The Supreme Court ruled that a seafarer’s disability becomes permanent and total if the company-designated physician fails to provide a definitive assessment within 120 or 240 days of treatment. If the seafarer remains unable to work during this period, they are entitled to disability benefits, ensuring protection when a medical assessment is delayed or indefinite.

From Ship to Shore: Can Lingering Illness Secure Seafarer Disability Benefits?

In the case of Alpha Ship Management Corporation v. Eleosis V. Calo, the Supreme Court addressed the rights of seafarers facing prolonged illnesses and the responsibilities of employers regarding disability benefits. Eleosis Calo, a chief cook, sought disability benefits after suffering kidney problems and urinary tract infections during his employment with Alpha Ship Management. The central question revolved around determining when a seafarer’s illness transitions into a permanent disability, especially when the company-designated physician’s assessment is delayed. This case highlights the importance of timely and accurate medical assessments for seafarers, ensuring their rights are protected when illness strikes at sea.

Calo’s medical journey began in 2004 when he experienced back pain and urinary issues while aboard the MV Iris in Shanghai, China. Despite consultations with doctors in China and Chile, his condition worsened, leading to a diagnosis of suspected renal and/or ureter calculus in Japan. Subsequently, he was repatriated to the Philippines and referred to Dr. Nicomedes Cruz, the company-designated physician. Over the next year, Dr. Cruz conducted numerous examinations, but Calo’s condition persisted, with diagnoses ranging from ureterolithiasis to nephrolithiasis. Feeling his condition was not improving, Calo consulted Dr. Efren Vicaldo, who diagnosed him with hypertension, nephrolithiasis, and declared him unfit for work as a seaman. This divergence in medical opinions set the stage for a legal battle over disability benefits.

The legal framework governing seafarer disability benefits is found in Article 192(c)(1) of the Labor Code, which addresses permanent total disability:

Art. 192. Permanent total disability. – x x x

(c) The following disabilities shall be deemed total and permanent:

(1) Temporary total disability lasting continuously for more than one hundred twenty days, except as otherwise provided for in the Rules;

This provision, along with Rule X, Section 2 of the Amended Rules on Employees Compensation, provides a framework for determining when a temporary disability becomes permanent. In Vergara v. Hammonia Maritime Services, Inc., the Supreme Court clarified that the 120-day period could be extended to 240 days if further medical treatment is required. This extension, however, does not grant indefinite delays. The company-designated physician must make a definitive assessment within this extended period.

In Calo’s case, the timeline was critical. He was repatriated on October 12, 2004, and treated by Dr. Cruz until October 14, 2005, exceeding both the 120 and 240-day periods. Crucially, Dr. Cruz did not issue a final assessment until July 18, 2006, long after the allowable treatment period had expired. The Supreme Court emphasized that the company-designated physician must arrive at a definitive assessment within the specified timeframe. Failure to do so leads to a presumption of permanent total disability, protecting the seafarer’s rights to compensation.

The court relied on the doctrine established in Kestrel Shipping Co., Inc. v. Munar, which states:

x x x if those injuries or disabilities with a disability grading from 2 to 14, hence, partial and permanent, would incapacitate a seafarer from performing his usual sea duties for a period of more than 120 or 240 days, depending on the need for further medical treatment, then he is, under legal contemplation, totally or permanently disabled. In other words, an impediment should be characterized as partial and permanent not only under the Schedule of Disabilities found in Section 32 of the POEA-SEC but should be so under the relevant provisions of the Labor Code and the Amended Rules on Employee[s] Compensation (AREC) implementing Title II, Book IV of the Labor Code. That while the seafarer is partially injured or disabled, he is not precluded from earning doing [sic] the same work he had before his injury or disability or that he is accustomed or trained to do. Otherwise, if his illness or injury prevents him from engaging in gainful employment for more than 120 or 240 days, as the case may be, he shall be deemed totally and permanently disabled.

Moreover, the company-designated physician is expected to arrive at a definite assessment of the seafarer’s fitness to work or permanent disability within the period of 120 or 240 days. That should he fail to do so and the seafarer’s medical condition remains unresolved, the seafarer shall be deemed totally or permanently disabled.

Building on this principle, the court found that Dr. Cruz’s delayed assessment was irrelevant, and Calo was deemed permanently and totally disabled due to his prolonged inability to work. This decision underscores the importance of adhering to the prescribed timelines for medical assessments, ensuring that seafarers are not left in a state of prolonged uncertainty regarding their medical condition and employment prospects.

The argument presented by Alpha Ship Management, emphasizing Dr. Cruz’s fitness-to-work declaration and Calo’s alleged abandonment of treatment, was ultimately rejected. The court emphasized that the prolonged period without a definitive assessment superseded these arguments. Furthermore, the court noted Dr. Vicaldo’s assessment that Calo was unfit to work as a seaman and unlikely to find gainful employment, supporting the finding of total and permanent disability. This perspective acknowledges the practical realities faced by seafarers who are unable to perform their duties due to medical conditions.

This case also addressed the award of attorney’s fees. The Supreme Court affirmed the award, citing that Calo was compelled to litigate to protect his rights due to Alpha Ship Management’s failure to satisfy his valid claim. This decision aligns with the principle that employees should not bear the financial burden of legal action when employers fail to meet their obligations. Furthermore, the Court modified the Labor Arbiter’s decision to ensure that the awards were paid in Philippine pesos, providing a practical measure for enforcement.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer was entitled to disability benefits when the company-designated physician’s assessment was significantly delayed beyond the legally prescribed period.
What is the significance of the 120/240-day rule?	The 120/240-day rule refers to the period within which a company-designated physician must provide a final assessment of a seafarer’s fitness to work. If the assessment is not made within this period, the seafarer may be deemed permanently disabled.
What happens if the company doctor and the seafarer’s doctor disagree?	In case of disagreement, the parties can jointly seek the opinion of a third, independent doctor. If no third opinion is sought, the courts will evaluate both doctors’ findings based on their merits.
What did the Supreme Court decide about disability benefits in this case?	The Supreme Court ruled that the seafarer was entitled to permanent total disability benefits because the company-designated physician failed to provide a timely assessment of his condition.
What is considered a permanent total disability for a seafarer?	A permanent total disability occurs when a seafarer is unable to perform their usual sea duties for more than 120 or 240 days due to illness or injury, regardless of whether they lose the use of any part of their body.
Why was attorney’s fees awarded to the seafarer?	Attorney’s fees were awarded because the seafarer was compelled to litigate in order to protect his rights due to the company’s failure to satisfy his valid claim for disability benefits.
How does this ruling impact shipping companies?	This ruling emphasizes the importance of shipping companies ensuring that their designated physicians provide timely and accurate medical assessments to seafarers, or risk facing claims for permanent disability benefits.
Can a seafarer consult their own doctor?	Yes, a seafarer has the right to consult their own doctor, especially if they feel their condition is not improving under the care of the company-designated physician.

The Alpha Ship Management Corporation v. Eleosis V. Calo case serves as a crucial reminder of the importance of timely medical assessments in seafarer disability claims. The ruling reinforces the rights of seafarers to receive just compensation when their employers fail to meet their obligations under the law.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: ALPHA SHIP MANAGEMENT CORPORATION v. CALO, G.R. No. 192034, January 13, 2014