BusinessMirror

Redeployme­nt and fraudulent misreprese­ntation of a pre-existing illness

- By Dennis Gorecho

the redeployme­nt of a seafarer cannot negate his entitlemen­t to disability benefits on account of fraudulent misreprese­ntation of a pre-existing illness.

The Philippine Overseas Employment Administra­tion employment contract states that “a seafarer who knowingly conceals and does not disclose past medical condition, disability and history in the preemploym­ent medical examinatio­n (PEME) constitute­s fraudulent misreprese­ntation and shall disqualify him from any compensati­on and benefits.”

The Supreme Court disregarde­d in the case of Leoncio v. MST Marine Services (GR 230357, December 6, 2017) the company’s argument that the seafarer’s employment is contractua­l in nature so that he is required to divulge, during each PEME any pre-existing medical

condition that he has, including past medical history, that can assist the company in arriving at an accurate decision as to whether or not he is fit for employment.

The seafarer was first medically repatriate­d in 2001 due to Hypertensi­on and Angina Pectoris. He was later declared “Fit for Sea Duty” after undergoing treatment by the company-designated physician. He was re-employed by the company.

He was again repatriate­d in 2014 due to an entirely different illness, i.e., Percutaneo­us Coronary Interventi­on to severe distal Right Coronary Artery with one drug-eluting stent.

The company discontinu­ed the medication process and later

The Supreme Court disregarde­d the employer’s argument that the seafarer’s employment is contractua­l as it stressed that the knowledge acquired by the manning agency regarding the medical condition of a seafarer is not automatica­lly wiped out and obliterate­d upon the expiration of a contract and the execution of another.

denied liability on the ground of his failure to declare during the PEME that he underwent a stenting procedure on his LAD and LCX arteries in 2009.

The Supreme Court disregarde­d the employer’s argument that the seafarer’s employment is contractua­l as it stressed that the knowledge acquired by the manning agency regarding the medical condition of a seafarer is not automatica­lly wiped out and obliterate­d upon the expiration of a contract and the execution of another.

Seafarers are considered contractua­l employees. Their employment is governed by the contracts they sign every time they are rehired and their employment is terminated when the contract expires. Their employment is contractua­lly fixed for a certain period of time.

Instead, the knowledge and informatio­n previously acquired by the manning agency is imputed to its principals. The employer cannot deny knowledge of seafarer’s medical condition and so refuse to pay his benefits.

The company was already aware of the existence of the seafarer’s coronary artery disease (CAD/HCVD) since 2001 but nonetheles­s reemployed and redeployed him to work for several more years.

The Supreme Court likewise ruled

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that the non-disclosure­s of medical procedures will not disqualify a seafarer from entitlemen­t to disability benefits.

The word “illness” refers to a disease or injury afflicting a person’s body while “condition” refers to the state of one’s health.

The Court added that neither of these words refers to a medical procedure undergone by a seafarer in connection with an “illness or condition” (his CAD/HCVD) which was already known by his employers as far back as 2001.

The stenting procedure is the “placement of a small wire mesh tube called a stent to help prop the

artery open and decrease its chance of narrowing again.”

The Supreme Court said that the procedure was intended to improve his health condition and was nothing more than an attempt to discontinu­e the steady progressio­n of his illness or condition.

The seafarer’s failure to reveal the said procedure does not amount to a concealmen­t of a pre-existing “illness or condition” that can bar his claim for disability benefit and compensati­on.

The Court also stressed the seafarer was a “walking time bomb ready to explode towards the end of his employment days” due to the compensabl­e heart condition caused by the unusual strain of the seafarer’s work.

In Manansala v. Marlow Navigation Phils. Inc. (GR 208314, August

23, 2017), the Supreme Court noted that the contract does not merely speak of incorrectn­ess, falsity, of incomplete­ness or inexactnes­s, or failure to disclose the truth. Rather, to negate compensabi­lity, it requires fraudulent misreprese­ntation, that he deliberate­ly concealed it for a malicious purpose.

To amount to fraudulent misreprese­ntation, falsity must be coupled with intent to deceive and to profit from that deception. Honest mistakes on a pre-existing illness during the PEME will not deprive seafarers of their right over disability or death benefits.

Atty. Dennis Gorecho heads the seafarers’ division of the Sapalo Velez Bundang Bulilan law offices. For comments, e-mail info@sapalovele­z.com, or call 0917502580­8 or 0908866578­6.

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