Case Analysis Paper - Corporate Governance - Stakeholders

, Cebu
PHILIPPINE TRANSMARINE CARRIERS INC., and/or MARIN SHIPMANAGEMENT LIMITED versus

CLARITO A. MANZANO
Title of the Case
PROCEEDINGS/DETAILS OF THE CASE:
This is a Petition for Review on Certiorari of the Court of Appeals' (CA) Decision dated June 28, 2013 in
CA-G.R. SP No. 125600, and its subsequent Resolution dated December 10, 2013 denying Philippine
Transmarine Carriers Inc., and/or Marin Shipmanagement Limited's (petitioners) motion for
reconsideration. The CA dismissed the petition for review of the Decision of the National Conciliation
and Mediation Board (NCMB) dated June 20, 2012 in AC-855-NCMB-NCR-86-03-12-2011 which directed
herein petitioners to pay Clarita A. Manzano (respondent) the total amount of US$137,500.00, or its
peso equivalent converted at the time of payment, as disability benefit plus 10% thereof as attorney's
fees.
FACTS OF THE CASE:

Respondent entered into a contract of employment with herein petitioners on February 3, 2010.
He was hired as an Oiler for a period of eight months on board petitioner Marin Shipmanagement
Limited's vessel, the Maersk Danang. Respondent's employment was likewise covered by the Overriding
Total Crew Cost Fleet Agreement (TCC CBA) entered into by the International Transport Workers'
Federation and petitioner Transmarine Carriers, Inc.
As a requirement, the respondent completed the pre-employment medical examination (PEME)
and was declared fit for sea duty without restriction. Thus, on March 27, 2010, he boarded the Maersk
Danang and commenced his work. His duties or responsibilities involved strenuous manual labor which
necessarily included pushing, pulling, lifting and/or carrying heavy items.
Respondent alleged that sometime in the third week of July 2010, while he was working aboard
the Maersk Danang, he slipped and fell from an elevated height and initially landed on his right knee.
Consequently, he suffered from severe pain on his right knee, the right side of his body, and his lumbar
region. Due to persistent pain, respondent requested to see a doctor. Thus, on August 2, 2010, he was
brought to a hospital in Elizabeth, New Jersey, USA. Thereat, he was medically attended by Dr. Baljit S.
Sappal. As recommended, he underwent an x-ray examination and was found to have no fracture and
no dislocation but is suffering from "soft tissue injury, arthralgia, effusion" Thereafter, on August 9,
2010, respondent went to the East Houston Regional Medical Center and was attended by Dr. George
Griffin. His MRI's impression stated Decision.
1. No evidence of internal derangement.
2. Small joint effusion.
3. Slight lateral displacement of the patella. The lateral patellar facet cartilage is thinned with increased
signal suggesting chondromalacia.
Clinical correlation for lateral tracking abnormality is suggested.
The medical findings stated that "[y]our exam shows you have an injury to the knee joint. A
knee sprain is a tearing of the ligaments that hold the joint together. There are no broken bones.
Sprains take 3 to 6 weeks to heal. For persistent pain beyond one week, motion [ and] strengthening
exercises may be required through your doctor orthopedist." He was likewise advised to stay off the
injured leg as much as possible.19 Despite the advice, respondent had to return to work.
Respondent likewise claimed that in September 2010, while he was entering the engine room,
he was hit by a metal door at his right shoulder when a co-worker opened another door that resulted to
the strong pressure on the door that hit him. This caused him pain on the said shoulder and also in his
back.21 Regardless, he continued performing his duties.
On November 27, 2010, due to the persistent pain on his right shoulder and back, he went to
the Badr Al Samaa Group of Hospital and Polyclinics in Ruwi, Sultanate of Oman where he was examined
and was found to be suffering from costochondritis and myalgia in his right shoulder.
Respondent's eight-month contract ended; thus, he was repatriated. He arrived in Manila on
December 3, 2010. On the third day from his arrival, he went to the petitioners' office but was not
examined by the company-designated physician but was advised to obtain a Cocolife card.
It was not until December 15, 2010 that respondent was examined at St. Luke's Medical Center
under the care of Dr. Randolph M. Molo (Dr. Molo), the company-designated physician, who
recommended that respondent undergo an x-ray and Magnetic Resonance Imaging (MRl).
Thereafter, the respondent attended physical therapy sess10ns for several months at the said
hospital. Despite the therapy, he continued to suffer from pain. Hence, Dr. Molo recommended knee
and shoulder arthroscopies.
PROBLEMS:
WHETHER OR NOT A SEAFARER WHO FINISHED AND COMPLETED HIS EMPLOYMENT

CONTRACT WITHOUT ANY MEDICAL COMPLAINT ON BOARD OR UPON ARRIVAL IN THE PHILIPPINES IS
ENTITLED TO DISABILITY COMPENSATION.
Respondent is of the opinion that his claim for compensation for the injuries he suffered should
be resolved under the TCC CBA. On the other hand, the petitioners denied respondent's claim under the
TCC CBA and averred that the same is inapplicable as it only governs claims based on accidents.
Petitioners argued that there being no proof of any accident on board, respondent is not entitled to his
claims.
Although respondent claimed that his knee injury was caused by an accident when, while on
board, he slipped, fell from an elevated height, and landed on his right knee; and his right shoulder
injury was caused by a metal door that hit him at his right shoulder while he was entering a room and a
co-worker opened another door that resulted to the strong pressure on the door that hit him, no proof
was adduced to support his allegations. Seemingly, his injuries were caused by different accidents on
board the Maersk Danang, however, the petitioners were able to present proof to the contrary. The
medical documents of respondent, which were presented by both parties as evidence, clearly indicated
that his injury in his right shoulder was not caused by an accident. Further, the petitioners submitted a
statement issued by the master of the Maersk Danang that no accident on board involving respondent
was ever recorded. Anent his claim that his knee injury was caused by an accident, no proof was
presented by respondent to support the same.
Time-honored is the rule that whoever claims entitlement to benefits provided by law should
establish his right thereto by substantial evidence which is more than a scintilla; real and substantial,
and not merely apparent. It was incumbent upon respondent to prove his allegation that his injuries
were caused by accidents on board the vessel. His failure to do so certainly resulted to his non-
entitlement to the benefits he was seeking for under the TCC CBA.
Respondent's non-entitlement to the benefits under the TCC CBA does not mean he can no
longer claim benefits. He still can under the POEASEC which is deemed incorporated to his employment
contract, provided, however, that he is able to prove that his injuries or illnesses are work related.
Petitioners, in their attempt to exculpate themselves from any liability, asseverated that since
respondent was not medically repatriated, his injuries or illnesses are not compensable even under the
PO EA-SEC.
RECOMMENDATIONS:
Section 20 (A) finds no application to him, he may still claim disability benefits.
In instances where the illness manifests itself or is discovered after the term of the seafarer's
contract, the illness may either be (1) an occupational illness listed under Section 32-A of the POEA-SEC,
in which case, it is categorized as a work-related illness if it complies with the conditions stated in
Section 32-A, or (2) an illness not listed as an occupational illness under Section 32-A but is reasonably
linked to the work of the seafarer.
Certainly then, a seafarer who was repatriated for end of contract and had no medical condition
during his employment but later suffers from an illness which manifested only after the end of his
employment can still be entitled to disability benefits provided, he/she can prove that the illness
suffered is reasonably linked to the work performed on board. It is, thus, absurd to say that respondent,
who was repatriated for end of contract but already had medical conditions while onboard during his
employment, is not entitled to disability benefits while a seafarer, who was likewise repatriated for end
of contract but suffered from an illness which manifested only after repatriation, is entitled to the same
benefits.
Also, Undeniably, Dr. Molo, the company-designated physician, failed to issue a certification as
to respondent's medical condition or fitness to work despite lapse of the 240-day extended period for
treatment from initial examination.
Undoubtedly then, respondent is entitled to the maximum US$60,000.00 as disability benefit.
Anent the claim for attorney's fees, considering that respondent incurred legal expenses after the
petitioners denied him his disability benefits and was thus constrained to litigate with a counsel in all the
stages of this proceeding to protect his rights and interest, this Court considers 10 percent (10%) of the
total monetary award as appropriate and commensurate under the circumstances.

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, Cebu

PHILIPPINE TRANSMARINE CARRIERS INC., and/or MARIN SHIPMANAGEMENT LIMITED versus

FACTS OF THE CASE:

WHETHER OR NOT A SEAFARER WHO FINISHED AND COMPLETED HIS EMPLOYMENT

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