4/9/2020
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The perfection of the contract, which in this case coincided with the date of
execution thereof, occurred when petitioner and respondent agreed on the
object and the cause, as well as the rest of the terms and conditions therein.
The commencement of the employer-employee relationship, as earlier
discussed, would have taken place had petitioner been actually deployed
from the point of hire. Thus, even before the start of any employeremployee relationship, contemporaneous with the perfection of the
employment contract was the birth of certain rights and obligations, the
breach of which may give rise to a cause of action against the erring party.
[15]
Despite the fact that the employer-employee relationship has not commenced due to
the failure to deploy respondents in this case, respondents are entitled to rights arising
from the perfected Contract of Employment, such as the right to demand performance
by C.F. Sharp of its obligation under the contract.
The right to demand performance was a categorical pronouncement in Santiago which
ruled that failure to deploy constitutes breach of contract, thereby entitling the seafarer
to damages:
Respondent’s act of preventing petitioner from departing the port of Manila
and boarding “MSV Seaspread” constitutes a breach of contract, giving rise
to petitioner’s cause of action. Respondent unilaterally and unreasonably
reneged on its obligation to deploy petitioner and must therefore answer for
the actual damages he suffered.
We take exception to the Court of Appeals’ conclusion that damages are not
recoverable by a worker who was not deployed by his agency. The fact that
the POEA Rules are silent as to the payment of damages to the affected
seafarer does not mean that the seafarer is precluded from claiming the
same. The sanctions provided for non-deployment do not end with the
suspension or cancellation of license or fine and the return of all documents
at no cost to the worker. They do not forfend a seafarer from instituting an
action for damages against the employer or agency which has failed to
deploy him.[16]
The appellate court could not be faulted for its failure to adhere to Santiago considering
that the Court of Appeals Decision was promulgated way back in 2003 while Santiago
was decided in 2007. We now reiterate Santiago and, accordingly, decide the case at
hand.
We respect the lower courts’ findings that C.F. Sharp unjustifiably refused to return the
documents submitted by respondent. The finding was that C.F. Sharp would only
release the documents if respondent would sign a quitclaim. On this point, the trial
court was affirmed by the Court of Appeals. As a consequence, the award by the trial
court of moral damages must likewise be affirmed.
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