Inter-Orient Maritime Vs Candava

INTER-ORIENT MARITIME VS CANDAVA
G.R. No. 201251, June 26, 2013

PERLAS-BERNABE, J.:
Facts:
In January 2002, petitioner Inter-Orient Maritime Incorporated hired Joselito C.

Candava as an able-bodied seaman for its foreign principal, Tankoil Carriers Limited.
Joselito was then deployed to M/T Demetra for a contract period of nine (9)
months. Despite expiration of his contract period on October 28, 2002, Joselito
continued to work aboard the vessel due to the unavailability of a replacement and such
work extension lasted until February 2003.
On February 13, 2003, Joselito complained of significant pain in the abdominal

region and was rushed to a hospital. He was diagnosed to be suffering from “direct
inguinal hernia strangulated right” and “acute appendicitis.” He was then repatriated to
Manila and upon his arrival, the company designated physician examined him and
declared him fit to work. Nonetheless, his supplications for work were rejected.
On March 28, 2003, Joselito, accompanied by representatives of petitioner Inter-

Orient, filed a complaint for recovery of sick wages and reimbursement of medical
expenses before the NLRC – National Capital Region (NLRC-NCR). However, on even
date, Joselito sought for its dismissal in consideration of the sum of P29,813.04 and in
relation thereto, executed a Release of All Rights.
On August 11, 2003, Joselito, again accompanied by representatives from

petitioner Inter-Orient, filed another complaint for medical benefits before the NLRC –
San Pablo City. Similarly, on even date, Joselito sought for the dismissal of his
complaint in consideration of the amount of P77,000.00 and executed a Receipt and
Release.
On October 9, 2003, Joselito passed away. His death certificate listed the

following causes:
Immediate Cause: RESPIRATORY FAILURE
Antecedent Cause: PULMONARY METASTASIS
Underlying Cause: GERM CELL TUMOR
Other Significant Conditions
Contributing to Death: PNEUMONIA
Respondent Cristina sent a Letter dated December 17, 2003 to petitioner Inter-

Orient, demanding payment of death benefits but her pleas fell on deaf ears. As such,
Cristina filed a complaint for death and other monetary benefits against petitioners
before the NLRC-NCR.
The LA ruled in favor of Cristina. The LA found that the release papers executed
by Joselito during his lifetime cannot bar his heirs’ right to receive death benefits and
burial expenses which only arose and accrued upon his death. Further, the LA opined
that the payment of sickness wages and other benefits made by petitioners is an
acknowledgement that his death was compensable.
The NLRC reversed and set aside the LA’s ruling, holding that Joselito did not
die during the term of his contract with petitioners and that his illness was not proven to
be work-related. Nonetheless, the NLRC held that contrary to petitioners’ claims,
Cristina’s complaint is not barred by res judicata considering the lack of identity of
causes of action between Joselito’s and Cristina’s respective complaints.
The CA annulled and set aside the NLRC’s ruling and reinstated that of the LA. It
held that while the Philippine Overseas Employment Administration Standard
Employment Contract (POEA-SEC) allows an employer to extend a seafarer’s
employment beyond the period stipulated if there was no replacement crew available,
such extension should not exceed three (3) months. In Joselito’s case, his original
contract period expired sometime in October 2002 but petitioners extended his
employment until February 2003, or for four (4) additional months. Thus, the CA
deemed that there was an implied renewal of Joselito’s employment contract for another
nine (9) months starting from the expiration of the allowable three (3) month extension
on January 28, 2003, or for the period of January 29, 2003 up to October 28, 2003. In
view of this, Joselito’s death on October 9, 2003 was within the term of his contract and
thus, compensable. Petitioners sought for reconsideration but was denied. Hence, this
petition.
Issue:
Whether or not Joselito’s death is compensable as to entitle his wife, Cristina

Candava, to claim death benefits.
Held:
Yes. Joselito’s death is compensable for having been caused by an illness duly
established to have been contracted in the course of his employment.
At this point, it should be noted that the compensability of Joselito’s death should
be resolved under the provisions of the 1996 POEA-SEC, which is the POEA-SEC in
effect when petitioners employed him in January 2002. This is because the 2000 POEA-
SEC which introduced amendments to the 1996 POEA-SEC initially took effect on June
25, 2000 but its implementation was suspended and lifted only on June 5, 2002.
The prevailing rule under the 1996 POEA-SEC was that the illness leading to the
eventual death of seafarer need not be shown to be work-related in order to be
compensable, but must be proven to have been contracted during the term of the
contract. An injury or accident is said to arise “in the course of employment” when it
takes place within the period of employment, at a place where the employee reasonably
may be, and while he is fulfilling his duties or is engaged in doing something incidental
thereto. A meticulous perusal of the records reveals that Joselito contracted his illness
in the course of employment. It cannot also be denied that the same was aggravated
during the same period. Thus, there was a clear causal connection between such
illness and his eventual death, making his death compensable.

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INTER-ORIENT MARITIME VS CANDAVA

G.R. No. 201251, June 26, 2013

In January 2002, petitioner Inter-Orient Maritime Incorporated hired Joselito C.

On February 13, 2003, Joselito complained of significant pain in the abdominal

On March 28, 2003, Joselito, accompanied by representatives of petitioner Inter-

On August 11, 2003, Joselito, again accompanied by representatives from

On October 9, 2003, Joselito passed away. His death certificate listed the

Respondent Cristina sent a Letter dated December 17, 2003 to petitioner Inter-

Whether or not Joselito’s death is compensable as to entitle his wife, Cristina

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