This section contains the nature of the case and procedural background.

P was employed on D's vessel at the time she was changed from Panamanian to Honduran registry. P’s employment ended on December 27, 1950. On December 29, 1952, P sued D alleging that pursuant to the Panama Labor Code, D owed him three months of wages for the change of registry, vacation, overtime, and holiday pay. P also sought penalties under 46 U.S.C.S. § 596, and deductions taken from his pay in violation of 46 U.S.C.S. § 599. D claimed that the action was barred by a one-year statute of limitations. The lower court ruled that the one-year statute of limitations set forth in Article 623 of the Labor Code of Panama barred appellant's claims. P appealed.

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