GR L 27346; (June, 1969) (Digest)
G.R. No. L-27346; June 30, 1969
Anatolio Valencia, plaintiff-appellant, vs. Manila Yacht Club, Inc., defendant-appellee.
FACTS
Anatolio Valencia filed a claim in the Manila Municipal Court against the Manila Yacht Club for compensation and medical expenses under Article 1711 of the Civil Code. He alleged he was employed as a laborer for 11 years, earning an average of P220.00 a month, and his work involved getting wet by sea spray or rain. He sustained an injury prior to April 7, 1960, while performing his duties, after which he spat blood, his resistance weakened, and he was found suffering from pulmonary tuberculosis on April 7, 1960. He became disabled from work on April 12, 1960, and filed his claim on January 25, 1961. Instead of answering, the Manila Yacht Club moved to dismiss the case for lack of jurisdiction and cause of action, contending that since both parties were members of the Social Security System (SSS), the claim should be brought before the SSS, which Valencia had already done, receiving benefits therefrom. The Municipal Court dismissed the case, a decision affirmed by the Court of First Instance of Manila, prompting Valencia’s appeal.
ISSUE
Whether the claimant’s acceptance of sickness and disability benefits from the Social Security System precludes further collection of compensation from the employer under Article 1711 of the Civil Code for the same sickness or injury.
RULING
No. The Supreme Court ruled for the claimant-employee. It held that social security benefits and employer compensation under the Civil Code (or the Workmen’s Compensation Act) are distinct in nature and purpose. Social security benefits are insurance payments from a fund to which the employee contributes, protecting against general hazards like disability or sickness, irrespective of employment connection. In contrast, employer compensation is an indemnity for injury or illness arising out of and in the course of employment, imposed on the employer as a burden of the industry. Therefore, receipt of SSS benefits does not extinguish the employer’s liability. The order of dismissal was set aside. The case was remanded to the Municipal Court to determine the amount of compensation and allowable medical expenses payable by the employer, with instructions for prompt resolution. Costs were imposed on the Manila Yacht Club.