G.R. No. 242725, June 16, 2021
LOADSTAR INTERNATIONAL SHIPPING, INC. AND EDGARDO CALDERON, PETITIONERS, VS. RICHARD T. CAWALING, RESPONDENT.

FACTS

Loadstar International Shipping, Inc. (LISI), a domestic company engaged in international shipping with Edgardo Calderon as Head of its Personnel Department, hired respondent Richard T. Cawaling as a Cook for vessel “MV MANGIUM” on behalf of its principal, Loadstar Shipping Company Inc. (LSCI). After being certified fit for sea duty in his pre-employment medical examination (PEME), Cawaling was deployed on July 27, 2014. In October 2014, he experienced muscle pains and stiffness. Upon the vessel’s arrival in Manila, LISI referred him to its designated physician, Dr. Paul M. Teves, who diagnosed him with Acute Tenosynovitis or Trigger Finger and recommended surgery. Cawaling disembarked on November 21, 2014. He later consulted an independent physician, Dr. Erlinda Bandong Reyes, who declared him “unfit for sea service in any capacity” with a Grade 1 disability assessment. Cawaling then requested a Certificate of Separation from LISI, admitting in a letter that he had misrepresented his health condition during his PEME. On November 25, 2015, he filed a Complaint for Disability Benefits and Damages against LSCI and Calderon, but did not implead LISI as a party. Despite not being summoned, LISI’s President executed a Special Power of Attorney authorizing Calderon to represent the company. Calderon appeared at a hearing and filed a Position Paper seeking affirmative reliefs, while also questioning the Labor Arbiter’s jurisdiction over LISI. The Labor Arbiter held petitioners and LSCI solidarily liable. The NLRC modified the decision, absolving LSCI from liability but sustaining the solidary liability of LISI and Calderon. The Court of Appeals affirmed the NLRC’s ruling.

ISSUE

1. Whether the Labor Arbiter acquired jurisdiction over LISI despite the lack of summons.
2. Whether petitioner Edgardo O. Calderon can be held solidarily liable under the Migrant Workers and Overseas Filipinos Act.
3. Whether respondent Richard T. Cawaling is entitled to permanent total disability benefits.

RULING

1. Yes, the Labor Arbiter acquired jurisdiction over LISI. Although LISI was not initially impleaded and no summons was served upon it, it voluntarily submitted to the Labor Arbiter’s jurisdiction. LISI’s President authorized Calderon to represent the company, and Calderon appeared at a hearing and filed a Position Paper seeking affirmative reliefs. While the Position Paper included a challenge to jurisdiction, the act of seeking affirmative relief constituted voluntary appearance, thereby vesting jurisdiction over LISI.
2. Yes, petitioner Edgardo O. Calderon can be held solidarily liable. As the Head of the Personnel Department of LISI, Calderon is a corporate officer who can be held solidarily liable with the corporation for the claims of the overseas Filipino worker under Section 10 of Republic Act No. 8042 (Migrant Workers and Overseas Filipinos Act), as amended. The law imposes joint and solidary liability on corporate directors and officers for violations of recruitment rules and regulations and for claims arising from employer-employee relationships.
3. Yes, respondent Richard T. Cawaling is entitled to permanent total disability benefits. The company-designated physician, Dr. Teves, did not issue a final assessment of Cawaling’s fitness to work or degree of disability within the 120/240-day period as required by law. In contrast, the independent physician, Dr. Reyes, declared Cawaling permanently unfit for sea duty with a Grade 1 disability. The failure of the company-designated physician to provide a timely final assessment results in the entitlement of the seafarer to permanent total disability benefits. Furthermore, Cawaling’s admission of misrepresentation in his PEME does not automatically bar his claim, as his illness was shown to be work-related and he was initially certified fit for duty.