5/19/2021
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extending the period because the disability suffered by the Martinez was permanent.
Consequently, by operation of law, Martinez' illness is deemed permanent and total as
of the date of the expiration of the 120-day period counted from his repatriation to the
Philippines. Hence, by the time that Martinez filed his labor complaint on the 154th day
from his repatriation, his illness is already deemed total and permanent. Coupled with
the presumption that a seafarer's injury or illness during the term of his employment
contract is work-related, which remained unrebutted by the incomplete and uncertain
26 June 2014 medical report of the company-designated doctor, Martinez certainly has
a cause of action against OSG and Pacific Ocean Manning when he filed his complaint.
He was under no obligation to consult with a physician of his choice under the given
circumstances.
Finally, the Court rejects the argument of Martinez that the instant petition is rendered
moot and academic by virtue of the fact that he had already received in full amount the
judgment award granted by the LA through a conditional satisfaction of the judgment
award.
It is worthy to note that the parties agreed into a conditional satisfaction of judgment
award before the CA rendered its decision which deleted the award for sick wage
allowance, medical and travel expenses, and attorney's fees. As correctly found by the
CA, the nature and terms of their agreement (conditional satisfaction of the judgment
award) are very clear in that the same is without prejudice to the final outcome of the
petition for certiorari pending before the CA. Moreover, it is unrebutted that Martinez
himself executed an affidavit of claimant in which he understood and agreed to return
the amount should there be a reversal or modification of the decisions of the LA and
the NLRC. In the absence of special circumstances that would warrant a departure from
the rule, stipulations in a contract are binding as between the parties unless they are
contrary to law, morals, good customs, public order or public policy.[23] Thus, the Court
holds that the terms of the conditional satisfaction of judgment award are binding upon
Martinez. As such, the filing of the certiorari petition and the decision of the CA was not
rendered moot by the conditional settlement entered into by the parties which clearly
indicated that it is subject to the outcome of the certiorari petition. The same can be
said to the instant petition for review which is simply an appeal and continuation of the
certiorari petition. In addition and as stated earlier, the parties' conditional settlement
is subject to the reversal or modification of the judgment of the LA and the NLRC,
which includes the modification of said judgment by the Court. Accordingly, nothing
would prevent OSG and Pacific Ocean Manning from demanding from Martinez to return
or restitute, in accordance with existing rules, any excess amount that they have paid
by virtue of the conditional satisfaction of the judgment award. Needless to say, to
allow Martinez to retain the excess payment would be tantamount to unjust enrichment
at the expense of OSG and Pacific Ocean Manning whose entitlement thereto is further
buttressed by, and in line with, Section 14, Rule XI of the 2011 NLRC Rules of
Procedure which provides:
EFFECT OF REVERSAL OF EXECUTED JUDGMENT. - Where the executed
judgment is totally or partially reversed or annulled by the Court of
Appeals or the Supreme Court, the Labor Arbiter shall, on motion, issue
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