G.R. No. 253191, May 14, 2021
MICHELLE MIRO WENCESLAO, PETITIONER, VS. C.F. SHARP CREW MANAGEMENT, INC., ET AL., RESPONDENTS.

FACTS

Petitioner Michelle Miro Wenceslao was hired by respondent C.F. Sharp Crew Management, Inc. as a waitress. On August 8, 2017, while performing her duties, she felt a snap in her lower back, experienced pain, and was later medically repatriated on October 16, 2017. She was examined by company-designated physicians, who diagnosed disc bulge and disc desiccation and recommended surgery. On January 24, 2018, Michelle refused surgery, preferring alternative treatment. On January 26, 2018, the company-designated physicians discharged her, prescribing analgesics and exercises. Michelle claimed her treatments were discontinued without notice, leading her to consult a personal physician, who assessed her with partial and permanent disability on March 26, 2018. The parties agreed to refer the matter to a third doctor, Dr. Leander Peralta, who assessed a Grade 8 disability (partial and permanent). During the consultation with the third doctor, Michelle was furnished a copy of the company-designated physician’s assessment dated January 26, 2018, which stated no definitive management was possible due to her refusal of surgery. Attached to the respondent’s position paper before the Labor Arbiter was another company assessment dated January 27, 2018, rating her condition as Grade 6. Michelle filed a complaint, arguing she was entitled to total and permanent disability benefits because the company-designated physician failed to issue a timely and valid final assessment, and she was unable to work for more than 240 days. The Labor Arbiter and the National Labor Relations Commission awarded benefits based on the third doctor’s Grade 8 rating. The Court of Appeals affirmed this decision.

ISSUE

Whether the Court of Appeals erred in applying the third doctor rule and in not declaring petitioner entitled to permanent and total disability benefits.

RULING

Yes. The Supreme Court reversed the Court of Appeals decision. The third doctor rule under the 2010 POEA-SEC presupposes that the company-designated physician issued a valid, final, and definite assessment. A final assessment must state the seafarer’s fitness to work or the exact disability rating and must be issued within 120 days (or 240 days if justified). The company failed to timely furnish Michelle with the final disability assessment. The January 26, 2018 assessment lacked a definitive disability rating, and the January 27, 2018 Grade 6 assessment was only presented during the Labor Arbiter proceedings, beyond the 240-day period. This failure violated due process and meant no valid final assessment was issued. Consequently, Michelle is deemed totally and permanently disabled. She is awarded US$60,000.00 as permanent and total disability benefits under the 2010 POEA-SEC, sickness allowance (if unpaid), and attorney’s fees at 10% of the monetary award. The claim for higher benefits under the CBA was denied as her injury was not proven to be due to an accident.