Mutia v. C.F. Sharp Crew Mgt., Inc., G.R. No. 242928, [June 27, 2022]

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Mutia v. C.F. Sharp Crew Mgt., Inc.

G.R. No. 242928, [June 27, 2022]

SECOND, LOPEZ, M.

 

Sickness allowance; Concealment of Seafarer's Illness; Concealed illness unrelated to seafarer's disability

 

Section 20 (E) of the CBA, which disqualifies a seafarer from claiming disability benefits for knowingly concealing a pre-existing illness only applies when the concealed illness or injury contributed to the seafarer's disability. In the absence of these conditions, the employer remains liable for work-related injury or illness. 

Petitioner Loue B. Mutia was hired as an assistant cook by respondent C.F. Sharp Crew Management, Inc. (C.F. Sharp) on behalf of Norwegian Cruise Lines (NCL). Mutia's employment contract was covered by a Collective Bargaining Agreement (CBA) that granted disability benefits of up to US$100,000.00 in case of disability resulting in loss of profession. Mutia underwent a pre-employment medical examination (PEME) where he ticked the box "No" when asked about any previous medical conditions, including ear trouble and deafness. However, his audiometry results showed "mild hearing loss, bilateral." Mutia experienced back pain and eye problems while working on the ship and was eventually diagnosed with "L5-S1 desiccation with annular tear," "Multiple Sclerosis," "Blurring of Vision," and "Neuromyelitis optica." He was repatriated to the Philippines and sought disability benefits. 

 

Whether there is material concealment of a pre-existing illness as contemplated by the Collective Bargaining Agreement (CBA) that will bars Mutia's claim for disability benefits. 

NO. The Court held that Mutia's prior ear illness did not constitute a pre-existing illness as defined in the CBA. The employer failed to prove that Mutia's acute otitis media, which he allegedly concealed, had any causal connection to his present medical conditions diagnosed with "L5-S1 desiccation with annular tear," "Multiple Sclerosis," "Blurring of Vision," and "Neuromyelitis optica . The Court emphasized that the burden of proof lies with the employer to establish the concealment of a pre-existing illness. In this case, the respondents solely relied on Mutia's affidavit of quitclaim, which did not provide sufficient evidence of concealment. The Court further explained that Section 20 (E) of the CBA, which disqualifies a seafarer from claiming disability benefits for knowingly concealing a pre-existing illness, should be interpreted narrowly. It only applies when the concealed illness or injury contributed to the seafarer's disability. In the absence of these conditions, the employer remains liable for work-related injury or illness. Since Mutia's prior ear illness was unrelated to his present medical conditions, there was no intent to deceive or profit from the concealment. Therefore, Mutia was entitled to permanent total disability benefits.

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