SERVED APRIL 2, 2012 

U.S. DEPARTMENT OF TRAINSPORTATIONx''*''''3'''0R lATlON 

OFFICE OF HEARINGS ' '^^-^-^ OPEh'Al iONS 

WASHINGTON, DC 

iHil rtPR - 2 P Z h S 

In The Matter Of: 

COVERMARKUSA 

Respondent 

Docket No. FAA-2011-0488 

CaseNo.2010SO700318 

ORDER DEEMING ALLEGATIONS OF SAFETY VIOLATION 

ADMITTED AND GRANTING/DENYING OTHER RELIEF 

On June 3, 2011, the Federal Aviation Administration (FAA) filed a Complaint in 

which it alleged that the Respondent, Covermark USA, had violated multiple provisions 

of the Hazardous Materials Regulations of the U.S. Department of Transportation, 

pursuant to 49 C.F.R. §172.101 el. seq. In this June 3, 2011 Complaint, the FAA also 

proposed the assessment of a $10,000 civil penalty for the violations, pursuant to 49 

U.S.C. §5123(a). 

On June 15, 2011, Respondent, Covermark USA, filed a Motion for Decision, or 

in the Alternative Respondent's Answer, pursuant to 14C.F.R. §13.218(0(5). In this 

Motion/Alternative Respondent Answer, the Respondent requested that "a finding of 

violation be issued, but [that] the proposed penalty be waived" for various reasons. Sec, 

Respondent's Motion, page 5. 

On June 27, 2011, the FAA filed a Motion to Deem Allegations Admitted and 

Motion for Hearing on Sanction Only. Among other things, the FAA asserted in this 

June 27, 2011 Motion that the Respondent did not contest the factual allegationsregarding the violation because the Respondent had admitted to paragraphs 1-19 in the 

Complaint, as well as in the documents the Respondent attached to its Motion for 

Decision. See^ FAA Motion to Deem Allegations Admitted, page 1. The FAA also 

requested that any hearing, if necessary, be limited to the issue of the proposed civil 

penalty. 

On February 23, 2012 a Notice of Assignment of Proceeding was filed. On 

February 27, 2012, February 28, 2012, and February 29, 2012, the clerical staff at the 

Office of Hearings (OH) contacted the parties' representatives by telephone to explain the 

delay in the processing of the file at the OH, as well as to obtain an updated status on the 

parties' dispute. The OH clerical staff also advised the parties that court action would be 

taken on the parties' Motions and requests for relief 

Page I of2 
As of April 2, 2012 the Respondent has not filed any objection or response to the 

FAA'S June 27, 2011 Motion to Deem Allegations Admitted and Motion for Hearing on 

Sanction Only. 

Having reviewed the pleadings and motions, all relevant caselaw. statutes, 

regulations, rules, and authority, and being fully advised; 

It Is Hereby Ordered: 

1. Based on the pleadings and documents filed the FAA in its June 3, 201 1 

Complaint, and by the Respondent, Covemiark USA, in its June 15, 2011 Motion 

for Decision/Respondent's Answer, it is undisputed that on or about April 23, 

2010 the Respondent committed multiple safety violations of the provisions of the 

Hazardous Materials Regulations of the U.S. Department of Transportation, 

pursuant to 49 C.F.R. §172.101 et. seq. when it knowingly offered to United 

Parcel Service (UPS) a one-piece shipment of CM Beauty Super Clean Toner 

containing hazardous materials for transportation by air. 

2. Pursuant to 14 C.F.R. § 13.218(0(5), the Respondent's June 15,2011 Motion for 

Decision is granted in part. The Respondent has admitted to the safety violations 

in its Motion for Decision/Respondent's Answer, and there is no genuine issue of 

material fact regarding the alleged safety violations. The FAA is granted 

judgment as a matter of law on the safety violations cited in its June 3, 2011 

Complaint. 

3. Pursuant to 14 C.F.R. § 13.218(f)(5), the Respondent's Motion for a Decision 

waiving the civil penalty $10,000 amount proposed for the safety violation is 

denied, and the FAA's Motion to Deem Allegations Admitted and Motion for 

Hearing on Sanction Only is granted. There are genuine issues of material fact 

regarding the FAA's proposed civil penalty that remain in dispute. 

4. Pursuant to 14 C.F.R. § 13.205, prior to setting a hearing on the issue of the civil 

penalty, a separate.order will issue setting a Civ. R 16 telephone conference and a 

Civ. Rule 26(f) planning meeting. 

illivan 

nstrative Law Judge 

Attachment: Service List 

Page 2 of 2 
FDMS No. FAA-2011-0488 

(Civil Penalty Action) 

SPECIAL SERVICE LIST 

ORIGINAL & THREE COPIES 

Federal Aviation Administration 

800 Independence Avenue, S.W. 

Washington, DC 20591 

Attention: Hearing Docket Clerk, AGC-430 

Wilbur Wright Building—Suite 2W1000' 

ONE COPY 

Keith Roberts, Respondent's Counsel 

President. Roberts Proprietaries, Inc. 

180 West 80th St. 

New York, NY 10024 

TEL: 917-441-8642 

FAX: 

Gerald A. Ellis, Complainant's Counsel 

Attorney, Office of the Regional Counsel, ASO-7 

Southern Region 

Federal Aviation Administration 

P.O. Box 20636 

Atlanta, GA 30320 

TEL: 404-305-5200 

FAX: 404-305-5223 

The Honorable J.E. Sullivan, Administrative Law Judge 

Office of Hearings, M-20 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. 

Washington, DC 20590 

TEL: 202-366-2132 

FAX: 202-366-7536 

' Service was by U.S. Mail. For service in person or by expedited courier, use the following address: Federal 

Aviation Administration, 600 Independence Avenue, S.W., Wilbur Wright Building—Suite 2WI000, Washington, 

DC 20591; Attention: Hearing Docket Clerk, AGC-430. 

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