On July 25, 2002 respondent Marcos C. Abalos entered into a contract of employment with petitioner Bandila Shipping, Inc. (BSI), a Philippine manning agency acting on behalf of its co-petitioner Fuyoh Shipping, Inc., as fourth engineer for the ocean-going vessel M/V Estrella Eterna at US$765.00 per month for 10 months.[1]  Prior to embarkation, Abalos underwent pre-employment medical examination and was found to be “fit for sea service.”[2]  He boarded his vessel in Singapore on August 28, 2002.[3]             As the vessel headed towards Nagoya, Japan, on January 23, 2003, respondent Abalos felt excruciating pain in his stomach while he was on duty.  He tried to tolerate it until he got off but he was unable to sleep because of severe pain.  The following day, unable to bear the pain, he told the vessel’s master about it.  After being examined at the International Clinic in Nagoya, Japan, he was diagnosed to be suffering from “gallstone, acute cholecystitis, and pancreatitis suspected.”  The attending physician found him unfit for duty and recommended his repatriation.[4]             On January 25, 2003 respondent Abalos was repatriated to the Philippines.  He was referred to Dr. Ruby Dizon who found that he had cholecystolithiasis, commonly known as gallstone, and needed to undergo cholecystectomy or gall bladder removal that would cost P80,000.00. [5]   Unable to get the company’s approval for his surgery,[6] Abalos sought the opinion of other physicians who made the same diagnosis and suggested surgery.[7]             On June 12, 2003 Abalos filed a complaint with the Labor Arbiter for disability benefits, unexpired portion of his contract, moral and exemplary damages, and attorney’s fees against petitioner BSI, its claims manager, and its foreign principal, petitioner Fuyoh Shipping, Inc.,[8] in NLRC OFW-(M) Case 0306-1493-00.  Persuaded by the opinion of a company-designated physician that cholecystolithiasis was not work-related, BSI denied liability.    Meantime, respondent Abalos amended his complaint to include nonpayment of disability benefits, medical reimbursement, sickness allowance, compensatory damages, moral and exemplary damages, and attorney’s fees.[9]

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