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Those who were principally inclined to oppose the landing of Hinojosa, were Pedro Casaos the governor, Guzman and Yllanez the captains belonging to the viceroy, Arias de Azevedo, Juan Fernandez de Rebollido, Andrew de Arayza, Juan de Zabala, Juan Vendrel, and some other considerable inhabitants of Panama; some from principles of loyalty, others from fear of future evils, lest Hinojosa might act with the same violence as had been done by Bachicao.

Pedro de Casaos was then governor of the Tierra Firma; and to be in readiness to defend his province against Hinojosa, he went immediately to Nombre de Dios, where he collected all the musquets and other arms he could procure, arming all the inhabitants of that place who were fit for service, whom he carried along with him to Panama, making every preparation in his power for defence.

Differences had subsisted for some time between these officers and the governor, because he had repressed some disorderly conduct in which they had indulged, and had advised them to set off with their men to the assistance of the viceroy for whom they were employed to levy troops; while they were averse from that measure, and finding themselves at the head of a respectable force, they made light of the orders of Casaos, and refused to obey him: But the necessity they were now under of providing for their mutual defence, occasioned them to enter into an accommodation of their disputes.

At this time there were more than five hundred men in Panama, all tolerably well armed, who were drawn, out under the command of Casaos to oppose the landing of the Pizarrians. But among these there were many merchants and tradesmen, little adapted for war, who hardly knew how to use their weapons, and many of whom were even unable to fire off a musquet.

Casaos marched with all his troops from Panama to meet Hinojosa, with the determination of giving battle: But when the hostile parties were almost within musquet shot and ready to engage, the whole priests and monks of Panama interposed between in procession, having their crucifixes veiled and every other demonstration of mourning, and prevailed on both sides to agree to a truce for that day, that endeavours might be used to bring about an accommodation.

For this purpose negotiators were appointed on both sides; Don Balthasar de Castilia, son of the Conde de Gomera, was named by Hinojosa, and Don Pedro de Cabrera on the part of Casaos, and hostages were mutually interchanged.

The two captains belonging to the viceroy, Guzman and Yllanez, likewise put their troops in order for resistance, and at first there was some jealousy between them and Casaos as to the supreme command; but it was at length agreed that Casaos should command in chief, as governor of the province, while they retained the immediate authority over their own men, and bore their own standards.