HORLADOR v. PHILIPPINE TRANSMARINE CARRIERS, INC., et. al, G.R. No. 236576 | 2018 - Synopsis Only
Court Awards Attorney's Fees to Seaman in Permanent and Total Disability Benefits Case
839 Phil. 1167
SECOND DIVISION
G.R. No. 236576 | September 05, 2018
ARIEL P. HORLADOR, PETITIONER,
VS.
PHILIPPINE TRANSMARINE CARRIERS, INC.,
MARINE* SHIP MANAGEMENT LTD., AND
CAPTAIN MARLON L. MALANAO, RESPONDENTS.
Ponente: PERLAS-BERNABE, J.:
Nature of petition:
Assailed in this petition for review on certiorari are the Decision dated February 3, 2017 and the Resolution dated December 15, 2017 of the Court of Appeals (CA) in CA-G.R. SP No. 136386, which affirmed the Decision dated February 28, 2014 and the Resolution dated May 22, 2014 of the National Labor Relations Commission (NLRC) in NLRC NCR Case No. (M) 04-06497-13 finding petitioner Ariel P. Horlador (petitioner) entitled to permanent and total disability benefits, with modification deleting the award of attorney's fees amounting to ten percent (10%) of the total monetary award in his favor.
Dispositive portion:
WHEREFORE, the petition is GRANTED. The Decision dated February 3, 2017 and the Resolution dated December 15, 2017 of the Court of Appeals in CA-G.R. SP No. 136386 are MODIFIED in that the award of attorney's fees equivalent to ten percent (10%) of the total monetary awards due petitioner Ariel P. Horlador is hereby REINSTATED.
Doctrines:
There are two (2) commonly accepted concepts of attorney's fees - the ordinary and extraordinary. In its ordinary concept, an attorney's fee is the reasonable compensation paid to a lawyer by his client for the legal services the former renders; compensation is paid for the cost and/or results of legal services per agreement or as may be assessed. In its extraordinary concept, attorney's fees are deemed indemnity for damages ordered by the court to be paid by the losing party to the winning party. The instances when these may be awarded are enumerated in Article 2208 of the Civil Code and is payable not to the lawyer but to the client, unless the client and his lawyer have agreed that the award shall accrue to the lawyer as additional or part of compensation. Particularly, Article 2208 of the Civil Code reads:
Article 2208. In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, cannot be recovered, except:
(1) When exemplary damages are awarded;(2) When the defendant's act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest;(3) In criminal cases of malicious prosecution against the plaintiff;(4) In case of a clearly unfounded civil action or proceeding against the plaintiff;(5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiffs plainly valid, just and demandable claim;(6) In actions for legal support;(7) In actions for the recovery of wages of household helpers, laborers and skilled workers;(8) In actions for indemnity under workmen's compensation and employer's liability laws;(9) In a separate civil action to recover civil liability arising from a crime;(10) When at least double judicial costs are awarded;(11) In any other case where the court deems it just and equitable that attorney's fees and expenses of litigation should be recovered.
In all cases, the attorney's fees and expenses of litigation must be reasonable.
In labor cases involving employees' wages and other benefits, the Court has consistently held that when the concerned employee is entitled to the wages/benefits prayed for, he/she is also entitled to attorney's fees amounting to ten percent (10%) of the total monetary award due him/her.
Summary:
Court of Appeals (CA) incorrectly deleted the award of attorney's fees to Riel P. Horlador, a seaman, in a permanent and total disability benefits case against Philippine Transmarine Carriers, Inc., Marine Shipmanagement Ltd., and Captain Marlon L. Malanao. The CA's decision was erroneous since the seaman was found entitled to permanent and total disability benefits and was forced to litigate to protect his claim.
Synopsis:
In 2012, Philippine Transmarine Carriers, Inc. (PTCI) hired Riel P. Horlador as a Chief Cook on board the vessel PRAIA. While on board, Horlador suffered a severe pain on his waist, abdomen, and left scrotum while carrying provisions. He was diagnosed with an infection that required repatriation and further treatment. Horlador claimed that he immediately reported to PTCI and asked for referral for further treatment, but was ignored. As such, he used his health card to seek treatment at the Molino Doctors Hospital, where he was diagnosed with a hernia. Two other physicians concluded that Horlador was permanently and totally disabled due to his "Chronic prostatitis." He filed a complaint for permanent and total disability benefits against PTCI, Marine Shipmanagement Ltd., and Captain Marlon L. Malanao as the crewing manager.
The Labor Arbiter dismissed Horlador's complaint for lack of merit, but the National Labor Relations Commission (NLRC) reversed and set aside the ruling, ordering the respondents to pay Horlador permanent and total disability benefits in the amount of US$60,000.00 or its peso equivalent and ten percent (10%) thereof as attorney's fees. The CA affirmed the NLRC ruling but deleted the award of attorney's fees, citing the NLRC's failure to present the factual bases for the award.
Horlador appealed the CA's decision, arguing that he was entitled to attorney's fees since he was forced to litigate to protect his valid claim. The Supreme Court ruled in Horlador's favor, reinstating the award of attorney's fees. The Court explained that in labor cases involving employees' wages and other benefits, the concerned employee is entitled to attorney's fees amounting to ten percent (10%) of the total monetary award due him/her when he/she is found entitled to the wages/benefits prayed for and was forced to litigate to protect his/her valid claim. Since Horlador was entitled to permanent and total disability benefits and was forced to litigate to protect his claim, the CA erred in deleting the award of attorney's fees, and the reinstatement of such award was in order.