4/9/2020
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dispositive portion of which reads:
WHEREFORE, premises considered, judgment is hereby rendered ordering
respondents Pacific Ocean Manning, Inc. and Celtic Pacific Ship Management
Ltd. (Hongkong), to pay, jointly and solidarily, complainant Benjamin D.
Penales disability benefits in the sum of US$16,795.00 representing 33.59%
of the maximum amount of US$50,000.00 payable in Philippine Currency at
the rate of exchange prevailing at the time of payment as well as ten (10%)
percent thereon as attorney’s fees; and DISMISSING all other claims for lack
of merit.[9]
In her decision, the Labor Arbiter held that there is no dispute that Penales’s injury was
work-related and his treatment went beyond 120 days, which, under the Philippine
Overseas Employment Administration (POEA) Standard Employment Contract (SEC),
entitled him to disability benefits. The Labor Arbiter added that the petitioners were
unable to refute Penales’s claim by failing to prove that he was fit to work, or with at
least a certificate on his disability grade. The Labor Arbiter then declared that Penales
was entitled to a disability of “around Grade 8 which is equivalent to 33.59% of the
maximum amount of US$50,000 in the sum of US$16,795.00,” after examining the
schedule of disability benefits under the POEA SEC vis-à-vis the medical findings of the
company-designated physician.[10]
Not satisfied, Penales appealed[11] the Labor Arbiter’s Decision to the NLRC, arguing
that the Labor Arbiter abused her discretion when she vaguely declared that he was
entitled to a disability grade of only 8.
The NLRC agreed that while there is no question that Penales was disabled, the issue of
his grade of disability was not threshed out properly. The NLRC said that “considering
that the determination of the grade means determination of the actual physical
condition of [Penales] and his injuries, a physician is more in a position to ascertain the
degree of disability.”[12]
On September 5, 2002, the NLRC set aside[13] the Labor Arbiter’s decision and
remanded the case for further proceedings only in so far as the determination of
Penales’s grade of disability.
Penales moved to reconsider the above resolution but this was denied by the NLRC on
November 18, 2002, for lack of merit.[14]
Penales elevated his case then to the Court of Appeals via a Petition for Certiorari[15]
under Rule 65, on the ground that the NLRC committed grave abuse of discretion when
it remanded the case notwithstanding the fact that the evidence of both parties clearly
support his entitlement to the maximum amount of US$60,000.00 as disability
benefits. This petition was docketed as CA-G.R. SP No. 75126.
The Court of Appeals found that Penales was able to establish his entitlement to the
elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/55144
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