The Supreme Court (SC) has reaffirmed that directors and officers of recruitment and manning agencies may be held personally liable alongside their companies for disability benefits awarded to seafarers.

In a decision penned by Associate Justice Jhosep Y. Lopez, the Court’s Special First Division ruled that an officer of Magsaysay Maritime Corp. is “solidarily liable” for the permanent disability benefits of an injured electrical fitter.

The ruling clarifies that specific labor laws override the general principle that shields corporate officers from personal liability for company debts.

The case originated from a complaint filed by Ruthgar T. Parce, who sustained a shoulder injury while working for Magsaysay’s foreign principal, Princess Cruises Ltd. Following his repatriation to Manila, Parce was diagnosed with rotator tendinitis.

Though a company-designated physician eventually declared him fit to work, Parce sought a second opinion that found him unfit for sea duty.

When Magsaysay declined his request to consult a third doctor — a standard procedure for resolving conflicting medical opinions — Parce filed a labor complaint.

A Labor Arbiter initially awarded Parce $60,000, finding the company’s medical assessment incomplete. Because no definitive assessment was issued within the legally mandated 240-day period, the court deemed Parce’s disability permanent by operation of law.

The National Labor Relations Commission later affirmed the award and included Magsaysay Fleet director Sorwin Joy G. Rivera as a liable party.

While the Court of Appeals briefly reversed the decision, the Supreme Court reinstated it, specifically targeting Rivera’s personal liability in a motion for partial reconsideration.