The Supreme Court held that a seafarer is entitled to permanent total disability benefits when his illness, contracted during employment, renders him unfit for duty, even if a company-designated physician initially declares him fit to work after a period exceeding 120 days but the illness persists. This decision underscores the importance of the causal connection between a seafarer’s work conditions and their resulting health issues, prioritizing the seafarer’s inability to return to their previous work due to a recurring condition over a preliminary declaration of fitness. The ruling also highlights the responsibility of employers to provide adequate compensation for work-related illnesses that prevent seafarers from continuing their maritime careers.
Chemical Exposure at Sea: Does a Messman’s Skin Condition Warrant Disability?
This case, Grace Marine Shipping Corporation and/or Capt. Jimmy Boado v. Aron S. Alarcon, revolves around Aron Alarcon, a messman employed by Grace Marine Shipping Corporation, who developed a skin condition while working on a vessel. His duties included maintaining sanitation using various cleaning agents and chemicals. The central legal question is whether Alarcon’s skin condition, diagnosed as nummular eczema and psoriasis, is work-related and entitles him to disability benefits, despite an initial declaration of fitness to work by the company-designated physician.
Alarcon’s employment contract stipulated a nine-month term with a monthly salary of US$403. After undergoing a pre-employment medical examination, he was declared fit to work and began his duties aboard the “M/V Sunny Napier II” in January 2007. However, in August 2007, he developed a skin condition and was diagnosed with “infected fungal dermatitis” in New Zealand. Later, another doctor diagnosed him with “eczema squamosum” and declared him unfit for duty, leading to his repatriation on August 29, 2007.
Upon repatriation, Alarcon was referred to the company-designated physician, Dr. Nicomedes G. Cruz, who diagnosed him with “nummular eczema.” Despite undergoing treatment, his condition persisted, with recurring lesions all over his body. On January 21, 2008, Dr. Cruz assessed his condition as a Grade 12 disability, described as “slight residuals or disorder of the skin.” However, on January 31, 2008, Dr. Cruz declared Alarcon fit to work, although noting that he still had “minimal and resolving” skin lesions. This declaration was supported by a letter from Dr. Eileen Abesamis-Cubillan, a dermatopathologist, who advised Alarcon to continue medication while on board the ship.
The critical aspect of this case lies in the conflicting medical assessments. While the company-designated physician initially declared Alarcon fit to work, another doctor, Dr. Glenda A. Fugoso, whom Alarcon consulted independently, declared him unfit and stated that he might require lifetime treatment. The discrepancy between these medical opinions forms the crux of the legal dispute, particularly regarding Alarcon’s entitlement to disability benefits. This disagreement led to a complaint filed by Alarcon against Grace Marine Shipping Corporation before the National Conciliation and Mediation Board (NCMB), seeking permanent total disability benefits, moral and exemplary damages, and attorney’s fees.
Alarcon argued that his illness was work-related, citing Section 32-A of the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC), which recognizes dermatitis as an occupational disease. He contended that his exposure to chemical agents during his work as a messman caused his condition. The company countered that Alarcon’s ailment was due to his “innate skin sensitivity” and not his work environment. This argument hinged on the premise that the recurrence of the condition even after he was no longer exposed to the vessel’s working conditions suggested a pre-existing susceptibility.
The NCMB ruled in favor of Alarcon, awarding him US$29,480.00 in disability benefits and additional attorney’s fees. The NCMB emphasized that Alarcon’s illness manifested during his employment and was likely triggered by his exposure to various chemicals and stressful working conditions. The NCMB highlighted that Alarcon’s continued employment on board would be detrimental to his health, given the increased risk of recurrence and aggravation of his skin problem. The NCMB panel stated:
The Panel of Voluntary Arbitrators finds no convincing evidence to show that complainant’s illness was caused by genetic predisposition or drug addiction. Having ruled out these reasons, what remain [sic] is the environmental factor such as complainant’s constant exposure to chemicals while on board the vessel such as surfactant, alkaline, phosphates, acids, complexing agents, bleaching agents, enzymes and other strong chemical substances that caused the skin injury in addition to the stress and strain which are present in his work area.
Petitioners filed a Petition for Review with the Court of Appeals (CA), reiterating their arguments and claiming the NCMB did not provide the medical basis for its findings. The CA dismissed the petition, affirming the NCMB’s decision. The CA noted that entitlement to disability benefits is governed by law, contract, and medical findings. In its decision, the CA cited Section 20 (B) of the 2000 POEA-SEC, which governs the compensation and benefits to which a seafarer is entitled in case of injury or illness:
“Section 20-B. Compensation and Benefits for Injury or Illness.
The liabilities of the employer when the seafarer suffers work-related injury or illness during the term of his contract are as follows:
3. Upon sign-off from the vessel for medical treatment, the seafarer is entitled to sickness allowance equivalent to his basic wage until he is declared fit to work or the degree of permanent disability has been assessed by the company-designated physician but in no case shall this period exceed one hundred twenty (120) days.
6. In case of permanent total or partial disability of the seafarer caused by either injury or illness the seafarer shall be compensated in accordance with the schedule of benefits enumerated in Section 32 of this Contract. Computation of his benefits arising from an illness or disease shall be governed by the rates and the rules of compensation applicable at the time the illness or disease was contracted.”
The CA highlighted that Alarcon’s dermatitis is listed as an occupational disease under Section 32-A, given his employment involved the use of chemical agents. The court cited jurisprudence holding that failure of the company-designated physician to pronounce a seafarer fit to work within 120 days entitles the latter to permanent total disability. The CA stated that Alarcon was under the treatment of the company-designated physician for five months, or 154 days, before being declared fit to work, thus entitling him to permanent total disability benefits.
The Supreme Court denied the petition, affirming the CA’s decision but modifying the award to US$60,000.00. The Court emphasized that Alarcon’s condition was not cured when he was declared fit to return to work, as he continued to suffer from recurrent lesions. The Court noted that before his employment, Alarcon did not suffer from these ailments and was given a clean bill of health during his pre-employment medical examination. This absence of pre-existing conditions strengthened the argument that his illness was indeed work-related. The Court adopted the pronouncement in Maersk Filipinos Crewing, Inc./Maersk Services Ltd. v. Mesina, emphasizing that a reasonable connection existed between the nature of Alarcon’s work and the onset of his skin condition.
The Supreme Court addressed the conflicting medical certifications, acknowledging the company-designated physician’s diagnosis of psoriasis and nummular eczema. However, the Court also emphasized that Alarcon’s exposure to chemicals and the stressful work environment contributed to his condition. In cases of conflicting medical opinions, the Court generally defers to the findings of the company-designated physician. However, the court is not bound by such findings when substantial evidence suggests a different conclusion. Furthermore, the Court clarified that Alarcon’s illness prevented him from performing his duties as a messman, rendering him unfit to continue his maritime career. Since Alarcon’s condition prevented him from resuming his duties as a messman, the court found him entitled to permanent total disability benefits.
The Court clarified that even in the absence of a specific finding of permanent total disability by the company-designated physician, the employee is deemed to have suffered such disability if they are unable to work for more than 120 days. The Court referenced Fil-Star Maritime Corporation v. Rosete, stating that permanent disability is the inability of a worker to perform their job for more than 120 days, regardless of whether they lose the use of any part of their body.
Building on this principle, the Court emphasized that the right to attorney’s fees follows when compensability is established. Alarcon was compelled to litigate to claim his rightful indemnity, justifying the award of attorney’s fees. This case underscores the importance of medical findings, labor laws, and contractual agreements in determining disability benefits for seafarers. The court carefully considered the conflicting medical opinions, the nature of Alarcon’s work, and the duration of his illness to arrive at a just and equitable resolution.
The Supreme Court’s decision in this case affirms the seafarer’s right to compensation when their illness, contracted during employment, renders them unfit for duty, especially when there is a clear causal connection between their work environment and the medical condition. While the company-designated physician initially declared Alarcon fit to work, this determination came after a period exceeding 120 days, and the ongoing nature of Alarcon’s condition justified the award of permanent total disability benefits.
FAQs
What was the key issue in this case? | The key issue was whether a seafarer’s skin condition, contracted during employment, entitled him to disability benefits despite an initial declaration of fitness to work by the company-designated physician. |
What is the POEA-SEC? | The Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) sets the terms and conditions for Filipino seafarers working overseas, including provisions for compensation and benefits in case of injury or illness. |
What is considered a work-related illness under POEA-SEC? | A work-related illness is any sickness resulting in disability or death as a result of an occupational disease listed under Section 32-A of the POEA-SEC, or any illness that is causally connected to the seafarer’s work environment and duties. |
How long does a company-designated physician have to make a determination? | The company-designated physician typically has 120 days to assess the seafarer’s condition and determine fitness to work or the degree of permanent disability. This period can be extended up to 240 days if further medical attention is required. |
What happens if the company doctor doesn’t make a declaration in 120 days? | If the company-designated physician fails to declare the seafarer fit to work within 120 days, the seafarer may be entitled to permanent total disability benefits, especially if the condition prevents them from returning to their usual work. |
What is permanent total disability? | Permanent total disability refers to the inability of a worker to perform their job for more than 120 days, regardless of whether they lose the use of any part of their body, which prevents them from earning wages in the same kind of work or similar nature. |
Can a seafarer consult an independent physician? | Yes, a seafarer has the right to consult an independent physician. However, the findings of the company-designated physician generally take precedence unless there is clear and convincing evidence to the contrary. |
What are the implications for employers? | Employers must ensure that seafarers’ work conditions do not lead to occupational diseases and must provide appropriate compensation for work-related illnesses that prevent them from continuing their maritime careers. |
What was the disability benefit awarded in this case? | The Supreme Court modified the award to US$60,000.00 as disability compensation, reflecting a finding of permanent total disability, along with US$6,000.00 as attorney’s fees. |
In conclusion, the Supreme Court’s decision reinforces the rights of seafarers to receive just compensation for work-related illnesses. It underscores the importance of considering the overall impact of a seafarer’s medical condition on their ability to work, rather than solely relying on initial declarations of fitness. This ruling serves as a reminder to employers of their responsibility to provide safe working conditions and to fairly compensate employees whose health is compromised due to their work environment.
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: Grace Marine Shipping Corporation vs. Aron S. Alarcon, G.R. No. 201536, September 09, 2015