5/28/2020
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US$100,000.00; moral and exemplary damages of P10,000.00 each; and P10,000.00 in
attorney’s fees. It however denied Ruizo’s claim for sick wages of US$2,386.50
because it was raised for the first time on appeal.
The CA found credence in Ruizo’s submission that his employment with the petitioners
was covered by a CBA “as he was informed by private respondents’ officers that he is
being deployed to a vessel that is covered by a CBA as a reward for his good
performance as Chief Cook for several years.”[14]
Further, the CA sustained Ruizo’s position that he is entitled to permanent total
disability compensation because he was unable to work as chief cook for more than 120
days. It denied the petitioners’ subsequent motion for reconsideration.[15]
The Petition
The petitioners now ask this Court to set aside the CA judgment, on the grounds that
the CA committed a reversible error when it: (1) ruled that Ruizo’s employment was
covered by a verbal CBA; (2) held that since Ruizo was unable to work for more than
120 days, he is automatically entitled to permanent total disability benefits; and (3)
awarded Ruizo moral and exemplary damages, as well as attorney’s fees.
The petitioners bewail the CA’s admission of the CBA that allegedly covered Ruizo’s
employment as basis for the award. They question the CBA’s existence as it had not
been reduced to writing; even if it does exist, Ruizo adduced no evidence that it applies
to him (Ruizo would later on submit a copy of a CBA between AMOSUP and an
unnamed employer).[16]
They reiterate their submission to the CA (through their
motion for reconsideration) that AMOSUP issued a certification[17] that M/V Harutamou
“is/was not covered by any Collective Bargaining Agreement between AMOSUP and any
foreign principal employer.”
On their second assignment of error, the petitioners maintain that the “so called 120
Day Rule and the latter 240 Day Rule are not iron-clad rules that should apply to all
cases.”[18] They argue that the “[r]espondent is guilty of medical abandonment and as
such, the 120 or 240 Day Rules should not apply to him.”[19] The 120-day rule laid
down in Crystal Shipping, they point out, had already been reversed, or at least
modified, by this Court in its clarificatory Resolution[20] dated February 12, 2007 in the
very same Crystal Shipping case. They stress, as the LA did, that in said Resolution, the
Court clarified that the POEA-SEC (series of 1996) did not measure disability in terms
of number of days but by gradings only. In Crystal Shipping, the Court said that since
the seafarer’s physician rated his disability as Grade 1, the same was necessarily total
and permanent, regardless of the number of days he was disabled.
In any event, they continue, the CA erred when it applied the 120-day rule under the
Labor Code in Ruizo’s case, overlooking the fact that as a seafarer, Ruizo was a
contractual employee whose terms of employment, including disability compensation
claims, were governed by contract and not by the Labor Code as the Court declared in
NYK-FIL Ship Mgmt., Inc. &/or NYK Ship Mgmt. Hk., Ltd. v. NLRC.[21] The petitioners
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