The claim is on behalf Mariposa Development Company and is based on alleged unlawful expropriation by Panamanian authorities of a tract of land called El Encanto.
The Commission was set up by a convention, and the exchange of ratification took place on 3 October 1931
In 1917 it was enacted a Panamanian Expropriation legislation.
Based on such Act, there were judicial actions against the property of the claimants. The first courts gave them the reason, but in 20 October 1931 the Supreme Court of Panama hold that El Encanto was national property.
Panama contended that the alleged damages was not sustained by the claimants prior the exchange of ratifications and the Commission had no jurisdiction