The Supreme Court ruled that the heirs of a deceased seafarer are not entitled to death benefits if they fail to prove the seafarer’s cause of death was work-related or that the death occurred during the term of employment. The Court emphasized that substantial evidence is required to establish a direct link between the seafarer’s illness and their working conditions. This decision highlights the importance of documenting health issues during employment and demonstrating a clear causal connection between work-related exposures and subsequent illnesses for successful claims.

Sailing into Uncertainty: Did a Seafarer’s Lung Cancer Stem from His Time at Sea?

The case of Heirs of Marceliano N. Olorvida, Jr. v. BSM Crew Service Centre Philippines, Inc. revolves around a claim for death benefits filed by the heirs of Marceliano N. Olorvida, Jr., a former seafarer, against his employer. Marceliano worked as a motorman on various vessels from 2003 to 2009. After his employment, he was diagnosed with lung cancer and eventually died. His heirs argued that his work environment, particularly exposure to harmful substances in the engine room, caused or aggravated his condition. The respondents, however, contended that Marceliano’s death was not work-related, and he died after his employment contract expired.

The Labor Arbiter (LA) initially dismissed the claim, a decision that was later reversed by the National Labor Relations Commission (NLRC), which ruled in favor of the heirs. However, the Court of Appeals (CA) overturned the NLRC’s decision and reinstated the LA’s ruling, prompting the heirs to elevate the case to the Supreme Court. The central legal question before the Supreme Court was whether the CA erred in denying the claim for death benefits, specifically focusing on whether Marceliano’s lung cancer was work-related and whether his death occurred within the context of his employment.

The Supreme Court, in its analysis, delved into the requirements for claiming death benefits under the 2000 Philippine Overseas Employment Administration (POEA) Standard Employment Contract (SEC). According to Section 20(A) of the 2000 POEA-SEC:

SECTION 20. COMPENSATION AND BENEFITS

A. COMPENSATION AND BENEFITS FOR DEATH

1. In case of work-related death of the seafarer, during the term of his contract[,] the employer shall pay his beneficiaries the Philippine Currency equivalent to the amount of Fifty Thousand US dollars (US$50,000) and an additional amount of Seven Thousand US dollars (US$7,000) to each child under the age of twenty-one (21) but not exceeding four (4) children, at the exchange rate prevailing during the time of payment.

This provision underscores that for a claim to succeed, the death must be work-related and occur during the employment term. The burden of proof lies with the seafarer’s heirs to demonstrate these elements with substantial evidence. Substantial evidence is defined as that amount of relevant evidence that a reasonable mind might accept as adequate to support a conclusion. The court emphasized that failure to establish either of these conditions would invalidate the claim for death benefits.

In determining whether Marceliano’s death was work-related, the Court scrutinized the evidence presented. To establish a work-related connection, it must be shown that the cause of death was reasonably linked to the seafarer’s work, or the illness is an occupational disease as defined in Section 32-A of the 2000 POEA-SEC. Additionally, it can be established if the working conditions aggravated or exposed the seafarer to the disease that caused their death. Lung cancer is not listed as an occupational disease under Section 32-A of the 2000 POEA-SEC. However, the Court acknowledged a disputable presumption that the illness could be work-related, which shifted the burden to the employers to present substantial evidence to overcome this presumption.

The respondents successfully countered the presumption by presenting clinical abstracts from the Philippine General Hospital (PGH) that documented Marceliano’s history as a heavy smoker. The evidence indicated he was a “37 pack-year smoker” who had only stopped smoking five years prior to his diagnosis. This evidence significantly weakened the claim that his lung cancer was primarily caused by his work environment as a motorman. The Court noted the absence of any evidence connecting his work to the illness, emphasizing that the medical records highlighted his smoking habits as the primary factor. As the Supreme Court stated in Magsaysay Maritime Services, et al. v. Laurel:

Anent the issue as to who has the burden to prove entitlement to disability benefits, the petitioners argue that the burden is placed upon Laurel to prove his claim that his illness was work-related and compensable. Their posture does not persuade the Court.

True, hyperthyroidism is not listed as an occupational disease under Section 32-A of the 2000 POEA-SEC. Nonetheless, Section 20 (B), paragraph (4) of the said POEA-SEC states that “those illnesses not listed in Section 32 of this Contract are disputably presumed as work-related.” The said provision explicitly establishes a presumption of compensability although disputable by substantial evidence. The presumption operates in favor of Laurel as the burden rests upon the employer to overcome the statutory presumption. Hence, unless contrary evidence is presented by the seafarer’s employer/s, this disputable presumption stands. In the case at bench, other than the alleged declaration of the attending physician that Laurel’s illness was not work-related, the petitioners failed to discharge their burden. In fact, they even conceded that hyperthyroidism may be caused by environmental factor.

The Court also addressed the requirement that the death must occur during the term of employment. Marceliano’s last contract ended on November 11, 2009, but he died on January 17, 2012, more than two years after his employment ceased. An exception exists when a seafarer is medically repatriated due to a work-related injury or illness. However, Marceliano was not medically repatriated; his contract simply expired, and he returned to the Philippines. In the words of the Supreme Court in Balba, et al. v. Tiwala Human Resources, Inc., et al.:

In the present case, it is undisputed that Rogelio succumbed to cancer on July 4, 2000 or almost ten (10) months after the expiration of his contract and almost nine (9) months after his repatriation. Thus, on the basis of Section 20(A) and the above-cited jurisprudence explaining the provision, Rogelio’s beneficiaries, the petitioners, are precluded from receiving death benefits.

x x x x

In the instant case, Rogelio was repatriated not because of any illness but because his contract of employment expired. There is likewise no proof that he contracted his illness during the term of his employment or that his working conditions increased the risk of contracting the illness which caused his death.

The Court thus found no basis to grant the claim for death benefits. The evidence did not adequately link his working conditions to his lung cancer, and his death occurred significantly after his employment ended. The Supreme Court emphasized that while labor contracts are interpreted liberally in favor of the employee, it cannot disregard the absence of evidence supporting the claim.

This case underscores the stringent requirements for claiming death benefits under the POEA-SEC. It serves as a crucial reminder for seafarers to document any health issues that arise during their employment and to seek immediate medical attention and proper documentation upon repatriation if they believe their health has been affected by their work. It also highlights the importance of thoroughly understanding the terms and conditions of employment contracts and the evidence required to support claims for compensation and benefits.

FAQs

What was the key issue in this case?	The key issue was whether the heirs of a deceased seafarer were entitled to death benefits, considering the seafarer’s lung cancer was allegedly caused by his work environment and his death occurred after his employment contract expired.
What is the POEA-SEC?	The POEA-SEC refers to the Philippine Overseas Employment Administration Standard Employment Contract, which sets the terms and conditions for the employment of Filipino seafarers on ocean-going ships. These rules are integrated into every employment contract to protect seafarers.
What must be proven to claim death benefits?	To successfully claim death benefits, it must be proven that the seafarer’s death was work-related and that the death occurred during the term of their employment. These must be supported by substantial evidence.
How can a death be considered work-related?	A death is considered work-related if the cause of death is reasonably connected to the seafarer’s work, the illness is an occupational disease as defined in the POEA-SEC, or the working conditions aggravated or exposed the seafarer to the disease that caused their death.
What is the effect of smoking history on death benefit claims?	A seafarer’s history of smoking can weaken claims that their lung cancer was primarily caused by their work environment, especially if medical records highlight smoking habits as the primary factor.
What happens if the death occurs after the employment contract expires?	If the death occurs after the employment contract expires, the claim for death benefits may be denied unless the seafarer was medically repatriated due to a work-related injury or illness.
Who has the burden of proof in death benefit claims?	Initially, the burden of proof lies with the seafarer’s heirs to demonstrate that the death was work-related. However, certain presumptions can shift the burden to the employer to disprove the work-related connection.
What is considered substantial evidence?	Substantial evidence is the amount of relevant evidence that a reasonable mind might accept as adequate to support a conclusion. It is more than a mere scintilla of evidence but less than a preponderance.
What is the importance of documenting health issues during employment?	Documenting health issues that arise during employment is crucial for substantiating claims for death benefits or disability compensation. It provides a record of the seafarer’s health condition and any potential connections to their work environment.

This case emphasizes the need for seafarers to diligently document any health concerns that arise during their employment and to seek prompt medical attention. Proving a direct link between working conditions and a later illness is essential for a successful claim for death benefits. This ruling clarifies the evidentiary standards and contractual requirements that govern seafarer employment, providing valuable guidance for future claims.

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: HEIRS OF MARCELIANO N. OLORVIDA, JR. v. BSM CREW SERVICE CENTRE PHILIPPINES, INC., G.R. No. 218330, June 27, 2018