FACTS:

On June 18, 2012, the petitioner, a seafarer, was hired by the respondent company to work as an Able Body Seaman for three months. While working onboard a vessel, the petitioner fell and suffered a broken right femur. He was brought to a hospital in the Netherlands for treatment and later repatriated to Manila. Upon arrival, he underwent a medical examination and was diagnosed with a fractured right femur. The company-designated doctor initially assessed the petitioner's disability as Grade 10 but after seeking a second opinion, another doctor recommended a disability Grade of three. The company physician eventually assessed the petitioner with a final disability Grade of 10. The respondents offered the petitioner a disability benefit of $30,225, which he refused and filed a claim for $150,000. The Labor Arbiter initially awarded the petitioner a disability benefit of $13,060 but it was later modified by the NLRC to $150,000. The CA then reversed the NLRC's decision and reinstated the Labor Arbiter's ruling. The petitioner sought reconsideration but it was denied by the CA. The petitioner then filed a petition for the reversal of the CA's decision, claiming entitlement to total and permanent disability benefits due to the inconclusive assessment of his disability and the need for further medical rehabilitation. The respondents argued that the 240-day rule does not apply to the third doctor's opinion and that the disability should be based on the Schedule of Disability under the 2010 POEA-SEC, discounting the duration of treatment or payment of sickness allowance. The respondents also argued that they are not liable for 100% disability compensation under the CBA, as the CBA only mandates the disability grading under the POEA-SEC.

ISSUES:

1. Whether the 120/240-day period for assessing disability applies to the company-designated doctor or the third doctor.

2. Whether the disability assessment of the third doctor is binding between the parties.

3. Whether the assessment of the company-designated physician of the seafarer's disability or fitness to return to work must be definite and conclusive within the period of 120 or 240 days.

4. Whether the same requirement applies to the assessment of an appointed third-party physician.

5. Whether or not respondents are liable to pay petitioner total and permanent disability benefits.

6. Whether or not petitioner is entitled to attorney's fees.

RULING:

1. The 120/240-day period for assessing disability only applies to the company-designated doctor, not the third doctor.

2. The disability assessment of the third doctor is binding between the parties.

3. Yes, the assessment of the company-designated physician of the seafarer's disability or fitness to return to work must be definite and conclusive within the period of 120 or 240 days. Failure to do so will result in the seafarer being deemed totally and permanently disabled.

4. Yes, the same requirement applies to the assessment of an appointed third-party physician. A final and definite disability assessment is necessary for the assessment to be binding on the parties.

5. Yes, respondents are liable to pay petitioner total and permanent disability benefits.

6. Yes, petitioner is entitled to attorney's fees.

PRINCIPLES:

• Permanent disability is the inability of a worker to perform his job for more than 120 days, regardless of whether or not he loses the use of any part of his body.

• Total disability is the disablement of an employee to earn wages in the same kind of work of similar nature that he was trained for, or accustomed to perform, or any kind of work which a person of his mentality and attainments could do.

• Disability that is both permanent and total disability is defined as "temporary total disability lasting continuously for more than one hundred twenty days, except as otherwise provided in the Rules."

• The 120/240-day period for assessing disability only applies to the company-designated doctor.

• The third doctor's assessment of the extent of disability must be definite and conclusive to be binding between the parties.

• The company-designated physician's certification must be a definite assessment of the seafarer's fitness to work or disability.

• If the company-designated physician fails to arrive at a definite assessment of the seafarer's fitness to work or permanent disability within the prescribed period, the seafarer shall be deemed totally and permanently disabled.

• The same requirement applies to the assessment of an appointed third-party physician before the assessment can be binding on the parties.

• A final and definite disability assessment is necessary to accurately reflect the extent of the seafarer's sickness or injuries and his or her capacity to resume work.

• In determining whether a disability is total or partial, what is crucial is whether the employee who suffered from disability could still perform his work notwithstanding the disability he met.

• The opinion of the third doctor must arrive at a definite and conclusive assessment of the seafarer's disability or fitness to return to work before it can be valid and binding between the parties.

• A total disability does not require that the employee be completely disabled or totally paralyzed. It is the incapacity to work resulting in the impairment of one's earning capacity that is compensated.

• Under the POEA-SEC, both the seafarer and the employer must mutually agree to seek the opinion of a third doctor. If there is disagreement on the services of the third doctor, the seafarer has the right to file a complaint with the labor authorities.

• In cases where a party is forced to litigate to protect their right and interest, they may be entitled to attorney's fees.

• The employer is liable to pay total and permanent disability benefits to an employee who suffered work-related injury or illness, regardless of the cause.

• The award of attorney's fees is justified when the employer refuses to satisfy the employee's demand in gross and evident bad faith.