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the time of payment.
SO ORDERED.[7]
Aggrieved, petitioners filed an appeal with the NLRC contending that, contrary to the
claims of respondents that Padrones died of tuberculosis, he, in fact, died of lung
cancer.[8] Petitioners also argued that Padrones' death is not compensable because he
did not die during the effectivity of his contract; instead, he died one year and five
months after his employment contract expired and that his death was due to an illness
which was not related to nor contracted from his employment.[9]
On April 18, 2005, the NLRC promulgated its Decision[10] reversing the Decision of the
LA and dismissing respondents' complaint for lack of merit. The NLRC held that:
xxxx
x x x "as over emphasized by appellant [herein petitioners] the seafarer
[Padrones] passed away one year and five months from the time he finished
his employment contract. The employment contract expired on October 30,
1999, but was repatriated on November 23, 1999; Mr. Padrones, the
seafarer died on April 25, 2001. Clearly, the employment contract was no
longer in force when the seafarer died. Applying the POEA SEC [Standard
Employment Contract], complainants are not entitled to death benefits.
Respondents-appellants were able to belie appellee's allegation that
complainant was repatriated due to medical reasons. Appellants submitted
in evidence a copy of the CLAIM FORM filled up by Mr. Padrones when he
reported to respondent's office after sign off from the vessel. In the said
claim form, the deceased was asked of his claims, including claims for illness
or injury. Mr. Padrones affixed, N/A or "not applicable."
x x x x[11]
Respondents filed a Motion for Reconsideration,[12] but the NLRC denied it in its
Resolution[13] dated February 24, 2006.
Respondents then filed a special civil action for certiorari with the CA contending that
the NLRC committed grave abuse of discretion in reversing the decision of the LA which
granted death benefits in their favor.[14]
In its assailed Decision promulgated on August 17, 2007, the CA ruled in respondents'
favor. The CA held that, while respondents are not entitled to death benefits, they
should be paid disability benefits which has accrued in favor of Padrones prior to his
death. The CA held that:
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