5/28/2020 E-Library - Information At Your Fingertips: Printer Friendly Pagdanganan, Atty. Suarez, and Villanueva before the NLRC for the collection of: (a) his unpaid salaries in the sum of US$24,821.74; (b) disability benefits; (c) sickness allowance; and (d) reimbursement of his medical expenses.[13] However, only the petitioners and the group of Peñalosa, Fernandez, D. Cruz, Javier, and A. Cruz (Peñalosa Group) filed position papers to controvert Sarmiento’s claims. [14] In their defense, petitioners denied any liability to Sarmiento, contending that they were no longer connected with Sea Gem when the latter filed his complaint. Villanueva resigned on February 5, 2008, or more than three (3) months before Sarmiento was hired on May 8, 2008, while on June 16, 2008, Attys. Pagdanganan and Suarez tendered their resignations as Sea Gem’s President and Corporate Secretary, respectively.[15] For their part, the Peñalosa Group maintained that they have divested their respective shares of stock before Sea Gem engaged the services of Sarmiento. With the exception of Fernandez who resigned on January 9, 2007, the rest of the Peñalosa Group severed their ties with Sea Gem on August 8, 2007. Consequently, they argued that only the present directors and stockholders should be held liable for Sarmiento’s money claims. [16] The LA Ruling In a Decision[17] dated January 19, 2010, the Labor Arbiter (LA) found petitioners, Sea Gem, Corinthian, the Peñalosa Group, Torrefil, and Alican liable for Sarmiento’s money claims and directed them to jointly and severally pay him the aggregate sum of US$32,821.00, representing his unpaid wages and sickness allowance.[18] In granting Sarmiento’s unpaid wages, the LA found that he had indisputably proven that a portion of his salaries remained unpaid. Likewise, the LA found that he was entitled to sickness allowance, as he was repatriated on medical grounds and necessarily required medical treatment.[19] However, the LA debunked Sarmiento’s claim for disability benefits and medical expenses reimbursement, explaining that in the absence of a competent physician’s declaration as to the degree of a seafarer’s disability, disability benefits may not be awarded,[20] and that mere allegations of medical expenses will not suffice to warrant a claim for reimbursement.[21] Finally, the LA held petitioners, Sea Gem, Corinthian, the Peñalosa Group, Torrefil, and Alican liable under Section 10[22] of Republic Act No. (RA) 8042,[23] opining that corporate directors and officers cannot be relieved of their liabilities as such for the sole reason that they have resigned or ceased to become shareholders of Sea Gem.[24] Aggrieved, petitioners appealed to the NLRC, disclaiming liability for Sarmiento’s claims and pointing out that the Philippine Overseas Employment Agency (POEA) itself never accredited or recognized them as directors of Sea Gem.[25] However, records are bereft of any showing that the Peñalosa Group, Sea Gem, Corinthian, Torrefil, and Alican appealed the LA Decision, rendering the same final as to them.[26] elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/57652 2/9

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