Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1989 > August 1989 Decisions > G.R. No. 71604 August 11, 1989 - JOSE B. ATIENZA v. PHILIMARE SHIPPING AND EQUIPMENT SUPPLY, ET AL.:




PHILIPPINE SUPREME COURT DECISIONS

FIRST DIVISION

[G.R. No. 71604. August 11, 1989.]

JOSE B. ATIENZA, Petitioner, v. PHILIMARE SHIPPING AND EQUIPMENT SUPPLY, TRANS OCEAN LINER (Pte.) LTD., PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION AND NATIONAL LABOR RELATIONS COMMISSION, Respondents.

Linsangan Law Office for Petitioner.

Prudencio Cruz for Private Respondents.


SYLLABUS


1. LABOR LAWS; EMPLOYEES’ COMPENSATION; DEATH BENEFITS; RULING IN NORSE MANAGEMENT CO. V. NATIONAL SEAMAN BOARD (117 SCRA 486) NOT APPLICABLE; IN CASE AT BAR. — Norse is not applicable to the present petition. In that case, it was specifically stipulated by the parties in the Crew Agreement that "compensation shall be paid to employee in accordance with and subject to the limitations of the Workmen’s Compensation Act of the Philippines or the Workmen’s Insurance Law of the registry of the vessel, whichever is greater." That was why the higher benefits prescribed by the foreign law were awarded. By contrast, no such stipulation appears in the Crew Agreement now under consideration. Instead, it is dearly stated therein that the insurance benefits shall be "as per NSB Standard Format," in the event "of death of the seaman during the term of his contract, over and above the benefits for which the Philippine Government is liable under Philippine law."cralaw virtua1aw library

2. ID.; ID.; ID.; NSB MEMORANDUM CIRCULAR NO. 71, AMENDING NSB MEMORANDUM CIRCULAR NO. 46 NOT GIVEN RETROACTIVE EFFECT; CASE AT BAR. — The effectivity of NSB Memorandum Circular No. 71, which appears to have been retroactively applied by the NLRC in increasing the compensation from P40,000.O0 The amended award was based by the POEA on NSB Memorandum Circular No. 46, which became effective in 1979. The NLRC, apparently laboring under the belief that Memorandum Circular No. 71 was already effective at the time of the seaman’s death on May 12, 1981, increased the death benefits to P75,000.00 as provided thereunder. The fact, though, is that the new rule became effective only in December 1981, as certified by the POEA itself, or seven months after Atienza’s fatal accident.

3. ID.; ID.; ID.; LAW APPLICABLE ON DEATH COMPENSATION FOR SEAMAN; CASE OF STA. RITA AND WELL RUN MARITIME SA LTD. V. NLRC REITERATED. — On the petitioner’s claim that the award should be adjusted in view of the decrease in the purchasing power of the Philippine peso, it Suffices to cite the following relevant ruling of the Court in Sta. Rite and Well Run Maritime SA Ltd. NLRC: Regarding the third contention of the petitioners the records show that when Sta. Rita died on September 14, 1981, NSB Memorandum Circular No. 46 (Series of 1979) was the applicable law. Pursuant to this circular in case of a seaman’s death during the terms of his contract, the company shall pay his beneficiaries the amount of P30,000.00. On November 18,1981 or more than one month after Sta. Rita’s death the administrative regulations were amended to increase death compensation for seamen to P50,000.00, effective December 1, 1981. Considering that the applicable law governing death compensation for seamen at the time of Sta Rita’s death was Memorandum Circular No. 46, Series of 1979, the petitioner’s liability should be limited to P30,000.00. Moreover, if manning agents or shipping corporations secure employer’s insurance to cover their liabilities for death, total disability and sickness of officers and ratings on board foreign going vessels, the extent of the coverage is based on the applicable law at the time. It would be unjust to compel them to pay benefits based on a law not yet in effect at the time the contingency occurs.


D E C I S I O N


CRUZ, J.:


The facts of this case are not disputed. Even the legal issues are simple and are soon resolved.chanrobles.com : virtual law library

Joseph B. Atienza was engaged by Philimare Shipping and Equipment Supply, as agent for Trans Ocean Liner Etc. Ltd. of Germany, based on Singapore, to work as Third Mate on board the MV Tibati for the stipulated compensation of US$850.00 a month from January 20, 1981 to January 20, 1982. 1 The Crew Agreement signed by the parties on January 3, 1981, provided for insurance benefits "as per NSB Standard Format" and was validated and approved by the National Seamen Board on January 14, 1981. 2

On May 12, 1981, Atienza died as a result of an accident which befell him while working on the vessel in Bombay, India. 3 In due time, his father, the herein petitioner, filed a claim for death benefits computed at the rate of 36 months times the seaman’s monthly salary plus ten per cent thereof in accordance with the Workmen’s Compensation Law of Singapore, for a total of $30,600.00. The private respondents, while admitting liability, contended that this was limited to only P40,000.00 under Section D(1) of the NSB Standard Format.

On November 6, 1984, the Philippine Overseas Employment Administration sustained the private respondent and held that the applicable law was Philippine law. 4 On appeal, the decision was affirmed by the National Labor Relations Commission except that it increased the award to P75,000.00 pursuant to NSB Memorandum Circular No. 71, Series of 1981. 5

In the petition before us, we are asked to reverse the public respondent on the ground that Singaporean law should have been applied in line with our ruling in Norse Management Co. v. National Seamen Board, 6 where the foreign law was held controlling because it provided for greater benefits for the claimant. For their part, the private respondents question the application of NSB Memorandum Circular No. 71, Series of 1981, which they say became effective alter the seaman’s death. 7

On the first issue, our ruling is that Norse is not applicable to the present petition. The reason is that in that case, it was specifically stipulated by the parties in the Crew Agreement that "compensation shall be paid to employee in accordance with and subject to the limitations of the Workmen’s Compensation Act of the Philippines or the Workmen’s Insurance Law of the registry of the vessel, whichever is greater." 8 That was why the higher benefits prescribed by the foreign law were awarded. By contrast, no such stipulation appears in the Crew Agreement now under consideration. Instead, it is dearly stated therein that the insurance benefits shall be "as per NSB Standard Format," in the event "of death of the seaman during the term of his contract, over and above the benefits for which the Philippine Government is liable under Philippine law." 9

The petitioner argues that the Standard Format prescribed only the minimum benefits and does not preclude the parties from stipulating for higher compensation. That may be true enough But the point is that the parties in this case did not provide for such higher benefits as the parties did in the Norse case. There was no stipulation in the Crew Agreement of January 3, 1981, that the employee would be entitled to whichever greater insurance benefits were offered by either Philippine law or the foreign law; on the contrary, it was plainly provided that insurance benefits would be determined according to the NSB Standard Format then in force. The consequence is that the petitioner cannot now claim a higher award than the compensation prescribed in the said format.

As We said in Bagong Filipinas Overseas Corporation v. NLRC; 10

We hold that the shipboard employment contract is controlling in this case. The contract provides that the beneficiaries of the seaman are entitled to P20,000.00 ‘over and above the benefits’ for which the Philippine Government is liable under Philippine Law.chanrobles virtual lawlibrary

Hongkong law on workmen’s compensation is not the applicable law. The case of Norse Management Co. v. National Seaman Board, G.R. No. 54204, September 30, 1982, 117 SCRA 486 cannot be a precedent because it was expressly stipulated in the employment contract in that case that the workmen’s compensation payable to the employee should be in accordance with Philippine Law or the Workmen’s Insurance Law of the country where the vessel is registered "whichever is greater."cralaw virtua1aw library

The next issue involves the effectivity of NSB Memorandum Circular No. 71, which appears to have been retroactively applied by the NLRC in increasing the compensation from P40,000.O0 The amended award was based by the POEA on NSB Memorandum Circular No. 46, which became effective in 1979. 11 The NLRC, apparently laboring under the belief that Memorandum Circular No. 71 was already effective at the time of the seaman’s death on May 12, 1981, increased the death benefits to P75,000.00 as provided thereunder. The fact, though, is that the new rule became effective only in December 1981, as certified by the POEA itself, 12 or seven months after Atienza’s fatal accident.

On the petitioner’s claim that the award should be adjusted in view of the decrease in the purchasing power of the Philippine peso, it Suffices to cite the following relevant ruling of the Court in Sta. Rite and Well Run Maritime SA Ltd. NLRC: 13

Regarding the third contention of the petitioners the records show that when Sta. Rita died on September 14, 1981, NSB Memorandum Circular No. 46 (Series of 1979) was the applicable law. Pursuant to this circular in case of a seaman’s death during the terms of his contract, the company shall pay his beneficiaries the amount of P30,000.00. On November 18,1981 or more than one month after Sta. Rita’s death the administrative regulations were amended to increase death compensation for seamen to P50,000.00, effective December 1, 1981.

Considering that the applicable law governing death compensation for seamen at the time of Sta Rita’s death was Memorandum Circular No. 46, Series of 1979, the petitioner’s liability should be limited to P30,000.00. Moreover, if manning agents or shipping corporations secure employer’s insurance to cover their liabilities for death, total disability and sickness of officers and ratings on board foreign going vessels, the extent of the coverage is based on the applicable law at the time. It would be unjust to compel them to pay benefits based on a law not yet in effect at the time the contingency occurs.

WHEREFORE, the decision of the NLRC dated 15 July 1985 is SET ASIDE and that of the POEA is REINSTATED, without any pronouncement as to costs. It is so ordered.

Narvasa, Gancayco, Griño-Aquino and Medialdea, JJ., concur.

Endnotes:



1. Annex "A2," Rollo, p. 20.

2. Annex "A," Rollo, p. 18; Annex "A3," Rollo, p.21.

3. Rollo, pp. 4-5.

4. Ibid., pp. 22-24.

5. Id., pp. 25-28.

6. 117 SCRA 486.

7. Rollo, p.33.

8. 117 SCRA 491.

9. Sec. D(1) of the NSB Standard Format.

10. 135 SCRA 278.

11. B. Sta. Rita and Well Run Maritime S.A. Ltd. v. NLRC, G.R. No. 69132,11 March 1985, First Division Resolution.

12. Annex "1" Rollo, pp. 71-73; Annex "2" Rollo, p. 74

13. Supra, note 11.




Back to Home | Back to Main




















chanrobles.com





ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com






August-1989 Jurisprudence                 

  • G.R. No. 86564 August 1, 1989 - RAMON L. LABO, JR. v. COMMISSION ON ELECTIONS, ET AL.

  • G.R. No. 82849 August 2, 1989 - CEBU OXYGEN & ACETYLENE CO., INC. v. FRANKLIN M. DRILON, ET AL.

  • G.R. No. 83358 August 2, 1989 - CARIDAY INVESTMENT CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 84277-78 August 2, 1989 - PEOPLE OF THE PHIL. v. ESTANISLAO A. BATAS, ET AL.

  • G.R. Nos. 84637-39 August 2, 1989 - JESUS P. PERLAS, JR v. PEOPLE OF THE PHIL.

  • G.R. No. 50335 August 7, 1989 - FLORENTINO CURSINO v. PEDRO JL. BAUTISTA

  • G.R. No. 77647 August 7, 1989 - CETUS DEVELOPMENT INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 81954 August 8, 1989 - CESAR Z. DARIO v. SALVADOR M. MISON, ET AL.

  • G.R. No. 38498 August 10, 1989 - ISAAC BAGNAS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 44111 August 10, 1989 - MERCEDES T. RIVERA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 50732 August 10, 1989 - JOSE BAGTAS JR. v. COURT OF APPEALS, ET AL.

  • G.R. No. 51910 August 10, 1989 - LITONJUA SHIPPING INC. v. NATIONAL SEAMEN BOARD, ET AL.

  • G.R. No. 71527 August 10, 1989 - PEOPLE OF THE PHIL. v. PANTALEON BERBAL, ET AL.

  • G.R. No. 74004 August 10, 1989 - A.M. ORETA & CO., INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 75413 August 10, 1989 - JOSE P. DEL CASTILLO, JR. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 79766 August 10, 1989 - THELMA YNIGUEZ, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 79983 August 10, 1989 - BUGNAY CONSTRUCTION AND DEVELOPMENT CORPORATION v. CRISPIN C. LARON

  • G.R. No. 80770 August 10, 1989 - INTERNATIONAL HARDWARE, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. Nos. 83028-29 August 10, 1989 - PEOPLE OF THE PHIL. v. JULIAN MAGDAHONG, ET AL.

  • G.R. No. 84302 August 10, 1989 - ANGELITO HERNANDEZ v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 84719 August 10, 1989 - YONG CHAN KIM v. PEOPLE OF THE PHIL., ET AL.

  • G.R. No. 85590 August 10, 1989 - FLAVIANO BALGOS, JR., ET AL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 85668 August 10, 1989 - GELMART INDUSTRIES PHILS., INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 88259 August 10, 1989 - BOARD OF MEDICAL EDUCATION, ET AL. v. DANIEL ALFONSO, ET AL.

  • G.R. No. 48576 August 11, 1989 - MANSUETA T. TIBULAN, ET AL. v. AMADO G. INCIONG

  • G.R. No. 71604 August 11, 1989 - JOSE B. ATIENZA v. PHILIMARE SHIPPING AND EQUIPMENT SUPPLY, ET AL.

  • G.R. No. 72494 August 11, 1989 - HONGKONG AND SHANGHAI BANKING CORPORATION v. JACK ROBERT SHERMAN, ET AL.

  • G.R. No. 72908 August 11, 1989 - EUFEMIA PAJARILLO, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 73070 August 11, 1989 - PEOPLE OF THE PHIL. v. GLICERIO SONGCUAN, ET AL.

  • G.R. No. 73261 August 11, 1989 - REPUBLIC OF THE PHIL. v. FRANCISCO BACUS

  • G.R. No. 74229 August 11, 1989 - SHOEMART, INC., ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 74768 August 11, 1989 - JUANA DE LOS REYES v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 75368 August 11, 1989 - PEOPLE OF THE PHIL. v. ROMEO E. CARINGAL

  • G.R. No. 83334 August 11, 1989 - RENE E. CRISTOBAL v. COURT OF APPEALS, ET AL.

  • G.R. No. 83545 August 11, 1989 - ADELFO MACEDA v. COURT OF APPEALS, ET AL.

  • G.R. No. 85339 August 11, 1989 - SAN MIGUEL CORPORATION, ET AL. v. ERNEST KHAN, ET AL.

  • G.R. Nos. 57999, 58143-53 August 15, 1989 - RESURRECCION SUZARA, ET AL. v. ALFREDO L. BENIPAYO, ET AL.

  • G.R. No. 43619 August 16, 1989 - LUZON BROKERAGE CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 54224-25 August 16, 1989 - ANTONIO TAMBUNTING v. REHABILITATION FINANCE CORPORATION

  • G.R. No. 64255 August 16, 1989 - EVARISTO ABAYA, JR. v. EMPLOYEES’ COMPENSATION COMMISSION

  • G.R. No. 80918 August 16, 1989 - JOSEFINA M. PRINCIPE v. PHILIPPINE-SINGAPORE TRANSPORT SERVICES, INC., ET AL.

  • G.R. No. 82509 August 16, 1989 - COUNTRY BANKERS INSURANCE CORP. v. TRAVELERS INSURANCE AND SURETY CORP., ET AL.

  • G.R. No. 61754 August 17, 1989 - ROBERTO TING, ET AL. v. AUGUSTO E. VILLARIN, ET AL.

  • G.R. No. 70839 August 17, 1989 - REFRACTORIES CORPORATION OF THE PHILIPPINES v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 76936 August 17, 1989 - VIRGILIO RAPOSON v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 78447 August 17, 1989 - RESTITUTO CALMA v. COURT OF APPEALS, ET AL.

  • G.R. No. 83206 August 17, 1989 - DANILO WAJE v. COURT OF APPEALS, ET AL.

  • G.R. No. 88386 August 17, 1989 - UNIVERSITY OF THE PHILIPPINES, ET AL. v. RUBEN AYSON, ET AL.

  • G.R. No. 29341 August 21, 1989 - EDITH SUSTIGUER, ET AL. v. JOSE TAMAYO, ET AL.

  • G.R. No. 48541 August 21, 1989 - BERNABE CASTILLO v. COURT OF APPEALS, ET AL.

  • G.R. No. 49143 August 21, 1989 - ZAMBALES CHROMITE MINING COMPANY, INC. v. JOSE J. LEIDO, JR., ET AL.

  • G.R. No. L-62896 August 21, 1989 - CARLOS DAVID, ET AL. v. OSCAR C. FERNANDEZ

  • G.R. No. 70705 August 21, 1989 - MOISES DE LEON v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-62918 August 23, 1989 - FILIPINAS GOLF & COUNTRY CLUB, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • A.M. No. R-705-RTJ August 23, 1989 - LIGAYA GONZALES-AUSTRIA, ET AL. v. EMMANUEL M. ABAYA, ET AL.

  • G.R. No. 77439 August 24, 1989 - DONALD DEE v. COURT OF APPEALS, ET AL.

  • A.C. No. 2104 August 24, 1989 - NARCISO MELENDREZ, ET AL. v. REYNERIO I. DECENA

  • G.R. Nos. L-46753-54 August 25, 1989 - ANTONIO SOLIS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-50459 August 25, 1989 - LEONARDO D. SUARIO v. BANK OF THE PHILIPPINE ISLANDS, ET AL.

  • G.R. No. L-51206 August 25, 1989 - NORBERTO MASIPEQUIÑA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-55520 August 25, 1989 - PEOPLE OF THE PHIL. v. SALVADOR SAMSON

  • G.R. No. 71169 August 25, 1989 - JOSE D. SANGALANG, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 71753 August 25, 1989 - PHILIPPINE NATIONAL BANK v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 74730 August 25, 1989 - CALTEX PHILIPPINES, INC. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 78554 August 25, 1989 - ST. ANNE MEDICAL CENTER v. HENRY M. PAREL, ET AL.

  • G.R. No. 80112 August 25, 1989 - PEOPLE OF THE PHIL. v. RAMON MACUTO

  • G.R. No. 81262 August 25, 1989 - GLOBE MACKAY CABLE AND RADIO CORP., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 85331 August 25, 1989 - KAPALARAN BUS LINE v. ANGEL CORONADO, ET AL.

  • G.R. No. L-61297 August 28, 1989 - GRACIANO B. VALLES, ET AL. v. COURT OF FIRST INSTANCE OF SAMAR, ET AL.

  • G.R. No. 73996 August 28, 1989 - PEOPLE OF THE PHIL. v. DANILO TAGLE

  • G.R. No. 75931 August 28, 1989 - CASIANO S. SEDAYA v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 76537 August 28, 1989 - QUEZON BEARING & PARTS CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-46192 August 29, 1989 - SOCIAL SECURITY SYSTEM v. COURT OF APPEALS, ET AL.

  • G.R. No. L-47696 August 29, 1989 - JOSE MA. ANSALDO v. COURT OF APPEALS, ET AL.

  • G.R. No. 78272 August 29, 1989 - MERLIN CONSING v. COURT OF APPEALS, ET AL.

  • G.R. No. 79307 August 29, 1989 - COMMISSIONER OF CUSTOMS v. RAMON P. MAKASIAR, ET AL.

  • G.R. No. 81390 August 29, 1989 - NATHANIEL OLACAO, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 83108 August 29, 1989 - OFFSHORE INDUSTRIES, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 84032 August 29, 1989 - ELADIO CH. RUBIO v. COURT OF APPEALS, ET AL.

  • G.R. No. 84644 August 29, 1989 - ROLANDO R. LIGON v. COURT OF APPEALS, ET AL.

  • G.R. No. 84811 August 29, 1989 - SOLID HOMES, INC. v. TERESITA PAYAWAL, ET AL.

  • G.R. No. 85278 August 29, 1989 - RTG CONSTRUCTION, INC. v. BARTOLOME C. AMOGUIS, ET AL.

  • G.R. No. 71169 August 30, 1988

    JOSE D. SANGALANG, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-54424 August 31, 1989 - NASIPIT LUMBER COMPANY, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-58847 August 31, 1989 - PEOPLE OF THE PHIL. v. BARTOLOME BARRANCO

  • G.R. No. L-59876 August 31, 1989 - PEOPLE OF THE PHIL. v. DIOSDADO DE GUIA

  • G.R. No. 72709 August 31, 1989 - PEOPLE OF THE PHIL. v. ALBERTO PADILLA

  • G.R. No. 73317 August 31, 1989 - THOMAS YANG v. MARCELINO R. VALDEZ, ET AL.

  • G.R. No. 74214 August 31, 1989 - ST. LOUIS COLLEGE OF TUGUEGARAO v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 75289 August 31, 1989 - KAMAYA POINT HOTEL v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 75838 August 31, 1989 - UERM EMPLOYEES UNION-FFW v. MINISTER OF LABOR AND EMPLOYMENT, ET AL.

  • G.R. No. 78997 August 31, 1989 - VERONICA B. REYES v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 79387 August 31, 1989 - PEOPLE OF THE PHIL. v. JOSE L. MACALINO, ET AL.

  • G.R. No. 83523 August 31, 1989 - GROLIER INTERNATIONAL, INC. v. ARTHUR L. AMANSEC, ET AL.

  • G.R. No. 86026 August 31, 1989 - FILIPINAS PORT SERVICES, INC. DAMASTICOR v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.