On September 7, 1998, Acting Executive Labor Arbiter Pedro C. Ramos
dismissed respondent's complaint for permanent and total disability benefits,
sickness wages and all other claims and, likewise, petitioners' counterclaim for
damages, for lack of merit. The labor arbiter found that petitioners have
substantially complied with all their obligations to
respondent under the POEA-approved employment contract. He debunked
respondent's claim for permanent and total disability benefits because respondent
had been duly proven and declared to be “fit to work” not only by the hospital of
his choice, i.e., Philippine General Hospital, but also by the Employees
Compensation Commission (ECC); that respondent withdrew his claim during the
pendency of the proceedings, although with reservation to re-file the same; and that
respondent is now on board M/V Luna Azul on an overseas deployment. He
upheld the validity of the Receipt and Quitclaim executed by respondent and stated
that respondent had received reimbursement of his medical expenses in the amount
P4,896.50. He declared that respondent is no longer entitled to sickness wages as
it would amount to double recovery of benefits, as provided for under Paragraph
11, Section 4 of the POEA Standard Employment Contract.
On May 25, 1999, the NLRC rendered a Decision which reversed and set
aside the Decision of the labor arbiter. It ruled that respondent is entitled to
sickness wages and to free medical and hospital treatment for the injury he
sustained during the term of his contract, pursuant to Section C 4(b) and (c), Part II
of the Standard Employment Contract Governing All Filipino Seamen On Board
Ocean-Going Vessels, which obligates the employer to: (1) provide continuous
medical treatment to the repatriated injured seaman until such time he is declared
fit or the degree of his disability has been established by the company-designated