Wednesday, 2 July 2025

Case 255 of 327: Can a seafarer claim total and permanent disability benefits if the company-designated physicians fail to issue a final and definitive medical assessment within the prescribed 120/240-day period following medical repatriation?

        327 Cases Penned by Associate Justice Amy Lazaro-Javier: 2025 Bar Examination

Can a seafarer claim total and permanent disability benefits if the company-designated physicians fail to issue a final and definitive medical assessment within the prescribed 120/240-day period following medical repatriation?

Kennedy R. Quines vs. United Philippine Lines, Inc. and/or Shell International Trading and Shipping Co.  G.R. No. 248774 | May 12, 2021


Kennedy R. Quines vs. United Philippine Lines, Inc. and/or Shell International Trading and Shipping Co.

G.R. No. 248774 | May 12, 2021

Facts of the Case:

Kennedy R. Quines, a long-time seafarer working for United Philippine Lines, Inc. (UPLI) and Shell International Trading and Shipping Co. (Shell), began experiencing health issues during his deployment aboard a vessel in July 2015. His duties involved strenuous physical tasks such as rigging ladders, operating cranes, and carrying heavy loads. While performing these duties, Quines began suffering from headaches, nausea, muscle cramps, and stomach pain, leading to his medical repatriation due to hypertension.

Despite being declared "fit for work" after a series of medical tests in the Philippines, Quines continued to experience health problems. In March 2016, during a subsequent deployment, he suffered from severe chest pains, dizziness, and high blood pressure. This led to another medical repatriation. The company-designated physicians treated Quines but did not issue a final medical assessment regarding his fitness for duty within the 120/240-day window provided under Philippine law.

Feeling unwell and unable to return to work, Quines sought a second opinion from an independent cardiologist, who diagnosed him with Ischemic Heart Disease and declared him unfit for sea duty. Quines then sought total and permanent disability benefits.

The Panel of Voluntary Arbitrators (PVA) ruled in Quines' favor, awarding him total and permanent disability benefits. However, the Court of Appeals reversed this decision, finding that Quines had not sufficiently proven he suffered from a debilitating heart condition that rendered him permanently unfit for sea duties. Quines elevated the matter to the Supreme Court.

Primary Issue:

Is Kennedy R. Quines entitled to total and permanent disability benefits due to the company-designated physicians’ failure to issue a final and definitive medical assessment within the 120/240-day period?

Ruling of the Supreme Court:

The Supreme Court reversed the Court of Appeals' decision and reinstated the ruling of the Panel of Voluntary Arbitrators. The Court held that when a company-designated physician fails to issue a final and definitive medical assessment within the required period of 120/240 days, the law deems the seafarer to be totally and permanently disabled. The Court ruled that the company-designated physicians did not issue a conclusive assessment on Quines' fitness to work, as their reports were incomplete and inconclusive.

Furthermore, Quines had been continuously unemployed after his medical repatriation, and his reliance on multiple maintenance medications for hypertension—exceeding the allowable number for seafarers—made him unfit to resume his duties.

Dispositive Portion:

The Supreme Court ordered United Philippine Lines, Inc. and Shell International Trading and Shipping Co. to jointly and severally pay Kennedy R. Quines the following:

  1. US$98,848.00 as total and permanent disability benefits or its peso equivalent at the time of payment;
  2. 10% attorney’s fees of the total monetary award; and
  3. 6% legal interest per annum on the total monetary award from the finality of the decision until full payment.

Should seafarers be automatically granted total and permanent disability benefits if the company-designated physicians fail to issue a conclusive medical assessment within the legal timeframe?

Key Doctrines:

  1. 120/240-Day Rule
    Failure by company-designated physicians to issue a final and definitive assessment within 120 or 240 days renders the seafarer totally and permanently disabled by operation of law.
  2. Work-Related Aggravation
    Even if an illness is pre-existing, it is compensable if the strenuous nature of a seafarer's work has aggravated the condition.
  3. Unfit for Sea Duties
    Under DOH Administrative Order No. 2007-0025, a seafarer requiring more than two maintenance medications for hypertension is considered unfit for sea duties, disqualifying them from further maritime employment.

4.     Inconclusive Medical Assessments
The Supreme Court emphasized that medical assessments from company-designated physicians must be final, complete, and definitive to determine a seafarer's fitness or unfitness for work. Vague or conditional findings, such as stating that a seafarer "may" recover or "is not permanently unfit," do not meet the required standard for a final medical report.

5.     Compensability of Pre-existing Conditions
The Court reaffirmed the principle that pre-existing conditions do not exempt employers from liability for disability benefits if the seafarer's work aggravated the condition. Employers take employees as they find them, and they assume the risk of an employee's weakened physical condition being exacerbated by the nature of the work.

This case falls under Labor Law

 


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📢DISCLAIMER:
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🎓 In today’s jurisprudence digest, we explore a landmark labor law decision from the Supreme Court involving a medically repatriated seafarer whose right to total and permanent disability benefits was put to the test due to a procedural lapse by his employer's doctors.

This discussion will highlight essential doctrines, especially the 120/240-day rule, aiding law students, reviewees, and baristas in reinforcing their understanding of labor standards applicable to seafarers.

📚 CASE DETAILS:

Title: Kennedy R. Quines vs. United Philippine Lines, Inc. and/or Shell International Trading and Shipping Co.

G.R. No. 248774

Date of Promulgation: May 12, 2021

Nature: Labor Law – Disability Benefits of Seafarers

Brief Summary: Quines, a seafarer for 13 years, was repatriated due to hypertension and chest pains. Despite multiple medications, no definitive medical assessment was issued within the 240-day period. The Panel of Voluntary Arbitrators ruled in his favor, but the Court of Appeals reversed it. Ultimately, the Supreme Court reinstated the arbitral decision, awarding him US$98,848 in permanent disability benefits.

🔍 Key Issue: Does the failure of a company doctor to issue a final, definite assessment within 240 days entitle a seafarer to total and permanent disability benefits by operation of law?

💬 Should workers lose their rights due to an employer’s delay? Comment your thoughts!

 

🎯 10 MOST IMPORTANT DOCTRINES

    1. Failure to Issue Final Assessment = Permanent Disability
      If a company-designated physician fails to provide a definitive medical assessment within 120/240 days, the disability is considered permanent and total. (G.R. No. 248774, May 12, 2021)
    2. Fit to Work Declaration Requires Clarity
      Vague statements like "not permanently unfit" or “may improve” are not valid assessments. Finality is key. (Rollo p. 325–326)
    3. Pre-Existing Illness Does Not Bar Compensation
      If work aggravated the condition, it is compensable regardless of whether the illness existed before employment. (More Maritime Agencies, cited in the decision)
    4. Five Maintenance Medicines = Unfit for Sea Duty
      Under DOH AO No. 2007-0025, a seafarer taking more than two maintenance medicines is automatically deemed unfit for duty. (Rollo p. 182–183)
    5. Company Doctors' Inaction Weakens Defense
      When doctors recommend further evaluation but the employer takes no action, the report loses credibility. (Rollo p. 190)
    6. Psychiatric Cause Must Be Proven
      Claiming anxiety without actual psychiatric evaluation is insufficient to disprove disability. (Rollo p. 190–191)
    7. Employment History Matters
      A long, unbroken employment record can help establish work-aggravated illness. Quines served from 2002 to 2015. (Rollo p. 181)
    8. Continuous Unemployment Implies Total Disability
      Not being rehired or employed post-repatriation supports the claim of permanent disability. (Rollo p. 183–184)
    9. PEME is Not Conclusive on Health Status
      Pre-Employment Medical Exam only screens seafarers; it does not rule out the development of work-aggravated conditions. (Rollo p. 182)
    10. Legal Interest Applies on Awards
      Disability awards carry a 6% legal interest per annum from the finality of the decision until full payment. (Nacar v. Gallery Frames, cited)

 

⚖️ DISCLAIMER:

This video is made for educational purposes only. It does not guarantee infallibility and was prepared using premium artificial intelligence. Always verify with the latest jurisprudence and legal counsel.

 

FREQUENTLY ASKED QUESTIONS (FAQs)

    1. Q: What is the 120/240-day rule?
      A
      : It refers to the period within which company-designated doctors must issue a final assessment on a seafarer’s condition. Beyond this, the law deems the disability permanent and total.
    2. Q: Can a seafarer still get benefits for pre-existing conditions?
      A
      : Yes, if work aggravated the condition.
    3. Q: Is a PEME enough to prove a seafarer’s health?
      A
      : No. A PEME is a basic screening tool and not a full diagnostic tool.
    4. Q: Can employers claim anxiety as a defense to deny claims?
      A
      : Not without proper psychiatric evaluation and findings.
    5. Q: How much was awarded to Quines by the Supreme Court?
      A
      : US$98,848, plus attorney’s fees and 6% legal interest.

 

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 🎓Welcome, future lawyers and bar examinees! This quizzer is based on a noteworthy Labor Law case involving disability benefits of a medically repatriated seafarer. The case is:

Kennedy R. Quines vs. United Philippine Lines, Inc. and/or Shell International Trading and Shipping Co.

G.R. No. 248774 | Promulgated on May 12, 2021

📝 Nature of the Case: Labor Law – Disability benefits, medical repatriation, 120/240-day rule, seafarer's entitlement.

Case Summary:

Kennedy Quines, an Able Seaman, was repatriated due to hypertension and chest pains. Despite undergoing treatment, the company-designated physicians failed to issue a final and definite medical assessment within 240 days. The Panel of Voluntary Arbitrators awarded him US$98,848 in total and permanent disability benefits. The Court of Appeals reversed the award, but the Supreme Court reinstated it, emphasizing the employer's failure to meet the legal obligation of timely assessment.

📌 The answer key will be provided at the end of the video. Let’s test your understanding with these easy-level HOTS (Higher Order Thinking Skills) questions!

 

🔍 QUIZZER – 10 EASY HOTS MULTIPLE CHOICE QUESTIONS

1. What was the primary reason why the Supreme Court ruled in favor of Kennedy Quines?

A. He was diagnosed with anxiety

B. His illness was unknown at the time of employment

C. No final medical assessment was issued within the required period

D. He demanded excessive compensation

2. Under the ruling, what happens if a company-designated doctor fails to issue a definitive assessment within the legal period?

A. The employer may terminate the employee

B. The disability is deemed permanent and total

C. The employee must seek government assistance

D. The claim is dismissed outright

3. Why did the Court find the company doctors’ reports to be inconclusive?

A. They were unsigned

B. They used uncertain terms and lacked finality

C. They favored the employee

D. They were submitted late to the court

4. What was Kennedy Quines' profession?

A. Fisherman

B. Marine engineer

C. Cook

D. Able Seaman

5. What was a key indication that Quines was unfit for sea duty based on health standards?

A. He had a prior criminal record

B. He failed a vision test

C. He took more than two maintenance medications

D. He was over the age limit

6. What critical step did the company fail to do after recommending psychiatric evaluation?

A. Give additional leave

B. Assign a new vessel

C. Comply with the psychiatric referral

D. Inform the seafarer's family

7. What doctrine did the Supreme Court apply to rule Quines permanently disabled by operation of law?

A. Finality of judgment

B. Continuity of service

C. 120/240-day rule

D. Force majeure doctrine

8. What was the amount awarded to Quines for total and permanent disability?

A. US$10,000

B. US$50,000

C. US$98,848

D. US$120,000

9. What was the Court of Appeals’ reason for reversing the arbitral tribunal’s decision?

A. Quines failed to apply for another job

B. No substantial evidence proved permanent unfitness

C. The arbitration panel was improperly constituted

D. Quines admitted to lying in his medical exam

10. What legal interest did the Supreme Court impose on the monetary award?

A. None

B. 2% per annum

C. 6% per annum from finality until full payment

D. 12% per annum compounded monthly

 

 

 

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