LABREV - Orient Hope V Jara

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149. ORIENT HOPE AGENCIES, INC.

AND/OR ZEO MARINE


CORPORATION, Petitioners, v. MICHAEL E. JARA, Respondent.

G.R. No. 204307, THIRD DIVISION, June 06, 2018, LEONEN, J.

Failure of the company-designated physician to render a final and definitive assessment of a seafarer's
condition within the 240-day extended period transforms the seafarer's temporary and total disability
to permanent and total disability.

FACTS:

Jara was hired by Orient Hope, on behalf of its foreign principal, Zeo Marine, as engine cadet on
board M/V Orchid Sun.The employment contract was for duration of 10 months with a basic
monthly salary of US$230.00. On its way to Oman, M/V Orchid Sun sank off Muscat on July 12, 2007,
during which Jara sustained leg injuries. He was treated at Khoula Hospital in Oman and thereafter
repatriated and admitted on August 3, 2007 at the Metropolitan Hospital in Manila. Jara was
diagnosed to have suffered from "fracture, shaft of left ulna and left fibula." On August 28, 2007 and
January 9, 2008, he underwent knee operations. He did not return to the company-designated
doctor after his check up on March 17, 2008.

Meanwhile, on March 6, 2008,Jara filed a complaint with the Labor Arbiter, insisting that he was
entitled to total permanent disability benefits amounting to US$60,000.00.

On May 29, 2008, Assistant Medical Coordinator Dr. Mylene Cruz Balbon of the Marine Medical
Services of Metropolitan Medical Center issued a letter, stating that based on his last follow-up, his
suggested disability grading is Grade 11 – stretching leg or ligaments of a knee resulting in
instability of the joint.

Labor Arbiter Daniel J. Cajilig found Jara entitled to compensation equivalent to Grade 11
disability. He solely relied on the assessment of the company-designated physician. He found no
evidence or other medical report on record to dispute the company designated physician's
determination and to support Jara's claim.

The National Labor Relations Commission affirmed the Labor Arbiter's award. Jara filed a Motion
for reconsideration but it was denied by the NLRC.

Insisting that he was entitled to permanent disability compensation, Jara elevated the matter to the
Court of Appeals through a Petition for Certiorari under Rule 65.

In its August 15, 2012 Decision, the Court of Appeals held that Jara was "entitled to permanent
disability benefits because the assessment of the company-designated physician that he was
suffering from a grade '11' disability was issued after nine (9) months or more than 120 days from
the time he was medically repatriated.”
ISSUE:

Whether or not respondent Jara is entitled to permanent and total disability compensation
considering that there was a Grade 11 disability grading given by the company-designated
physician (YES)

RULING:

The prevailing rule is that a seafarer's mere inability to perform his or her usual work after 120
days does not automatically lead to entitlement to permanent and total disability benefits because
the 120-day period for treatment and medical evaluation by a company-designated physician may
be extended to a maximum of 240 days.

However, there must be a sufficient justification to extend the medical treatment from 120 days to
240 days. In other words, the 240-day extended period remains to be an exception, and as such,
must be clearly shown to be warranted under the circumstances of the case before it can be applied.

Applying the case of Talaroc v. Arpaphil Shipping Corp. stressed that for a company-designated
physician to avail of the extended 240-day period, he or she must perform some complete and
definite medical assessment to show that the illness still requires medical attendance beyond the
120 days, but not to exceed 240 days. In such case, the temporary total disability period is extended
to a maximum of 240 days. Without sufficient justification for the extension of the treatment period,
a seafarer's disability shall be conclusively presumed to be permanent and total. This Court
summarized the following guidelines to be observed when a seafarer claims permanent and total
disability benefits:

1. The company-designated physician must issue a final medical assessment on the seafarer's
disability grading within a period of 120 days from the time the seafarer reported to him;

2. If the company-designated physician fails to give his assessment within the period of 120
days, without any justifiable reason, then the seafarer's disability becomes permanent and
total;

3. If the company-designated physician fails to give his assessment within the period of 120
days with a sufficient justification (e.g., seafarer required further medical treatment or
seafarer was uncooperative), then the period of diagnosis and treatment shall be extended
to 240 days. The employer has the burden to prove that the company-designated physician
has sufficient justification to extend the period; and

4. If the company-designated physician still fails to give his assessment within the extended
period of 240 days, then the seafarer's disability becomes permanent and total, regardless
of any justification.
Accordingly, in Carcedo v. Maine Marine Philippines, Inc.,this Court declared that a partial and
permanent disability could, by legal contemplation, become total and permanent when a
company-designated physician fails to arrive at a definite assessment within the 120- or 240-
day periods prescribed under Article 198 [192](c)(1) of the Labor Code and the Amended Rules
on Employee Compensation, implementing Book IV, Title II of the Labor Code.

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