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with a permanent disability since he can no longer perform his work
which he is previously engaged in. (Emphasis supplied)
Petitioner asked respondents for payment of his disability benefits, but respondents
refused. Efforts toward an amicable settlement was unsuccessful. Hence, on September
13, 2012, petitioner filed a complaint[22] before the Labor Arbiter, praying that his
disability be declared as work-related, total and permanent, and that respondents be
declared solidarity liable to pay him permanent total disability benefit, moral and
exemplary damages and attorney's fees.
In their Position Paper,[23] respondents stated that in view of the medical report of their
accredited doctor dated September 11, 2012 stating that petitioner can eventually
resume his sea duties, they declined petitioner's claim for permanent total disability
benefit.
The Labor Arbiter's Ruling
In a Decision[24] dated November 22, 2013, the Labor Arbiter held that petitioner was
permanently and totally disabled and that he could no longer resume sea duty. The
Labor Arbiter cited the medical report dated September 11, 2012 of the companydesignated physician, which stated that petitioner did not pass the functional capacity
test done according to petitioner's job description and he should continue flexibility and
strength exercises through his physiatrist. The Labor Arbiter found as unmeritorious
respondent's contention that petitioner's resumption of work at sea is expected,
because petitioner did not pass the functional capacity test and was required to
continue physical therapy, and he was still suffering from disability and has not
returned to his previous job for more than 120 days. The Labor Arbiter cited Crystal
Shipping, Inc. v. Natividad,[25] which held that permanent disability is the inability of a
worker to perform his job for more than 120 days, regardless of whether or not he
loses the use of any part of his body.
The Labor Arbiter stated that while the company-designated physicians did not state in
categorical terms that petitioner was permanently disabled, they did not also state that
he was already fit to work with disability Grade 8 and petitioner has not returned to his
previous job for more than 120 days. The Labor Arbiter held that the findings of the
company-designated physicians is not binding on the Labor Arbiter or the courts for the
said reports would have to be evaluated on their inherent merit.
The Labor Arbiter ruled that petitioner's employment was covered by the ITF Uniform
"TCC" Collective Bargaining Agreement (CBA), and petitioner is entitled to disability
compensation under Section 21 (a) and (b) thereof in the amount of US$156,816.00.
The dispositive portion of the Decision reads:
WHEREFORE, a Decision is hereby rendered ordering Respondents
Crossworld Marine Services, Inc. and Golden Union Shipping Company, S.A.
to jointly and severally pay complainant Eugenio M. Gomez permanent
disability benefit Grade 1, in the amount of US$156,816 or its peso
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