7/7/2021 E-Library - Information At Your Fingertips: Printer Friendly moral damages may be awarded in breaches of contract when the defendant acted fraudulently or in bad faith. Even though respondents' designated physician recommended that Oscares undergo surgery, it was Oscares himself who shouldered his surgery. Respondents acted in bad faith when it failed to comply with their obligation under Section 20(A)(2) of the 2010 POEA-SEC which states that the medical attention needed by the seafarer after his repatriation shall be provided at cost to the employer. Aside from moral damages, Oscares should also receive attorney's fees. This is pursuant to Article 2208 of the Civil Code which provides for the recovery of attorney's fees in actions for indemnity under workmen's compensation and employer's liability laws. Respondents, including Arnold Javier as the President of Magsaysay Maritime Corporation, shall be jointly and severally liable to Oscares in accordance with Section 10 of Republic Act (RA) No. 8042, as amended by RA No. 10022, which provides that "if the recruitment/placement agency is a juridical being, the corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages." In Gargallo v. Dohle Seafront Crewing (Manila), Inc.,[67] We explained that corporate officers or directors cannot, as a general rule, be personally held liable for the contracts entered into by the corporation because the corporation has a separate and distinct legal personality. However, "personal liability of such corporate director, trustee, or officer, along (although not necessarily) with the corporation, may validly attach when he is made by a specific provision of law personally answerable for his corporate action." As such, We upheld the joint and solidary liability of the officer in that case following Sec. 10 of RA No. 8042, as amended.[68] We similarly imposed joint and several liability on the foreign employer, local manning agency, and its officer/director in Cariño v. Maine Marine Phils., Inc.[69] Respondents alleged that pursuant to a Writ of Execution issued by the National Conciliation and Mediation Board on October 3, 2017, they paid the full judgment award.[70] If it is true, Oscares must return the excess of what he received to respondents because he is only entitled to disability benefits of Grade 10, sickness allowance, moral damages, and attorney's fees. This is in accordance with Section 18, Rule XI of the 2011 National Labor Relations Commission Rules of Procedure, as amended by En Bane Resolution Nos. 11-12, Series of 2012 and 05-14, Series of 2014. [71] However, respondents have not submitted proof that it has paid the full judgment award to Oscares. Hence, We do not have any basis to order the return the excess of what they allegedly paid to Oscares. WHEREFORE, the petition is GRANTED. The Decision dated August 29, 2018 and and the Resolution dated February 27, 2019 of the Court of Appeals in CA-G.R. SP No. 151822 are REVERSED and SET ASIDE. The Decision dated March 30, 2017 and the Resolution dated July 14, 2017 of the Office of the Panel of Voluntary Arbitrators are REINSTATED with the MODIFICATION in that respondents Magsaysay Maritime Corp., SK Shipping (Singapore) Pte. Ltd., and/or Arnold B. Javier are jointly and severally held liable to pay petitioner John A. Oscares sickness allowance in an amount equivalent to his basic wage not exceeding 120 days and disability benefit equivalent to Grade 10 rating under the POEA-SEC. https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/66954 7/11