PAL MARITIME CORPORATION, NORWEST MANAGEMENT CO. (PTE) LTD. SINGAPORE/ SONRISA N. DAVID VS. DARWIN D. DALISAY

 [ G.R. No. 218115, January 27, 2021 ]

[G.R. No. 218170, January 27, 2021]

LOPEZ, M., J.:

Disposition:    FOR THESE REASONS, the petition in G.R. No. 218115 is GRANTED. The Court of Appeals' Decision dated September 11, 2014 in CA-G.R. SP No. 134114 is REVERSED and SET ASIDE with respect to the awards of sickness allowance and attorney's fees. The Labor Arbiter's Decision dated August 28, 2013 dismissing the complaint is REINSTATED.

FACTS

In 2012, Darwin Dalisay (Darwin) applied for shipboard employment with PAL Maritime Corporation (PAL Maritime), which directed him to undergo a pre-employment medical examination (PEME) in its accredited clinic. During his examination, Darwin declared that he had no history of any ailment other than a "Varicocoelectomy" operation in 2003. Thus, Darwin was declared fit to work and hired as an able seaman on behalf of PAL Maritime's foreign principal Norwest Management Corporation (PTE) LTD. Singapore (Norwest Management). On November 28, 2012, Darwin was deployed aboard the vessel M/V Ornella.

Meantime, Darwin requested for medical attention after experiencing sharp and intense pain on his lower back while lifting heavy provisions. Darwin was then referred to a hospital in Vietnam for magnetic resonance imaging, and was detected to be suffering from "degeneration of spur lumbar verbae/increase of liver enzymes." On December 10, 2012, Darwin was repatriated to the Philippines, and PAL Maritime's company-designated physician diagnosed him with "low back pain secondary to Disc Protusion L4-L5 and L5-S1." Darwin underwent physical therapy from December 13, 2012 to February 28, 2013.

On March 8, 2013, PAL Maritime discovered that Darwin previously filed a claim for permanent and total disability benefits for his low back pain against his former employer Phil Transmarine Carriers, Inc. (Phil Transmarine) and was awarded in 2008 the amount of US $60,000.00 or P3,127,278.00. As such, PAL Maritime discontinued Darwin's medical treatment because of malicious concealment of a pre-existing illness. This prompted Darwin to seek medical attention from other physicians, namely, Dr. Gloria Coronel and Dr. Manuel Fidel Magtira (Dr. Magtira), who both declared him unfit to work. Incidentally, Dr. Magtira was the same physician who diagnosed Darwin as permanently unfit to work in the case filed against Phil Transmarine.

Aggrieved, Darwin filed a complaint against PAL Maritime and Norwest Management for permanent and total disability benefits, sickness allowance, damages and attorney's fees before the Labor Arbiter (LA) arguing that his illness is work-related and work-aggravated. On the other hand, PAL Maritime countered that Darwin's fraudulent concealment of a previous ailment disqualified him from claiming any benefits. In reply, Darwin denied any willful concealment, and argued that he is not expected to know the classification of his illness during the PEME.

ISSUE

Whether or not the respondent is entitled to receive his compensation and benefits including his sickness allowance.

RULING

A seafarer who is guilty of fraudulent concealment in the PEME is disqualified from claiming "any" compensation and benefits which include sickness allowance.

The POEA-SEC is deemed integrated with every agreement between a seafarer and his employer.21 Here, Darwin's employment contract with PAL Maritime was executed in 2012, and is covered by the 2010 Amended Standard Terms and Conditions Governing the Overseas Employment of Filipino Seafarers On-Board Ocean-Going Ships.22 Under Section 20(A) of the 2010 POEA-SEC, a seafarer is entitled to several "compensation and benefits" for any work-related illness or injury that he may have suffered during the term of the contract such as expenses for medical treatment, sickness allowance and disability benefits.

However, Section 20(E) of the 2010 POEA-SEC is likewise explicit that a seafarer who "knowingly conceals a pre-existing illness or condition" shall be disqualified from claiming "any compensation and benefits." The rule seeks to penalize seafarers who conceal material information in order to pass the PEME and even makes such misrepresentation a just cause for termination of employment.