5/19/2021
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board the vessel. In the certification issued by Magsaysay, Buenaflor signed off on
March 25, 2013, the day of his repatriation. While Magsaysay claims that Buenaflor's
contract expired in February 2013, it did not explain why Buenaflor was still on board
its vessel in March 2013. Thus, we agree with the CA's conclusion that Buenaflor's
employment contract transcended beyond the nine-month period and his employment
was extended.
This conclusion conforms with Section 18(A) of the POEA-SEC, which states that the
employment of the seafarer shall cease when the seafarer completes his period of
contractual service aboard the ship, signs off from the ship and arrives at the point of
hire. Under this Section, Buenaflor's employment ceased only upon his sign off and
arrival at the point of hire on March 25, 2013. When he experienced the symptom of
his illness, and when he was subsequently medically repatriated, he was still under the
employ of Magsaysay. Buenaflor's case, thus, falls under the exception established in
Canuel.
All told, this Court denies the Petition and affirms the Decision and Resolution of the CA
with modification in that petitioners are ordered to pay the heirs of Buenaflor the
following: 1) the Philippine currency equivalent to the amount of US$50,000; 2) an
additional amount of US$14,000 to the two minor children of Buenaflor, at the
exchange rate prevailing during the time of payment; and 3) the Philippine currency
equivalent to the amount of US$1,000 for burial expenses at the exchange rate
prevailing during the time of payment.
The award of attorney's fees at 10% of the total monetary awards is also proper
following Article 2208 of the New Civil Code, "which allows its recovery in actions for
recovery of wages of laborers and actions for indemnity under the employer's liability
laws."[27]
Finally, petitioners are likewise liable for legal interest at the rate of 6% per annum
from the finality of this Decision until full satisfaction.[28]
WHEREFORE, the Petition is DENIED. The Decision dated December 18, 2015 and the
Resolution dated September 29 , 2016 of the Court of Appeals in CA G.R. SP. No.
137820 are AFFIRMED WITH MODIFICATIONS in that Magsaysay Maritime
Corporation and Masterbulk Pte. Ltd. are ORDERED to PAY the heirs of Fritz D.
Buenaflor, jointly and severally, at the rate of exchange at the time of payment, the
Philippine currency equivalent of the following amount:
1. Fifty Thousand US dollars (US$50,000);
2. Fourteen Thousand US dollars (US$14,000) to the two minor children of
Buenaflor;
3. One Thousand US dollars (US$1,000) for burial expenses; and
4. Attorney's fees at 10% of the total monetary awards.
Petitioners are likewise liable for the legal interest of 6% per annum of the foregoing
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