Abosta Shipmanagement Corp. vs. Segui

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TOPIC PART IX – Total and Permanent Disability Benefits

CASE NO. G.R. No. 214906


CASE NAME Abosta Shipmanagement Corporation, et. al vs. Segui
DATE January 16, 2019
PETITIONER Abosta Shipmanagement Corp., Cido Shipping Company LTD., and Alex S.
Estabillo
RESPONDENT Dante C. Segui
TYPE OF CASE Petition for review on certiorari

DOCTRINE
In the case of Elburg Shipmanagement Phils., Inc. v. Quiogue, the Court expounded that if there
is a claim for total and permanent benefit disability benefits by a seafarer, the following rules
shall govern:
1. The company-designated physician must issue a final medical assessment on the
seafarer's disability grading within a period of 120 days from the time the seafarer
reported to him;
2. If the company-designated physician fails to give his assessment within the period of 120
days, without any justifiable reason, then the seafarer's disability becomes permanent and
total;
3. If the company-designated physician fails to give his assessment within the period of 120
days with a sufficient justification (e.g.,seafarer required further medical treatment or
seafarer was uncooperative),then the period of diagnosis and treatment shall be extended
to 240 days. The employer has the burden to prove that the company-designated
physician has sufficient justification to extend the period; and
4. If the company-designated physician still fails to give his assessment within the extended
period of 240 days, then the seafarer's disability becomes permanent and total, regardless
of any justification.

FACTS
 Dante C. Segui (Segui) alleged that he was hired by Abosta Shipmanagement
Corporation (Abosta), Cido Shipping Company, Ltd. (Cido), and Alex Estabillo
(Estabillo) as an able seaman; that prior to his deployment, he underwent the required
pre-employment medical examination of which he was declared fit to work.
 During his employment, he would be on duty for more than 12 hours a day resulting in
extreme fatigue and exhaustion.
o While on duty, he felt cramps followed by a severe back pain; that the next day,
he was unable to stand and remained in his cabin for the rest of the voyage.
o He was diagnosed with a lumbar disc problem and was recommended
repatriation.
 When he arrived in Manila and was referred to Manila Doctors Hospital where a CT Scan
showed that he was suffering from Lumbar Spondylosis.
 Segui sought the opinion of Dr. Nicanor Escutin and that after a thorough examinations
and test, concluded that the nature and extent of Segui’s injury rendered him permanently
and totally unfit to work as a seafarer, thus, Segui asked Abosta, Cido, and Estabillo to
pay his total and permanent disability, however, they refused. Hence, this complaint.
 Abosta, Cido, and Estabillo do not dispute the circumstances of Segui’s engagement and
subsequent deployment to his assigned vessel, as well as his repatriation on medical
claims, but deny liability of the claims.
o They aver that Segui is only entitled to the compensation corresponding to the
assessment made by the company-designated physician; that there is no basis to
claim permanent total disability compensation; that Segui failed to prove his
entitlement to full disability compensation; and that the findings of the company-
designated physician are binding on Segui.

ISSUE/S and HELD


W/N Segui is entitled to maximum benefit of permanent and total disability benefits? YES

RATIO
In the present case, the records reveal that from Segui's repatriation and immediate referral to the
company-designated physician on December 2, 2010 until the 120-day period on March 31,
2011, the latter did not issue a medical assessment on Segui's disability grading. It was only on
the 219th day or on July 8, 2011, when Segui reached the maximum medical cure, that the
company-designated physician issued a disability rating of "Grade 8 disability — moderate
rigidity or 2/3 loss of motion or lifting power of the trunk." Notably, the company-designated
physician did not determine Segui's fitness to work. Clearly, there was non-compliance with
Items 1 and 2 of the rules on claim for total and permanent disability benefits cited in the
Elburg case. The company-designated physician failed to issue a medical assessment within
the 120-day period from the time Segui reported to him, and there was no justifiable reason
for such failure. Likewise, there was no sufficient justification to extend the 120-day period
to 240 days. Thus, following the above rules, Segui's disability becomes permanent and total,
and entitles him to permanent and total disability benefits under his contract and the collective
bargaining agreement.

Here, the records of the case are replete with support that Segui’s injury is permanent and total,
and that he is entitled to permanent and total disability benefits as unanimously declared by the
LA, the NLRC, and the CA.

DISPOSTIVE PORTION
WHEREFORE, premises considered, the Court of Appeals Decision dated July 31, 2014 and the
Resolution dated October 14, 2014 in CA-G.R. SP No. 130277 are AFFIRMED with
MODIFICATION in that legal interest at the rate of 6% per annum hereby imposed on the
monetary award for permanent and total disability benefits due Dante C. Segui, be reckoned
from the finality of this Decision until full satisfaction thereof.

Other notes:
 Disability is considered total if there is disablement of an employee to earn wages in the
same kind of work of similar nature that he was trained for, or accustomed to perform, or
any kind of work, which a person of his mentality and attainments could do. It does not
mean absolute helplessness. The disability is considered permanent if there is inability
of a worker to perform his job for more than 120 days, regardless of whether he loses the
use of any part of his body.
 What determines entitlement to permanent disability benefits is the inability to
work for more than 120 days.

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