Case No. 13: Jose Rago vs. Social Security Commission and Social Security System

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CASE NO.

13
Jose Rago vs. Social Security Commission and Social Security System
G.R No. 152058
September 27, 2004
Davide, Jr.

Facts:
Private respondent Jose Rago worked as an electrician for Legend Engineering in Basak,
Pardo, Cebu City. On 1 December 1993, at about 6:15 p.m., while working he got accident.
Respondent requests to convert his monthly pension from permanent partial disability to
permanent total disability but it was denied by the SSC Case No. 4-15009-2000. He appealed in
Court of Appeals to review and reiterating his claim for permanent disability benefits but the
SSS argued that Rago had already been granted the maximum partial disability benefits. The
petition was docketed as CA-G.R. SP No. 63389. In its decision, the Court of Appeals reversed
the SSC’s resolution. The SSS seasonably filed a motion for reconsideration for its reason that
Rago lacked the required number of contributions mentioned in Section 13-A (a) of R.A. 1161,
as amended. The CA denied the motion for reconsideration. What prompted the Social Security
Commission to issue its clarificatory order is not made clear in its motion for reconsideration, nor
in the clarificatory order itself. In any case, any modification of the tenor and justification of the
assailed resolution of the Commission by the same body effectively altered the tenor of the
earlier ruling, amounting to a violation of the petitioner’s right to due process and fair play, and,
therefore, null and void.

Issues:
Whether or not an employee suffers from permanent total disability is a showing of the capacity
of the employee to continue performing his work notwithstanding the disability he incurred.

Decision:
The Court of Appeals and SC reverse the decision of AB involved (SSC) due to an exercise of
grave abuse of authority amounting to lack and/or excess of jurisdiction. The said order was
issued at a time when the Commission itself was knowledgeable of the petition for review
pending before this Court. It must be pointed out that when petitioner timely filed his petition for
review, the appeal from the Commission’s resolution had thus become perfected, and it is this
Court which therefore had jurisdiction over the matter, and sole authority to make any
affirmation or modification of the assailed resolution. The AB’s should be expert in their own
fields for the reason that the case of employee has rights to appealed in which the benefit
should be granted as a whole in contribution of respondent’s work. The Court deems it the
height of injustice for the Commission to add to and bolster its final ruling with additional
observations and justifications, not otherwise embodied in the original ruling, after the losing
claimant had already perfected and was actively pursuing his appeal.
In Section 2 (b), Rule VII of the Amended Rules on Employees Compensation which defines a
disability to be total and permanent if, as a result of the injury or sickness, the employee is
unable to perform any gainful occupation for a continuous period exceeding 120 days, and
Section 1, b (1) of Rule XI of the same Amended Rules which provides that a temporary total
disability lasting continuously for more than 120 days, shall be considered permanent.
In this case, Rago’s x-ray report clearly shows the degenerative condition of his injury, that he
was no longer able to work and he should be given the benefits he deserved. The CA correctly
observed that Rago’s injury made him unable to perform any gainful occupation for a continuous
period exceeding 120 days. One final note, the SSS and the SSC should be commended for
their vigilance against unjustified claims that will deplete the funds intended to be disbursed for
the benefit only of deserving disabled employees, they should be cautioned against a very strict
interpretation of the rules lest it results in the withholding of full assistance from those whose
capabilities have been diminished, if not completely impaired, as a consequence of their
dedicated service.

Ratio Decidendi:
A humanitarian impulse, dictated by no less than the Constitution under its social justice policy,
calls for a liberal and sympathetic approach to the legitimate appeals of disabled workers like
Rago. Compassion for them is not a dole out but a right.
Gist:
This is an appeal from the Decision of the Court of Appeals which affirmed that Rago is entitled
to permanent disability benefits.
Bunio, Maria Jolina L.

Yasay, Domata R.

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