The Supreme Court denied the petition of RCCL Crew Management, Inc. and Royal Caribbean Cruise, Ltd. and affirmed the award to seafarer Jonathan Ian H. Ponio of permanent total disability benefits in the amount of USD 95,000.00 or its peso equivalent, plus attorney's fees.
The Case
RCCL Crew Management is a domestic corporation engaged in the business of manning agency for its foreign principal, Royal Caribbean, which operates ocean-going vessels. Sometime in 2015, Royal Caribbean, through its local agent RCCL Crew Management, employed Ponio as a seafarer, and the petitioners continuously reemployed him for their ocean-going vessels.
On March 20, 2017, Ponio underwent pre-employment medical examination and was declared "fit for duty" without any restrictions. His records show that he did not report any hearing loss at that time, he passed the whisper test, and both his left and right ears received a rating of "adequate" in the audiometry test.
On March 27, 2017, Ponio signed an Employment Contract with the petitioners as galley steward onboard the vessel Anthem of the Seas for a period of nine months. He boarded the vessel on April 14, 2017. His daily duties included maintaining the cleanliness of galley work areas, cleaning and sanitizing assigned work areas, washing various kitchen items and equipment, segregating and removing wastes, transferring supplies and equipment, and other all around strenuous duties.
Sometime in August 2017, Ponio began experiencing hearing loss in his right ear while onboard. He reported the incident to the onboard ship doctor, who prescribed ear drops and antibiotics. On September 28, 2017, he was brought to the Jersey Medical Center, which diagnosed him with "moderate to severe conductive hearing loss, right ear."
On October 30, 2017, Ponio was medically repatriated for further evaluation and treatment. He was referred to the company-designated physician and diagnosed with "Chronic Otitis Media, with possible cholesteatoma formation, right." On December 6, 2017, he was admitted at the Manila Doctor's Hospital where he underwent surgery. He later began his anti-Koch's treatment.
On June 13, 2018, after six months of undergoing anti-Koch's treatment, the company-designated physician reevaluated Ponio and issued a Final Report stating that he was "deemed maximally medically improved," and a Final Disability Grading equivalent to a Grade 11 Disability. Ponio then consulted an independent doctor, Dr. Minor D. De Jesus, who concluded that Ponio was "not fit for further sea duty permanently."
Ponio requested a grievance meeting with the petitioners but did not receive any response. He filed a Notice to Arbitrate with the Regional Conciliation Mediation Board-National Capital Region, and the parties agreed to submit their case to Voluntary Arbitration.
The Issue
The question was whether Ponio was entitled to permanent total disability benefits and attorney's fees, given the medical assessments and the absence of adequate proof that he was informed in writing of the company-designated physician's final medical assessment.
The Ruling
The Supreme Court denied the petition. Its disposition states:
"ACCORDINGLY, the Petition for Review on Certiorari is DENIED for lack of merit. The Decision dated May 6, 2022, and the Resolution dated September 7, 2022, of the Court of Appeals in CA-G.R. SP No. 167268 are AFFIRMED. Petitioners RCCL Crew Management, Inc., and/or Royal Caribbean Cruise Ltd. are hereby ORDERED to PAY respondent Jonathan Ian H. Ponio the following: (1) permanent total disability benefits in the amount of USD 95,000.00 or its peso equivalent at the time of payment; and (2) attorney's fees in the amount of 10% of the award of disability benefits. The total monetary awards shall earn legal interest at the rate of 6% per annum from the date the finality of this Decision until fully paid."
By the Numbers
- USD 95,000.00 — permanent total disability benefits awarded to Ponio
- 10% — attorney's fees based on the award of disability benefits
- 6% per annum — legal interest from finality of the Decision until fully paid
- March 27, 2017 — date Ponio signed the Employment Contract as galley steward
- April 14, 2017 — date Ponio boarded the vessel Anthem of the Seas
- Nine months — contract duration
- October 30, 2017 — date of medical repatriation
- June 13, 2018 — date of reevaluation after six months of anti-Koch's treatment
- Grade 11 — disability rating issued in the Final Disability Grading
The Court's Reasoning
In the absence of adequate proof showing that Ponio was informed in writing of the company-designated physician's final medical assessment, he must be deemed totally and permanently disabled by operation of law, and is thus entitled to compensation for total and permanent disability.
The petitioners did not contest the conclusion that under the Collective Bargaining Agreement (CBA), a seafarer of Ponio's rank who sustains a total and permanent disability because of a work-related injury or illness is entitled to full disability benefits in the amount of USD 95,000.00. The Court noted that the disability benefit under the CBA is higher than that under the 2010 POEA-SEC, which gives a total and permanent disability a rating of Grade 1 and compensation of USD 60,000.00. Article 28(D) of the CBA provides that the benefits therein include amounts payable to Filipino nationals under POEA rules and regulations. Consistent with the national policy in favor of laborers, the higher amount under the CBA must be awarded.
On attorney's fees, the Court cited Article 2208 of the Civil Code, holding that even in the absence of bad faith or malice, attorney's fees of 10% of the total monetary award may be granted where the seafarer was forced to litigate to protect their rights and interests. Ponio was forced to litigate to collect the proper disability compensation, initiating arbitration proceedings and defending his interests on appeal.
Source: Supreme Court Decision, G.R. No. 263434.
This report summarizes a public Supreme Court decision and is not legal advice.