INTER-ORIENT MARITIME INC. vs CRISTINA CANDAVA, G.R. NO. 201251, JUNE 26, 2013

 "Claim for death benefit is compensable when caused by an illness that is contracted in the course of employment. There is no need to show that the illness is work-related. It is enough that it occurred during the term of their contract."

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FACTS:

Joselito Candava was hired as a seafarer by Inter-Orient Maritime, Inc. for its foreign client, Tankoil Carrier Ltd. He was then deployed for a 9 months contract. Despite the expiration of his contract, he continued working at the vessel. One day, he experienced severe abdominal pain and then underwent 2 surgical procedures.He was then repatriated to the Philippines. Upon examination of the company physician, he was declared fit to work. However, his application to work again was rejected by the petitioner.

Joselito then filed a complaint on sickness wages and reimbursement of medical expenses before the NLRC. He signed a quitclaim upon payment to him the amount of P29,813.40 by the petitioner. A month later, he was diagnosed with tumor and lung carcinoma, which caused him to file another complaint for medical benefits. He then signed a quitclaim upon receipt of the amount of P77,000 from the petitioner.

Few months later, Joselito passed away with the antecedent cause of death was respiratory failure and pulmonary metastasis. His wife, respondent Cristina Candava then filed a death benefit claim from the petitioner. Petitioner, however, claimed that it already paid Joselito before and refused to give the death benefit. 

This prompted the respondent to file a claim for death benefit before the NLRC with the allegation that while Joselito was not coerced to sign the quitclaim, his condition forced him to sign the same because he needs the money for treatment. She further claimed that the illness of her husband was contracted during his employment with the petitioner, thus, he is entitled to death benefits, burial assistance, damages and attorney's fees.

Petitioner claims that her claim is barred by Res Judicata through the 2 complaints previously filed by Joselito which were already dismissed through his own motion and submitted the release document executed by him.

The Labor Arbiter ruled in favor of the respondent stating that the release of Joselito of the petitioner does not bar the rights of his heirs to receive the death benefits. Moreover, the fact that the petitioner paid Joselito before is an acknowledgment that his death is compensable.

This ruling was reversed by the NLRC, however, holding that Joselito did not die during the term of his contract, and his illness was not proven to be work-related. It also ruled that the claim of the respondent is not barred by res judicata due to lack of identity in the cause of action between the claim of Joselito and Cristina. The respondent filed a motion for reconsideration but the same was denied by the NLRC. Aggrieved she filed a petition for certiorari to the Court of Appeals. The CA reversed the NLRC decision and pointed out that the petitioner failed to rebut the disputable presumption that Joselito's death was work-related. Petitioner thus filed a review before the SC.

ISSUE:

Is Joselito's death compensable?

RULING:

The Supreme Court held that there is no requirement to prove that the death of a seafarer is work-related to be compensable. It is enough to prove that he contracted the illness during the term of his contract. Neither it is required to prove that the working condition increased the risk for him to contract the illness or disease. An injury or accident is deemed to arise in the course of employment when it takes place within the term of employment and at the place where the employee is reasonably may be to perform his duties. The records show that Joselito contracted his illness during the term of his employment and there is a clear causal connection between his illness and death, therefore making his death compensable. 

While his contract already expired, but the fact that he remained and continued to render services at the vessel is deemed to be a constructive renewal of his contract. The execution of his quitclaim releasing the petitioner from further liabilities is viewed by the court as a pre-designated scheme to evade payment of disability benefits. When Joselito went to submit the release document to the labor arbiter it was already signed and he was accompanied by the petitioner, adding more to the fact that such execution of the document negates voluntariness. 

It has been established that the illness was contracted by Joselito during the period of his employment with the petitioner, therefore making his death compensable.

California Clothing Inc. v. Shirley Quinones, GR No. 175822, October 23, 2013

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"Abuse of Rights and its elements" "Law on Human Relations"

Shirley Quinones went to shop at the Guess USA Boutique and purchased a pair of jeans. She paid the item and was issued a receipt by the store's cashier. As she walked away a store employee went after her demanding to pay the item. She told the employee she already paid it and showed her the receipt of her purchase. As the store employee insisted she forgot to pay, respondent requested they meet at her office in Cebu Pacific which is only located at the same building to talk about the concern. The respondent claimed to have been humiliated when the store employee continued to demand payment in front of Cebu Pacific's clients and even wrote a letter to her employer and HRD of Robinson's narrating the incident for the purpose of canceling her credit card.

Respondent claimed to have suffered from anxiety, sleepless nights, mental anguish, serious apprehension, fright, moral shock and social humiliation.

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The petitioner explained there was miscommunication between the employees regarding the payment made of the respondent. They alleged that they were polite in asking the respondent for some clarifications on the payment made on her items. The RTC ruled the petitioner acted in good faith believing the respondent failed to pay. The act of demanding payment is a mere exercise of their right with honest belief that no payment was made. It also finds the demand to pay made in front of Cebu Pacific's clients not damaging because it was the respondent's fault to continue their discussion at her office. The letters sent to the respondent's employee is likewise not damaging because the petitioners were merely asking assistance and not intended to humiliate or embarrass her.

The CA reversed the RTC decision. It finds bad faith when the petitioner wrote the letter to the respondent's employer who is not privy to their transactions and subjected the respondent to ridicule and humiliation. Moreover, the official receipt presented by the respondent suffice as proof of payment which does not warrant further investigation against her. 

The petitioner now filed an appeal before the SC.

ISSUE

Is Quinones entitled to damages?

RULING

YES. 

The complaint against the petitioners stem from the principle of abuse of rights. 

As cited by the court in the case of Carpio v Valmonte, under the law on human relations, the victim of a wrongful act or omission, whether done negligently or willfully, is given a remedy or recourse to obtain relief from the damage or injury that the victim sustained. 

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Our civil law is also imbued not only with the principles of equity, but also of moral precepts that are designed with certain norms that come from good conscience that guides human conduct. One of these fundamental moral precepts is the abuse of rights under Article 19 of the Civil Code that has the following elements: 

(1) there is a legal right or duty

(2) which is exercised in bad faith

(3) for the sole intent of prejudicing or injuring another

ARTICLE 19 of the Civil law requires that "a person must, in the exercise of a right or duty, act in good faith." Good faith is a state of mind which is manifested by the act of an individual. It consists of the intention to abstain from taking an unconscionable and unscrupulous advantage of another. Malice or bad faith implies a conscious and intentional design to do a wrongful act for a dishonest purpose or moral obliquity.

Any person who acted in bad faith thus will be liable for damages.

The court recognizes the right of the petitioners to make clarification from the respondent whether payment was made or not, however, the manner of such inquiry is not proper. The exercise of a right must be made in accordance to such purpose and must not be harsh.

The court also ruled that complementing Article 19 are the following:

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Article 20. Every person who, contrary to law, willfully or negligently causes damage to another, shall indemnify the latter for the same.

Article 21. Any person who willfully causes loss or injury to another in a manner that is contrary to morals or good customs, or public policy shall compensate the latter for the damage.

Thus, the respondent is entitled to damages.

The 30-days Grace Period for Loans During Covid-19 Pandemic Ends on May 31, 2020

           Creditors were mandated to give debtors a 30-days mandatory grace period for loans that fall due during the enhanced community quarantine as so declared by Section 4(aa) of the Republic Act No. 11469, otherwise known as the Bayanihan to Health As One Act. This is premised under the economic restrictions imposed by placing the Philippines under community quarantine due to the Covid-19 pandemic.

          Unfortunately, the 30-days grace period for loans will no longer apply effective June 1, 2020.

          The Bangko Sentral Ng Pilipinas issued Memorandum No. M-2020-045 for the guidelines. It provides that all principals and interests that fall due on or before May 31, 2020 are still covered by the 30-days grace period. All debts, the principal and interest alike, incurred effective June 1, 2020, will no longer be entitled to the 30-days grace period and thus will be due and demandable on their due dates. 

          The lifting of the 30-days grace period for loans was affected by the classification of the National Capital Region to be under General Community Quarantine and other parts of the country under Modified Enhanced Community Quarantine by the IATF.

Philippine Government Issuances On Covid-19

       

          As COVID-19 strikes the Philippines, various government issuances were released beginning March 2020 COVID that changed the life of the Filipinos.

          Here are some of the important government issuances that have a significant impact on the country and the way of living of its people.

          MARCH 8, 2020 - Presidential Proclamation No. 922, series of 2020

          President Rodrigo Duterte issued the Presidential Proclamation No. 22, series of 2020 declaring a State of Public Health Emergency throughout the entire Philippines in response to the confirmation of the Secretary of Health on the local transmission of COVID-19 in the Philippines. All government agencies and local government units (LGUs) were mandated to render full assistance and undertake appropriate response to curtail and eliminate the virus. The Secretary of Health may also call upon the PNP and other law enforcement agencies to assist in addressing the COVID-19 threat. On the other hand, residents, tourists, and establishment owners were urged to comply with lawful directives and advisories to be issued by appropriate government agencies. 

          MARCH 9, 2020 - Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-MEID) issued Resolution No. 10, series of 2020.

          The IATF-MEID issued Resolution No. 10, series of 2020 recommending as among others the suspension of classes in all levels in Metro Manila while prohibiting mass gathering and imposing social distancing measures within the National Capital Region. It also encouraged the private sectors to provide alternative working arrangements among its employees, including social distancing at the workplace. 

          MARCH 12, 2020 - Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-MEID) issued Resolution No. 11, series of 2020.

          The IATF-MEID issued Resolution No. 11, series of 2020 raising the Code Red Alert for COVID-19 to Sublevel 2, recommending to place the entire Metro Manila under community quarantine for thirty (30) days. It also encourages flexible working arrangements in the private sector, while mass transport continues operation. Domestic travels by land, air, and sea to and from Metro Manila will be suspended effective March 15, 2020. LGUs outside of NCR were given the discretion to suspend classes. Entry travel restriction from those traveling from countries with localized COVID-19 transmission was also imposed, except Filipino citizens, their spouse and children.

          MARCH 13, 2020 - Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-MEID) issued Resolution No. 12, series of 2020.

          The IATF-MEID issued Resolution No. 12, series of 2020 recommending the Social Distancing Measure within the NCR. Mass gatherings to be suspended and enhanced community quarantine will be imposed. Alternative work arrangements were encouraged within the private sectors.

          MARCH 16, 2020 - Proclamation No. 929, series of 2020

          President Rodrigo Duterte issued Proclamation No. 929, series of 2020 declaring a State of Calamity Throughout the Philippines due to COVID-19 for a period of six (6) months. The enhanced community quarantine will be imposed effective 12 midnight (March 17, 2020) until April 12, 2020 throughout Luzon.

          A Memorandum from the Office of the Executive Secretary was also issued on the same day on guidelines for the enforcement of the ECQ which include as among others the suspension of classes, prohibition of mass gatherings, strict home quarantine, suspension of mass transport, restriction on travel by air, land, and sea, and the temporary closure of private establishments except those providing essential services. 

          MARCH 17, 2020 - Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-MEID) issued Resolution No. 13, series of 2020.

          The IATF-MEID issued Resolution No. 13, series of 2020 on the guidelines for the implementation of the Enhanced Community Quarantine over Luzon. Among the recommendations include the preparedness of the National Disaster Risk Reduction and Management Council (NDRRMC) for the worst-case scenario and to develop a recovery plan. It also provides some modifications to the Memorandum issued by the Executive Secretary last March 16, 2020. Hotels and similar establishments were not allowed to operate with some exemptions.

          MARCH 19, 2020 - DTI Memorandum Circular No. 202-06

          The DTI issued M.C. No. 202-06 to provide the guidelines on the establishments that are considered as essentials to avoid hampering the movement of cargo and transit of personnel of the said business establishments. The covered enterprises include all manufacturers of food and essential products, medicine, medical supplies; retail establishments (groceries, supermarkets, convenience stores, drug stores, and pharmacies; Export companies and BPOs. Employees of the said companies are required to present a valid company ID, proof of residence, and Certificate of Employment.

          The DTI also issued Memorandum Circular No. 2020-07 that limits the sale and purchase of certain goods while freezing the prices of the basic necessities to its prevailing price.

         MARCH 20, 2020 - Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-MEID) issued Resolution No. 14, series of 2020.

         The IATF-MEID issued Resolution No. 14, series of 2020 canceling the Visas issued to foreigners, accommodation of distressed OFWs and exemptions to the ECQ as among others.

          MARCH 21, 2020 - DILG issued Memorandum Circular No. 2020-062

          The Circular provides guidelines to the LGUs regarding the implementation of the ECQ and State of Public Health Emergency due to the COVID-19 threat. Among the general guidelines declared that:

a.     All LGUs, being charged with the promotion of health and safety within their jurisdiction, are to take the lead in the prevention and control of the spread of the COVID-19 at the local level.

b.     Local Chief Executives must remain present in their areas of jurisdiction and all local officials, being frontliners in times of crises, are banned from traveling outside of the area.

c.      LGUs must adhere to the guidelines and not overextend its implementation, nor deliberately leave out its explicit provisions.

d.     LGUs must organize their Barangay Health Emergency Response Teams (BHERTs) by managing persons under investigation (PUIs) and those who came in contact with them.

e.     LGUs shall establish checkpoints.

f.       Local chief Executives must monitor the prices of items of necessity.

g.     LGUs shall enforce the prohibition on mass gatherings.

h.     LGUs shall not use DepEd schools as quarantine or isolation areas unless otherwise allowed by DepEd.  

          MARCH 23, 2020 - Administrative Order No. 26, series of 2020

          The Office of the President authorized the grant of Hazard Pay to all government personnel who physically report for work during the implementation of ECQ.

          MARCH 24, 2020 - Republic Act No. 11469 or the “Bayanihan to Heal As One Act,” 

         President Rodrigo Duterte signed the Bayanihan Act of 2020 enacted by the Philippine legislature giving the President special powers to respond to the COVID-19 situation in the country. The law mandates the executive branch to provide or carry-out the following, among others:

                                       a.     Emergency subsidy to 18million low income households for two (2) months not exceeding Php8,000;

b.     Special Risk Allowance to public health workers;

c.      Medical benefit to public and private health workers in case of exposure to work-related injury or disease;

d.     Exposure compensation of Php100,000 and death benefit of Php1,000,000 to public and private health workers;

e.     Enforcement of measures to protect the people from economic manipulations, such as hoarding, profiteering, injurious speculations, manipulation of prizes, product deceptions, cartels and monopolies or other combinations in restraint of trade that affect the supply, distribution and movement of food, clothing, hygiene and sanitation products, medicine and medical supplies, fuel, fertilizers, chemicals, building materials, implements, machinery, equipment and spare parts required in agriculture, industry and other essential services, and other articles of prime necessity, whether imported or locally produced or manufactured;

f.       Hiring of temporary medical and allied medical staff to complement or supplement the current health workforce;

g.     Availability of credit to the productive sectors of the economy in the countryside;

h.     Liberalize incentives for the manufacture or importation of critical or needed healthcare equipment or supplies;

i.       Adopt measures necessary to minimize disruption to the supply chain for basic commodities and services and ensure availability of essential goods, such as food and medicine;

j.       Regulate and limit the operation of all sectors of transportation through land, sea or air, whether private or public;

k.     Regulate traffic on all roads, streets and bridges, as well as prohibit and remove encroachments and illegal construction in public places;

l.       Authorize alternative working arrangements for employees and workers;

m.   Conserve and regulate the distribution and use of power, fuel, energy and water, and ensure their adequate supply;

n.     Direct all unobligated allotments and savings from appropriated programs, projects or activities of any agency in the Executive branch, including GOCCs, in the 2019 and 2020 budget, whether released and unreleased, as well as reprogram, reallocate and realign from savings on other items of appropriation in the 2020 budget of the Executive department, to respond to COVID-19 emergency including social amelioration for affected communities, and the recovery of areas, sectors and industries severely affected;

o.     Authority of the President to allocate cash, funds and investments, including unutilized or unreleased subsidies and transfers held by GOCCs or any national government agency;

p.     Move deadlines for the payment of taxes, fees and other charges, and the timeliness for the filing and submission of any document, required by law;

q.     Direct all banks, quasi-banks, financing companies, lending companies and other financial institutions, public and private, including GSIS, SSS, PAG-IBIG Fund, to grant a 30-day grace period for the payment of EVERY loan without incurring interests, penalties, fees and other charges; 

r.      Granting a minimum of 30-day grace period on residential rents without incurring interests, penalties, fees and other charges; and

s.      Pantawid Pamilya Pilipino Program, whether in cash or non-cash.

          The IATF also passed Resolution No. 15 on the same day directing the Philippine Charity Sweepstakes Office (PCSO) to transfer about Php420million to the Philippine Health Insurance Corporation to cover COVID-19 related packages. 

          March 27, 2020 - DILG issued Memorandum Circular No. 2020-063 

          The MC provides the guidelines on the Management of Human Remains for Patient Under Investigation (PUI) and Confirmed COVID-19 cases.

        March 28, 2020 - Joint Memorandum Circular No. 1-2020 jointly signed by the Secretaries of DSWD, DOLE, DTI, DA, DBM, DOF and DILG.

          The MC provides special guidelines on the Social Amelioration Measures to mitigate the socio-economic impact of COVID-19 health crisis especially to the most affected individuals, families and communities of the areas under ECQ. 

          The beneficiary/ies of these programs are: 

        (1) senior citizens; (2) persons with disability; (3) pregnant/lactating women; (4) solo parents; (5) overseas Filipinos in distress; (6) underprivileged sector and homeless families, indigenous people, and other vulnerable groups; (7) workers in the informal sector/self-employed individuals; (8) employers; and (9) rice farmers.

          April 6, 2020 - Administrative Order No. 28, series of 2020

          It grants the special risk allowance to frontline public health workers during the period of ECQ.

          April 7, 2020 - Memorandum from the Executive Secretary

         It issues the directive on the extension of the ECQ over the entire Luzon until April 30, 2020.

          April 28, 2020 - IATF Resolution No. 29, series of 2020

          The Resolution identifies the areas to be placed on ECQ until May 15, 2020 as follows:

          - NCR

          - Region III except the province of Aurora

          - Region IV-A (Calabarzon)

          - Province of Pangasinan

          - Province of Benguet

          - Baguio City

          - Province of Iloilo

          - Province of Cebu

          - Cebu City

          - Davao City

          The places not covered by the ECQ will be placed on General Community Quarantine.

STAY SAFE EVERYONE!