Total and Permanent Disability for Seafarers: The Teodoro Case

The Supreme Court’s 2020 ruling in Teodoro v. Teekay Shipping Philippines, Inc. clarifies a critical point for Filipino seafarers: a disability grade below total does not automatically mean partial benefits. If the seafarer is declared unfit for further sea duties, the law may treat the disability as total and permanent, entitling the seafarer to full compensation.

Facts of the Case

Jolly D. Teodoro was hired as Chief Cook by Teekay Shipping Philippines, Inc. in February 2015 for an eight-month contract. He was declared fit for duty despite a pre-existing condition of diabetes mellitus, for which he signed an affidavit of undertaking. While on board, he helped haul food provisions from the upper deck to the freezer. The sudden temperature changes caused him to experience fever, body pain, and blindness in his left eye the next day.

He was diagnosed with left eye endophthalmitis with orbital cellulitis and was repatriated. The company-designated physician later found that his condition was not work-related but was triggered by his diabetes. The physician declared him unfit for further sea duties and gave him a Grade 7 disability rating—total loss of vision in one eye—while noting he had reached maximum medical improvement.

Teodoro demanded full disability benefits under the Collective Bargaining Agreement (CBA). The company refused, arguing his illness was not work-related and that he abandoned treatment by missing a scheduled follow-up. The case reached the Panel of Voluntary Arbitrators, which awarded him US$89,100.00 in total and permanent disability benefits plus attorney’s fees. The Court of Appeals reversed, granting only partial and permanent disability benefits. The Supreme Court reversed the CA and reinstated the full award.

The Issue

The central question was whether Teodoro was entitled to partial and permanent disability benefits only, or total and permanent disability benefits, and whether attorney’s fees should be awarded.

The Ruling

The Supreme Court ruled in favor of Teodoro, holding that he was entitled to total and permanent disability benefits.

First, the Court noted that under Section 20(A) of the 2010 POEA-SEC, illnesses not listed in Section 32 are disputably presumed work-related. The employer bears the burden to disprove this presumption. Teekay failed to overturn it, so the illness was deemed work-related.

Second, the Court addressed the company’s claim of medical abandonment. The company-designated physician had already declared Teodoro at maximum medical improvement within the 120-day treatment period and had given a Grade 7 rating. Subsequent check-ups showed no improvement. Thus, missing a later follow-up could not be considered abandonment.

Third, the Court applied the principle from Kestrel Shipping Co., Inc. v. Munar: a disability is total and permanent not only when graded as Grade 1 under the POEA-SEC, but also when the seafarer’s injury prevents him from performing his usual sea duties for more than 120 or 240 days. The Court emphasized that disability compensation compensates the incapacity to work, not the injury itself.

Finally, the Court considered the CBA, which provided better benefits than the POEA-SEC. Under the CBA, a seafarer assessed below 50% disability but certified as permanently unfit for further sea service is entitled to 100% compensation. Since Teodoro’s Grade 7 rating was below 50% but he was declared unfit for sea duties, he qualified for full benefits.

The Court also reinstated the award of attorney’s fees, citing Article 2208 of the Civil Code, because Teodoro was compelled to litigate to protect his rights.

Practical Takeaways

• A Grade 7 disability (loss of vision in one eye) does not automatically mean partial benefits. If the seafarer is declared unfit for further sea duties, total and permanent disability may apply.
• The POEA-SEC’s Schedule of Disabilities is not the sole basis for determining disability. The Labor Code and its implementing rules also govern.
• Employers must disprove the disputable presumption of work-relatedness for illnesses not listed in the POEA-SEC.
• A seafarer does not abandon treatment if the company-designated physician has already declared maximum medical improvement and issued a disability rating.
• CBAs that provide better benefits override the POEA-SEC’s minimum standards in favor of the seafarer.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.