5/28/2020 E-Library - Information At Your Fingertips: Printer Friendly incapacity, disability, or death of the seafarer covers “all claims arising from or in relation with or in the course of the seafarer’s employment, including but not limited to damages arising from the contract, tort, fault or negligence under the laws of the Philippines or any other country.” The permanent disability compensation of US$60,000 clearly amounts to reasonable compensation for the injuries and loss of earning capacity of the seafarer. In awarding damages for loss of earning capacity, the Labor Arbiter relies on the rulings in Villa Rey Transit v. Court of Appeals[6] and Baliwag Transit, Inc. v. Court of Appeals. [7] But these cases involve essentially claims for damages arising from quasi-delict. The present case, on the other hand, involves a claim for disability benefits under Chin’s contract of employment and the governing POEA set standards of recovery. The long-standing rule is that loss of earning is recoverable if the action is based on the quasi-delict provision of Article 2206 of the Civil Code.[8] While the Labor Arbiter can grant moral and exemplary damages, the amounts he fixed in this case are quite excessive in the absence of evidence to prove the degree of moral suffering or injury that Chin suffered. It has been held that in order to arrive at a judicious approximation of emotional or moral injury, competent and substantial proof of the suffering experienced must be laid before the court.[9] It is worthy to stress that moral damages are awarded as compensation for actual injury suffered and not as a penalty. The Court believes that an award of P30,000.00 as moral damages is commensurate to the anxiety and inconvenience that Chin suffered. As for exemplary damages, the award of P25,000.00 is already sufficient to discourage petitioner Magsaysay from entering into iniquitous agreements with its employees that violate their right to collect the amounts to which they are entitled under the law. Exemplary damages are imposed not to enrich one party or impoverish another but to serve as a deterrent against or as a negative incentive to curb socially deleterious actions.[10] WHEREFORE, the Court PARTIALLY GRANTS the petition and AFFIRMS the February 28, 2011 Decision of the Court of Appeals and its October 11, 2011 Resolution with MODIFICATION. The award of loss of earning is DELETED and petitioner Magsaysay Maritime Corporation is ORDERED to pay respondent Oscar D. Chin, Jr. P19,279.95 as reimbursement for medical expenses, P30,000.00 as moral damages, P25,000.00 as exemplary damages, and attorney’s fees equivalent to 10% of the total of these amounts. SO ORDERED. Velasco, Jr., (Chairperson), Peralta, Mendoza, and Leonen, JJ., concur. May 2, 2014 elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/56870 3/5