G.R. No. 239221 , April 28, 2021
Seacrest Maritime Management, Inc., Nordis Tankers Marine A/S, and Redentor Anaya, Petitioners, vs. Samuel B. Bernarte, Respondent.

FACTS

Respondent Samuel B. Bernarte was hired by petitioner Seacrest Maritime Management, Inc. for its principal Nordis Tankers Marine A/S as an Able Seaman under a 7-month contract covered by a Collective Bargaining Agreement (CBA). On September 6, 2013, while performing duties, he was allegedly hit by a metal hatch, suffering severe back pain. After examination in South India revealed a lumbar disc prolapse, he was declared “UNFIT FOR WORK” and repatriated on September 17, 2013. Upon arrival, he was referred to the company-designated physician, Dr. Natalia Alegre. After months of treatment and therapy, a second MRI confirmed the initial findings. Dr. Alegre recommended surgery, which respondent refused. On January 23, 2014, Dr. Alegre issued a Final Progress Report stating “medical cure is reached” and assessed a “disability grade of 8” based on the POEA Contract. Respondent filed a complaint for total and permanent disability benefits. The Labor Arbiter ruled in his favor, awarding benefits based on the CBA. The NLRC affirmed. The Court of Appeals modified the decision, affirming liability but computing benefits based on Section 32 of the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) instead of the CBA, finding respondent failed to prove his injury was caused by an accident.

ISSUE

Whether the Court of Appeals erred in: (1) affirming the award of total and permanent disability benefits to respondent; and (2) computing said benefits based on the POEA-SEC instead of the CBA.

RULING

The Supreme Court DENIED the petition and AFFIRMED the assailed Decision and Resolution of the Court of Appeals.
1. On the award of total and permanent disability benefits: The Court held that respondent is entitled to total and permanent disability benefits. The company-designated physician, Dr. Alegre, failed to issue a final, definitive assessment of respondent’s fitness to work or degree of disability within the mandatory 120/240-day period. The January 23, 2014 report stating “medical cure is reached” and assessing a Disability Grade 8 was not a valid final assessment because it was issued without a clear declaration that respondent was fit to resume work as a seafarer. Since no valid final assessment was issued within the period, respondent’s disability is deemed total and permanent.
2. On the applicable rate for computing benefits: The Court affirmed the CA’s ruling that benefits should be computed under the POEA-SEC, not the CBA. For the CBA’s higher disability benefits for accidental injuries to apply, the seafarer must prove that the disability resulted from an accident. Here, respondent failed to substantiate his claim that his back injury was caused by being hit by a metal hatch. The only evidence was his own allegation; the shipmaster’s report merely stated “back pain” without detailing an accident. Consequently, the CBA provision for accidental injuries does not apply, and the standard rates under the POEA-SEC govern.
DISPOSITIVE:
Petitioners Seacrest Maritime Management, Inc. and Nordis Tankers Marine A/S were ordered to jointly and severally pay respondent: (a) US$60,000.00 as permanent and total disability benefits; (b) US$68.98 as deficiency in sickness allowance; and (c) attorney’s fees equivalent to 10% of the total award. All monetary awards shall earn legal interest at 6% per annum from the finality of the decision until fully paid.