In a claim for disability benefits, a seafarer is not legally presumed as permanently and totally disabled to be entitled to permanent total disability if the company-designated doctor has not declared that the seafarer is not fit to work within the 240-day period, and the 240-day period has not lapsed when the seafarer filed his complaint. The Supreme Court emphasized that a temporary total disability only becomes permanent when the company-designated physician, within the 240-day period, declares it to be so, or when after the lapse of the same, he/she fails to make such declaration. This case clarifies the timeline and conditions for determining disability benefits for seafarers, underscoring the importance of medical assessments within specific time frames.

From Slippery Decks to Disability Grades: Determining a Seaman’s Entitlement

The case of Eugenio M. Gomez v. Crossworld Marine Services, Inc. revolves around a seafarer’s claim for disability benefits following an injury sustained while working on board a vessel. The petitioner, Eugenio Gomez, was hired as an Ordinary Seaman. He suffered a back injury after slipping on an icy deck. The core legal issue is whether Gomez is entitled to permanent total disability benefits, considering the medical assessments made by the company-designated physician and his own chosen doctor.

Initially, Gomez underwent medical treatment and was eventually repatriated to the Philippines. He was examined by company-designated doctors who diagnosed him with a spinal condition and assigned him a Grade 8 disability based on the POEA (Philippine Overseas Employment Administration) Contract Schedule of Disability. Dissatisfied, Gomez sought a second opinion from another physician who declared him unfit for sea duty with a permanent disability. Efforts to settle amicably failed, leading Gomez to file a complaint before the Labor Arbiter.

The Labor Arbiter ruled in favor of Gomez, declaring him permanently and totally disabled, and awarded him disability benefits. The National Labor Relations Commission (NLRC) affirmed this decision. However, the Court of Appeals modified the ruling, declaring Gomez to have suffered a permanent partial disability with an impediment of Grade 8. This decision was based on the assessment of the company-designated physician and the fact that Gomez filed his complaint before the 240-day period for medical assessment had lapsed. Gomez then elevated the case to the Supreme Court.

The Supreme Court anchored its analysis on existing labor laws, particularly Article 192 of the Labor Code, and the POEA SEC, which govern seafarers’ employment contracts. Article 192 defines permanent total disability and specifies that temporary total disability lasting continuously for more than 120 days can be deemed total and permanent. Rule X, Section 2 of the Rules and Regulations Implementing Book IV of the Labor Code further clarifies that the 120-day period may be extended up to 240 days if the injury or sickness still requires medical attendance. Key to this case is understanding how these regulations intertwine to define when a seafarer’s disability becomes permanent.

The Court emphasized the importance of the 240-day rule, citing Vergara v. Hammonia Maritime Services, Inc., which stipulates that a temporary total disability only becomes permanent when the company-designated physician declares it so within the 240-day period, or when the period expires without such a declaration. This timeline is critical because it sets the parameters for when a seafarer can be considered permanently disabled and thus entitled to corresponding benefits. The Court highlighted that since Gomez filed his complaint before the 240-day period had lapsed, he could not be legally presumed as permanently and totally disabled.

However, the Court also acknowledged that the lower courts had consistently found Gomez to be disabled due to a work-related injury, a finding that was now binding on the respondents. Therefore, the Supreme Court affirmed the Court of Appeals’ decision that Gomez suffers from a partial permanent disability grade of 8, as assessed by the company-designated doctor, aligning with Section 20-A (6) of the POEA SEC. It is also important to note that, “The disability shall be based solely on the disability gradings provided under Section 32 of this Contract, and shall not be measured or determined by the number of days a seafarer is under treatment or the number of days in which sickness allowance is paid.”

Gomez also argued that the medical reports provided by the company-designated doctor were hearsay. He stated that the actual medical findings of the spine surgeon who operated on him were not presented as evidence. The Supreme Court ruled that while this issue should have been raised earlier in the proceedings, the medical reports were admissible because Gomez himself had confirmed the treatments described in those reports. Furthermore, the Court found no substantial evidence to suggest that the company-designated doctor lacked personal knowledge of the findings in the medical reports.

Gomez also relied on Esguerra v. United Philippines Lines, Inc., arguing that the recommendation for further treatment indicated that he was permanently and totally disabled. However, the Supreme Court distinguished this case, noting that in Esguerra, both the company-designated surgeon and the seafarer’s specialist agreed that the seafarer was permanently unfit for sea duty. In contrast, in Gomez’s case, the company-designated doctor’s prognosis was fair to good, and she recommended continued therapy. As the medical assessments contrasted with the Esguerra ruling, the Supreme Court could not favorably rule using the same

The Court also addressed Gomez’s contention that the Court of Appeals erred in not applying the case of Kestrel Shipping Company, Inc. v. Munar. The Court clarified that Kestrel Shipping Company, Inc. was inapplicable because it involved an injury that occurred in 2006, before the ruling in Vergara, which established the 240-day rule. As the court noted in Kestrel Shipping Company, Inc., “This Court’s pronouncements in Vergara presented a restraint against the indiscriminate reliance on Crystal Shipping such that a seafarer is immediately catapulted into filing a complaint for total and permanent disability benefits after the expiration of 120 days from the time he signed-off from the vessel to which he was assigned.” Thus, the Supreme Court affirmed the Court of Appeals’ computation of Gomez’s disability benefit under the ITF Uniform TCC Collective Bargaining Agreement. In its final decision, the Court found the petition lacking in merit.

FAQs

What was the key issue in this case?	The key issue was whether Eugenio Gomez was entitled to permanent total disability benefits as a seafarer, given the 240-day rule and differing medical assessments. The court examined the timeline of medical evaluations and the basis for determining permanent disability.
What is the 240-day rule?	The 240-day rule refers to the maximum period within which a company-designated physician must assess a seafarer’s fitness to work or declare a permanent disability. If no declaration is made within this period, it may affect the determination of disability benefits.
What happens if a seafarer files a complaint before the 240-day period lapses?	If a seafarer files a complaint before the 240-day period lapses, they cannot be legally presumed as permanently and totally disabled. The company-designated physician still has the remaining time to make a final assessment.
How is disability graded for seafarers under POEA contracts?	Disability is graded based on the Schedule of Disability provided under Section 32 of the POEA SEC. The disability benefits are solely based on the assigned grade and not on the number of days under treatment or the sickness allowance paid.
What role do medical reports play in disability claims?	Medical reports from both the company-designated physician and the seafarer’s chosen doctor are critical. Any discrepancies may require a third, jointly agreed upon doctor to provide a final and binding assessment.
What is the significance of the Vergara v. Hammonia Maritime Services, Inc. case?	Vergara v. Hammonia Maritime Services, Inc. clarified the application of the 240-day rule. It specified that a temporary total disability only becomes permanent when declared by the company-designated physician within the 240-day period.
What happens if the company-designated doctor’s assessment differs from the seafarer’s doctor?	If the assessments differ, a third doctor can be jointly selected by the company and the seafarer. The third doctor’s decision is considered final and binding on both parties.
What collective bargaining agreement (CBA) was applied in this case?	The ITF Uniform “TCC” Collective Agreement was applied in this case. The Supreme Court stated that the lower courts erroneously used the rate of compensation of the ITF Standard Collective Agreement, which is a different agreement.
Can attorney’s fees be recovered in seafarer disability claims?	Yes, attorney’s fees can be recovered in actions for indemnity under workmen’s compensation and employer’s liability laws, as per Article 2208, paragraph 8 of the Civil Code.

This case underscores the importance of adhering to the timelines and procedures outlined in the Labor Code and POEA SEC when assessing disability claims for seafarers. The 240-day rule serves as a critical framework for determining when a temporary disability transitions into a permanent one, impacting the seafarer’s entitlement to benefits. This ruling provides clarity for both seafarers and employers in navigating the complexities of disability compensation.

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: EUGENIO M. GOMEZ, VS. CROSSWORLD MARINE SERVICES, INC., GOLDEN SHIPPING COMPANY S.A., AND ELEAZAR DIAZ, G.R. No. 220002, August 02, 2017