Florencio B. Destriza Vs. Fair Shipping Corporation G.R. No. 203539. February 10, 2021, Third Division, (Hernando, J.)

 

Florencio B. Destriza Vs. Fair Shipping Corporation

G.R. No. 203539. February 10, 2021, Third Division, (Hernando, J.)

Doctrine:

Certainly, disability compensation cannot rest on mere allegations couched in conjectures and baseless inferences from which work-aggravation or relatedness cannot be presumed. "Bare allegations do not suffice to discharge the required quantum of proof of compensability. Awards of compensation cannot rest on speculations or presumptions. The beneficiaries must present evidence to prove a positive proposition.

Facts:

Destriza filed a complaint for permanent disability benefits, sickness allowance, medical reimbursement, compensatory, moral, and exemplary damages, and attorney's fees before the National Conciliation and Mediation Board (NCMB) against the respondents FSC, Cachapero and Boseline.

FSC is a domestic corporation duly organized and existing under Philippine laws. Baseline is a foreign juridical entity engaged in the business of shipping. FSC is Baseline's local manning agent in the Philippines while Cachapero is the President of FSC.

Destriza is a seafarer formerly employed by FSC for its foreign principal Baseline. He was first deployed by FSC in 2001 as a cook aboard M/V Pacific Venus. He was again deployed in 2002 in the same capacity aboard M/V Tocho-Maru.

On or about December 10, 2003, while on board M/V Cygnus, Destriza experienced abdominal pain, fever, and yellowish discoloration of the skin and eyes. He was rushed to a hospital in Nagoya, Japan where he was diagnosed with biliary duct stone, jaundice, and suspected pancreatitis. After his discharge from the hospital, he was medically repatriated to his home country for further treatment.

Upon arrival in the Philippines, Destriza was immediately referred to FSC's company physician, Dr. Nicomedes Cruz. He underwent cholecystectomy and intraoperative cholangiogram in Medical Center Manila. He was diagnosed with "Chronic Calculus Cholecystitis." In a Report, Dr. Cruz stated that Destriza was "evaluated by their gastroenterologist who allowed him to resume his previous activities," and declared him fit to return to work. The treatment was shouldered by FSC.

However, Destriza insisted that he remained unfit as he continued to experience recurring and severe abdominal pains. This prompted him to undergo a medical check-up with Dr. Donato-Tan, a cardiologist, on October 14, 2004. He was subsequently admitted to a hospital on December 10 to 16, 2004. After his discharge, Dr. Donato-Tan concluded that he was "unfit to resume work as a seaman in any capacity."

In a Resolution, the Panel of Voluntary Arbitrators (PVA) ruled that Destriza is not entitled to permanent disability benefits in view of the declaration of the company physician that he was fit to work. It also ruled that Destriza is not entitled to attorney's fees. However, the panel awarded Destriza the amount of US$20,000.00 because he contracted his illness while on board M/V Cygnus.

In its Decision, the CA modified the PVA's Resolution by deleting the award of US$20,000.00 for lack of legal basis.The award could not be classified as disability benefits as defined in the POEA Standard Employment Contract because Destriza failed to show that his illness was work-related or that the ship's working conditions aggravated it. The CA also gave greater weight on Dr. Cruz's finding that Destriza is fit to return to work, thereby negating Destriza's claim for disability benefits.

Issues:  

Whether Destriza is entitled to disability benefits as previously awarded by the PVA.

Ruling: No. The Court affirms the assailed Decision of the CA finding Destriza not entitled to the award of US$20,000.00.

The standard employment contract for seafarers was formulated by the POEA pursuant to its mandate under Executive Order No. 247, series of 1987 to "secure the best terms and conditions of employment of Filipino contract workers and ensure compliance therewith" and to "promote and protect the well-being of Filipino workers overseas."

The POEA Standard Employment Contract governs Destriza's claim for disability benefits. Since his contract was signed on February 10, 2003 and approved by the POEA on February 12, 2003, POEA Memorandum Circular No. 9, series of 2000 applies in this case and is deemed integrated in Destriza's contract.

Section 20 of Memorandum Circular No. 9 provides that for an illness or injury to be compensable, it must be work-related and must be incurred during the term of the seafarer's contract. It defines work-related illness as "any sickness resulting to disability or death as a result of an occupational disease listed under Section 32-A of this Contract with the conditions set therein satisfied."

Notably, the list does not include Chronic Calculus Cholecystitis. However, Section 20 of Memorandum Circular No. 9 provides that "those illnesses not listed in Section 32 of this Contract are disputably presumed as work-related."

Similarly, for an illness to be compensable, "it is not necessary that the nature of the employment be the sole and only reason for the illness suffered by the seafarer." It is enough that there is "a reasonable linkage between the disease suffered by the employee and his work to lead a rational mind to conclude that his work may have contributed to the establishment or, at the very least, aggravation of any pre-existing condition he might have had."

The disputable presumption implies "that the non-inclusion in the list of compensable diseases/illnesses does not translate to an absolute exclusion from disability benefits." There is still a need for the claimant to establish, through substantial evidence, that his illness is work­ related.

Thus, if an illness is not included in the list under Section 32-A of Memorandum Circular No. 9, it is disputably presumed as work-related. Despite the disputable presumption, case law such as Madridejos provides that to be compensable, the seafarer still has the burden to establish, by substantial evidence, that his illness is work-related. As stated, the disputable presumption does not amount to an automatic grant of compensation.

In the instant case, it is undisputed that Destriza was suffering from Chronic Calculus Cholecystitis due to development of gallstones. Since Chronic Calculus Cholecystitis and even contracting of gallstones are not included in Section 32-A of Memorandum Circular No. 9, Destriza had the burden of establishing, by substantial evidence, that his illness was work-related or was at least aggravated by work. In short, he had the burden of showing that he contracted gallstones because of his work as cook in M/V Cygnus.

The Court agrees with the CA that Destriza failed to establish work-relatedness relative to his illness. The records do not show that the cause of the development of his gallstones resulting to Chronic Calculus Cholecystitis was his work as cook aboard the vessel. He merely presented general averments and allegations that the hot temperature and constant meat or high fat diet aboard the vessel caused or aggravated the development of his gallstones.

In addition, Destriza's failure to resort to a third-doctor opinion proved fatal to his cause. It is settled that in case of disagreements between the findings of the company-designated physician and the seafarer's doctor of choice, resort to a third-doctor opinion is mandatory. The third-doctor opinion is final and binding between the parties. The opinion of the company-designated physician prevails over that of the seafarer's personal doctor in case there is no third-doctor opinion. Thus, Dr. Cruz's declaration that Destriza is fit to resume sea duties prevails over the medical opinion issued by Dr. Donato-Tan.

Finally, it does not escape the Court that FSC conditionally paid Destriza the peso equivalent of the award in the amount of P902,440.00. In view of this, Destriza shall return the amount paid to him by FSC.