U.S. Department 

of Transportation 

Federal Aviation 

Administration 

Southern Region 

Office of the Regional Counsel 

P.O. Box 20636 

Atlanta, Georgia 30320 

(4CM) 305-5200 

(404)305-5223 FAX 

JIOV2d20IO 

CERTIFIED - RETURN RECEIPT REQUESTED 

Hearing Docket Clerk 

FAA, AGC-430, Suite 2W1000 

Wilbur Wright Building 

800 Independence Avenue, SW 

Washington, DC 20591 

;>s. 

Re: In the Matter of The Magni Group Inc. 

FAA Case No. 2010SO700313 CflOSt)t)Oio Fm<^/^'/^^^ 

Enclosed herewith please find a copy of a request for hearing and the original and one copy of 

the Complaint in the above-referenced proceeding. 

The FAA requests that the hearing in this matter be held in the Louisville, Kentucky area, and 

expects that the hearing will last one day. 

Please address all communications for the FAA to the undersigned, at: 

Federal Aviation Administration 

Office of the Regional Counsel, ASO-7 

Southern Region 

P.O. Box 20636 

Atlanta, Georgia 30320 

Telephone: (404) 305-5200, facsimile (404) 305-5223. 

Sincerely, 

—ICOX) 

rn-5 m 

o Q O 

C O 

CO 

GERALD A. ELLIS 

Attorney 

Office of the Regional Counsel 

Enclosures 
' ivov. i. i[)\[] 4:4jP M Magn i Industrie s ^o . 95OI p 2 

MAGNI INDUSTKIES, INC 

10Z50 ToEBBEN DRIVE INOEPENDENCS. KENTUCKY 41051-9609 

(606)746-1777 (606) 746-1170 FAX 

Gerald A. Ellis 

Attorney 

Federal Aviation Administration 

Office of the Regional Counsel 

Dear Mr. Ellis, 

f apologize for not responding to the Notice of Proposed Civil Penalty sent on September 

1 v"', 2010 The letter was sent to oiu coiporate offices m Binningham MI and never 

made it down to our Kentucky site. 

The location of the FAA finding for The Magni Group is in Independence, Kentucky 

(Cincinnati Metropolitan area), where I am the General Manager. I would ask that all 

futui'e correspondence be sent to the Kentucky address so this issue can be resolved 

directly from our facility. 

We would like to request that the FAA grant Magni Industries a hearing. Per oui 

conversation this morning, you requested that I send our request to you by fax, should I 

also send a request for a fomial hearing to the Hearing Docket location in Washington, 

DC as indicated in your letter dated November 3, 2010? 

For our records could you please have a copy of the Notice of Proposed Civil Penalty 

date September 17, 2010 and any accompanying documents sent to my attention. 

I can be reached as follows: 

Magni Industries, Inc 

109250 Toebben Drive 

Independence., KY 41051 

Phone: 859-746-1777 

Fax:859-746-1170 

Email: tpa)mer@magniindustries.com 

Sincerely, 

Todd R. PalmeiGeneral Manager 

Magni Industries, Inc KY 

& Cfifiri/Zi/lr^ r n f T'ito }\Knn^ } ClrAnyi 
H i RE: FAA HazMat Case 

^ f r Todd Palmer to; Gerald Ellis 11/15/2010 08:42 AM 

Hell o Mr. Ellis , 

Thanks for your response; we have submitted a request for a formal 

hearing to the Hearing Docket. 

We will wait for further correspondence from the Hearing Docket as to 

the timing of the Formal Hearing. 

Thanks 

Todd Palmer 

General Manager 

Magni Industries, Inc. KY 

Original Message 

From: Gerald.Ellis@faa.gov [mailto:Gerald.Ellis@faa.gov] 

Sent: Friday, November 12, 2010 3:19 PM 

To: Todd Palmer 

Subject: FAA HazMat Case 

Dear Mr. Palmer, 

I received your fax dated November 9, 2010. 

Do you wish to have an informal conference (by phone or in person)? Or, 

do 

you wish to have a formal hearing without an informal conference? 

i?If you want have an formal DOT Hearing, you need to send your request to 

the Hearing Docket in Washington, DC. 

Sincerely, 

Gerald A. Ellis 

FAA Counsel 
U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

FEDERAL AVIATION ADMINISTRATION 

FEDERAL AVIATION ADMINISTRATION, 

Complainant, 

vs. 

The Magni Group Inc. 

Respondent. 

FAA Docket No. 

Judge 

JUDGE NOT YET ASSIGNED 

COMPLAINT 

The Federal Aviation Administration (FAA), by counsel, hereby files its Complaint, 

pursuant to Rule 208 of the Rules of Practice (14 C.F.R. 13.208), and states as follows: 

I. 

1. On November 3, 2010, Respondent, The Magni Group Inc. was advised through a 

Final Nofice of Proposed Civil Penalty that the FAA proposed to assess a civil penalty in the 

amount of $19,500. On November 9, 2010, the Agency Attorney received a written request for a 

hearing from the Respondent. 

II. 

2. At all times material herein, fi-om February to June of 2010, Magni Industries, 

Inc. ("Magni") knowingly prepared 6 Shipper's Certifications or Declarations of Dangerous 

Goods (declarations) certifying that hazardous materials were properly prepared for 

transportation by air. 

3. A Magni employee completed a Shipper's Declaration of Dangerous Goods for 

each of the above-described shipments. 

4. The above-mentioned declarations were prepared by Ed Yung, an employee of 

Magni, for the transportation of hazardous materials by air to multiple domestic and international 

consignees. 
5. Each of the above-mentioned declarations declared that a shipment containing 

Paint or Flammable solid, organic, (n.o.s.) (zinc flakes containing hydrocarbons) was properly 

prepared for air transportation. 

6. A. (1) The above described Paint was classified as a hazardous material 

under the Department of Transportation Hazardous Materials Regulafions (HMR) (49 C.F.R. 

§ 172.101). 

(2) The proper shipping name of the material was Paint. It was in 

Hazard Class 3 (Flanamable Liquid), Packing Group II or III, and had an assigned identification 

number of UN 1263. 

B. (1) Flammable solid, organic, (n.o.s.) (zinc flakes containing 

hydrocarbons) is classified as a hazardous material under the Department of Transportation 

Hazardous Materials Regulafions (HMR) (49 C.F.R. § 172.101). 

(2) The proper shipping name of the material was Flammable solid, 

organic, (n.o.s.) (zinc flakes containing hydrocarbons). It was in Hazard Class 4.1 (Flammable 

Solid), Packing Group II, and has an assigned identificafion number of UN 1325. 

7. On June 8, 2010, the FAA performed a training records inspection of the Magni 

facility located at 10250 Toebben Drive, Independence, Kentucky 41051. 

8. The only records Magni produced for hazmat employee, Ed Yung, during the 

inspection were dated November 7, 2006. 

9. Magni completed the above-described declarations certifying that the hazardous 

materials were properly prepared for transportation by air and failed to ensure that the hazmat 

employee who prepared the declarations was trained in accordance with the prescribed 

requirements as set forth in Section 172.704. 

III. 

10. By reason of the above, Magni violated the following Department Transportafion 

Hazardous Materials Regulations (Title 49 of the Code of Federal Regulafions): 

a. Sections 172.702(a) and 172.704(a)(2) in that Magni failed to ensure that 

the hazmat employee that completed declarations certifying that hazardous materials were 

properly prepared for transportation was provided with function-specific training concerning 

requirements of this subchapter, or exemptions issued under subchapter A of this chapter, which 

were specifically applicable to the fiinctions the employee performed. 

b. Secfions 172.702(a) and 172.704(c)(2) in that Magni failed to ensure that 

the hazmat employee who completed declarations certifying that hazardous materials were 
properly prepared for transportation received the training required by this subpart at least once 

every three years. 

c. Sections 172.702(a) and 172.704(a)(4) in that Magni offered hazardous 

materials for transportation and failed to ensure that its hazmat employee training included 

training that provided an awareness of security risks associated with hazardous materials 

transportation and methods designed to enhance transportation security. This training must also 

include a component covering how to recognize and respond to possible seciuity threats. After 

March 25, 2003, new hazmat employees must receive the security awareness training required by 

this paragraph within 90 days after employment. 

11. Pursuant to 49 U.S.C. Secfion 5123(a), Respondent is subject to a civil penalty 

not lower than $250 ($450 for fi-aining-related violafions), nor greater than $50,000 ($100,000 if 

death, serious illness, severe injury, or substantial property damage results), for each violation of 

the Department of Transportation Hazardous Materials Regulations. 

12. Under the facts and circumstances of this case, a civil penalty of $19,500 is 

appropriate. 

WHEREFORE, the Agency, by counsel respectfully requests that the Administrative Law Judge 

enter an order that Respondent be assessed a civil penalty in the amount of $19,500. 

Respectftilly submitted this jL^Z) day of November, 2010. 

GERALD A. ELLIS 

Attorney 

Office of the Regional Counsel 

PLEASE NOTE: 

Pursuant to Title 14 CFR Section 13.209(a), you are required to file a written answer to this 

Complaint, or a written Motion to Dismiss if appropriate, not later than 30 days after the date 

shov^ on the Certificate of Service which follows. 
CERTIFICATE OF SERVICE 

I hereby certify that a copy of the foregoing Complaint has been mailed this date by Certified 

Mail, Return Receipt Requested, to the following: 

The Magni Group Inc. 

Todd R. Palmer, General Manager 

390 Park Street 

Suite 300 

Birmingham, MI 48009-3417 

Magni Industries, Inc. 

109250 Toebben Drive 

Independence, KY 41051 

ADDRESS IF SENDING BY US MAIL 

Hearing Docket Clerk 

FAA, AGC-430, Suite 2W1000 (original -i- 1 copy) 

Wilbur Wright Building 

800 Independence Avenue, SW 

Washington, DC 20591 

,TIF?ANyM/Ml 

Legalv^sistant 

Office of the Regional Counsel 

m 23 2010 

Dated