In a significant ruling for Filipino seafarers, the Supreme Court has clarified that an injury sustained during employment is compensable under the POEA Standard Employment Contract, even if the injury was not the result of an accident. This decision emphasizes that if a seafarer’s injury is work-related and occurs during the term of their employment, they are entitled to disability benefits, regardless of whether the injury was caused by an intentional act of another person. This ruling protects seafarers from having their disability claims denied based on narrow interpretations of what constitutes a compensable injury, ensuring they receive the support they are entitled to under the law. The court underscored that employers are responsible for ensuring a safe working environment and cannot evade liability when injuries occur due to a failure in this duty.

When Duty Calls, and Harm Befalls: Is Employer Negligence a Just Cause for Compensation?

George M. Toquero, a fitter on board the vessel MV AS VICTORIA, suffered a severe head injury when assaulted by a fellow seafarer. The incident occurred while Toquero was repairing a generator, and despite being given first aid and later undergoing surgery, he continued to experience debilitating symptoms. After being repatriated to the Philippines, Toquero sought disability benefits, arguing that his injury rendered him permanently unfit for work. The company-designated physician declared him fit to work, a finding Toquero contested, presenting medical evaluations from his own physicians asserting his total and permanent disability. The legal battle ensued, focusing on whether Toquero’s injury was compensable, given that it resulted from an intentional assault rather than an accident, and whether the company-designated physician’s assessment should prevail over the opinions of Toquero’s doctors.

The case hinged on the interpretation of the POEA Standard Employment Contract and the Collective Bargaining Agreement, which outline the conditions under which a seafarer is entitled to disability benefits. The central question was whether the requirement for an injury to be work-related and sustained during employment was sufficient for compensation, or if the injury also needed to be classified as an accident. The Court of Appeals had previously ruled against Toquero, asserting that since the injury stemmed from a criminal assault, it could not be considered an accident and, therefore, was not compensable. However, the Supreme Court took a different view, emphasizing that the POEA Standard Employment Contract does not impose an additional prerequisite that the injury must be caused by an accident. The Supreme Court emphasized the two key requirements: that the injury is work-related and that it occurred during the term of employment.

The Supreme Court meticulously examined the circumstances surrounding Toquero’s injury, underscoring the significance of the “work-relation” principle. This principle mandates that there must be a reasonable connection between the injury or disease suffered by the employee and their work. In this context, the Court referenced Sy v. Philippine Transmarine Carriers, Inc., highlighting that an injury arises “in the course of employment” when it occurs within the employment period, at a location where the employee may reasonably be, and while the employee is fulfilling their duties or engaged in activities incidental to those duties. The Court reasoned that Toquero’s injury satisfied these criteria, as it occurred while he was performing his duties on board the vessel. Moreover, the Court noted the findings of the labor tribunals, which held that respondents breached their contractual obligation by hiring another employee who was prone to committing felonious acts, emphasizing that respondents must “take all reasonable precautions to prevent accident and injury to the crew.”

Building on this principle, the Supreme Court addressed the erroneous imposition of an additional requirement by the lower courts, namely, that the injury must be caused by an accident to be compensable. The Court clarified that once Toquero established that his injury was work-related and occurred during his employment, he was entitled to disability compensation under the POEA Standard Employment Contract. The Court rejected the argument that the claim was precluded because the injury was due to the willful acts of another seafarer, emphasizing that the POEA Standard Employment Contract disqualifies claims caused by the willful or criminal act or intentional breach of duties done by the claimant, not by the assailant. Furthermore, the Supreme Court underscored the employer’s responsibility to ensure the discipline of its workers, noting that the law imposes liabilities on employers to ensure they bear the costs of harm should they fail to take precautions. This principle of internalization, as explained by the Court, attributes the consequences and costs of an activity to the party who causes them.

The Supreme Court also delved into the medical assessment procedure outlined in the POEA Standard Employment Contract. It acknowledged the provision stating that if a doctor appointed by the seafarer disagrees with the assessment of the company-designated physician, a third doctor may be agreed jointly between the employer and the seafarer, and the third doctor’s decision shall be final and binding on both parties. While the Court recognized that referral to a third doctor is generally a mandatory procedure, it also acknowledged that the company-designated physician’s findings tend to be biased in the employer’s favor. In cases where the company-designated physician’s assessment is not supported by medical records, the courts may give greater weight to the findings of the seafarer’s personal physician. The Court emphasized that disability ratings should be adequately established in a conclusive medical assessment by a company-designated physician, which must be complete and definite to reflect the seafarer’s true condition and provide the correct corresponding disability benefits.

In this case, the Supreme Court found that the medical assessment issued by the company-designated physician could not be regarded as definite and conclusive. The records revealed that the company-designated physician failed to conduct all the proper and recommended tests, particularly a complete neurologic examination, which was recommended to adequately assess Toquero’s disability rating. The Court noted that respondents solely relied on an electroencephalography run by the company-designated physician, and there were no explanations from respondents as to why the recommended medical tests were not conducted. As a result, the Supreme Court concluded that the company-designated physician’s assessment was deficient, and it gave more weight to the assessment of Toquero’s chosen physician, who determined a permanent and total disability. This determination was also supported by Dr. Runas’s medical evaluation report which states, “He has a large bone defect which may pose further damage to his brain… Because of the impediment, he is permanently unfit to return to work as a seaman in any capacity and considered for total permanent disability.”

The Court also addressed the issue of the applicable Collective Bargaining Agreement and disability rating, upholding the version submitted by Toquero. Respondents contended that a different Collective Bargaining Agreement and a lower disability allowance were applicable to Toquero. However, the Court reiterated the principle that doubts shall be resolved in favor of labor, in line with the policy enshrined in the Constitution, the Labor Code, and the Civil Code, to provide protection to labor and construe doubts in favor of labor. Therefore, in accordance with the Collective Bargaining Agreement submitted by Toquero, he was deemed entitled to a total and permanent disability allowance of US$250,000.00. Finally, the Court awarded Toquero sickness allowance equivalent to his basic wage for 55 days, as well as attorney’s fees, which are granted under Article 2208 of the Civil Code in actions for indemnity under workers’ compensation and employers’ liability laws.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer’s injury, sustained during employment but resulting from an intentional assault rather than an accident, is compensable under the POEA Standard Employment Contract. The Court also addressed if the company-designated physician’s assessment should prevail.
What did the Supreme Court rule?	The Supreme Court ruled that Toquero’s injury was compensable, emphasizing that the POEA Standard Employment Contract does not require the injury to be caused by an accident, only that it be work-related and sustained during employment. The Court also determined that the company-designated physician’s assessment was inconclusive.
What is the “work-relation” principle?	The “work-relation” principle requires that there be a reasonable connection between the injury or disease suffered by the employee and their work. This means that the injury must occur while the employee is performing their duties or engaged in activities incidental to those duties.
What is the role of the company-designated physician?	The company-designated physician is responsible for conducting a post-employment medical examination to determine the seafarer’s fitness or unfitness for work. Their assessment is initially given weight, but it must be conclusive and supported by medical records.
What happens if the seafarer disagrees with the company-designated physician?	If the seafarer disagrees with the company-designated physician, they can seek a second opinion. If the opinions differ, a third doctor, agreed upon by both parties, can provide a final and binding decision.
What is sickness allowance?	Sickness allowance is a benefit provided to seafarers, equivalent to their basic wage, from the time they sign off work due to illness or injury until they are declared fit to work or the degree of disability has been assessed. This period is capped at 120 days.
Why did the Court favor Toquero’s chosen physician’s assessment?	The Court favored Toquero’s physician because the company-designated physician’s assessment was deemed deficient for lacking a complete neurologic examination. Moreover, the report of Toquero’s physician stated that “He has a large bone defect which may pose further damage to his brain… Because of the impediment, he is permanently unfit to return to work as a seaman in any capacity and considered for total permanent disability.”
What was the amount of the disability allowance awarded to Toquero?	Toquero was awarded a total and permanent disability allowance of US$250,000.00, based on the Collective Bargaining Agreement submitted by him.

This Supreme Court decision reinforces the rights of Filipino seafarers by ensuring they receive just compensation for work-related injuries, even when those injuries result from intentional acts. The ruling emphasizes the employer’s responsibility to provide a safe working environment and to ensure comprehensive medical assessments are conducted to accurately determine a seafarer’s disability. This case serves as a crucial precedent for future claims, safeguarding the welfare and rights of seafarers in the Philippines.

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: GEORGE M. TOQUERO, VS. CROSSWORLD MARINE SERVICES, INC., KAPAL CYPRUS, LTD., AND ARNOLD U. MENDOZA, G.R. No. 213482, June 26, 2019