The Supreme Court has ruled that a seafarer’s illnesses, hypertension and diabetes, were not directly linked to their work conditions, thus denying a disability claim. The court emphasized the need for substantial evidence to prove a causal connection between the working environment and the illness, especially when the diseases are not listed as occupational under the POEA-SEC. This decision highlights the importance of providing concrete evidence and following the procedures outlined in the POEA-SEC for disability claims.

High Seas, High Stakes: When Do Seafarers’ Health Issues Warrant Compensation?

This case revolves around Manuel M. Cunanan, a seafarer who worked as an assistant carpenter for CF Sharp Crew Management Inc., deployed by Norwegian Cruise Lines. Cunanan’s employment contract was for ten months, beginning November 20, 2009. During his time aboard the vessel, he was diagnosed with elevated blood sugar and hypertension, leading to his medical repatriation in February 2010. After returning to the Philippines, he sought medical attention from both company-designated physicians and his own doctors, receiving conflicting assessments regarding his fitness to return to work. This discrepancy led to a legal battle over his entitlement to disability compensation.

The core legal question is whether Cunanan’s hypertension and diabetes were work-related and, therefore, compensable under the Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC). The Labor Arbiter (LA) initially dismissed Cunanan’s complaint, but the National Labor Relations Commission (NLRC) reversed this decision, awarding him disability benefits and attorney’s fees. The Court of Appeals (CA) then dismissed the petitioners’ (CF Sharp Crew Management Inc. and Norwegian Cruise Lines Inc.) petition for certiorari due to procedural issues. The Supreme Court, however, took a different stance, focusing on the substantive merits of the case.

The Supreme Court began by addressing the procedural lapses noted by the Court of Appeals, emphasizing that rules of procedure should facilitate, not frustrate, justice. The court acknowledged that while the petitioners had initially failed to submit certified true copies of the NLRC decision, they had later rectified this by attaching certified xerox copies to their petition before the Supreme Court. Given the circumstances and the conflicting findings of the LA and the NLRC, the Supreme Court opted to relax the procedural rules and proceed to rule on the merits of the case.

Turning to the substantive issues, the Court emphasized that entitlement to disability benefits for seafarers is governed by Philippine law, the contract between the parties, and medical findings. The POEA-SEC defines a work-related illness as one resulting from an occupational disease listed under Section 32-A of the contract. Illnesses not listed are disputably presumed to be work-related, but this presumption does not automatically equate to compensability. The claimant must still present substantial evidence to prove that their work conditions caused or increased the risk of contracting the disease.

Cunanan was diagnosed with hypertension (Stage 1) and Type 2 diabetes mellitus, both controlled. Under the POEA-SEC, hypertension is considered an occupational disease only if it is primary or essential and causes impairment of body organs, resulting in permanent disability. The Court noted that Cunanan failed to provide documentary evidence to substantiate his claim of essential hypertension or prove that it had caused impairment of any vital organs. Diabetes, on the other hand, is not listed as an occupational disease under Section 32-A of the POEA-SEC. The Supreme Court cited C.F. Sharp Crew Management, Inc., et al. v. Santos, emphasizing that diabetes is often a metabolic and familial disease, resulting from lifestyle choices rather than work-related conditions.

The Court further highlighted the inconsistencies in Cunanan’s arguments regarding the cause of his illnesses. While he initially claimed an accident on board the vessel and exposure to hazardous materials, he later attributed his diabetes to a poor diet at sea. These unsubstantiated allegations failed to meet the required quantum of proof for compensability. Importantly, the Court pointed out that hypertension and diabetes do not automatically warrant disability benefits, especially if the seafarer demonstrates compliance with medication and lifestyle changes.

The company-designated physicians had declared Cunanan fit for work 184 days after his repatriation, and Cunanan had even signed a Certificate of Fitness for Work. The Supreme Court emphasized that a seafarer’s inability to work for more than 120 days does not automatically qualify them for permanent and total disability benefits. The initial 120-day treatment period can be extended to 240 days if justified, and the company-designated physician can declare the seafarer fit to work or assess the degree of permanent disability within this extended period. In this case, the company doctors issued the fit-for-work declaration before the 240-day period expired.

The Court also addressed the conflicting medical assessments from Cunanan’s personal doctors, noting that the POEA-SEC gives the company-designated physician the first opportunity to examine the seafarer and issue a medical assessment. If the seafarer disagrees with this assessment, the POEA-SEC provides a procedure for a third doctor to be jointly appointed by both parties. The third doctor’s decision is final and binding. Cunanan failed to follow this procedure. Because he failed to involve a third doctor, the assessment of the company-designated physician prevailed. The court has consistently ruled that the absence of a third doctor’s opinion means the company-designated physician’s assessment should be upheld.

Finally, the Supreme Court addressed the issue of Cunanan’s non-rehiring, clarifying that seafarers are contractual employees, and there was no obligation for the company to renew his contract. There was no concrete evidence that the non-rehiring was due to a permanent and total incapacity to work. Consequently, the court found that Cunanan’s claim for attorney’s fees must also fail. The Supreme Court emphasized that while it is committed to protecting the rights of laborers, it must also uphold the rights of employers when they are in the right. Justice must be dispensed based on established facts, applicable laws, and jurisprudence.

FAQs

What was the key issue in this case?	The key issue was whether the seafarer’s hypertension and diabetes were work-related and thus compensable under the POEA-SEC. The court needed to determine if there was sufficient evidence to link these illnesses to the seafarer’s working conditions.
What is the POEA-SEC?	The POEA-SEC refers to the Philippine Overseas Employment Administration Standard Employment Contract. It sets the terms and conditions for the employment of Filipino seafarers on board ocean-going vessels, including provisions for disability compensation.
What is required to prove a work-related illness for seafarers?	To prove a work-related illness, the seafarer must show that the illness is either listed as an occupational disease in the POEA-SEC or provide substantial evidence that their working conditions caused or increased the risk of contracting the illness. The burden of proof lies on the seafarer.
What happens if the company-designated doctor and the seafarer’s doctor disagree?	If there’s disagreement between the company-designated doctor and the seafarer’s doctor, the POEA-SEC provides a procedure for both parties to jointly appoint a third doctor. This third doctor’s assessment becomes final and binding on both parties.
Why was the seafarer’s claim denied in this case?	The seafarer’s claim was denied because he failed to provide sufficient evidence to prove that his hypertension and diabetes were caused or aggravated by his work conditions. He also did not follow the third-doctor procedure outlined in the POEA-SEC.
Is hypertension always considered a work-related illness for seafarers?	No, hypertension is only considered a work-related illness if it is classified as primary or essential and causes impairment of body organs, resulting in permanent disability. Specific documentary evidence, like chest x-ray and ECG reports, is required to substantiate the claim.
What is the significance of the company-designated physician’s assessment?	The company-designated physician has the initial opportunity to assess the seafarer’s medical condition and issue a certification of fitness. Their assessment carries significant weight, especially if the seafarer fails to follow the third-doctor procedure when disagreeing with the assessment.
Does a seafarer’s inability to be rehired automatically qualify them for disability benefits?	No, a seafarer’s inability to be rehired does not automatically qualify them for disability benefits. Seafarers are contractual employees, and there is no guarantee of contract renewal. The seafarer must still prove that they are unable to work due to a work-related illness or injury.
What is the 120/240-day rule in seafarer disability cases?	The 120/240-day rule refers to the period during which a seafarer receives sickness allowance while undergoing medical treatment. The initial treatment period is 120 days, but it can be extended up to 240 days if the seafarer requires further medical attention.
What happens if a seafarer consults their own doctor while still under treatment by the company-designated physician?	Consulting their own doctor is permissible. However, in case of conflicting medical assessments, the seafarer must invoke Section 20 (B) (3) of the 2000 POEA-SEC regarding the joint appointment by the parties of a third doctor whose decision shall be final and binding on them.

This Supreme Court decision underscores the importance of providing concrete evidence and following proper procedures when claiming disability benefits as a seafarer. It reiterates that while the law leans towards protecting laborers, claims must be substantiated with credible proof. It serves as a reminder to both seafarers and employers of their rights and responsibilities under Philippine 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: CF SHARP CREW MANAGEMENT INC. v. CUNANAN, G.R. No. 210072, August 04, 2021