FACTS:

Ernesto Quiogue Jr. was hired as an Able Bodied Seaman by Elburg Shipmanagement Philippines, Inc. While on duty, his co-worker accidentally dropped a fire wire on his left foot, causing a fracture in one of his metatarsal bones. Quiogue was repatriated and received treatment from the company-designated physician until April 2011. Despite the treatment, he continued to experience pain and sought a second opinion from Dr. Nicanor Escutin, who certified him as permanently and totally incapable of performing his work. Quiogue claimed compensation for total permanent disability, but the petitioners refused, citing the company-designated physician's certification that he was fit to work. The Labor Arbiter ruled in Quiogue's favor, ordering the petitioners to pay him the amount representing his permanent and total disability benefit. The NLRC affirmed the decision, stating that the findings of the attending physician favorable to Quiogue should be adopted. The petitioners filed a petition for certiorari with the Court of Appeals, arguing that Quiogue was not entitled to permanent disability benefits.

Additionally, Quiogue had filed a previous complaint for permanent disability benefits against his previous employer, which the labor tribunal and the Court of Appeals affirmed. In this present case, Quiogue filed a claim for permanent and total disability benefits against his succeeding employers. The CA affirmed the ruling of the NLRC that Quiogue was entitled to such benefits, but deleted the award of attorney's fees. The CA held that even though the company-designated physician declared Quiogue fit to work, his disability could still be considered permanent and total because he was certified fit to work only after more than 120 days from the time he was repatriated. The CA also noted that Quiogue had previously received permanent disability benefits from his former employer, but this did not nullify his claim against his succeeding employers.

The petitioner argues that Quiogue's disability was not permanent and total since he did not lose the use of any part of his body. However, Quiogue invokes the ruling in Quitoriano, where the Supreme Court held that a disability should be considered permanent and total if it took more than 120 days for the company physician to issue a "fit to work" certification. In this case, it took 145 days for the certification to be issued. The parties filed their respective arguments and counter-arguments before the Supreme Court.

ISSUES:

1. Whether a seafarer is entitled to permanent and total disability benefits if the medical treatment or assessment period exceeds 120 days but not 240 days.

2. Whether the doctrine of permanent and total disability benefits is based on medical significance or loss of earning capacity.

3. Whether or not a seafarer is entitled to total and permanent disability benefits when the medical treatment exceeds 120 days but not 240 days

4. Whether or not the determination of disability should be based solely on the number of treatment lapsed days

5. Whether the failure of the company-designated physician to issue a definite assessment of the seafarer's fitness to work or permanent disability within the period of 120 or 240 days results in the seafarer being deemed totally and permanently disabled.

6. Whether the company-designated physician must provide a sufficient justification to extend the original 120-day period before invoking the exceptional 240-day period.

7. Whether the company-designated physician's assessment is the sole determining factor for the seafarer's claim for permanent and total disability benefits.

8. Whether the seafarer has the right to consult a physician of his choice in determining his disability.

9. Whether the seafarer is entitled to permanent and total disability benefits.

10. Whether or not the previous award of permanent disability benefits bars the present claim for disability benefits against the petitioners.

11. Whether or not the award for attorney's fees should be deleted due to the failure to explain the entitlement thereto.

RULING:

1. If the medical treatment or assessment period of a seafarer exceeds 120 days but not 240 days, the seafarer is not entitled to permanent and total disability benefits.

2. The doctrine of permanent and total disability benefits is based on the loss of earning capacity rather than the medical significance of the disability.

3. A seafarer is entitled to total and permanent disability benefits when the medical treatment exceeds 120 days but not 240 days. This is provided under Section 20(B) of the POEA-SEC and Article 192 of the Labor Code. However, the extension of the 120-day period to 240 days must be justified by further medical attention required for the seafarer's condition. If there is no justification for the extension of the period, the seafarer is deemed to be in a state of permanent total disability and entitled to total disability benefits.

4. The determination of disability should not be based solely on the number of treatment lapsed days. The extent of a seafarer's disability should be determined by the disability grading recognized by the company-designated physician based on the resulting incapacity to work and earn wages. The doctor's findings should prevail as they possess the proper discernment, knowledge, experience, and expertise on what constitutes total or partial disability.

5. If the company-designated physician fails to give a definitive assessment of the seafarer's disability grading within the period of 120 days, without any justifiable reason, then the seafarer's disability becomes permanent and total.

6. If the company-designated physician fails to give his assessment within the period of 120 days with a sufficient justification, then the period of diagnosis and treatment shall be extended to 240 days. However, the employer has the burden to prove that the company-designated physician has sufficient justification to extend the period.

7. The medical assessment of the company-designated physician is not the only basis for the seafarer's claim for permanent and total disability benefits. The assessment must be issued within the authorized 120-day period or the properly extended 240-day period.

8. The seafarer has the right to consult a physician of his choice, and the findings of the seafarer's private doctor must be evaluated by the labor tribunals in awarding disability claims.

9. The seafarer is entitled to permanent and total disability benefits because he was unable to work for more than 120 days, the company-designated physician failed to extend the period of diagnosis and treatment to 240 days, and his disability was considered permanent and total due to the certification issued after more than 120 days from his repatriation.

10. No, the previous award of permanent disability benefits does not bar the present claim for disability benefits against the petitioners. The fact that the claimant had previously received permanent disability benefits from his former employer for an injury sustained during that employment is immaterial and does not nullify a similar claim against his succeeding employers. The claimant's inability to resume work for more than 120 days, as well as his disability not falling within the exceptions provided by the Rules, justified the award of permanent disability benefits.

11. Yes, the award for attorney's fees should be deleted because the labor arbiter failed to explain the claimant's entitlement thereto. The factual, legal, or equitable justification for the award must be set forth in the text of the decision. In the absence of a stipulation, attorney's fees are not ordinarily recoverable unless a factual basis for the award is provided.

PRINCIPLES:

• Permanent and total disability of seafarers is defined by Article 192(c)(1) of the Labor Code.

• Rule X, Section 2 of the Amended Rules on Employees' Compensation implements the period of entitlement to income benefits for temporary total disability of seafarers.

• Crystal Shipping, Inc. v. Natividad established the 120-day rule for determining permanent and total disability.

• Vergara v. Hammonia Maritime Services, Inc. clarified the application of the 120-day rule and extended the assessment period to 240 days.

• Seafarers who undergo medical treatment or assessment for more than 240 days are entitled to permanent and total disability benefits.

• The doctrine of permanent and total disability benefits considers the loss of earning capacity of the seafarer rather than the medical significance of the disability.

• There is confusion in the application of permanent and total disability benefits when the medical treatment or assessment period exceeds 120 days but not 240 days.

• Millan v. Wallem Maritime Services, Inc. held that seafarers are not entitled to permanent and total disability benefits if the medical treatment or assessment period exceeds 120 days but not 240 days.

• The extension of the 120-day period to 240 days must be justified by further medical attention required for the seafarer's condition in order for the seafarer to be entitled to permanent and total disability benefits.

• The determination of disability should be based on the disability grading recognized by the company-designated physician, not solely on the number of treatment lapsed days.

• Injuries or disabilities classified as Grade 1 may be considered as total and permanent disability under Section 32 of the POEA-SEC, while injuries or disabilities with a grading from 2 to 14 that incapacitate a seafarer from performing his usual sea duties for more than 120 or 240 days, depending on the need for further medical treatment, are considered total and permanent disability.

• The company-designated physician is expected to arrive at a definite assessment of the seafarer's fitness to work or permanent disability within the period of 120 or 240 days. Failure to do so and the seafarer's medical condition remaining unresolved shall result in the seafarer being deemed totally and permanently disabled.

• The company-designated physician must provide a sufficient justification to extend the original 120-day period before invoking the exceptional 240-day period.

• The disability benefits granted to the seafarer are not solely dependent on the number of days the seafarer could not work, but on the disability grading recognized by the doctor based on the resulting incapacity to work and earn wages.

• The determination of the fitness of a seafarer for sea duty is the province of the company-designated physician.

• The seafarer has the right to consult a physician of his choice, and their findings must be evaluated in disability claims.

• Permanent disability is the inability of a worker to perform their job for more than 120 days.

• Total disability means the disablement of an employee to earn wages in the same kind of work or any kind of work they can do.

• Permanent total disability compensation can be awarded if the seafarer's medical condition remains unresolved after 120 days.

• The possibility of being able to work again does not negate the claim for permanent total disability benefits. What is important is that the claimant was unable to perform his customary work for more than 120 days, constituting permanent total disability.

• There must always be a factual basis for the award of attorney's fees, and the justification for the award must be stated in the decision. Without a proper explanation, the award of attorney's fees is speculative and conjectural. In the absence of a stipulation, attorney's fees are not ordinarily recoverable.