Rumble latch 1928

[Al 29Tudor]

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I'm assembling the latch for a rumbl lid on a 1928 sport coupe. After adding the hardware for the latch handle I find that the back cushion interferes with the dome nut on the shaft for the handle. Has anyone had this interference problem? There is a tabbed locking washer listed for this handle also. Is there supposed to be a recess in the inner panel or should the hardware be located inside the inner panel ?
Thanks for your advise on this.
Al