Shipping v. Navarra

DEL CASTILLO, J.:

Money claims arising from employer-employee relations, including those specified in the Standard Employment Contract for Seafarers, prescribe within three years from the time the cause of action accrues.1 However, for death benefit claims to prosper, the seafarer's death must have occurred during the effectivity of said contract. This Petition for Review assails the January 31, 2005 Decision2 and the April 4, 2005 Resolution3 of the Court of Appeals (CA) in CA-G.R. SP. No. 85584.

The CA dismissed the petition for certiorari filed before it assailing the May 7, 2003 Decision4 of the National Labor Relations Commission (NLRC) ordering petitioners to pay to Evelyn J. Navarra (Evelyn), the surviving spouse of deceased Federico U. Navarra, Jr. (Federico), death compensation, allowances of the three minor children, burial expenses plus 10% of the total monetary awards as and for attorney's fees. Factual Antecedents Petitioner Southeastern Shipping, on behalf of its foreign principal, petitioner Southeastern Shipping Group, Ltd., hired Federico to work on board the vessel "George McLeod." Federico signed 10 successive separate employment contracts of varying durations covering the period from October 5, 1995 to March 30, 1998.

His latest contract was approved by the Philippine Overseas Employment Administration (POEA) on January 21, 1998 for 56 days extendible for another 56 days. He worked as roustabout during the first contract and as a motorman during the succeeding contracts. On March 6, 1998, Federico, while on board the vessel, complained of having a sore throat and on and off fever with chills.

He also developed a soft mass on the left side of his neck. He was given medication. On March 30, 1998, Federico arrived back in the Philippines.

On April 21, 1998 the specimen excised from his neck lymph node was found negative for malignancy.5 On June 4, 1998, he was diagnosed at the Philippine General Hospital to be suffering from a form of cancer called Hodgkin's Lymphoma, Nodular Sclerosing Type (also known as Hodgkin's Disease). This diagnosis was confirmed in another test conducted at the Medical Center Manila on June 8, 1998. On September 6, 1999, Federico filed a complaint against petitioners with the arbitration branch of the NLRC claiming entitlement to disability benefits, loss of earning capacity, moral and exemplary damages, and attorney's fees.

During the pendency of the case, on April 29, 2000, Federico died. His widow, Evelyn, substituted him as party complainant on her own behalf and in behalf of their three children. The claim for disability benefits was then converted into a claim for death benefits.

Ruling of the Labor Arbiter On May 10, 2000, Labor Arbiter Ermita T. Abrasaldo-Cuyuca rendered a Decision dismissing the complaint on the ground that "Hodgkin's Lymphoma is not one of the occupational or compensable diseases or the exact cause is not known," the dispositive portion of which states:

WHEREFORE, premises considered judgment is hereby rendered dismissing the complaint for lack of merit. SO ORDERED.6 Evelyn appealed the Decision to the NLRC. Ruling of the NLRC On May 7, 2003, the NLRC rendered a Decision reversing that of the Labor Arbiter, the dispositive portion of which provides: WHEREFORE, the appealed decision is REVERSED and SET ASIDE. Judgment is hereby rendered ordering the respondents Southeastern Shipping/Southeastern Shipping Group Ltd. jointly and severally, to pay complainant Evelyn J. Navarra the following: Death compensation - US$ 50,000.00 Minor child allowance (3 x US$ 7,000) - 21,000.00 Burial expense - 1,000.00