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three to six months, although he was still under treatment as of June 3, 2010.
On June 9, 2010, Dr. Tay issued a combined 36% disability assessment for Cabatay
based on the compensation scale under the TCC-FA,[5] thus: (1) 5% for communication
handicap of severe to total; (2) 2% for hearing handicap of mild to medium; (3) 3%
compensation for each ear—hampering tinnitus and distortion of hearing; (4) 8% for
his spine injury with medium severe fracture without reduction of mobility; and (5)
15% for his shoulder injury, with right shoulder elevation up to a 90-degree angle.
Meantime, or on May 11, 2010, Cabatay filed a complaint against the petitioners for
permanent total disability compensation, sickness wages, damages, and attorney's
fees. While he did not dispute the company doctor's findings, he argued that he was
entitled to permanent total disability benefits since he had lost his employment
(profession) due to his injury which, he claimed, is compensated under the TCC-FA at
US$125,000.00.
The Compulsory Arbitration Rulings
In his decision[6] of January 4, 2011, Labor Arbiter (LA) Quintin B. Cueto III found that
Cabatay had lost his employment as a seaman and awarded him permanent total
disability compensation of US$125,000.00 under the TCC-FA. The evidence, LA Cueto
stressed, showed that Cabatay was permanently unfit for sea service in any capacity,
despite the company doctor's 36% disability grading. He considered Dr. Tay's prognosis
of the resolution of Cabatay's hearing problem from three to six months a mere
optimistic assessment.
The petitioners appealed to the National Labor Relations Commission (NLRC) which
rendered a decision[7] setting aside LA Cueto's award. It also ordered the petitioners to
pay Cabatay, jointly and severally, $45,000.00 in permanent partial disability
compensation equivalent to Dr. Tay's combined 36% disability assessment, plus
$1,000.00 attorney's fees.
Cabatay moved for, but failed to obtain, a reconsideration from the NLRC, leaving him
no option but to seek relief from the CA through a Rule 65 petition for certiorari. He
charged the labor tribunal with grave abuse of discretion for setting aside LA Cueto's
award due to his failure to question Dr. Tay's findings, without ruling on the substantive
issues of the case.
The CA Decision
In its decision under review, the CA granted the petition, reversed the NLRC ruling, and
reinstated LA Cueto's award. It held that under existing jurisprudence,[8] Cabatay's
disability had become permanent total, considering that while he was injured on
December 30, 2009, he was still being given medical attention on June 3, 2010, a
period of more than 120 days, or a total of 155 days.
The CA explained that while the treatment can be extended up to a maximum of 240
days as in Cabatay's case, he is considered under temporary disability within the same
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