UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

IN THE MATTER OF: CLEAR DAY AVIATION, INC. Respondent
Wednesday, February 10, 2016 FDMS No. FAA-2015-2439 1

The teleconference convened, pursuant to notice, at 2:30p.m.
BEFORE: THE HONORABLE J. E. SULLIVAN, Administrative Law Judge



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NEAL R. GROSS COURT REPORTERS ANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 (202) 234-4433APPEARANCES:
On Behalf of the Complainant: ZACHARY M. BERMAN, ESQ. of: Office of Regional Counsel, Eastern Region Federal Aviation Administration 1 Aviation Plaza Jamaica, NY 11434 718-553-3258 zachary.berman®faa.gov
On Behalf of the Respondent: H. BRUCE BRANDON, ESQ. of: Clear Day Aviation, Inc. 3439 South Aviation Drive Burlington, North Carolina 27215 336-358-6300 hbrucebrandon®gmail.com

NEAL R. GROSS 2

(202) 234-4433 COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., NW. WASHINGTON, D.C. 20005-3701 (202) 234-44333
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### P-R-0-C-E-E-D-I-N-G-S
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### (2:31p.m.) 3 

### JUDGE SULLIVAN: Okay, we 're on the 4 record in the matter of Clear Day Aviation, Inc. 5 

### This is Docket Number FAA-2015-2439. Today is 6 Wednesday, February 10, 2016, and the parties 7 have convened, by telephone, for a Rule 16 8 litigation scheduling conference. 9 The Complainant, the Federal Aviation 10 Administration, which I '11 hereinafter referred 11 to by its initials, the FAA, is represented by 12 its Attorney of Record, Mr. Zachary M. Berman. 13 The Respondent, Clear Day Aviation, Inc., is 14 represented by its Attorney of Record, Mr. H. 15 Bruce Brandon. 16 I'll simply note that the last ordered 17 issued in this case is dated January 11, 2016. 18 That was an order setting a new deadline to file 19 the Rule 26-F jointly proposed discovery plan and 20 continuing the Rule 16 litigation scheduling 21 conference. 22 Thereafter, on February 3rd, 2016, the

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### parties filed a 

### proposed joint 2 scheduling/discovery plan, and this morning there 3 was a joint request by the parties to postpone 4 the conference from the originally scheduled time 5 of 1:30 p.m. Eastern Time to 2:30p.m. Eastern 6 Time, today, which was certainly acceptable to 7 this Court, and granted the informal email to 8 both counsel by the Office of Hearings, its 9 attorney staff. 10 So let's just chat, very briefly. Mr. 11 Berman, I'll address this, first, to you. We had 12 originally continued this matter because the 13 parties thought that the matter might settle. 14 I'm presuming, perhaps, incorrectly that because 15 you filed the joint discovery plan that you wish 16 to proceed to trial, at this point? 17 MR. BERMAN: No, actually, we're still 18 discussing settlement. We just submitted the

-- 19 had this conference coming up and we hadn't 20 resolved 21 case. 22 I

(202) 234-4433 

### still haven't totally resolved the

think we're in

NEAL R. GROSS COURT REPORTERS ANDTRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. WASHINGTON, D.C. 20005-3701 

### agreement on

(202) 234-44335 

### 1 principle, it's just the terms of settlement, 2 which the FAA is drafting up a settlement 3 proposal and we're going to present, I hope to 4 present it within a week or two to Mr. Brandon 5 and Clear Day, and I'm pretty confident that we 6 should be able to settle the case within the next 7 couple of weeks. 8 JUDGE SULLIVAN: 

### Okay. Mr. Brandon, 9 do you have anything to add, or correct, to that 10 general summary? 11 

### MR. BRANDON: No, Your Honor. We are, 12 obviously, as Mr. Berman, I think, would also 13 like to get it settled. And the FAA is going to 14 do an enforcement policy and I think Mr. Berman's 15 hands have been somewhat tied by the bureaucracy, 16 until that enforcement policy has been completely 17 revised, but he's waiting on guidance from them, 18 from up on high. 19 But we, pretty much, I think, we agree 20 on everything. Of course, the proof in the 21 pudding is to see what's there, but we're 22 optimistic that there will be a resolution, by

(202) 234-4433 NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. WASHINGTON, D.C. 20005-3701 (202) 234-44336
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### agreement. 2 JUDGE SULLIVAN: Well, let me stay 3 

### with you, then, Mr. Brandon, for the next 4 

### question, then. Would your client be more 5 interested in simply having another prehearing 6 

### status conference set, or does your client want 7 

### to have trial set right now? 8 

### MR. BRANDON: We would much prefer to 9 

### have it resolved without a trial, Your Honor. 10 

### JUDGE SULLIVAN: Okay. Mr. Berman, 11 

### would you be amenable to simply setting this back 12 

### on the calendar for 

### a prehearing status 13 

### conference and reserving all 

### the parties' 14 

### suggested dates litigation and discovery, at this 15 

### point? 16 

### MR. BERMAN: Yes. Yes. 17 

### JUDGE SULLIVAN: Yes, okay. When, Mr. 18 

### Berman, do you think it would work to have 19 

### another prehearing status conference? And, 20 essentially, what I'm looking at is, hopefully, 21 

### setting it out to a point where the parties can 22 finish settlement discussions, at least for the

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### 1 time being, and if you can reach settlement, have 2 that done before the next party conference. When 3 do you think that might be? 4 

### MR. BERMAN: I think, realistically, 5 

### we should be able to resolve this matter by the 6 end of February. 7 

### JUDGE SULLIVAN: Okay. 8 

### MR. BERMAN: So I would suggest to 9 having them in early March, a conference. 10 JUDGE SULLIVAN: Well, I have, as you 11 know, from an earlier conference today, I have 12 some time open on February

-- I'm sorry, March 13 2nd, 2016. Would that be available, or would you 14 prefer to push to push this out a little longer? 15 

### MR. BERMAN: March 2nd will be fine, 16 I'd say. 17 

### JUDGE SULLIVAN: Okay. Mr. Brandon, 18 what about you, would some time on Wednesday, 19 March 2nd, 2016 work for your calendar? 20 MR. BRANDON: Yes, ma'am. If we have 21 some flexibility, I might be traveling that day. 22

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### JUDGE SULLIVAN: Okay.

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1 MR. BRANDON: But I can, certainly, in 2 between, you know, getting it authorized, be 3 available for that time. But I may not
-- 4 JUDGE SULLIVAN: Well, we could 5 MR. BRANDON: But I may not travel at 6 all. I may not be traveling at all, but I'm not 7 sure yet. 8 JUDGE SULLIVAN: Okay. Do you want to 9 simply choose a different day to make your life 10 less complex?
11 MR. BRANDON: Let me just one second, 12 Your Honor, if you would? 13 JUDGE SULLIVAN: Okay. 14 MR. BRANDON: I think Monday, March 15 7th, there would be no conflict then. 16 JUDGE SULLIVAN: Okay. Could I 17 MR. BRANDON: Would that work? 18 JUDGE SULLIVAN: Yes, could I ask you, 19 if you have a particular time? 20 MR. BRANDON: Oh no, ma'am, whatever 21 suits Mr. Berman is fine with me. 22

(202) 234-4433 JUDGE SULLIVAN: Okay.

NEAL R. GROSS COURT REPORTERS ANDTRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. WASHINGTON, D.C. 20005-3701 Mr. Berman,

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### 1 I'm looking in the afternoon of my calendar, 2 because I have another matter in the morning. 3 Would the afternoon work for you?
4 

### MR. BERMAN: It would, which day is 5 that, March

-- 6 

### JUDGE SULLIVAN: It's Monday, March 7, 7 

### 2016. 8 

### MR. BERMAN: Yes, that would work.
9 

### JUDGE SULLIVAN: Okay. Let's plan on 10 2 o'clock in the afternoon on March 7, 2016. And 11 

### then, folks, if 

### you have not reached a 

### 12 settlement, but you think it's imminent and you 13 want to postpone this particular conference, 14 again, please feel free to contact my attorney 15 staff, or my new judicial staff assistant, Ms. 16 Brown, and they can certainly relay a joint 17 request to me and we can take care of that as 18 easily as we took care of the request this 19 morning. 20 So you would not necessarily need to 21 appear if you get a joint request in to postpone 22 for a little while longer, if needed. You do

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### 10 1 need to appear, however, if there's been no 2 continuance and no settlement. 3 

### So I will, potentially, look forward 4 to talking with you both on March 7, 2016, at 5 

### 2:00 p.m. Eastern Time, or in the alternative, 6 receiving paperwork from you that resolves the 7 case. 8 

### With that, on behalf of the FAA, 

### Mr. 9 Berman, is there anything else we can take up for 10 your client today? 11 MR. BERMAN: No, Your Honor. 12 JUDGE SULLIVAN: Okay. Mr. Brandon, 13 same question to you, sir. 14 

### MR. BRANDON: No, ma'am. 15 

### JUDGE SULLIVAN: Thank you, both, and 16 I wish you the best of luck in your private 17 negotiations. With that, we can go off the record 18 and I wish you all a good day. Thank you. 19 MR. BERMAN: Thank you. 20 MR. BRANDON: Thank you, Your Honor. 21 (Whereupon, the above-entitled matter 22 was concluded at 2:39p.m.)

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Neal R. Gross and Co., Inc. Washington DC 12

www.nealrgross.coml3
C E R T I F I C A T E

This is to certify that the foregoing transcript

In the matter of: Clear Day Aviation, Inc.

Before: DOT/OH

Date: 02-10-16

Place: teleconference

was duly recorded and accurately transcribed under my direction; further, that said transcript is a true and accurate record of the proceedings.

Court Reporter

NEAL R. GROSS
(202) 234·4433 COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE.• N.W. WASHINGTON. D.C. 20005·3701 www.nealrgross.com