GR 46020; (December, 1938) (Digest)
G.R. No. 46020 December 8, 1938
CONCEPCION MURILLO, in her own behalf and as guardian ad litem of Antonio, Carmen, Flavio and Jose Luis, surnamed Madrid, plaintiffs-appellees, vs. ALFREDO MENDOZA, doing business under the name and style of “MANILA STEAMSHIP NAVIGATION”, defendant-appellant.
FACTS
The plaintiffs, the widow and minor children of the deceased Octavio Madrid, filed a claim for death compensation under the Workmen’s Compensation Act (Act No. 3428, as amended). The deceased was employed as first officer by the defendant shipowner. On July 8, 1936, while performing his duties, the vessel sank during a typhoon, resulting in his death. The parties submitted the case on a stipulation of facts, which included that the plaintiffs were totally dependent on the deceased and were entitled to the maximum compensation of P3,000 if the accident was compensable. The defendant refused to pay, contending that the claim was governed by the Code of Commerce and that the Workmen’s Compensation Act did not apply to maritime employees.
ISSUE
Whether the death of a maritime employee (ship officer) arising from a work-related accident is compensable under the Workmen’s Compensation Act, or if it is governed exclusively by the provisions of the Code of Commerce.
RULING
The death is compensable under the Workmen’s Compensation Act. The Court held that the Workmen’s Compensation Act is a special law that applies to all employees, including maritime workers, and creates an independent source of compensation based on the theory of economic loss to be borne by the industry. It abrogates or supersedes the provisions of the Civil Code and the Code of Commerce on employer liability for work-related injuries or deaths. The Act’s coverage is not limited by the employer’s gross income, as the burden to prove that the gross income was below P20,000 (which would bring the claim under Act No. 1874) lies with the employer as a defense, not with the claimant. The decision of the lower court awarding P3,000 compensation was affirmed.
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