After one month, petitioner's cast was removed and he was advised to undergo
physical therapy sessions. Despite several months of physical therapy, petitioner
noticed that his arm still had not healed and he had difficulty straightening his arm.
Another company designated doctor, Dr. Tiong Sam Lim, evaluated petitioner's
condition and advised that petitioner undergo a bone grafting procedure whereby a
piece of metal would be attached to the fractured bone. Upon learning from Dr.
Tiong Sam Lim that the metal piece will only be removed from his arm after one and
a half years, petitioner allegedly reacted with fear and decided not to have the
operation.[7]
After formally informing respondents of his decision to forego the medical procedure
recommended by the company physician, petitioner filed a complaint for permanent
disability benefits, sickness allowance, damages and attorney's fees against herein
respondents.
In his position paper[8] filed with the Labor Arbiter, petitioner asserted that he is
entitled to sickness allowance equivalent to his basic wage for 120 days as stipulated
under Section 20 of the POEA Standard Employment Contract. With respect to his
claim for permanent disability benefits, he relied on the medical opinion of two
doctors; namely, Dr. Rimando Saguin and Dr. Antonio A. Pobre who both issued
medical certificates,[9] finding to the effect that petitioner was no longer fit for sea
service and recommending a partial permanent disability grade of 11 under the
POEA Schedule of Disability Grading.
However, petitioner claimed that,
notwithstanding his own medical evidence regarding his disability grade, he was
entitled to the purportedly superior benefits provided for under Section 20.1.5 of
respondents' collective bargaining agreement (CBA) with the Associated Marine
Officers' and Seamen's Union of the Philippines (AMOSUP).[10] Section 20.1.5
allegedly provides:
Permanent Medical Unfitness - A seafarer whose disability is assessed at
50% or more under the POEA Employment Contract shall, for the purpose
of this paragraph, be regarded as permanently unfit for further sea
service in any capacity and entitled to 100% compensation, i.e.
US$80,000.00 for officers and US$60,000.00 for ratings, AB and below.
Furthermore, any seafarer assessed at less than 50% di[s]ability under
the Contract but certified as permanently unfit for further sea service in
any capacity by the company doctor, shall also be entitled to 100%
compensation.[11]
Anent his prayer for damages and attorney's fees, petitioner asserted that
respondents should be made liable in view of their negligence and delay in the
payment of his allegedly valid claims and the latter's contravention of the terms and
conditions of the contract of employment.[12]
In their defense, respondents contended that petitioner's monetary claims were
premature by reason of the latter's refusal to undergo the operation recommended
by the company designated physician. Respondents presented Dr. Tiong Sam Lim's