arrest 2 metabolic acidosis r/o fatal arrhythmia, with acute renal failure as the
antecedent cause, and hepatocellular carcinoma as the underlying cause.[22]
On June 5, 2001, Emerlinda, Virgilios wife,[23] and Rene, their
son[24] (respondents), filed a complaint[25] against ZSIL and PSMC for payment of
death compensation, illness allowance, reimbursement of medical expenses,
damages and attorneys fees before the Labor Arbitration Branch of the
NLRC. The case wasdocketed as NLRC-NCR-OFW- Case No. (M)-01-06-104900.
Petitioners countered that respondents were not entitled to death benefits because
Virgilio died long after his employment had been terminated. This was in
accordance with Section 18 of the POEA Standard Employment Contract.
Petitioners argued that they were not insurers of the lives of seamen and they were
only liable for death benefits for the results of illnesses contracted during
employment. They pointed out that respondents were already given residual
benefits from Virgilios repatriation due to illness, and as such, the former were
already released from any obligation to the heirs of the deceased. They likewise
averred that death benefits are awarded only if the seaman dies of the same illness
for which he was repatriated. In this case, he was repatriated due to umbilical
hernia which is not a deadly illness; in fact, Virgilios condition had already been
corrected by umbilical herniorrhapy from which he recuperated fully. Furthermore,
he was later on declared fit to work. Petitioners stressed that the deceased was in
good health when he was repatriated. Finally, they claim that they are not liable for
damages because they acted in good faith. They rejected the claims of the
respondents on the honest belief that they were not entitled thereto under the
POEA Standard Employment Contract.
In their Reply, respondents averred that petitioners settlement of the sick
wages and their other liabilities to Virgilio was contrary to their claim that
Virgilios employment had been terminated upon repatriation.
On June 21, 2002, the Labor Arbiter rendered a Decision[26] in favor of the
respondents. The Labor Arbiter ruled that the nature of Virgilios employment
contributed to the aggravation of his affliction, which in turn caused his premature
repatriation for medical treatment, and eventually his death. While his hernia
operation was successful, the liver cirrhosis, which had been diagnosed during the
operation, remained. The fallo of the decision reads: