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### I NTH E MATTE RO F FEDERA L AVIATIO N ADMINISTRATIO N Complainant , V . 

### DIAMON D AI RCHARTER , INC , FA ADocke t No , CP10EA000 4 DM S No . FAA-2010-062 0 r o

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### Respondent .

Thursday , Octobe r 13 , 201 1

Th e above-entitle dmatte r cam e o nfo r hearin g vi a teleconference , pursuan t t o notic e a t 1 1 :0 0 a.m .

BEFORE :

TH EHONORABL EJ.E . SULLIVAN , 

### Administrativ eLa

w Judg e

(202 ) 234-443 3 

### NEA LR

. GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE. , N. W WASHINGTON

. D.C

. 20005-370 1 www.nealrgross.co m

### APPEARANCES :

O nBehal f o f th e Complainant , Federa l Aviatio nAdministration : MAR Y MCCARTHY , ESQ . 

### of : offic e o f th e Regiona l Counsel ,

AEA- 7 

### Easter nRegio n Federa l Aviatio nAdministratio n 1 Aviatio nPlaza , Roo m56 1 Jamaica , Ne wYor k 1143 4 (718 ) 553-325 8

O nBehal f o f th e Respondent , Diamon d Ai r Charter , Inc. : GREGOR YS . WINTON , ESQ . of : Aviatio nLa wExperts , LL C On e Researc hCourt , Suit e 45 0 Rockville , Marylan d2085 0 (301 ) 294-855 0



## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE.

. N.W

. (202 ) 234-443 3 WASHINGTON

. D.C

. 20005-370 1 www.nealrgross.co mP~R-0-C-E-E-D-I-N-G- S 10:5 8 a.m . JUDG E SULLIVAN : We'r e o nth e recor d i nth e matte r o f Diamon d Ai r Charter . Thi s Docke t Numbe r CP10EA0004 . Toda yi s Thursday , Octobe r 13 , 2 011 , an d th e partie s hav e convene d fo r a secon dlitigatio nschedulin g conference . Th e FAAi s represente d b yMs . McCarthy . An d ma'am , ca nyo u spel l you r las t nam e fo r me ? 1 0 MS . MCCARTHY : Certainly , You r Honor . 1 1 It' s M-C-C-A-R-T-H-Y . 1 2 JUDG E SULLIVAN : Than k you . An d ar e 1 3 yo u a nattorne yworkin g wit hMr . Herman ? 1 4 MS . MCCARTHY : Yes , I am . You r Honor . 1 5 JUDG E SULLIVAN : Okay . Als o 1 6 appearin g toda yi s Mr . Gregor yWinCon , th e 1 7 attorne yfo r Diamon d Ai r Charter , Inc . Goo d 1 8 morning . 1 9 MR . WINTON : Goo d morning . 2 0 JUDG E SULLIVAN : Jus t t o remin d you , 2 1 essentially , th e las t tim e w e convene d wa s o n 2 2 Wednesday , Augus t 10 , 2011 , fo r a litigatio n 

## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE. , N.W

. (202 ) 234-443 3 WASHINGTON

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### 1 schedulin g conference . A t tha t time , th e partie s

2 discusse d a potentia l settlemen t o r dismissa l and 3 th e cas e fo r litigatio nwa s rese t t o Septembe r 7 , 4 2011 . An d then , prio r t o Septembe r 7 , 2011 , 5 ther e wa s areques t b yth epar t ie s fo r a 6 continuance . An dth e continuanc e wa s grante dt o 7 today' s date , Octobe r 13 , 2011 . Yesterday , o n 8 Octobe r 12 , 2011 , I receive da motio nfo r 9 postponemen t o f th e litigatio nschedulin g 1 0 conferenc e andther e wa s a nassertio ni nth e 1 1 motio ntha t th e conferenc e ha dbee nse t fo r 1 2 Octobe r 18 , 2011 . An dI jus t wante dt o chec k i n 1 3 wit hyo u bot ht o se e i f m ycalenda r ha dbee n 1 4 miss-calendare d fo r today , o r i f thi s wa s jus t a 1 5 clerica l erro r o nthi s particula r motion . An d 1 6 I'l l star t wit hMr . Winton , sinc e h e i s a littl e 1 7 mor e familia r wit hthi s case . 1 8 MR . WINTON : Than k you . Judge . An dI 1 9 gues s I wa s a bi t surprise d b yth e phon e cal l 2 0 thi s morning , becaus e I immediatel ywen t t o m y 

### 2 1 calenda r and I d o hav e i t schedule dfo r th e 18th , 2 2 and I don' t kno wwhy . Bu t mayb e that' s wha t wa s

(202 ) 234-443 3 

## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE.

. N.W

. WASHINGTON , D.C

. 20005-370 1 www.nealrgross.co m

### 1 discusse d a t ou r las t conference .

2 JUDG E SULLIVAN : Well , i t ma yb e tha t 3 thi s Court' s calenda r wa s mistaken . An dI jus t 4 wan t t o chec k i nand see . Because , i f i t was , 5 the nI'l l d o a littl e investigatio nandmak e sur e 6 tha t doesn' t happe nagain . S o Ms . McCarthy , 7 obviously , yo u ha d your s schedule dfo r Octobe r S 18t ha s well ? 9 MS . MCCARTHY : Actually , though , i n 1 0 lookin g throug hth e fil e t o - t o prepar e fo r thi s 1 1 morning , I di d find th e Septembe r 7t horde r tha t 1 2 clearl ystate s it' s th e 13th . I' mno t sur e why 1 3 th e 18t hwa s discussed , unless, i nreadin g Mr . 1 4 Herman' s reques t fo r postponement , h e wa s talkin g 1 5 abou t a narbitratio ntha t wa s schedule dt o begi n 1 6 o nth e 18th . An dth e 18t hma yjus t hav e stuc k i n 1 7 hi s brain . 1 8 JUDG E SULLIVAN : Okay . Well , than k 1 9 yo u bot hfo r bein g presen t today . I jus t wante d 2 0 t o chec k i nwit hyo u abou t th e reques t fo r 2 1 postponement . And , Ms . McCarthy , ar e yo u abl e t o 2 2 addres s that , a t all , today ? Because , i f w e ca n

(202 ) 234-443 3 

## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE.

. N.W

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. 20005-370 1 www.nealrgross.co m

### 1 addres s i t today , tha t woul db e great .

2 Otherwise , I ca nalway s continu e thi s unti l nex t week . MS . MCCARTHY : I believ e tha t I probabl ycan , You r Honor . I' mno t sur e exactl y- T mean , i f you'r e tryin g t o schedule , I probabl yca nd o that . I f - - andI ca ntel l yo u tha t th e Agency' s positio nha s no t changed . I f

w e ge t evidenc e tha t th e corporatio nha s bee n 1 0 dissolved , we'r e willin g t o dismis s th e - - I 1 1 mean , t o withdra wou r complaint . 1 2 JUDG E SULLIVAN : Okay . Whydon' t I 1 3 tur nt o you , Mr . Winton ? Wha t i s i t abou t th e 1 4 arbitratio nproceeding s that , i nyou r opinion , I B woul d resul t i na fina l settlemen t o f thi s 1 6 matter ? I mean , what' s goin g o nwit hth e 1 7 arbitratio ntha t woul d b e helpfu l t o th e partie s

i nthi s case ? 1 9 MR . WINTON : Well , it' s no t s o muc h 2 0 th e result s o f th e arbitration , bu t th e fac t tha t 2 1 ther e i s arbitration . Apparently , althoug hi t 2 2 wa s jus t las t wee k tha t I wa s advise db yth e


## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE. , N.W

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### clien t that , whe nh e inquire d fro mhi s othe r busines s associate s involve dwit hth e corporation , tha t w e neede d t o clos e th e corporation , i norde r t o resolv e th e FA Amatter . 5 The ywer e tol db ythei r busines s attorne ythat , 6 becaus e there' s pendin g arbitration , i f the y clos e th e business , th e arbitratio nwoul db e dismisse d a s moot . S o that ' s why . It' s no t necessaril ytha t th e result s o f th e arbitration , 1 0 bu t th e fac t tha t ther e i s arbitration . Onc e th e 1 1 arbitratio ni s concluded , the nthe yintendt o 1 2 full yclos e th e corporation , becaus e i t ha s n o 1 3 assets ; i t doe s n o business ; andi t intend s no t 1 4 t o d o anybusines s i nth e future . 1 5 JUDG E SULLIVAN : And , accordin g t o 1 6 th e motio ntha t I receive dfro mth e FAA , i t look s 1 7 lik e there' s a nassertio ntha t ther e woul db e

fina l resolutio no f tha t arbitratio n4 5 day s 1 9 afte r Octobe r 18 , 2011 . I s tha t you r 2 0 understanding , Mr . Winton ? 2 1 MR . WINTON : Tha t wa s a goo dguess , 2 2 base d o nwha t I ha dbee ntol dan dth e 

## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE. , N.W

. (202 ) 234-443 3 WASHINGTON , D.C

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### 1 0

1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 representation s made . I don' t hav e persona l

knowledg e o f what' s goin g t o tak e plac e withi n thos e 4 5 days . An dI thin k that' s whyMr . Berma n and I cam e up wit h6 0 days , whic hw e thin k woul d b e fair . JUDG E SULLIVAN : Okay . An ds o 6 0 day s fromOctobe r 18 , 2011 , woul db e abou t Decembe r 19 , 2011 . D o yo u wan t t o pus htha t ou t int o th e earl yne wyear , jus t t o b e o nth e saf e side ? MR . WINTON : Tha t woul d b e wonderful . Judge . JUDG E SULLIVAN : Okay . Wha t I ' m suggesting , then , i s tha t w e hav e a schedule d

secon d litigatio nconferenc e dat e i nearl y January . An d i f there' s bee nn o furthe r resolution , the nlet' s pla no nsettin g litigatio n dates , whic hwoul d include , I presume , a motio n fo r fina l orde r durin g th e pre-hearin g stag e o f litigation . Woul d tha t b e acceptabl e t o you , Mr , Winton ? MR . WINTON : I t would . Judge . Yes .



## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E IStAN D AV E

. N.W

. (202 ) 234-443 3 WASHINGTON , D.C

. 20005-370 1 www.nealrgross.co mI believ e tha t non e o f u s shoul d b e spendin g an y

mor e tim e o r resource s o nthis . So , I think , b y puttin g i t of f unti l January , i t wil l b e resolve d 4 b ytha t tim e an d w e can , yo u know , conclud e 5 everythin g a C tha t point . JUDG E SULLIVAN : Okay . An d Ms . McCarthy , d o yo u hav e Mr . Berman' s calendar ? Woul d tha t b e acceptabl e t o yo u t o calenda r somethin g i nearl yJanuary ? 1 0 MS . MCCARTHY : Yes , You r Honor . Tha t 1 1 woul d b e fine . 1 2 JUDG E SULLIVAN : Okay . 1 3 MS . MCCARTHY : I woul d jus t sa ytha t 1 4 th e onl ydat e tha t he' s unavailabl e righ t no wi s 1 5 Januar y10th . 1 6 JUDG E SULLIVAN : Okay . Ho wabou t 1 7 Januar y12 , 2012 , sa ya t 10:0 0 i nth e morning ?

Woul d tha t wor k fo r you , Ms . McCarthy , o nMr . 1 9 Berman' s calendar ? 2 0 MS . MCCARTHY : Yes , i t would . You r 2 1 Honor . 2 2 JUDG E SULLIVAN : An d Mr . Winton , 

## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE. , N. W (202 ) 234-443 3 WASHINGTON

. D.C

. 20005-370 1 www.nealrgross.co m1 0

9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 woul d tha t v/or k fo r you ? MR . WINTON : I a mcheckin g righ t now . Judge . Januar y12 , 2012 , tha t woul d b e - - yes , tha t woul d b e fine . Wha t tim e ar e w e sayin g again ? 10:00 ?

JUDG E SULLIVAN : Yes . 1 0 :0 0 a.m . Easter nStandard . And , i f yo u woul d b e s o kin d

a s t o pla no non e hour , assumin g tha t we'r e goin g to , a t tha t point , se t litigatio nwit hmotio n dates , i nth e even t tha t th e cas e ha s no t alread y bee nconcluded ?

MR . WINTON : Sure . Grea t Wonderful . JUDG E SULLIVAN : Okay . The nI wil l

sen d ou t a ne wnotice , bu t you ' v e bot halread y place di t o nyou r calendars . I'l l wis hyo u goo d luc k wit hthi s fina l phas e o f pre-litigatio n schedulin g settlement . I f yo u nee d m e a t an y tim e prio r t o th e ne wyear , pleas e le t m e know . And , otherwise , I'l l wis hyo u al l a happ yne w yea r early . Ms . McCarthy , o nbehal f o f you r client , i s ther e anythin g els e tha t w e ca n

(202 ) 234-443 3 

## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE.

. N.W

. WASHINGTON , D.C

. 20005-370 1 wwwnealrgross.co m1 1
addres s fo r yo u today ?

MS . MCCARTHY : I don' t believ e so . You r Honor . JUDG E SULLIVAN : Okay . An d Mr . Winton , o nbehal f of ' you r client , anythin g w e ca n address ? MR . WINTON : No , Judge . Than k you , ver ymuch . JUDG E SULLIVAN : Okay . The nwha t I 1 0 wil l d o i s I wil l gran t th e Agency' s reques t fo r 1 1 postponemen t o f today' s proceeding . I'l l not e 1 2 tha t th e Octobe r 18 , 201 1 dat e i nth e motio n 1 3 appear s t o b e a clerica l error . An d that' s 1 4 easil yaddresse d b ythi s conferenc e today . W e 1 5 wil l reconven e o nJanuar y12 , 201 0 a t 10:0 0 a.m . 1 6 Easter nStandar d Tim e b ytelephone , t o se t 1 7 litigatio ndate s if , i nfact , th e partie s hav e

no t ye t resolve d th e matte r fully . Wit hthat , w e 1 9 ca ng o of f th e record . An d I wis hyo u al l a goo d 2 0 day . 2 1 MR . WINTON : Than k you . You r Honor . 2 2 MS . MCCARTHY : Than k you . You r Honor . 

## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE. , N W (202 ) 234-443 3 WASHINGTON , DC

. 20005-370 1 www.riealrgros s co m1 2 1 2 3 4 5 6 7 Sam et o you . JUDGESULLIVAN : By ebye
. (Whereupon , th econferenc ewa s conclude da t

11:0 7 a.m. )

9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0

2 2

(202 ) 234-443 3 

### NEA LR

. GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE.

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. D.C

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### Nea l R . Gros s & Co. , Inc .

202-234-443 31 5
CERT I FICAT E

Thi s i s t o certif ytha t th e foregoin g transcrip t

I nth e matte r of : Diamon d Ai r Charte r

Before : DO T

Date : 10-123-1 1

Place : teleconferenc e

wa s dul yrecorde d an d accuratel ytranscribe d unde r m ydirection ; further , tha t sai d transcrip t i s a tru e an d accurat e recor d o f th e proceedings .

Cour t Reporte r



## NEA L R . GROS S COUR TREPORTER S AN D TRANSCRIBER S 132 3 RHOD E ISLAN D AVE. , N. W (202)234-443 3 WASHINGTON , D. C 20005-370 1 ww wnealrgros s co m