G.R. No. 249344 . April 05, 2022
WESTMINSTER SEAFARER MANAGEMENT PHILIPPINES, INC., PETITIONER, VS. ARNULFO C. RAZ, RESPONDENT.

FACTS

Respondent Arnulfo C. Raz was employed by petitioner Westminster Seafarer Management Philippines, Inc. as a Fitter on board the vessel NOCC Kattegat under a Contract of Employment dated November 10, 2014. On May 15, 2015, while lifting a heavy cylinder head, he suffered pain in his right shoulder. He was repatriated on May 31, 2015, declared unfit for work. In the Philippines, the company-designated physician, Dr. Nicomedes G. Cruz, assessed him with a final disability of Grade 9 (ankylosis of one shoulder) under the Collective Bargaining Agreement (CBA), entitling him to US$25,313.00, and declared him not permanently unfit to work. Respondent consulted his own physician, Dr. Manuel Fidel M. Magtira, who declared him permanently unfit for sea duties. Respondent informed petitioner of this and requested a third medical examination, but petitioner did not respond. Respondent filed a complaint before the National Conciliation and Mediation Board (NCMB) for total permanent disability benefits. The NCMB ruled in favor of respondent, awarding US$129,212.00 as total permanent disability benefits, moral damages, and attorney’s fees. On appeal, the Court of Appeals (CA) set aside the NCMB decision and instead awarded respondent US$25,313.00 as Grade 9 disability benefit, plus 10% attorney’s fees and legal interest at 6% per annum from the date of finality until full satisfaction. Petitioner filed a Petition for Review before the Supreme Court, seeking to delete the award of legal interest and attorney’s fees. Petitioner claimed it had already conditionally satisfied the NCMB’s higher award via a writ of execution in December 2017, and thus there was no delay to justify interest. It also argued the award of attorney’s fees was baseless due to the absence of bad faith.

ISSUE

Whether the Court of Appeals erred in: (1) imposing 6% legal interest on the award of partial disability benefits to respondent; and (2) awarding attorney’s fees in his favor.

RULING

The Supreme Court denied the petition and affirmed the assailed CA Decision and Resolution. On the first issue, the Court held that the legal interest imposed by the CA was proper. The CA’s award of US$25,313.00 as Grade 9 disability benefit replaced the NCMB’s award of US$129,212.00. Petitioner’s claim that it had already paid the higher NCMB award under a writ of execution did not negate its obligation to pay the correct, lower amount adjudged by the CA. Since petitioner did not voluntarily pay the correct award, the imposition of legal interest from the finality of the CA judgment until full satisfaction was justified under the Court’s ruling in Nacar v. Gallery Frames. On the second issue, the Court held that the award of attorney’s fees was also proper. Attorney’s fees are recoverable in actions for indemnity under workers’ compensation laws. Respondent was compelled to litigate to recover his disability benefits, making the award of attorney’s fees equitable. The CA correctly awarded attorney’s fees equivalent to 10% of the monetary award.