BORRETA
BORRETA
BORRETA
DECISION
REYES, J. JR., J.:
Before this Court is a Petition for Review on Certiorari[1] seeking to annul and set aside
the October 13, 2015 Decision[2] and the April 12, 2016 Resolution[3] of the Court of
Appeals (CA) in CA-G.R. SP No. 139455 which modified the February 2, 2015
Decision[4] of the Panel of Voluntary Arbitrators (Panel) of the National Conciliation and
Mediation Board (NCMB) in VA Case No. AC-73-RCMB-NCR-MVA-094-03-09-2014
by affirming only the $89,100.00 death benefit, and P162,080.00 transportation and
burial expenses awarded to petitioner Delia B. Borreta, the widow of Manuel A. Borreta,
Jr. (Manuel), and deleting the awards for insurance proceeds, uncollected salary,
overtime pay, unpaid leave credits, unpaid daily subsistence allowance, owner's bonus,
moral damages, exemplary damages and attorney's fee.
On June 19, 2013, Manuel was employed by respondent Evic Human Resource
Management, Inc. (Evic), for and in behalf of its foreign principal, respondent Athenian
Ship Management, Inc. (Athenian), as cook on board M/V Sea Lord. Respondent Ma.
Victoria C. Nicolas is the president of Evic. [5] The terms and conditions of his
employment are as follows:
1. That the seafarer shall be employed on board under the following terms and
conditions:
On June 25, 2013, Manuel joined the vessel M/V Sealord and commenced his duties.[7]
On October 8, 2013, while M/V Sea Lord was cruising along the waters of Brazil towards
Dammam, Kingdom of Saudi Arabia, Manuel was found lifeless inside the toilet of the
vessel's hospital cabin. Because of this tragic incident, the vessel changed course and set
sail to Galle, Sri Lanka instead, where Manuel's remains were unloaded.[8]
On October 18, 2013, Senior Counsel Murshid Maharoof (Maharoof) and Junior Counsel
Shamir Zavahir (Zavahir) conducted an investigation on the death of Manual. In the
Investigation Report on the Death of Manuel Augastine Borreta, Jr. [9] (Investigation
Report) they prepared, the investigators stated that the statements of the master, chief
officer, crew members, logged in the vessel log book as well as the details on the medical
assistance record showed that Manuel had not been acting like his usual self. On October
7, 2013, he failed to report for work and locked himself in the vessel's gymnasium and
then later shut himself inside the hospital. When they tried to communicate with him,
Manuel sounded distraught, talked non-sense and fearful that someone was going to kill
him. They could only talk to him through the ship's phone. Manuel was offered food the
following day but he refused to partake of the same. When Manuel stopped
communicating with them, the crew decided to force open the door to the hospital room
but found it unlocked and empty. The crew eventually found Manuel inside the vessel's
hospital lavatory, with a nylon cord tied around his neck and hanging on a hook, dead.
These facts notwithstanding, the investigators failed to identify the cause of Manuel's
death. As such, the Death Certificate that was issued indicated the cause of death as
"Under investigations."[10]
On October 23, 2013, the remains of Manuel was repatriated to the Philippines. [11] Upon
the request of the sister of the deceased, Dr. Roberto Rey C. San Diego, M.D., Medico-
Legal Officer of the National Bureau of Investigation (NBI), autopsied the remains of
Manuel on October 24, 2013.[12] In Autopsy Report No. N-13-1056 that was subsequently
issued, the NBI stated that the cause of death was "CONSISTENT WITH ASPHYXIA
BY LIGATURE."[13]
A ligature prepared from white twisted nylon rope was present around the
upper neck. It was tied around the neck with a sliding knot [running noose]
positioned over the left mastoid region of back of the head.
From the foregoing, Dr. Ruwanpura remarked that "the circumstantial data and [his]
autopsy findings are in keeping with self suspension." Thus, pronounced the cause of
death to be asphyxia due to hanging.[16]
Subsequently, petitioner filed her claim for benefits arising from the death of Manuel, but
the respondents refused to grant her any. Respondents averred that Manuel's death was
not compensable because he took his own life.[17] This prompted petitioner to file a Notice
to Arbitrate[18] on August 7, 2014, before the NCMB of the Department of Labor and
Employment (DOLE) demanding for payment of the following:
1. Compensation for Loss of Life pursuant to the applicable CBA in the amount of
US$89,100.00:
2. Death Benefit in the amount of US$50,000.00 and Burial Expenses in the amount
of US$1,000.00 pursuant to the Standard Terms and Conditions Governing the
Employment of Filipino Seafarers On-Board Ocean-Going Vessels:
6. Attorney's fees equivalent to ten (10) per cent of the total monetary award.[19]
In asking for compensation for loss of life, petitioner averred that under Article 25 of the
Collective Bargaining Agreement (CBA) which covers Manuel's employment contract,
respondents unconditionally bound themselves to pay the same in the event of death of a
seafarer through any cause while employed by them. The Philippine Overseas
Employment Administration's (POEA's) Standard Terms and Conditions Governing the
Employment of Filipino Seafarers On-Board Ocean-Going Vessels, furthermore entitled
her to death and burial benefits. Her claim for insurance benefits was likewise supported
by Republic Act (R.A.) No. 10022.[20] The wanton and oppressive manner by which
respondents refused to accord to her the benefits due her made respondents liable for
moral and exemplary damages, as well as attorney's fees.[21]
Respondents, for their part, insisted that they were not liable to pay compensation with
respect to the death of Manuel since the POEA's Standard Employment Contract (POEA-
SEC), as well as the CBA specifically exclude from the payment of benefits for death that
are directly attributable to the seafarer. As proof that Manuel committed suicide,
respondents presented the following pieces of evidence: (a) Investigation Report on the
death of Manuel conducted by Maharoof and Zavahir on October 18, 2013, on board M/V
Sea Lord which included the individual statements of Manuel's co-workers regarding his
death;[22] (b) photocopy of pictures taken of the room where Manuel hanged himself and
the retrieval of his body from where he was suspended; [23] (c) Cause of Death Form
stating the cause of Manuel's death was under investigation; [24] and (d) Post-Mortem
Report issued by Dr. Ruwanpura stating Manuel's cause of death as asphyxia due to
hanging.[25] Inasmuch as Manuel committed suicide, petitioner, clearly, is not entitled to
any benefits arising therefrom. Even if death by suicide was ruled out, respondents
argued that no benefits can still be granted to the petitioner because she failed to present
proof that Manuel's death during his employment was due to any work-related cause as
required under the POEA-SEC or the CBA.[26]
Moreover, respondents posited that the petitioner cannot claim insurance benefits under
R.A. No. 10022 because only death through natural and accidental causes are covered by
the said law. Since suicide is neither natural nor accidental, the same is not compensable
under R.A. No. 10022.[27] Since respondents are justified in denying petitioner's claims,
there is also no cogent reason to award moral damages, exemplary damages and
attorney's fees in her favor.[28]
On February 2, 2015, the Panel rendered a Decision [29] in favor of the petitioner. The
individual accounts of Manuel's co-workers of his bizarre attitude failed to convince the
Panel that Manuel took his own life. It also found unworthy of belief the reports of the
various investigators given that the same were prepared 10 days after Manuel's death. The
Panel likewise made much of the NBI Autopsy Report which made no mention of the
word "hanging" or "suicide," but only concluded the cause of death as "consistent with
asphyxia by ligature." Thus, the Panel ruled that petitioner's narration of her warm and
happy telephone conversations with Manuel where the latter shared his dreams for her
and his siblings contradicted respondents' claim of suicide. [30] Since there is no substantial
evidence to warrant a finding of suicide, the Panel held that petitioner was entitled to
death benefits under the CBA.[31] Even assuming that it had been duly proved that Manuel
took his own life, petitioner would still be entitled to death benefits considering that
Manuel died while in respondents' employ and because the CBA makes them liable
therefor, regardless of the cause of death. In addition to death benefits, Section 25.1 of
the CBA makes respondents' liable to the petitioner for transportation and burial
expenses.[32] As for the insurance benefits, the Panel held that petitioner must be granted
the same since suicide had not been established. [33] The Panel also awarded to the
petitioner uncollected salaries due to Manuel given that the respondents' did not deny the
same. It also found that substantial evidence had been presented showing Manuel's
entitlement to guaranteed overtime pay, unpaid leave pay, unpaid daily allowance and
owner's bonus. Hence, awarded the same to the petitioner. [34] The Panel disposed in this
wise:
WHEREFORE, all the foregoing premises being duly considered, in the light
of the facts as borne by the evidence on record, as well as based on the law
and jurisprudence, [judgment] is hereby rendered as follows:
First, Death Benefits are hereby granted in the Philippine currency equivalent
to US $89,100.00 in accordance with the CBA covering the late [Manuel] A.
[Borreta], Jr.
Fifth, Exemplary damages in the amount of [PhP] 1.5 Million are likewise
granted in [their] Philippine currency equivalent.
Sixth[,] Attorney's fees in the amount of 10% of all the monetary awards, as
follows:
a. Peso Award:
Seventh, [r]espondents are directed to pay interest from the death of M.A.
Borreta Jr., on 08 Oct 2013 up to finality of this DECISION, and 12% interest
from finality of this DECISION up to [the] full satisfaction of judgment.
Eight[,] all the respondents are jointly and severally liable to satisfy the
judgment, in accordance with law.
Let the parties be true to their commitment. And let the difference of this
mode of dispute settlement be upheld as distinguished from the other modes,
in the higher interest of substantive justice, as enshrined in the Philippine
Constitution.
SO ORDERED.[35]
Respondents moved for reconsideration but the Panel denied it in a Resolution [36] dated
January 23, 2015.[37] Aside from denying the motion for lack of merit, the Panel also ruled
that the same was filed out of time. Considering that respondents received the February 2,
2015 Decision on February 5, 2015, the motion should have been filed on February 15,
2015, the last day for the filing of the same even if the 10 th day fell on a Sunday. Since
respondents filed their motion for reconsideration the following day, the filing thereof
was already a day late, rendering the Panel's assailed Decision final and executory.
On April 23, 2015, petitioner moved for the resolution of her motion for execution of the
Decision of the Panel.[38]
Aggrieved, respondents filed on March 12, 2015 a Petition for Review (with Urgent
Prayer for the Issuance of Temporary Restraining Order and/or Writ of Preliminary
Injunction) before the CA.[40]
Subsequently, or sometime in May 2015, respondents filed with the Panel a pleading
entitled Reiterative Motion to Set Case for Clarificatory Conference (Reiterative Motion).
[41]
On appeal, the CA recognized the suppletory application of the Rules of Court and
prevailing jurisprudence in the computation of periods in the filing of pleadings in court.
Since the last day of the 10-day period to appeal fell on a Sunday, the CA held that the
respondents timely filed their motion for reconsideration the next working day, or on
February 16, 2015. It also held that respondents did not engage in forum shopping when
they filed their Manifestation with Opposition as the same was just a response to
petitioner's motion for execution, and not a second motion for reconsideration. In the
same vein, respondents' Reiterative Motion only addressed petitioner's motion to resolve
her motion for execution.
Contrary to the ruling of the Panel, the CA found that respondents have successfully
proved by substantial evidence that Manuel killed himself on October 8, 2013. Such
notwithstanding, respondents remain liable under the parties' CBA tor death benefits,
particularly Section 25.1 thereof. Since the same provision provides that the employer
will shoulder the costs for the transportation and burial of Manuel's body in the
Philippines, the CA ordered the respondents to, reimburse petitioner the transportation
and burial expenses she incurred.
As for the other awards, the CA held that petitioner was not entitled to the same. It held
that life insurance may only be awarded in case of accidental death. Since death by
suicide cannot in any way be ruled as accidental, petitioner was not entitled to claim the
life insurance benefit under R.A. No. 10022. The CA deleted the awards for unpaid
salary, guaranteed overtime pay, leave pay, daily allowance/subsistence allowance and
owner's bonus in light of the evidence presented by the respondents that the same had
already been paid to, and received by the petitioner.[42]
The CA also ruled that petitioner was not entitled to moral and exemplary damages, and
attorney's fees, and thus deleted the same.[43] The CA disposed in this wise:
The awards for moral and exemplary damages and attorney's fees, for lack of
factual and legal basis, are likewise DELETED.
SO ORDERED.[44]
Not accepting defeat, petitioner is now before the Court via the present petition.
I.
III.
IV.
Petitioner contends that the CA should not have entertained the appeal for being filed out
of time. She points out that since respondents have only 10 days from receipt on February
26, 2015 of the Panel's January 23, 2015 Resolution, they should have filed their appeal
on March 8, 2015. The 15-day period to appeal under Rule 43 of the Rules of Court is not
applicable to voluntary arbitration cases under the Labor Code. Since respondents' appeal
was filed only on March 12, 2015, the same was filed four days late, rendering the
assailed Decision and Resolution of the Panel final and executory; hence, not appealable.
Perforce, the CA should have dismissed the appeal outright.[47]
Moreover, the appeal should have been dismissed at once for respondents' failure to move
for the reconsideration of the Panel's Decision. Petitioner explains that respondents
motion for reconsideration before the Panel had not been duly filed inasmuch as their
motion was not filed within 10 days from their receipt of the Panel's Decision, and the
same was not filed directly with the Panel. It is of no moment that the 10 th day within
which respondents have to file their motion falls on a Sunday. The rule which states that
when the last day to file a pleading falls on a Saturday, Sunday or Holiday, the same may
be filed on the next business day finds no application in this case considering that the
Voluntary Arbitrators that comprised the Panel were private individuals, and there is no
law or rule that prohibits them from holding office on a Saturday, Sunday or holiday.
Since respondents' motion for reconsideration was not filed in accordance with the
mandatory law and rules governing voluntary arbitration proceedings, the CA should
have dismissed their appeal straightway.[48]
Petitioner disagrees with the CA that respondents did not engage in forum shopping.
Contrary to the view of the CA, the Manifestation with Opposition was not filed to
oppose the motion for execution she filed, but was in reality a second motion for
reconsideration as it sought the reversal and setting aside of the Panel's Decision despite
the denial of respondents' earlier motion for reconsideration. Without waiting for the
resolution of the said Manifestation with Opposition, respondents filed with the CA their
appeal, which also sought for the reversal and setting aside of the very same February 2,
2015 Decision of the Panel. Their contumacious acts, however, did not end there. After
filing their appeal with the CA and failing to obtain the Temporary Restraining Order
(TRO) or injunctive writ they prayed for, they filed their Reiterative Motion before the
Panel, which in substance was just another second motion for reconsideration.
Respondents did not inform the CA about it and even lied in their Compliance [49] when
they stated that, " to the best of their knowledge, NO other cases and/or proceedings
involving the same parties and issues are pending before the Honorable Court or other
courts." All the actions actively and simultaneously pursued by the respondents before
the Panel and the CA involved the same and related issues and are all aimed at obtaining
the same relief — the reversal of the Decision of the Panel in two fora. Such is clearly a
case of forum shopping warranting the outright dismissal of respondents' appeal before
the CA.[50]
On the merits, petitioner asseverates that the factual findings of the Panel should have
been respected by the CA because the same were in accord with the law and evidence on
record. She staunchly maintains that there was nothing on record which showed that
Manuel committed suicide. Like the Panel, petitioner avers that the statements of the
crew members about the actuations of Manuel do not lead to a logical conclusion that he
took his own life for being hazy, equivocal, and non-committal. The reports
(Investigation Report;[51] Master's Report[52]) relative to the said incident were also not
worthy of belief because they lack spontaneity as they were prepared 10 days after the
incident. Even the Cause of Death Form issued by the Sri Lankan authorities failed to
conclude Manuel's death as suicide, as in fact it only stated the cause thereof to be under
investigation. The subsequent December 7, 2013 Post-Mortem Report released by Dr.
Ruwanpura finding the cause of death as "asphyxia due to hanging" was also suspected
for being issued some two months after the incident. It could not even be verified whether
the said Post-Mortem Report had been properly translated. The statements of the crew
members, Investigative Report, Master's Report and the December 7, 2013 Post-Mortem
Report actually lacked probative value for being mere photocopies. No police
investigation report conducted by the harbor authorities of Galle, Sri Lanka was
presented. The NBI Autopsy Report made no mention of the words "hanging" or
"suicide," but merely labelled the cause of Manuel's death as "consistent with asphyxia by
ligature." The findings that Manuel did not sustain any injuries are not supported by the
evidence on record as the NBI Autopsy Report [53] showed otherwise. In fact, said findings
appear to be more consistent with strangulation, a clear indication of foul play. Viz.:
EXTERNAL INJURIES:
Head and Neck: Ligature mark, antero-lateral aspect, contused and abraded,
48.0 cm. long. The right extremity is directed involving upwards and
backwards, towards the right auricural area and ending at a point 15.0 cm.
behind and 4.0 cm. below the right external auditory meatus. Widest area of
1.0 cm. and narrowest at 0.4 cm.
Upper Extremities:
Contusion :
1.) 5.0 x 1.0 cm., dorsal aspect on the lateral side of the right thumb and index
finger.
xxxx
Lower Extremities:
Contusion:
1.) 10.0 x 5.0 cm., antero-medial aspect on the middle 3rd of the right leg.
Since respondents fail to prove their claim of suicide, they are liable not only for death
benefits, transportation expenses and burial expenses, but they must also pay the
insurance benefits pursuant to R.A. No. 10022. Anent her claims for other monetary
benefits, petitioner maintains that respondents must be made to pay the CBA mandated
guaranteed overtime pay, leave pay, daily allowance/subsistence allowance and owner's
bonus for their failure to present competent and credible evidence showing payment of
the same to Manuel. She claims that the US$670.03 paid to Manuel only covers the
period from October 1, 2013 to October 8, 2013, leaving the mandated benefits of
Manuel from June 2013, the start of his employment, up to the whole month of
September 2013, unpaid. While the respondents presented documents showing payment
of Manuel's wages for the months prior to October 2013, the same did not reflect that the
same were in fact payments for Manuel's guaranteed overtime pay, leave pay, daily
allowance/subsistence allowance and owner's bonus for June 2013, until the end of
September 2013.
Petitioner insists that respondents' bad faith had been duly established by the following
circumstances - (a) concealment and refusal to furnish the petitioner with a copy of the
CBA in order to mislead Manuel and his widow, petitioner herein, into thinking that no
CBA applied to the former; (b) suppression of Police Investigation Report which could
have shown that Manuel had been killed; (c) failure to procure the mandatory life
insurance policy for Manuel and refusal to pay the life insurance benefit thereunder; (d)
refusal to provide any form of assistance to Manuel's next of kin when his remains were
repatriated; (e) withholding of Manuel's last earned salary unless a quitclaim is signed by
the petitioner freeing respondents from liability arising out of her husband's death; (f)
eventual release of the said last earned salary only after five long months from the death
of Manuel; (g) berating petitioner for seeking the Government's help in the repatriation of
Manuel; and (h) the sudden decision to bring Manuel's remains to Galle, Sri Lanka
despite the fact that the ship's destination is Dammam, Kingdom of Saudi Arabia - all
justify the award in her favor of moral and exemplary damages. Furthermore, their
unjustified refusal to grant her legitimate claims compelled her to litigate, therefore,
entitles her to attorney's fees.
Respondents, for their part, averred that the petitioner should stop her insatiable quest for
financial gain as the CA only removed the highly questionable benefits she had been
awarded by the Panel but retained the US$89,100.00 death benefits and P162,080.00
transportation and burial expenses awarded in her favor, and which amounts they no
longer contest.[54]
Respondents assert that they timely moved for the reconsideration of the Panel's
Decision. Contrary to the contention of the petitioner, the Panel is bound by the
provisions of the Civil Code and the Rules of Court pertaining to the computation of the
period within which an act must be performed. Following Section 1, Rule 22 of the Rules
of Court, their motion was timely filed the next working day, since the last day of the
filing of the same falls on a Sunday. There is also no rhyme or reason for petitioner's
insistence that the motion must be filed directly with any Panel member inasmuch as all
proceedings were conducted through the facilities of the NCMB. They likewise maintain
that Philippine Electric Corporation v. Court of Appeals [57] which provides for a 10-day
period to appeal before the CA from receipt of the Decision of the Panel that was cited by
the petitioner does not apply in this case in light of the pronouncement of the Supreme
Court En Banc in a number of cases declaring the appeal period to be 15 days.[58]
While respondents claim that petitioner is not entitled to death benefits, transportation
and burial expenses, they asseverate that the benefits awarded by the CA to the petitioner
should no longer be disturbed as the same represent the most judicious and fair
interpretation of the law and contracts under the circumstances.[59]
Petitioner avers that since respondents filed their appeal with the CA 14 days from their
receipt of a copy of the Decision of the Panel, the same was filed out of time considering
that pursuant to Article 276 of the Labor Code, the appeal must be brought within 10
days. Article 276, formerly Article 262-A, of the Labor Code provides:
All parties to the dispute shall be entitled to attend the arbitration proceedings.
The attendance of any third party or the exclusion of any witness from the
proceedings shall be determined by the Voluntary Arbitrator or panel of
Voluntary Arbitrators. Hearings may be adjourned for cause or upon
agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the Voluntary
Arbitrator or panel of Voluntary Arbitrators to render an award or decision
within twenty (20) calendar days from the date of submission of the dispute to
voluntary arbitration.
In not a few instances, the Court has variably applied the 10-day period provided in
Article 276 of the Labor Code and the 15-day period in Section 4, Rule 43 of the Rules of
Court in determining the proper period of appeal from a decision or award rendered by a
Voluntary Arbitrator or a Panel thereof to the CA.
In 2004, the Court in Sevilla Trading Company v. Semana;[60] Manila Midtown Hotel v.
Borromeo;[61] and Nippon Paint Employees Union-Olalia v. Court of Appeals [62] ruled that
the decision of the Voluntary Arbitrator becomes final and executory after the lapse of
the 15-day reglementary period within which to file a petition for review under Rule 43.
In 2005, the Court made reference for the first time to the 10-day period for the filing of a
petition for review from decisions or awards of Voluntary Arbitrators in Coca-Cola
Bottlers Philippines, Inc., Sales Force Union-PTGWO-Balais v. Coca-Cola Bottlers
Philippines, Inc.[63] This 10-day period was then applied in the same year in Philex Gold
Philippines, Inc. v. Philex Bulawan Supervisors Union[64] in declaring the appeal to have
been timely filed. The 15-day reglementary period to appeal under Rule 43 was reiterated
in 2007 in Leyte IV Electric Cooperative, Inc. v. LEYECO IV Employees Union-ALU;[65]
in 2008 in AMA Computer College-Santiago City, Inc. v. Nacino; [66] and Mora v. Avesco
Marketing Corporation;[67] in 2009 in Samahan ng mga Manggagawa sa Hyatt-
Nuwhrain-APL v. Voluntary Arbitrator Bacungan;[68] in 2010 in Saint Luis University,
Inc. v. Cobarrubias,[69] in 2011 in Samahan Ng Mga Manggagawa sa Hyatt v. Hon.
Voluntary Arbitrator Magsalin;[70] and in 2013 in Royal Plant Workers Union v. Coca-
Cola Bottlers Philippines, Inc.-Cebu Plant.[71] However, in the 2014 case of Philippine
Electric Corporation (PHILEC) v. Court of Appeals;[72] 2015 case of Baronda v. Court of
Appeals;[73] and 2017 case of NYK-FIL Ship Management, Incorporated v. Dabu,[74] the
Court applied the 10-day appeal period.[75]
The Court further clarified in Guagua that once the motion for reconsideration interposed
had been resolved, the aggrieved party may now opt to appeal to the CA by way of a
petition for review under Rule 43 of the Rules of Court. Pursuant to Section 4 of the said
Rule, the aggrieved party has 15 days to file the same.[80]
There is no dispute that respondents received on February 26, 2015, a copy of the January
23, 2015 Resolution of the Panel which denied their motion for reconsideration, and filed
their appeal to the CA on March 12, 2015. Given that their appeal had been filed 14 days
from their receipt of the assailed Resolution of the Panel, respondents' appeal had clearly
been filed within the reglementary period provided in Rule 43.
But petitioner contends that there is no motion for reconsideration which could have been
considered as duly filed in this case that may be appealed to the CA as provided in
Section 4,[81] Rule 43 of the Rules of Court since respondents' motion for reconsideration
had not been filed directly with the Panel in violation of Section 2, Rule III of the
Revised Procedural Guidelines in the Conduct of Voluntary Arbitration Proceedings (VA
Procedural Guidelines) which provides:
For the petitioner, in order for the filing of the motion for reconsideration to be proper, it
must be filed at the Voluntary Arbitrators' private addresses or offices. [82] It is also for this
reason why the petitioner posits that Section 1 [83] of Rule 22 of the Rules of Court does
not apply here because "there is no rule or requirement that the offices of Voluntary
Arbitrators should be closed on Saturdays, Sundays and Holidays. "[84]
By no stretch of the imagination can Section 2, Rule III of the VA Procedural Guidelines
can be given a meaning as that advanced by the petitioner. Nothing is better settled than
that courts are not to give words a meaning which would lead to absurd or unreasonable
consequence.[85] A voluntary arbitrator by the nature of his or her functions acts in a
quasi-judicial capacity.[86] Even assuming that the Voluntary Arbitrator or the Panel may
not strictly be considered as a quasi-judicial agency, still both the Voluntary Arbitrator
and the Panel are comprehended within the concept of a quasi-judicial instrumentality. [87]
An "instrumentality" is anything used as a means or agency. Thus, the terms
governmental "agency" or "instrumentality" are synonymous in the sense that either of
them is a means by which a government acts, or by which a certain government act or
function is performed.[88]
Since the Panel performs a state function pursuant to a governmental power delegated to
them under the Labor Code provisions,[89] it therefore stands to reason that as a
governmental instrumentality, the Panel holds office at the NCMB Office and the motion
for reconsideration respondents filed thereat had been proper.[90] There is no reason to rule
otherwise. The motion was received by the Panel, as in fact it immediately convened
upon receipt thereof and acted on the same. While respondents' motion for
reconsideration was denied, the denial was not premised on the failure to directly file the
motion with the Panel as the term is understood by the petitioner, but because the Panel
found the motion to be lacking in merit and filed a day late.[91]
However, as ruled correctly by the CA, respondents motion for reconsideration of the
Panel's Decision had been timely filed. Section 3 of the VA Procedural Guidelines which
provides:
clearly recognizes that the Rules of Court shall apply suppletorily or by analogy to
arbitration proceedings. As such, Section 1, Rule 22 of the Rules of Court had been
properly appreciated in determining the timeliness of the filing of respondents' motion for
reconsideration. The said section provides:
In this case, respondents have 10 days from February 5, 2015, the day they received a
copy of the Panel's Decision, within which to file their motion for reconsideration.
However, given that February 15, 2015, falls on a Sunday, respondents have until the
next business day, pursuant to Section 1, Rule 22 of the Rules of Court, to file their
motion for reconsideration. Hence, when respondents filed their motion on February 16,
2015, the same had been filed within the reglementary period.
Petitioner insists that respondents resorted to forum shopping when they filed before the
Panel a Manifestation with Opposition after their motion for reconsideration was denied,
and another motion entitled Reiterative Motion after they had already filed their petition
for review with the CA and before the Panel can rule on its Manifestation with
Opposition, as they actively sought the review and reversal of the ruling of the Panel with
the latter and the CA simultaneously and successively.
Section 5, Rule 7 of the Rules of Court embodies the rule against forum shopping. It
provides:
Citing City of Taguig v. City of Makati,[93] the Court, in Zamora v. Quinan, Jr.,[94] has
exhaustively discussed the concept of forum shopping in this wise:
In City of Taguig v. City of Makati, this Court was able to thoroughly discuss
the concept of forum shopping through the past decisions of this Court, thus:
xxxx
Top Rate Construction discussed the rationale for the rule against
forum shopping as follows:
For its part, litis pendentia "refers to that situation wherein another
action is pending between the same parties for the same cause of
action, such that the second action becomes unnecessary and
vexatious." For litis pendentia to exist, three (3) requisites must
concur:
By filing with the Panel a second motion for reconsideration in the guise of a
Manifestation with Opposition, and without awaiting the result thereof, appealing before
the CA, and thereafter filing once again with the Panel a Reiterative Motion, petition
avers that respondents committed forum shopping.
While the Court agrees with the petitioner that respondents' Manifestation with
Opposition is in reality a second motion for reconsideration and its Reiterative Motion is
another motion for reconsideration, as they both principally seek for the setting aside of
the Decision of the Panel, there are good reasons which militate against the finding of
forum shopping in this case.
A careful review of the records would show that suicide had been indubitably established.
As aptly ruled by the CA:
The signed statements of Manuel's co-workers who were with him on the
vessel on that fateful day allow Us to reconstruct with clarity the events
leading to his death. Rather than being hazy, unequivocal, and non-committal,
they were detailed, categorical, and certain, having been based on their actual
experiences on the day Manuel died and with their personal interactions with
the deceased. More importantly, We have found no fatal inconsistency that
would warrant a different conclusion, that there was a cover-up of another
cause of death, or that there was motive for all of Manuel’s co-workers to lie
about the death of their fellow seaman. A number of them even found him to
be a nice and quiet person who prefers spending time alone.
There is thus every reason to seriously consider and believe all their signed
statements.
His co-workers then narrated that while Manuel was locked in the hospital
room, some of them talked to him through the telephone, which included the
Chief Engineer, Leo Odio, seafarers Richard Lamug, Deneb Jake Alcantara
and Dennis Tinaja. These persons attested that Manuel did not sound calm or
stable at all, but that he was fearful that somebody was going to kill him.
The seamen continued that Manuel's room remained locked, so that none of
them could enter the same. On 8 October 2013, Manuel was offered food
which he declined, after which he refused to talk to anyone. His companions
knocked but received no reply; later in the day, following Manuel's
continuous silence, the crew forced their way in the hospital room but found it
unlocked.
Lingering doubts are then dispelled by the final Post Mortem Report dated 7
December 2013, executed by one Dr. Rohan Ruwanpura, a Judicial Medical
Officer in Sri Lanka, x x x.
The Report concluded that Manuel died from asphyxia due to hanging and
informed that there were no injuries present upon Manuel's body.
Significantly, all these - that Manuel had isolated himself, that no one else
entered the rooms wherein he had concealed his person, that he had no other
injuries, and that he was later found hanging – make foul play or any other
conclusion implausible.[100]
It must be emphasized that technical rules of procedure are not binding in labor cases, [105]
and that the quantum of proof required here is only substantial evidence, defined as "that
amount of relevant evidence which a reasonable mind might accept as adequate to justify
a conclusion."[106] Thus, while it may be true that the documentary evidence adduced by
respondents were photocopies, the Court cannot discount the fact that the statements of
the crew members of the vessel as well as the autopsy report issued by the Sri Lankan
authority coincide with the NBI autopsy report which concluded that the cause of death to
be "consistent with asphyxia by ligature." As such, the NBI autopsy report lends credence
to and bolsters the account of the respondents that Manuel took his own life. In other
words, the NBI autopsy report, autopsy report prepared by Dr. Ruwanpura and
Investigation Report, taken together, substantially prove that Manuel's death was due to
his deliberate act of killing himself by committing suicide. It is of no moment that the
NBI Autopsy Report did not categorically state that suicide or hanging was the cause of
death. The fact remains that the same report found no evidence of foul play in the death
of Manuel. Perforce, the Court must agree that death by suicide had been sufficiently
proved.
[SEC. 25.1] - If a seafarer dies through any cause whilst in the employment of
the Company including death from natural causes and death occurring whilst
traveling to and from the vessel, or as a result of marine or other similar peril,
the Company shall pay the sums specified in the attached Annex 4 (four) to a
nominated beneficiary and to each dependent child up to a maximum of 4
(four) under the age of 18. The Company should also transport at its own
expense the body to Seafarer's home where practical and at the families'
request and pay the cost of burial expenses. If the seafarer shall leave no
nominated beneficiary, the aforementioned sum shall be paid to the person
empowered by law or otherwise to administer the estate of the Seafarer. For
the purpose of this clause, a seafarer shall be regarded as "in employment of
the company" for as long as the provision[s] of Article[s] 21 and 22 apply and
provided the death is directly attributable to sickness or injury that caused the
seafarer's employment to be terminated in accordance with Article 18.1b
xxxx
22.1 Thereafter the seafarer shall be entitled to sick pay at the rate
equivalent to their basic wage while they remain sick up to a
maximum rate of 130 days after repatriation.
xxxx
xxxx
Now brought to light and in consideration of Articles 21 and 22, the CBA, in
defining "in employment of the company" actually expanded the coverage of
Section 25.1. Without this qualification, "in the employment of the
company" simply means those who are actively working in the employ of
Athenian Ship Management, Inc. However, the "for the purpose" clause "in
employment of the company" widens its coverage to also include (a)
employees who died as a result of sickness or injury during their employment
as provided under Articles 21 and 22 of the CBA; and (b) employees who had
to sign off due to sickness or injury under Articles 21 and 22 of the
agreement.
Otherwise stated, rather than limiting the scope of coverage of Section 25.1,
the last sentence of its first paragraph widens it. It never affected or narrowed
the phrase "any cause" in Section 25.1. To further make it simpler, the part of
Section 25.1 pertaining to ''any cause" responds to the question, "what causes
of deaths are covered?", while "in the employment" answers to the query,
"given that all causes of death are covered, who else are considered
employed?"[111]
Respondents cannot also validly argue that the POEA-SEC takes precedence over the
terms of the CBA, in that, death must be work-related in order to be compensable. The
Court has already settled that, in the event that the clauses in the CBA provide for greater
benefits to the seafarer, the same must prevail over the standard terms and benefits
formulated by the POEA in its Standard Employment Contract inasmuch as a contract of
labor is so impressed with public interest that the more beneficial conditions must be
endeavored in favor of the laborer. This is in keeping with the avowed policy of the State
to give maximum aid and full protection to labor as enshrined in Article XIII of the 1987
Constitution.[112] Thus, the CA ruled correctly when it held that petitioner is entitled to
death benefits, transportation expenses and burial expenses.
Section 23 of R.A. No. 10022 provides for the compulsory insurance coverage of migrant
workers. It reads:
Section 23. A New Section 37-A of Republic Act No. 8042, as a mended, is
hereby added to read as follows:
Without question, respondents become liable for the payment of the compulsory life
insurance benefit of US$15,000.00 only when the employee died of an accidental death.
Inasmuch as the Court had already ruled that Manuel committed suicide, the CA correctly
deleted the award of US$15,000.00 by way of life insurance in favor of the petitioner.
Even assuming that respondents failed to procure a life insurance coverage for Manuel as
mandated by R.A. No. 10022, such failure does not merit the automatic award of the
aforementioned sum to the petitioner as the same pertains to the minimum of the life
insurance policy coverage to be paid by the insurance company only to qualified
beneficiaries and for such causes as specified therein, and is not a penalty or fine to be
paid by the manning agency.
Articles 6[113] and 11[114] of the CBA provide for the guidelines to a seafarer's entitlement
to overtime pay as well as to leave benefits. The articles state:
Overtime
[Sec.] 6
6.1 Any hours of duty in excess of the 8 (eight) shall be paid by overtime, the
hourly overtime rate shall be 1.25 the basic hourly rate calculated by
reference to the basic wage for the category concerned and the weekly
working hours (Annex 2).
6.2 At least 103 (one hundred three) hours guaranteed overtime shall be paid
monthly to each seafarer.
6.5 If no overtime records are kept as required in 6.3 and 6.4 above, the
seafarer shall be paid monthly a lump sum for overtime worked calculated at
160 hours at the hourly overtime rate without prejudice to any further claim
for payment for overtime hours worked in excess of this figure. x x x
Leave
[Sec.] 11
11.2 Payment for leave shall be at the rate of pay applicable at the time of
termination plus a daily allowance as specified in ANNEX 4. x x x
Under 11.2 of the CBA, aside from leave pay, the seafarer shall also be entitled to a daily
allowance as specified in Annex 4 thereof. Annex 4[115] of the CBA provides:
ANNEX 4
Schedule of Cash Benefits
xxxx
Article 11 Leave:
The terms and conditions of Manuel's employment contract [116] mentioned above would
readily show that respondents indeed committed to give him guaranteed overtime pay for
103 hours; leave pay of seven days for each completed month in the sum of US$174.00
per month plus daily allowance/subsistence allowance of US$18 while on paid leave or a
total of US$126.00 per month, as well as owner's bonus in the amount of $100.00 a
month.
With respect to the guaranteed overtime pay, considering that no overtime records were
presented by the respondents, following Article 6.5 of the CBA, the same shall be pegged
at 160 hours per month at the rate of 1.25 of Manuel's basic hourly rate.
At this juncture, the Court must note that the aforesaid Articles 6 and 11 are nowhere to
be found in the copy of the CBA that is attached to the records of this case. Be that as it
may, the Court cannot simply disregard the same. It bears stressing that respondents were
fully apprised of these claims at the outset since these claims were already included and
fully discussed by the petitioner in her Position Paper. [117] Respondents, in fact, responded
thereto by filing their Reply (To Complainant's Position Paper) [118] and their Rejoinder.[119]
In the said pleadings, respondents never denied that the CBA as well as Manuel's
Employment Contract provided for these benefits. Their defense is that they are no longer
liable for these benefits since they had already been paid. As proof, they adduced the
following pieces of evidence: (a) acknowledgement receipt for the payment of wages in
the amount of US$670.30, duly signed by the petitioner;[120] (b) check voucher for the
said amount;[121] (c) Wages Account[122] for the period covering October 1, 2013 to
October 8, 2013 itemizing the benefits included in the US$670.30 payment as follows:
(1) basic wage; (2) fixed overtime; (3) owner's bonus; (4) leave pay; and (5) EWA; and
(d) proof of remittance of allotment to Manuel's bank account.[123]
Contrary to the claim of respondents, the evidence they presented only prove payment of
the aforementioned benefits from October 1 to October 8, 2013. The remittance of
allotment to Manuel's bank account they made on August 6, 2013, September 6, 2013 and
October 1, 2013 do not establish payment of the subject benefits as respondents failed to
show what these payments had been for. If these allotments were for the guaranteed
overtime pay, leave pay plus daily allowance and owner's bonus, respondents could have
easily presented a similar Wages Account like the one they presented for the October 1 to
8, 2013 payment for the subject benefits considering that the Wages Account form
appears to be a standard form issued by the respondents to its employees whenever they
release payments to them.
For these reasons, the CA erred in deleting the awards for overtime pay, leave pay, daily
allowance/subsistence allowance and owner's bonus. However, considering that Manuel
commenced working for the respondents on June 25, 2013, and the petitioner had already
received the said benefits for the period covering October 1 to October 8, 2013,
respondents shall be liable for overtime pay, leave pay, daily allowance/subsistence
allowance and owner's bonus for 3 months and 5 days only, instead of four months.
As discussed above, since respondents were able to duly prove, and the petitioner had
already received the amount of US$670.03 representing Manuel's uncollected salary, the
CA correctly deleted the same.
Petitioner is also not entitled to moral damages, exemplary damages and attorney's fees as
these forms of indemnity may only be imposed on a concrete showing of bad faith or
malice on the part of the respondents.[124] In this case, the refusal of the respondents to
pay the benefits being claimed by the petitioner, and the delay in the eventual release of
the last salary of Manuel, did not arise out of bad faith, but brought about by their firm
belief of petitioner's lack of entitlement thereto and the merits of their cause. The mere
failure of the respondents to furnish the petitioner with a copy of the CBA does not
establish bad faith. It must be taken into account that the terms of the employment
contract of Manuel had been faithful to the benefits spelled out in the said CBA, thereby
negating petitioner's claim that respondents intended to conceal and mislead her into
thinking that no CBA applied to Manuel's employment. Petitioner also failed to
substantiate her claim that there indeed had been a police investigation report proving
that Manuel had been killed which respondents suppressed. As with the said police
investigation report, there is also no showing that respondents did not procure the
mandatory life insurance policy for Manuel. No proof was also shown to support
petitioner's claim that respondents did not extend any form of assistance in the
repatriation of Manuel or that they berated her when she sought the assistance of the
government for the said repatriation. Petitioner's contention that respondents' decision to
bring the remains of her husband to Sri Lanka, instead of Dammam, Saudi Arabia had
been sudden and tainted with bad faith is belied by her very own written consent where
she agreed that the autopsy of the remains of the deceased shall be performed by the
authorities in Sri Lanka.[125] For these reasons, the CA had been correct in deleting the
said awards.
The case of Lara's Gifts & Decor, Inc. v. Midtown Industrial Sales, Inc.[126] clarified the
correct rate of imposable interest, thus:
Based on the prevailing jurisprudence, the actual base for the computation of 6% per
annum legal interest (the prevailing legal interest prescribed under Bangko Sentral ng
Pilipinas Monetary Board Circular No. 799, Series of 2013) [127] of the total monetary
awards shall be the amount finally adjudged, that is from the finality of this judgment
until their full satisfaction.[128]
The case is REMANDED to the Panel of Voluntary Arbitrators for the proper
computation of the monetary benefits awarded.
SO ORDERED.