SERVED: JANUAR Y 9, 20 13 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

WASI-Il GTO . DC 

IN THE MATTER OF 

CORNERSTONE AVIATION, INC. 

FAA DOCKET o. ITO BE ASS IGNED! 

(Civil Penalty Case) 

DMS FAA-20 12- 1293 

ORDER GRANTING IN PART ORDER TO SHOW CAUSE, 

GRANTING COMPLAINANT'S MOTIONS, 

AND LIMITING HEARING TO SANCTION 

The Motion for Decision and Renewed Motion for Decision of Complainant Federal 

Aviation Administration ('·Complainant") argued for a decision in its favor as a matter of Jaw 

because Respondent Cornerstone Aviation, Inc. ("'Respondent") had not answered the 

Complaint. Respondent also had neither demonstrated good cause for fai lure to tile an answer 

nor had sought an extension of time in which to do so. The agency's Ru les of Practice state that 

a person ·s failure to file an Answer without good cause shall be deemed an admission of the 

truth of each allegation ofthe Complaint. 14 C.F.R. § 13.209(t). 

Our Order to Show Cause of' 'ovember 7. 20 12 ("OSC''). issued in response to 

Complainant 's Motions. directed Cornerstone to answer by ovember 28 (later extended to 
2 

December 17, 20 12) or risk sanctions. Sanctions could mean, as the OSC noted. a defau lt 

judgment against Respondent. which could include a civil pena lty up to the full amo unt 

Complainant had requested in its Complaint (Order to Show Cause. p. 2. ,14). 

Respondent tiled an answer to the OSC under date o f December 12. 20 12. The answer 

does not address the allegations of the Complaint. Respondent, however. claims to have 

answered the Complaint earlier. The only document round which discusses the Compla int's 

allegations is a letter Cornerstone tiled on December 5, 20 II. a date prior to the issuance of the 

Complaint. While the Rules of Practice require an Answer to address the allegations of the 

Complaint - and thus, of course, to be tiled after the Complaint is issued - the statements in the 

Jetter will be considered. Respondent in the letter acknowledges the truth of one of 

Complainant's two allegations (that ofa violation of 14 C.P.R. § !4l.101 (c). the failure to certify 

a student's record upon termination of that student's training). It does not address the other (a 

violation of 14 C.F.R. ~ 141 .95(b)(7), issuing a graduation certificate that did not contain a 

statement of the cross-country training the student received). 

Finally. Complainant tiled a response to Respondent's answer to the OSC, accompanied 

by a Motion to Deem Allegations Admitted. 

Complainant's various motions are granted. Respondent has acknowledged the 

§ 141.10l(c) violation. Its failure to directl y address the § 14l.95(b)(7) allegation e ither in its 

letter of e~.:e mber 5, 201 1 or its answer of December 12, 2012 amounts to admitting its truth.' 

The tacts thus determined. however. do not establish the appropriate sanction. That issue 

is genuinely controverted and will be heard at an oral evidentiary hearing. 

WHEREFORE. it is ORDERED as follows: 

I. Complainant's Motion for Decision, Renewed Motion for Decision, and Motion 

to Deem Allegations Admitted are GRANTED; 

2. Respondent is tound in violation of 14 C.F.R. §§ 141.95(b)(7) and 14l.IOI (c); 

and 

3. The hearing in OMS No. FAA-20 11 -1293 will be limited to the issue of sanction. 

2Juu:l)CL~~ Richard C. Goodwin 

U.S. Administrative Law Judge 

Attachment - Service List 

1 Respondent's answer to the OSC of December 12. 201 2, per Ms. Horstman, its chief executive o fficer, sta tes that 

she had ··expla ined in my previous letter what happened'' respecting the§ 14 1.95(b)(7) charge, but that le tte r 

contllins no such expla nation. In any event Respondent's answer to the OSC, while not directly admitting this 

violation. does acknowledge ·'incorrect pape1work." Answer. p. 2. 
3 

SERVICE LIST 

ORIGINAL & ONE COPY 

Federal Aviation Administration 

800 Independence A venue, S. W. 

Washington, DC 20591 

Attention: Hearing Docket Clerk, AGC-430 

Wilbur Wright Building- Suite 2W l 0001 

ONE COPY 

Susan J. Horstman, Chief Executive Officer 

Cornerstone Aviation, Inc., Respondent 

337 North 2370 West #130 

Salt Lake City, UT 84116 

TEL: 801 -355-2244 

FAX: 801 -355-2754 

Jeffrey M. Harper, Complainant 's Counsel 

Attorney, Office of the Regional Counsel 

Northwest Mountain Region, ANM-7 

Federal Aviation Administration 

1601 Lind Avenue, S.W. 

Renton, W A 98057 

TEL: 425-227-2161 

FAX: 425-227-1 007 

The Honorable Richard C. Goodwin, 

Administrative Law Judge 

Office of Hearings, M-20 

U.S. Department ofTransportation 

1200 New Jersey Avenue, S.E. (E11 -31 0) 

Washington, DC 20590 

TEL: 202-366-2139 Attorney-Advisor 

202-366-512 1 Staff Assistant 

FAX: 202-366-7536 

FDMS No. FAA-2011-1293 

(Civil Penalty Action) 

1 Service was by U.S. Mail. For service in person or by expedited courier, use the fo llowing address: 

Federal Aviation Administration, 600 Independence Avenue, S.W., Wilbur Wright Building- Suite 

2 WI 000, Washington, DC 20591; Attention: Hearing Docket Clerk, AGC-430.