Case Digest: Heirs of Aniban v. NLRC, G.R. No. 116354, December 4, 1997

  Attorney's Fees | Art. 111

  • Reynaldo Aniban was employed as a radio operator on the vessel "Kassel" by Philippine Transmarine Carriers, Inc., acting on behalf of its foreign principal Norwegian Ship Management A/S. He died due to myocardial infarction during his employment period, leaving behind a pregnant wife and three minor children.
  • The POEA's Standard Employment Contract stated that in case of a seaman's death during the contract term, the employer should pay beneficiaries US $13,000.00 for officers, including radio operators.
  • An additional claim was made under the Collective Bargaining Agreement (CBA), which promised compensation for death caused by an occupational injury or disease. The CBA granted US $30,000.00 in additional death benefits, plus US $8,000.00 to each child under 18, up to a maximum of US $24,000.00.

  • POEA: Ruled in favor of Aniban's heirs, considering myocardial infarction as an occupational disease due to the pressure and strain faced by a radio operator on board. 
  • NLRC: Denied the claim, arguing that the Employees Compensation Commission (ECC) had jurisdiction over the case. NLRC also deleted the award of Attorney's fees on the ground that there was no unlawful withholding of wages.

WoN the NLRC erred in deleting the award of Attorney's fees on the ground that there was no unlawful withholding of wages. YES

Art. 111 of the Labor Code does not limit the award of attorney's fees to cases of unlawful withholding of wages only. What it explicitly prohibits is the award of attorney's fees which exceed 10% of the amount of wages recovered. 

Thus, under the circumstances, attorney's fees are recoverable for the services rendered by petitioner's counsel to compel Aniban's employer to pay its monetary obligations under the CBA. However the amount of P50,000.00 claimed as attorneys' fees in this case is the reasonable compensation based on the records and not the maximum 10% of the total award as granted by POEA. The reduction of unreasonable attorney's fees is within our regulatory powers.

Note: The Supreme Court affirmed the POEA's jurisdiction, stating that the ECC's jurisdiction applies only when the State Insurance Fund's liability is in question. As for myocardial infarction, the court upheld the POEA's decision, considering the nature of the job and the emotional strain faced by seamen.

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