendered him unfit for sea duty. His inability to work for more than 120 days resulted in his permanent total disability. The Court reinstated the NLRC decision awarding US$60,000 as permanent total disability benefits, plus attorney’s fees and legal interest.