5/19/2021
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and conclusions are not supported by substantial evidence, which refers to that amount
of relevant evidence that a reasonable mind might accept as adequate to justify a
conclusion. Thus, if the NLRC's ruling has basis in the evidence and the applicable law
and jurisprudence, then no grave abuse of discretion exists and the CA should so
declare and, accordingly, dismiss the petition."[27]
Here, the CA found that the NLRC committed grave abuse of discretion amounting to
lack of jurisdiction when it granted petitioner's appeal before it. The Court defines grave
abuse of discretion as such capricious and whimsical exercise of judgment as is
equivalent to lack of jurisdiction.[28] It must be patent and gross as to amount to an
evasion of a positive duty or a virtual refusal to perform a duty enjoined by raw, or to
act at all in contemplation of law, as where the power is exercised in an arbitrary and
despotic manner by reason of passion and hostility.[29]
Given the foregoing, the Court finds that the CA did not err in ascribing grave abuse of
discretion on the part of the NLRC as the latter's finding that there is no sufficient
evidence in the case to conclude that respondent suffered from a work-related illness
and is, therefore, not entitled to permanent and total disability benefits is obviously not
in accord with evidence on record and settled legal principles of labor law.
In this case, respondent executed his employment contract with petitioners on March
14, 2008. Thus, the provisions of the 2000 Philippine Overseas Employment
Administration-Standard Employment Contract (POEA-SEC)[30] are applicable and
should govern the parties' relations.
Section 20(B)(6) of the 2000 POEA-SEC provides:
SECTION 20. COMPENSATION AND BENEFITS
xxxx
B. COMPENSATION AND BENEFITS FOR INJURY OR ILLNESS
The liabilities of the employer when the seafarer suffers work-related
injury or illness during the term of his contract are as follows:
xxxx
6. In case of permanent total or partial disability of the seafarer caused by
either injury or illness the seafarer shall be compensated in accordance with
the schedule of benefits enumerated in Section 32 of his Contract.
Computation of his benefits arising from an illness or disease shall be
governed by the rates and the rules of compensation applicable at the time
the illness or disease was contracted.
Given the foregoing provision, there are two elements that must concur before an
injury or illness is considered compensable: first, that the injury or illness must be
work-related; and second, that the work-related injury or illness must have existed
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