4/20/2021
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Not all quitclaims are per se invalid or against public policy, except: (1) where there is
clear proof that the waiver was wangled from an unsuspecting or gullible person, or (2)
where the terms of settlement are unconscionable on their faces; in these cases, the
law will step in to annul the questionable transactions.[35] However, to allow the
recovery of full disability or death benefits by virtue of an invalid quitclaim presupposes
that there is a legal entitlement to such benefits in full.
Concomitantly, it is settled that no person should unjustly enrich himself or herself at
the expense of another.[36] Unjust enrichment exists "when a person unjustly retains a
benefit from the loss of another, or when a person retains money or property of another
against the fundamental principles of justice, equity and good conscience."[37] As such,
it must be shown that a party was unjustly enriched in the sense that the term unjustly
could mean illegally or unlawfully.[38]
In this case, the respondents (especially Magsaysay) cannot be considered to have
taken advantage of Castillon in the signing of the quitclaim as there was no clear proof
that the latter was gullible or was defrauded. Moreover, the terms of the settlement,
especially as to the amount of compensation cannot be considered as unconscionable.
This is because Castillon cannot be considered as being entitled to death benefits in the
first place for failure of his heirs to substantiate the existence of work-relatedness, a
requirement for compensability.
Courts, as well as magistrates presiding over them, are not omniscient; they can only
act on the facts and issues presented before them in appropriate pleadings.[39] As
such, evidence is needed to establish an approximate amount of monetary claim in the
first place before one can conclude that the amount being offered by the employer in a
given quitclaim is conscionable or unconscionable. Since no such monetary claim was
established/proven with substantial evidence of work-relatedness, it reasonably follows
that any sum provided in the succeeding quitclaim can never amount to anything
unconscionable.
Relatedly, since the evidence on record hardly establishes any relationship between
Castillon's colon cancer and his stay onboard M/V Amethyst Ace, it would be manifestly
unjust to require Magsaysay to part with its funds in order to pay off an obligation
which it never had. While the undersigned greatly sympathizes with the plight of
Castillon's heirs, he cannot in good conscience concede to the fact that one party will
be unduly benefited at the expense of another.
Conclusion
All told, the available records do not establish through substantial evidence that
Castillon's colon cancer developed due to or was caused by his work as a seafarer
onboard M/V Amethyst Ace. Castillon's short stint of six (6) months as a seafarer
onboard the subject vessel, coupled with an unsubstantiated allegation of poor dietary
provisions, are not enough to lead the mind of a reasonable person to accept that such
facts are adequate to justify the conclusion that such colon cancer was work-related.
Moreover, an interpretative rule in settling doubts such as social justice cannot
https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/66406
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