In the case of Panama Railroad Company v. Vasquez, Administrator, Etc., 1925, the U.S Supreme Court ruled in favor of the plaintiff and against the defendant railroad company. The lawsuit was brought by an administrator for a deceased employee who died while working on one of Panama Railroad's steamships. The court found that under maritime law and specifically under Section 33 of Merchant Marine Act (Jones Act), which extends to seamen rights similar to those enjoyed by railway employees under Federal Employers' Liability Act (FELA), it is possible for relatives or representatives to sue employers for damages resulting from negligence leading to death or injury at sea. This ruling clarified that Jones act applied not only within territorial waters but also beyond them if ship is American flagged or owned.

The dissenting opinion in the case of Panama Railroad Company v. Vasquez, Administrator, Etc., argued that the majority's decision to hold the railroad company liable for damages was incorrect. The dissenting justices believed that there was insufficient evidence to prove negligence on part of the railroad company and thus it should not be held responsible for Mr. Vasquez's death. They also disagreed with applying a law from New York regarding employer liability as they felt this did not apply due to jurisdictional differences between New York and Panama where the incident occurred. Furthermore, they contended that even if such laws were applicable, there was no clear proof showing violation by the company which would warrant compensation under said laws.