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# 0 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

IN THE MATTER OF: PUERTO RICO POLICE DEPARTMENT Respondent
Wednesday, January 11, 2017 FDMS No. FAA-2013-1086 1

The teleconference convened, pursuant to notice, at 10:00 a.m. BEFORE: THE HONORABLE J. E. SULLIVAN, U.S. Administrative Law Judge 

# RECEI\IED

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### JAN252017 HEARING DOCKET

NEAL R. GROSS COURTREPORTERSAND TRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.comAPPEARANCES: On Behalf of the Complainant: CHRISTOPHER R. STEVENSON of: Office of the Regional Counsel, AS0-7 Southern Region Federal Aviation Administration 1701 Columbia Avenue College Park, Georgia 30337 (404)305-5200 (404)305-5223

On Behalf of the Respondent: BETMAR R. LOPEZ PAGAN of: Puerto Rico Police Department Office of Legal Affairs P.O. Box 71200 San Juan, Puerto Rico 00936 (787)793-1234 ext. 2203 (787)781-7993

ALSO PRESENT: CODY L. SMITH

NEAL R. GROSS 2

(202) 234-4433 COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com3 1 P-R-0-C-E-E-D-I-N-G-S 2 (10:03 a.m.) 3 JUDGE SULLIVAN: Okay, we're on the 4 record in the matter of Puerto Rico Police 5 Department. This is FAA docket number FAA-2013- 6 1086. Today is Wednesday, January 11, 2017. And 7 the parties have convened by telephone at 10:00 8 a.m. for a motion conference. 9 The FAA is represented by its attorney 10 of record, Mr. Christopher R. Stevenson. The 11 Puerto Rico Police Department, Respondent, is 12 represented by its attorney of record, Ms. 13 Betmar R. Lopez Pagan. Also here at the Office 14 of Hearings is Mr. Cody L. Smith, an attorney 15 advisor with this office sitting in as an 16 observer only. 17 So good morning to you all. What I'm 18 going to do is I'm going to just talk a little 19 bit about what has occurred in the case so far so 20 we have a background and then I will be turning 21 first to the Respondent regarding its motion for 22 extension, and then also talking to the FAA at a

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com4 1 certain point after that regarding his motion to 2 compel. 3 So just as a preliminary background, 4 the record reflects that on October 13, 2016, an 5 order setting litigation dates and procedures was 6 filed. Among other things, this October 13, 2016 7 order directed the parties to be begin exchanging 8 discovery requests on or before November 1, 2016 9 pursuant to 14 CFR Section 13.220, and that any 10 responses to such requests of discovery should be 11 no later than 30 days after service of the 12 request. 13 And the parties should be aware that 14 that information is contained on Page 2 of the 15 order Paragraph A as in apple, numeral two. 16 Thereafter, on December 22nd, 2016, 17 the respondent filed a motion with this court 18 requesting extension of time, and specifically 20 19 additional days to respond to the FAA's discovery 20 request. 21 Five days later on December 27, 2016, 22 the FAA filed a motion to compel. Thereafter, on

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com5 1 December 30, 2016, an order setting a deadline 2 for filing responses to motions and a motion 3 conference was filed. 4 And among other things, this December 5 30, 2016 order directed the parties to file their 6 responses, if any, to the pending motion on or 7 before Friday, January 6 ' 2017. 8 On January 4' 2017 the FAA filed a 9 response to the Respondent's motion requesting an 10 extension of time. That leads us to today's 11 proceeding. 12 So, Ms. Pagan, let's talk a little bit 13 with you. Now from the record that's before me, 14 it appears that the Respondent has not filed any 15 response to the FAA's motion to compel. Is that 16 correct? 17 MS. PAGAN: Yes, that is correct. 18 JUDGE SULLIVAN: Okay. Then let's 19 talk a little bit about your motion for extension 20 of time. And one of the things that we need to 21 talk about, which is not included in this motion 22 that you filed, is when the discovery was

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1 initially due. Are you aware, based on your 2 potential and formal calculations, of what date 3 you want to assert to this Court the discovery 4 was originally due? 5 MS. PAGAN: Yes. Before that, I would 6 like to inform that on January 9, 2017 we 7 communicated with Mr. Stevenson and we informed 8 him that the Puerto Rico Police Department, the 9 superintendent decided to pay the total of 10 penalty. 11 JUDGE SULLIVAN: Oh. 12 MS. PAGAN: The penalty, yes. And 13 during today we received from Mr. Stevenson as 14 per our conversation a draft of an agreement in 15 regard with the payment of the penalty. As we 16 explained to Mr. Stevenson, in Puerto Rico there 17 was a change in Government. 18 And we have now a new Superintendent 19 to execute it which her confirmation is scheduled 20 for tomorrow. So by our part, we already have 21 the authorization for the payment of the penalty, 22 and that we are going to discuss the draft that

(202) 234·4433 NEALR. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 WNW.nealrgross.com7 1 was sent today by Mr. Stevenson so that we can 2 both read it in order to verify the form of the 3 payments, how it could be done. 4 And so by our part, what we would like 5 is to request a term so the parties can submit 6 the agreement that we are going to discuss. 7 JUDGE SULLIVAN: Mr. Stevenson, do you 8 have any response to this particular motion? 9 MR. STEVENSON: Well I would agree 10 with the facts presented, the course of events 11 presented by opposing counsel. I would request, 12 however, that the Court rule on the motions 13 before it which is why I did not notify the Court 14 and ask that this motion conference be cancelled 15 because we have not yet completed the settlement 16 agreement. 17 And by working in Government myself, 18 I am aware that sometimes there can be extended 19 hang ups about particular authorizations for 20 disbursement of funds, especially since there 21 will be someone new in charge and there is some 22 chance that she will feel the need for additional

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1 time or disagree with the decision. 2 I don't know, and so I and the FAA 3 would request that the Court rule on the 4 discovery related matters so that if the 5 settlement agreement does not work out, or the 6 payment of the fines does not work out, then we 7 will be in a position to proceed with the 8 litigation. 9 JUDGE SULLIVAN: Thank you. Ms. 10 Pagan, there's been an objection to your motion 11 to continue this particular motion conference. 12 Do you have anything final you would like to add 13 to your oral request? 14 MS. PAGAN: We agree with Mr. 15 Stevenson in regard that there is going to be 16 needed some time for the authorization as well. 17 JUDGE SULLIVAN: I'm sorry, I'm going 18 interrupt you. I couldn't understand what you 19 just said. You said we agree with Mr. Stevenson, 20 and then I lost you. 21 MS. PAGAN: Okay. We agreed with Mr. 22 Stevenson in the sense that we need a terms for

(202) 234-4433 NEAL R. GROSS COURT REPORTERSAND TRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 WNW.nealrgross.com9 1 the settlement to be finalized. So we don't have 2 any objection that proceedings continue on until 3 the settlement is finalized. 4 JUDGE SULLIVAN: Do I hear motion for 5 an extension of time? Let me just change that. 6 Are you withdrawing your motion to continue this 7 motion conference and you're ready to proceed 8 today on the motion? 9 MS. PAGAN: No. What we would be 10 requesting is that we might there is a new 11 possibility in the case that we be granted an 12 extension to finalize the settlement agreement. 13 And in regard with the motion for extension, that 14 we are willing to continue the proceedings in the 15 time that the settlement agreement is finalized. 16 But we would need an extension due to a 17 change in the Government of the superintendent to 18 submit any discovery that has been requested. 19 JUDGE SULLIVAN: Okay. I think I 20 understand. So what I'm going to do is this. I 21 will deny the Respondent's oral request this 22 morning to continue the motion conference to a

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1 different day to accommodate the party's 2 settlement negotiations. 3 I'm denying it in part because this 4 involves discovery issues that have already been 5 delayed by the holiday time period and that can 6 be addressed today without impeding the party's 7 settlement negotiations. 8 So I would agree with the FAA that 9 these kinds of matters should be addressed today 10 in this particular case, and may be helpful, in 11 fact, with the party's settlement negotiations. 12 We'll see. 13 In terms of the portion of the 14 Respondent's motion requesting additional time to 15 pursue settlement, that is available to the 16 Respondent already. Settlement negotiations can 17 occur at any time during the pending litigation. 18 so the Respondent has every 19 opportunity after this motion conference is 20 concluded to continue working on settlement with 21 Mr. Stevenson and/or with the new administrator 22 that's coming in to the Puerto Rico civil

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com11 1 service. Any questions about that, Ms. Pagan? 2 MS. PAGAN: No. 3 JUDGE SULLIVAN: Okay. Then let's go 4 back to the question that I asked originally. 5 Can you tell me what you think was your original 6 due date for responding to the FAA's discovery 7 requests that were served upon you on November 1, 8 2016 and received by your client on November 9, 9 2016? What was the original date according to 10 your calculations for you to have responded 11 timely to that discovery? 12 MS. PAGAN: From our files, the due 13 date to respond, we had it for December 23. 14 JUDGE SULLIVAN: And why did you 15 calculate that particular date of December 23, 16 2016 if you had received the discovery on 17 November 9, 2016 and it was dated as having been 18 mailed on November 1, 2016? 19 MS. PAGAN: I think that the date that 20 was used was the date that we received the 21 request. 22

(202) 234-4433 JUDGE SULLIVAN: I don't understand

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1 that. Can you explain that to me a little bit 2 more in detail? How did you calculate 30 days 3 for return of the discovery and end up with a due 4 date of December 23, 2016? 5 MS. PAGAN: I believe that from other 6 files. But we have that we received it in our 7 office was by November 27th. So 8 JUDGE SULLIVAN: You received it in 9 your office on November 22nd, 2016? 10 MS. PAGAN: Yes, I believe that the 11 date that was calculated was when we received in 12 our office the request. 13 JUDGE SULLIVAN: Who received it in 14 your office on November 22nd, 2016? 15 MS. PAGAN: Well, the usual is that 16 one of the secretaries from the office and then 17 they put it in the attorney's office. 18 JUDGE SULLIVAN: You are obviously 19 familiar with the FAA's response to your motion 20 which was filed with the Court on January 4, 21 2017. And in that response the FAA asserts that 22 the receipt that it received shows a receipt date

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 Wo/1/W.nealrgross.com13 1 of November 9, 2016 by your client. Do you have 2 any explanation for that? 3 MS. PAGAN: Well, I do know that they 4 received certain documents in one office but then 5 until they give that to the attorney, that date 6 that I was given was the date for the discovery 7 was the one that I just said previously. 8 JUDGE SULLIVAN: So I'm looking at 9 Exhibit B as in boy of the exhibits that are 10 attached to the FAA's motion to compel. Do you 11 want to look at those with me at this time? 12 MS. PAGAN: Yes. 13 JUDGE SULLIVAN: Do you have that in 14 front of you? 15 MS. PAGAN: Right now I do not. 16 JUDGE SULLIVAN: Why not? 17 MS. PAGAN: Because I do not have the 18 complete file with me. I am sorry. 19 JUDGE SULLIVAN: Why is it that you 20 don't have the file with you with the motions 21 that are before the Court and your client today? 22

(202) 234-4433 MS. PAGAN: Because I am doing the

NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com14 1 conference outside of the office. But because I 2 have an issue that entailed me to be at the 3 office, but since I have the conference, I am 4 able to proceed with the conference. 5 JUDGE SULLIVAN: Okay. In the future, 6 Ms. Pagan, if the future occurs because 7 settlement does not happen, you want to be sure 8 to have the applicable motions that are scheduled 9 for discussion with you when you appear for the 10 motion conference. That just makes good sense 11 for counsel. 12 MS. PAGAN: Yes, I know. I'm sorry. 13 JUDGE SULLIVAN: Okay. Well, let's 14 talk a little bit about this because according to 15 material that's in the file, I'm going to talk a 16 little bit about that. 17 On September 15, 2014, there was a 18 motion by you indicating that a PO Box that had 19 been utilized by the FAA in the past provoked a 20 substantial delay in getting documentation. 21 And you indicated in this informative 22 motion regarding postal address that you wanted

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com15 1 your records updated so the material was sent to 2 the correct address. Do you recall that? 3 MS. PAGAN: Yes, I do. 4 JUDGE SULLIVAN: Okay. And so we all 5 updated our addresses to that critical postal 6 address which was PO Box 71200, San Juan, Puerto 7 Rico 00936 pursuant to your co-counsel's request. 8 And then according to the material 9 submitted as part of the FAA's motion to compel, 10 the discovery that is a subject of concern and is 11 before the Court today was sent specifically and 12 directly to the updated address of PO Box 71200, 13 San Juan, Puerto Rico 00936. 14 And the United States Postal Service 15 tracking information attached to the Respondent's 16 motion, I'm sorry, to the FAA's motion to compel 17 indicates that on November 9 ' 2016, that 18 discovery was delivered to your preferred address 19 of record at that post office box in San Juan, 20 Puerto Rico. 21 So I'm a little unclear why it is that 22 you're alleging that the FAA by sending the

(202) 234-4433 NEALR. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nea\rgross.com16 1 discovery to your preferred post box address did 2 not achieve what you said you would have achieved 3 or we would achieve which is immediate access and 4 routing to you or your co-counsel to avoid 5 delays. What was going on? 6 If that particular document was 7 delivered to your preferred address on November 8 9, 2016, how is it that it did not get to you or 9 co-counsel until November 22nd, 2016? Do you 10 have any idea? 11 MS. PAGAN: No I do not. I do 12 acknowledge that we had informed about our 13 correct address to get the documents. I also 14 acknowledge that it took receipt to that address. 15 That from my recollection, we requested the 16 extension of time prior to the date of receipt. 17 JUDGE SULLIVAN: I think we're going 18 to have to talk about that because you're 19 calculating a due date based on information that 20 I don't think the Court can utilize. so it's 21 not, the date that it's due is not calculated 22 based on the date that you actually find it in

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1 your inbox. 2 The date that it's due is calculated 3 based on the date it's served plus five days 4 allowance for mailing. So the date of service 5 according to the documents before me is November 6 1, 2016. 7 I don't count the date of November 1, 8 2016 because that's the date that it was put in 9 the mailbox. And pursuant to the FAA's 10 regulations, we don't count that date. 11 The month of November in the year 2016 12 had 30 days total. And according to the FAA's 13 regulations, we add five days allowance if 14 something is certified mail, we do a 30 day 15 timeline. 16 And this clearly was served by mail, 17 so you and your client get the benefit of that 18 extra five days. Even with that 35 day period of 19 time as I calculate your time period, you had to 20 respond to that discovery on or before December 21 7th, 2016. 22 And what I think is really troubling

(202) 234-4433 NEALR. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com18 1 about this case is that you didn't file a motion 2 for extension with this Court until December 3 22nd, 2016. 4 So even though there is the regulation 5 in the FAA rule that allows for an automatic 6 extension of time in certain cases when someone 7 needs extra time, that allowance for extra time 8 is granted automatically only if a party has 9 filed their request pursuant to the regulation 10 prior to the due date the material is required to 11 be responded to. 12 Or if you look at 14 CFR Section 13 13.213, Paragraphs B and C, those paragraphs, 14 particularly Paragraph B says, and I'm going to 15 quote, "A party shall file a written motion for 16 an extension of time with the Administrative Law 17 Judge not later than seven days before the 18 document is due unless good cause for the late 19 filing is shown. n 20 So I have in this particular case a 21 late filed motion for extension, late being it's 22 almost I think filed on December 22nd, 2016.

(202) 234-4433 NEAL R. GROSS COURT REPORTERSAND TRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com19 1 This material, the original due date for the 2 material according to the Court's calculations 3 was two weeks prior to that on December 7th, 4 2016. 5 And so I have a written motion that is 6 not in compliance with the FAA regulations for 7 timeliness because ideally if you were going to 8 comply with this particular regulation, you would 9 have filed your motion on or before November 10 30th, 2016, and you didn't. 11 So then I look and say well, does the 12 regulation here allow for an automatic extension 13 of 20 days if the Court doesn't rule, you know, 14 during a certain period of time which is part of 15 the regulation under 14 CFR Section 13.213 16 subsection C. 17 And the answer in this case is you do 18 not get the benefit of that automated 20 day 19 extension because you never gave the Court an 20 opportunity to rule for the due date that it was 21 required to be filed. 22 So had you filed the motion for

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com20 1 extension on or before November 30, 2016, and 2 this Court failed to rule upon it on or before 3 December 7th, 2016, you would have gotten an 4 automatic 20 days extra time. 5 That doesn't apply in this case 6 because you didn't file your motion for extension 7 until after the original deadline for responding 8 to the discovery. So do you have any questions 9 about that so far? 10 MS. PAGAN: No. 11 JUDGE SULLIVAN: Okay. So that leads 12 us to this December 22nd, 2016 filing. And 13 according to the same regulation, 14 CFR Section 14 13.213 subsection b, there's an opportunity to 15 file a motion for extension that's less than 16 seven days before the date the document is due if 17 you show good cause for filing late. 18 And when I've looked at your motion 19 for extension, I didn't see any assertion of good 20 cause. And it sounds to me like your 21 miscalculation of the due date led you to believe 22 that somehow you either were within a timeframe

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1 that was acceptable or you didn't know about this 2 at all. Do you want to address that in any way? 3 MS. PAGAN: No. My recollection and 4 the date it came is based on my best 5 recollection. I thought that we had requested 6 the extension of time before the due date. And I 7 believed to have done so. I do not have the file 8 with me at this moment. 9 I am completely, you know, in 10 accordance with the date that you have just 11 mentioned. If any of those dates are different 12 from what we have in our files, I will look into 13 that at this moment. But I do know that when I 14 do it correctly that the extension was filed 15 before the due date and it was requested. 16 And it did not say before the due 17 date, our position is that we had circumstances 18 that are onerous and

-- 19 (Simultaneous speaking) 20 JUDGE SULLIVAN: I'm going to 21 interrupt. I'm going to interrupt you. Before 22 we get to the merit, I'm just going to note that

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com22 1 even if the due date for the responses to the 2 FAA's discovery could in fact have been December 3 23rd, 2016 as you have previously proffered, your 4 motion on December 22nd, 2016 would still have 5 been late because it was less than seven days 6 before the due date for the response. 7 So we still have that troubling seven 8 day filing requirement prior to the date the 9 document is due that even under the best of 10 circumstances, if I accept all the dates as valid 11 that you've given me your client failed to comply 12 with. 13 Let's talk a little bit about the 14 underlying merit. Let me ask you first and 15 foremost, have you submitted to the FAA your 16 responses to its request for discovery, and if 17 so, what date did you do that? 18 MS. PAGAN: I am sorry. Can you 19 repeat the question? 20 JUDGE SULLIVAN: Sure. Have you 21 submitted your responses to the FAA's discovery 22 yet, and if you have, what date did you do that?

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1 MS. PAGAN: We have not. We have not 2 done so. That's why we are working with the-- 3 JUDGE SULLIVAN: You cut out. I 4 didn't hear that last part. The last thing I 5 heard was that's why we are working with, and 6 then I couldn't hear. 7 MS. PAGAN: No, that we've already 8 requested. 9 JUDGE SULLIVAN: I have a lot of

-- 10 hello? Hello? I'm hearing a lot of clicking. 11 Is someone clicking something on the phone? 12 MS. PAGAN: Yes, I am so sorry, that 13 is me. 14 JUDGE SULLIVAN: What are you doing, 15 Ms. Pagan? 16 MS. PAGAN: Yes, I am sorry. It's 17 that I am saying at the beginning and I am again 18 sorry. I am out of the office and I have a copy 19 with me. I'm having personal issues and cannot 20 be at the office. 21 JUDGE SULLIVAN: Okay, but the 22 clicking, please, please top the clicking noise.

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 WWN.nealrgross.com24 1 Okay. 2 MS. PAGAN: Okay. I will not do that 3 anymore. I was just trying to request with you 4 to give me the exact date of when we requested 5 our, when we requested extension of time. 6 JUDGE SULLIVAN: Okay. Well, your 7 request was filed with the Office of Hearings on 8 December 22nd, 2016. And as you may recall, this 9 Court advised you and the other side, the FAA, 10 earlier in this proceeding that deadlines are 11 calculated by the Court based on the date that 12 it's filed with the Court which is why the Court 13 has strongly encouraged the parties, and this is 14 in various orders including the August 10, 2016 15 order that the parties have for faxing documents 16 that you might also be putting in the mail to the 17 Court. 18 But let's talk a little bit about not 19 filing responses to discovery. Let's assume just 20 for the sake of argument that you did obtain a 20 21 day automatic extension to your discovery time 22 period as of December 22nd, 2016, or December

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com25 1 23rd, 2016. That 20 days would have ended as of 2 either January 9, 2017 if we date it from 3 December 22nd, 2016 or at the very latest as of 4 yesterday, January 10, 2017. 5 So why didn't your client responded 6 fully to the discovery request by that additional 7 due date if in fact you felt you had gotten an 8 extension request filed in time? 9 MS. PAGAN: Yes, because that due date 10 to submit the documents requested, we got an 11 authorization to pay the total penalty. So we 12 informed that on November 9, 2016 I think, we did 13 that it was only a matter of signing the 14 agreement because we, what we were informed that 15 we were going to pay the total. 16 But if not, an ordinary agreement of 17 the parties of what part of it to pay or not, we 18 just have an authorization to pay the total. So 19 20 JUDGE SULLIVAN: Let me interrupt you. 21 So you're telling me that you communicated to Mr. 22 Stevenson on what date that you were going to do

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com26 1 a settlement? 2 MS. PAGAN: On November, not November. 3 On January 9 . 4 JUDGE SULLIVAN: Okay, thank you. All 5 right. So just so that I'm clear, between 6 December 22, 2016 and January 9, 2017, why didn't 7 your client file with the FAA responses to all 8 this discovery? 9 MS. PAGAN: Because we were working 10 with the authorization for the payment of the 11 penalty. 12 JUDGE SULLIVAN: Okay. Is there 13 anything else that you would like to add to your 14 particular motion for an extension of time? 15 MS. PAGAN: No, nothing more. 16 JUDGE SULLIVAN: Mr. Stevenson, you've 17 heard the general arguments and information 18 provided by the Respondent. I have read your 19 response to the request for an extension. Do you 20 have, would you like to take five minutes just to 21 highlight your position on this motion? 22

(202) 234-4433 MR. STEVENSON: Hopefully I'11 take

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1 less than five minutes, Your Honor. You 2 indicated you read the filing. I don't have much 3 to add beyond that. 4 It seems at this point it is moot 5 whether or not the Respondent gets an extension 6 of time because even if the Court granted a 20 7 day extension of time from December 22nd or 23rd 8 which would be it seems like the most that the 9 Respondent was asking for, I think that would 10 make the due date tomorrow or Friday? 11 And that would seem to be superseded 12 by, I guess and to the extent that it would go 13 past today, the FAA would ask that that be denied 14 because the more appropriate remedy would be for 15 the Court to grant the motion to compel and 16 provide whatever time was in there rather than 17 retroactively applying an extension of time which 18 could require the parties to go through this 19 again, especially since it appears that, 20 anticipating that the case is going to settle, 21 the Respondent has not made efforts to begin 22 preparing discovery responses.

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1 JUDGE SULLIVAN: Okay, thank you. Ms. 2 Pagan, this is your motion. Do you have any 3 final argument about your motion for extension of 4 time? 5 MS. PAGAN: No. Just that we do 6 qualify that in spite of the efforts that we made 7 to obtain an authorization for the payment of the 8 total of the penalty, we also was working at the 9 same time with the forwarding of the documents. 10 JUDGE SULLIVAN: Thank you very much. 11 Essentially what I'm going to do is this, number 12 one, the motion for extension of time filed by 13 the Respondent on December 22nd, 2016 was not 14 timely. 15 It is a nunc pro tunc motion that was 16 not clearly identified as such when it was filed. 17 And it is not in compliance with the FAA's rules 18 of practice under 14 CFR Section 13.213. 19 According to the undisputed 20 information that is part of this record, the FAA 21 filed its discovery request or served a discovery 22 request on the Respondent on November 1, 2016.

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com29 1 The discovery requests were properly 2 served on the Respondent's preferred Post Office 3 mailing address by certified mail and were 4 received on November 9, 2016. 5 According to the regulations, this 6 means that the due date for the Respondent's 7 timely responses to those discovery requests, 8 with the mailing rule included, would have been 9 on or before December 7, 2016. 10 As a result, pursuant to 14 CFR 11 section 13.213 b, any motion for extension by the 12 Respondent for time to exceed past December 7, 13 2016 was due to be filed with this Court no later 14 than November 30, 2016 to be timely. 15 No such motion was filed on November 16 30, 2016. And as the record reflects, no motion 17 for extension was filed at all prior to the 18 original due date for the responses with December 19 7, 2016. 20 Plus, the Respondent is not entitled 21 at all to any automatic 20 day extension as 22 anticipated

(202) 234-4433 under 14 CFR Section 13.213

NEAL R. GROSS COURTREPORTERSAND TRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com30 1 subsection c. 2 The Respondent certainly had the 3 option of course to file a late motion for 4 extension and show good cause for that late filed 5 motion under a generous reading of 14 CFR Section 6 13.213 subsection b. 7 The Respondent's motion filed with 8 this Court on December 22nd, 2016 clearly is a 9 late filed motion and also clearly fails 10 completely to identify any good cause reason for 11 the late filing, which is the first hurdle that a 12 late filed motion must address before we get to 13 the merits of why an extension is needed. 14 In the Respondent's December 22nd, 15 2016 motion, the Respondent fails on the merit to 16 identify any grounds in which it can stand with 17 credibility on why it has failed to address any 18 of the requests for discovery within an 19 appropriate time period. 20 I've looked at this particular motion 21 and I was deeply troubled by the fact that the 22 only grounds provided on Page 1 of this two page

(202) 234-4433 NEALR. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com31 1 motion requesting extension was the following 2 statement, "The hereby appearing party has been 3 compiling the pertinent information to respond to 4 the above. Nevertheless, as of this date, there 5 is still certain information that Respondent is 6 verifying." Page 1, Paragraph 2. 7 That does not provide any explanation 8 for why all of the requests for discovery were 9 ignored during the 30 day time period that the 10 Respondent had to respond to them. 11 If there was certain information that 12 still needed to be provided, that certainly could 13 have been negotiated between the parties without 14 the Respondent failing to respond at all to all 15 of the requests for discovery or the requests for 16 admission. 17 So I would find even on the merits of 18 this motion it is insufficient to support a 19 motion for extension. I will deny it in its 20 totality both on the grounds of untimeliness, 21 failure to comply with the seven day rule, the 22 failure to

(202) 234-4433 provide good cause

NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 for the

www.nealrgross.com32 1 untimeliness of the motion, and in the 2 alternative because the motion itself fails to 3 provide any grounds that supports the motion for 4 extension. 5 That leads me then to the FAA's motion 6 to compel. And I am going to talk a little bit 7 about this, first with Mr. Stevenson, and then 8 I'm going to talk a little bit about it with Ms. 9 Pagan. 10 Mr. Stevenson, in your motion to 11 compel, you indicate that you want discovery 12 provided on everything. Does that also include 13 the request for admission because those are late 14 as well. 15 MR. STEVENSON: Yes, Your Honor. 16 JUDGE SULLIVAN: So you're waiving the 17 opportunity to exercise your option under the 18 regulations for admission? 19 MR. STEVENSON: No, Your Honor. 20 JUDGE SULLIVAN: Okay. Do you have 21 anything you would like to say in general about 22 this motion to compel just as a highlight of why

(202) 234-4433 NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005·3701 www.nea!rgross.com33 1 you want it and the bases for it, or do you want 2 to stand on the record? 3 MR. STEVENSON: I will stand on the 4 record, Your Honor. Although, of course, if the 5 Court has any specific matters that the Court 6 would like addressed, I can do that. 7 JUDGE SULLIVAN: Okay. I would like 8 to ask you, would you agree that the date that 9 you and the Respondent agreed or confirmed that a 10 settlement was pending was on or about January 9, 11 2017? 12 MR. STEVENSON: I would agree with 13 that, Your Honor. 14 JUDGE SULLIVAN: Thank you. Ms. 15 Pagan, I am going to turn to you. You did not 16 file a written response to the motion to compel. 17 But I will allow you an opportunity to make any 18 oral response you would like to make right now. 19 Do you have any oral response? 20 MS. PAGAN: Nothing in addition of 21 what already we have said, basically that it was 22 not filed in a timely manner. We do believe that

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com34 1 there exists a circumstances that are merit of 2 the extension. 3 And specifically the parties don't 4 have the information that must be provided to us 5 are no longer in agency. And so we have had to 6 endure a lot of complications in trying to have 7 access to that. Nevertheless, we have in all the 8 time been in the best position to try to provide 9 the information and have all the information 10 requested. But in light of the above

-- 11 JUDGE SULLIVAN: I'm going to stop you 12 because it sounds like you're arguing some new 13 facts in support of your client regarding your 14 motion for extension. 15 MS. PAGAN: Okay. 16 JUDGE SULLIVAN: Yes, and I'm 17 certainly happy to allow you to state that for 18 the record. I will note though that that was 19 never included in your written motion and it 20 still is not adequate, quite frankly, to explain 21 why you failed to respond to all of the discovery 22 requests over a lengthy period of time.

(202) 234-4433 NEAL R. GROSS COURTREPORTERSAND TRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nea!rgross.com35 1 I don't know exactly what information 2 you were seeking that you thought these absent 3 people needed to provide to you or why it 4 prevented you from responding promptly to the 5 discovery. 6 You haven't made that case at all in 7 writing or even orally here today. But I'll note 8 that you indicated that for your appellate 9 record. 10 Now, let's talk about the motion to 11 compel. There's been a motion to compel you to 12 provide this discovery. And what, if anything, 13 would you say on behalf of your client regarding 14 that motion to compel? 15 Do you agree, do you disagree with the 16 motion, do you have some suggestions to the Court 17 about how to address the motion? What would you 18 like to say? 19 MS. PAGAN: What we would like is for 20 a time to so we can submit the documents. 21 JUDGE SULLIVAN: And what kind of time 22 frame are you asking for?

(202) 234-4433 NEALR. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com36

1 MS. PAGAN: We will be requesting a 15 2 days. 3 JUDGE SULLIVAN: And do you think 4 that's a timeframe that would allow you in the 5 alternative to firm up whatever settlement that 6 you think you might have in the works with Mr. 7 Stevenson? 8 MS. PAGAN: I believe we can provide 9 the information by that days. 10 JUDGE SULLIVAN: Well, that doesn't 11 quite answer my question because what you're 12 doing as counsel is you're doing two things 13 simultaneously. Number one, you're working on a 14 settlement which you think you have almost 15 wrapped up. And that would take care of the case 16 in its entirety. 17 And number two, you're responding to 18 a motion to compel so that if that settlement 19 doesn't become a reality, you still have to be 20 working concurrently on getting these documents 21 that were requested of your client to the FAA 22 within a certain period of time.

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 WNW.nealrgross.com37

1 So my question to you is, is a 15-day 2 time period which you've suggested to the Court 3 adequate for you to both one, try and finalize 4 your settlement, and two, if settlement doesn't 5 work, get all this material to the FAA? 6 MS. PAGAN: We will be requesting the 7 15 days to submit a settlement agreement. And if 8 it is not possible to obtain the settlement 9 agreement during those 15 days, we would be 10 working concurrently to try to obtain the 11 information and we will be requesting a 15 12 additional days to submit them. 13 JUDGE SULLIVAN: I'm sorry, 15 days to 14 submit or something

-- 15 MS. PAGAN: Yes, 15 additional days to 16 submit then the discovery. 17 JUDGE SULLIVAN: Okay. This is your 18 motion, do you have anything final that you would 19 like to say? 20 MR. STEVENSON: No, Your Honor. 21 JUDGE SULLIVAN: Okay. I will grant 22 the motion in part. I will grant the motion to

(202) 234-4433 NEAL R. GROSS COURTREPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com38 1 compel. The FAA's first discovery request, 2 specifically to compel the Respondent to answer 3 interrogatories number 1 through 15, responding 4 the Respondent's right to object on the grounds 5 that they might be overbroad or any other 6 potential objection they have a right to make. 7 But they must answer the interrogatories. 8 Number two, the motion to compel is 9 granted in part. Page 3 and 4 of the FAA's first 10 request for discovery, specifically the request 11 for production on numbers one through seven, 12 again reserving the Respondent's right to make 13 any objection that it has a right to make in 14 responding to those requests. 15 Given the fact that the FAA has not 16 waived its right to the regulatory claim of 17 admission that is found in 14 CFR Section 13.221 18 subsection l, I will note that this motion is 19 granted only in terms of the request for 20 interrogatory responses and request for 21 production of documents. 22 The Respondent's failure to respond to

(202) 234-4433 NEALR. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com39 1 the request to admit has not been explained at 2 all. And pursuant to the FAA's own rules of 3 practice, the party's failure to respond no later 4 than 30 days after the service of their request 5 is deemed an admission of truth for those 6 requests for admission. 7 And I see before me in this packet 8 Page 4 of the FAA's first request for discovery 9 11 different requests to admit. And according to 10 the rules of practice, those requests to admit 11 would be deemed by the rule's admission for 12 failure of the Respondent to respond. 13 Now, I will simply note that the 14 Respondent, still I will reserve the Respondent's 15 right to show at a later date if it so can that 16 its failure to respond to these requests was due 17 to circumstances beyond the control of the party 18 or the party's attorney as allowed by the rule. 19 But I will give a due date for that 20 kind of motion if that motion is to be made. So 21 today is January 11, 2016. The Respondent has 22 requested 15 days in which it should provide

(202) 234-4433 NEAL R. GROSS COURT REPORTERSAND TRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com40 1 responses to discovery as ordered by the Court if 2 in fact settlement does not occur. 3 So not counting today, 15 days would 4 be, and I'm going to be quiet for a moment as I 5 look at my calendar. I 'm going to give the 6 Respondent a little bit of leeway because of the 7 two federal holidays. So I will direct the 8 Respondent to provide responses to the FAA's 9 interrogatories and requests for production on or 10 before January 31, 2017. 11 If the Respondent seeks a ruling 12 regarding the admission that appeared to have 13 occurred because of the Respondent failure to 14 answer the admissions within the 30 day time 15 period, the Respondent should file that motion 16 showing circumstances beyond its control or its 17 attorney's control as required by the rule, no 18 later than February 10, 2017. 19 A reply, if any, would be due no later 20 than February 24th, 2017, or a response, excuse 21 me. And then a reply might be filed on or before 22 March 3rd, 2017. If no motion is filed on or

(202) 234-4433 NEAL R. GROSS COURT REPORTERSANDTRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 WNW.nealrgross.com41 1 before February 10, 2017 by the Respondent, 2 that's certainly fine. 3 If the parties reach a settlement and 4 submit a settlement to the Court, then that would 5 be fine too. The Court would be delighted to see 6 that, of course, at which point the Court will 7 issue an order dismissing the proceeding and 8 canceling everything else that's still pending. 9 I would remind the parties that if you 10 are going to file anything with this Court, it 11 should be filed, courtesy should be filed by fax, 12 express delivery, or courier service to meet the 13 Court's deadline date of having it date stamped 14 in this office by the deadline provided. 15 With that, Ms. Pagan, as the first 16 moving party in this motion conference, do you 17 have any questions for the Court? 18 MS. PAGAN: No. 19 JUDGE SULLIVAN: Okay, thank you very 20 much. Mr. Stevenson, as the second movement in 21 this particular motion conference, do you have 22 any questions for the Court?

(202) 234-4433 NEAL R. GROSS COURT REPORTERSAND TRANSCRIBERS 1323 RHODE ISLANDAVE., N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com42 1 MR. STEVENSON: No, Your Honor. 2 JUDGE SULLIVAN: Okay. Then I will 3 thank you both very much for your presence today, 4 for the materials that you have filed. It 5 appears our business is complete. I will be 6 issuing a very short order with very little 7 discussion in this particular matter since I 8 think the transcript should serve as a fuller 9 explanation that the parties may rely upon if in 10 fact the matter is pursued on appeal. 11 With that, we can go off the record, 12 and I wish you all a good day. Thank you very 13 much. 14 (Whereupon, the above-entitled matter 15 went off the record at 11:05 a.m.) 16 17 18 19 20 21 22

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(202) 234-4433 48

Neal R. Grossand Co., Inc. Washington DC www.nealrgross.com49 C E R T I F I C A T E

This is to certify that the foregoing transcript

In the matter of: Puerto Rico Police Department

Before: US DOT/OH

Date: 01-11-17

Place: teleconference

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

(202)234-4433 Court Reporter

NEALR. GROSS COURTREPORTERSANDTRANSCRIBERS 1323RHODE ISLANDAVE, N.W. WASHINGTON, D.C. 20005-3701 www.nealrgross.com