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NLRC that Hipe was repatriated due to the completion/expiration of his six-month
employment contract, not for medical reasons, hence, effectively debunking Hipe’s
contention that he is entitled to permanent disability compensation. It found that Hipe
remained in the ship two (2) months after the completion of his employment contract
because the ship has not reached any port and such fact should not be construed to
mean that his contract was extended.[52]
Aggrieved, Hipe filed a motion for reconsideration,[53] alleging that the CA has
misappreciated the facts and misinterpreted the applicable laws in not finding that (a)
his original six-month employment contract was in fact extended, and (b) the injury
sustained during such period was compensable.[54]
The CA resolved to hear the parties in an oral argument on the issue of whether or not
Hipe was repatriated on account of injuries sustained while on board the vessel or on
account of expiration of contract.[55] After the parties were heard and the required
memoranda were filed, the CA issued an Amended Decision[56] dated May 2, 2012
setting aside its January 31, 2011 Decision and the NLRC’s March 17, 2010 Decision
and June 22, 2010 Resolution. In effect, the LA’s May 29, 2009 Decision granting Hipe’s
claim for permanent disability compensation, sick wages, damages and attorney’s fees
was reinstated.
The CA found that while Hipe’s employment contract shows that he was indeed
employed as plumber for a six-month period, the addendum thereto provides for
“possible extension of up to 10 months, at the company’s discretion.”[57] Hipe was,
thus, still under the employ of respondents when he sustained his injury.[58] Hence, the
referral to the company-designated physician after his repatriation and the subsequent
fit-to-work certification issued in his favor support the claim that he was medically
repatriated.[59] Accordingly, the CA declared that Hipe was entitled to his “earned
wages and benefits,” including permanent disability benefits.[60]
Dissatisfied, respondents filed a motion for reconsideration[61] which was, however,
denied in a Resolution[62] dated December 3, 2012, hence, the instant petition.[63]
The Issue Before the Court
The essential issue for the Court’s resolution is whether or not the CA erred in granting
Hipe’s petition for certiorari, thereby setting aside the NLRC Decision dismissing the
complaint and adjudging Hipe’s entitlement to permanent disability benefits.
The Court’s Ruling
The petition is meritorious.
To justify the grant of the extraordinary remedy of certiorari, the petitioner must
satisfactorily show that the court or quasi-judicial authority gravely abused the
discretion conferred upon it. Grave abuse of discretion connotes a capricious and
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