07/02/2012 15:43



### Date:
To: 8132735093 GRAYROBINSON PA 

# FAX TRANSMISSION GRAYIROBINSON ATTORNEYS AT LAW

July 2, 2012 201 N.FRANKLIN STREET, SUITE2200 Posr OFI'ICE Box 3324 TAMPA, FL 33602 PHONE: 813-273-5000

FAX: 813-273-5145



### Client-Matter Number: 372607-20


### Fax: No.: Stephanie McClain, Hearing Docket Clerk (202) 493-5142 

### Phone No.: (202) 385-8229 Federal Aviation Administration


### From: Subject: Charles Fletcher 

### Phone:
Braille Battery, In.c. Response, Request for Hearing and Request for Extension ofTime Notice ofProposed Civil Penalty (HM) Case No. 201180700298

Number of

### Pages with 

### Cover Page: 8 

### M.essage: PAGE 01/08

Pursuant to your conversation. with my assistant, attached please find a copy my letter dated June 29, 2012 to Gerald A. Ellis, together with the Election ofRights on behalfofBraille Battery, Inc. These materials we sent to you via FedEx on Friday but were inadvertently sent to an incorrect address. You should be receiving the FedEx package this aftemoon or tom.onow morning. Please contact me wlth any questions.

This facsimile message contains legally privileged and confidential information intended only for the individual or entity named above. lfthe reader ofthis message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying ofthis commu.nication is prohibited. Ifthis communication was received in error, please immediately notify us by telephone and return tbe original message to us at the address above via the U.s. Postal service. Thank you. lfo' YOU DO NOT RECEIVE ALL OF THI'; PAGES, PLEASE CALL

LINDA WOOLARD AT (813) 273·5235 AS SOON AS POSSIBLE.07/02/2012 15:43 8132735093 

# GRAYjROBINSON
ATTORNEYS AT LAW

Cl1arlcs Fletcher

813·213-5]5] Cf.r.ARLES.FLETCimlt.(liJGRAY-RoBrnsoN.coM



### VIA FACSIMILE (404) 305-5223 

### AND U.S. EXPRESS MAlL Gerald 

### A Ellis, Esq. Office o:fthe Regional Counsel Federal Aviation Administration P.O. Box 20636 Atlanta, GA 

### 30320 

### Re: Braille Battery, 

### Inc. GRAYRDBINSDN PA



### June 29,2012 sun-. 2200 201 N. F•ANKUN STRooT (33602) P.O. Box 33?.4 TAMI?'A, FLORIDA**33601~3324** m. S \3-?.73-5000 FAX 813-273-514-5



### Response, Request for Hearing and 

### Request for Extension, 

### IJf Time**N~Jtice** 

### ofProposed Civil 

### Penalty (.HM) Case No. 201180700298 Dear Mr. Ellis: PAGE 02/08

FOR'!' l..AUDE.RDAI.l! jACKSONV/1./.P. Kcr W8sr LAKliLA.ND MJ;t.lJOUP.NE MIAMI NA?J.ES ORJ.ANVO TALUNA.t:SEB TAMPA



### Our firm rep1;eseu.ts Braille Battery, Inc. in connection with the above-referen.ce matter. We a:r:e in receipt ofthe Notice ofProposed Civil Penalty dated May 29, 2012 and received by Braille Battery onMay 31, 2012 (the "Notice"). My client has elected to request a hearing and seek a consultation 

### with yourselfor other appxopriate officials in the FAA Regional Office. Please find attached the**Electio~:~** 

### ofRights. Braille Battery would prefer to work cooperatively with FAA to resolve this matter without 1be time and expense oflitigation, and inthis light has requested consultation, in addition to protecting its rights by 

### timely requesting a hearing under 14 C.F.R. §13.16 and Pact 13 Subpart G. 

### We believe the Notice is premised onincorrect and incomplete information that is material to whether there has, in fact, been any violation ofthe U.S. Department ofTransportation ("USDOT") Hazardous Materials Rules ("HMR"), whether it is apwopriate for the Federal Aviation Administration (the "FAA")to seek civil penaltl.es at this time, and the magnitude ofa civil penalty, should any civil penalty be appropriate. As 

### I arn sure you. are aware, the application ofthe USDOT HMR can be very complicated and it is not uncommon for the regulated oonununit:ies, regulators, and**ev~;:n** FAA administrative law 

### judgesto misapply these rules due to their complexity and the changJ;og products in the marketplace as technology progresses, For example, in a civil penalty appeal the FAA Administrator fal.llld thatthe civil penalties were imposed based onthe mistaken beliefthat a

www.gray"robinson.**~om**07/02/2012 15:43 8132735093

CRAYROBINSON**PROI'F.iGSfONAl~** ASSOCIATION 

### Gerald 

### A. Ellis, Esq. June 29, 2012 Page2 GRAYRDBINSON PA PAGE 03/08



### regulated prodoct was banned from b:ansport on passenger aircraft, when in fact 

### itwas only banned 

### i.n certain fonns. See 

### h• the Matter ojVillamor Tabul.a, 

### FDMS No. FAA-2008-0883. The Notice 

### in this case is based on a similar misapplication ofthe USDOT HMR. Braille Battery 

### is providing the most complete information it has been able to assemble withj.u the time available to respond to the Notice. We reqllest an extension. oftime of an additional 30 days to supplement the materials provided herein. · · Braille Battery disputes each alleged violation and the associated proposed penalties set forth in the Notice on the following grounds: J. Allegedviolation is already subject to USDOT enforcement and has been resolved 

### Please note that that Br.sille Battery has already been subject to eJJforcement by USDOT on this shipment and issu<:: under the USDOT 

### :HMR. Specifically, USDOT has already sought and assessed negotiated penalties pursuant to 49 U.S.C. 

### §5123(a) and 49 C.F.R. Chapter 172 for transport o£ a batteryviaFec!Ex intended for 

### lv.fr. Richa(d Purcell in Wadsworth; Ohio on March 

### 8,, 2012. See 

### Pipeline and Hazardous Materials Safety Administration ("PHMSA") September 1, 2011 Notice ofProbable ViolatiQJ:l, Case No. 11-0095-BAT-SO, Addendum 

### A, Speci.lic Allegations G.3.iii. at page 4 of7, a copy ofwhich is attached. Thepenalties assessed were, inpart, the rcsnlt ofa report byFAA employee Mark Gentile regarding the March 8, 2011 shipment, the subsequent inspection on Apri112, 2011 ofthe Braille Battery Sarasota facility byUSDOT official.s, and th.e PHMSA Notice ofProbable Violation. All ofthese issues were addressed and resolved in the Compromise Agreement entered into betweim BrailleBattery aud PMSHA. See 

### attached Compromise Order, P.HMSA Case No. 11- 0095-BAT-SO. The penalties paid under this Compromise Agreement were for exactlythe same event an.d as such the USDOT does not have the authority

### to seek additional penalties for these alleged violations ofUSDOT Hazardous Materials Regulations. IfF AA insists on seeking additional fines onthis matterwe request an. opportunity to discuss this with you directly via telephone or in person. In addition, we provide the following information for FAA's**cons~deration,** 

### without conceding or otherwise accepting the validity ofFAA's Notice orproposed civil penalties. Braille Batteryreserves all n.ghts in thi.s regard.07/02/2012 15:43 8132735093

GRAYROBINSONC

PROFESSIONAL ASSot:!AT!ON Gerald 

### A. Ellis, Esq. ]Ul).e 29, 2012 Page3 GRAYROBINSON PA

,2. 

### Notice of Proposed CivilPe11alty misstates material facts PAGE 04/08

A critical misstatement in the Notice is the incorrect identification ofthe type of.battery presentedfor shipment byBraille Battery on March 8, 2011. Braille Battery sought to ship a "lithiu,m,ion" batterynot a "lithiwn''battery. This 

### i.s a substantial and materi.almisstatement. Subsequent allegations in the Notice stem. from the mistaken beli.efthat the battery at issue is a "lithium"battery. This dif.ferentiation is apparent from the product name: "Micro-Lite LithiumIon Battery." The Notice incorrectly identi£.es the battery presented for shipment as a "primary (nonrcchargeable) lithium battery or cell." This also a misstatement ofa material fact. The batterypresented for shipmentwas a scco!ldary (rechargeable) battery. These differentiations are importantbecause HMR49 C.F.R. 

### §172.102 special provisionAl00 expresslyprovides: "Secondary**(~:echargeable)** lithium batteries and cells are authorized aboard passenger carrying aircraft in packages that do not exceed a gross weight of5 kg." The litbiumimJ. batterypresented for shipment was under 3 kg. 

### 3. Proposed peualty exceeds statutory authority and does n.ot**co1~sider** 

### all required factors As yournotice states, 49 U.S.C. §5123(a) limits penalties to not greater 

### than $55,000 peJ: violation. You have proposed a cjvj.J. penalty in the amount of$78,000, well above the statutory limit authorized in the U.S. Transportation Code for a HMR vlolati.on. No matrix, methodology, or other information is provided to articulate the a1.1thority or factual basis under which 

### FAA is seeking either multiple or supplemental penalties. The Notice and our information indicate that there was no property damage or injury ofany sort associated with the alleged violation. In fact, the battery at issue was not, infact, transported as air freight, the packaging remained intact at all times and there is no indication that anymaterial risk was ever posed to any person or any property. Under 14 

### C.F.R §13.J.6(c) FAA is required to consider: (1) The natrrre, circumstances, extent, and gravity ofthe violation; (2) With respect to the violator, the degree of culpability, any history ofprior violations, the ability to pay, and 

### any effect on the ability to continue to do business; and (3) Such other matters asjustice may require. 

### Tn the instant case, there was a single alleged action that is being cited byFAA. Each violation alleged was th.e result of a single allegedlymislabeled box; presented to FedEx in accordance with Fed.E:x:'s published requirements for shipping. In fact, Braille Batte.ry followed preciselytho publishedFedEx standards applicable for the battery at issue. Moreover, Braille Battery07/02/2012 15:43 8132735093

GRAY ROBINSON PROFESSIONAL ASSOCIATION Gerald 

### A. Ellis, Esq. June 29, 2012 :Page 4 GRAYRDBINSDN PA PAGE 05/08

believedthey had complied with the applicable hazardous materials shippingrequirements under USDOT 

### HRMrules and guidelines. Bra.ille Battery does not have atiy enforcement or compliance history 

### vv'ith FAA.. As suchBraille Battery shouldbe treated first time violator under 

### 14 C.F.R_ §l3.16(c). Moreover, the fine 

### is excessive conside,ing the gravity ofthe violation and any alleged culpabilitybyBraille Battery. Otherpublished decisions regarding alleged mislabeling of hazardous materials for a.ir transport have resulted in civil penalties from $3,750 to $50,000. One ofthese cases was for transport of79 drums ofhazardous materials. The comparison of79 drums ofhazardous materials to a single 3 kg batteryproduct is obvious. A proposed penalty of $78,000 is simplynot proportionate to the alleged violation. 

### In another case when the 

### FAA Administrator. determined. that the product was not, in fact, completelybann<:>d. from passElllger a,ircrafts, the civil penaltywas reduced dramatically. 

### See In the Matter ofVillamor Tabula, FDMS No. FAA-2008-0883. As indicated above, the Notice is based on the mistaken bel.iefthat the battery at issue is banned fi;om passenger aircrafts. Ifanyviolation ofHMR occurred it was not due to a lack ofeffort orinterest in complying 

### with 

### HMR Braille Batteryhas invested significant resources to ensure that 

### its products

### ~ shipped safely, 

### and any violation would be due to an ambiguity as to the appropriate classification 

### ofits products, efforts to meet both domestic and international regulations, an.d/or efforts to comply 

### wJ.th the shippingrequirement oftb.e carrier FedEx. The lack ofintent ofthe respondents in civil penalty cases have been cited by ALJs a:n.d the 

### FAAAdministrator as a basis for reducing penalties based lack ofsignificant culpability. Said another way, when the evidence indicates the respondent did not-intentionally violate the HMR, the civil penalty shouldbe significantly reduced. Also ofimportanceis that Bra.ille Batteryhas engaged in significant corrective action after the Aplil IZ, 2012 USDOT inspection referenced above. Braille Batteryworked with PHMSA to correct all ofthe indentif1ed deficiencies. Bra.ille Batteryhas an ongoing effort to ensure continued compliance with the

### HM::R and all requirements ofconnnercial can:l.ers such as FedEx. BrailleBattery canprovide additional evidence ofthis corrective action 

### ifgranted the requested 30-day extension oftime to supplement this response. Finally, the proposedpenalty of$78,000 will adversely impactthe ability ofBraille Batteryto continue to do business. Attached

### is Braille Battery's Balance Sheet from the first quarter of 2012. Bra.ille Battery can provide additional evidence ofits financial condition ifgrautedthe requ.ested 30-day extension oftime to supplement this response. As you will be able to discern J}om the balance sheet, BrailleBattery does not have the ability to pay a penalty of$78,000 and meet its financial obligations n..ecessary to continue as on ongoing business conce:m. Please note07/02/2012 15:43 8132735093

GnAYROJl!NSON

PROFESSIONAl. ASSOCIATION Gerald 

### A. Ellis, Esq. June 29, 2012 Page 5 GRAYROBINSON PA PAGE 05/08



### that allprovided fln.ancial**inform~ttion** 

### is confidential business information and not subJect to public disc.losure under the Freedom ofInformation Act. ' 4. ProposedNotice ofCivilPenalty does notprovide legally suffiCient .notice The proposed Notice ofCivil Penalty simply states that apenalty of

### $78,000 i.s proposed. There is no explanation. ofhow that number was calculated, how thatproposedpenalty isjustified or apportioned betweenthe alleged 

### HMR standards );e[erenced in the Notice, or what statutory 

### or other factors we,e considered when calculating the proposed civil penalty. Without more specific information regarding the method ofc:;tlculation or assessment ofthe penalties consistent with the HazliLrdous Materials Trlll;lsport Act, 14 C.F.R. §13.16(c), or other USDOT rules or applicable gui.dmcc documents, we are unable to evaluate the proposed civil penalty or make any meaningful counteroffer at this time. We request an extension qftime to malte a counteroffer for at least 

### 30 days, lll;ld until such time as FAA makes this infonnation available to Braille Battery. I look foxward. to discussing this matter with 

### your further. Please contact 

### m.e at your earliest availability to discuss resolution ofthis matter.

CF/Imw Attachments: Sincerely,

Charles Fletcher

1. Election ofRights on behalfofBraille Battery (via facsimile and U.S. Express Mail) 2. Notice ofProposed. Civil Penalty dated May 29, 

### 2012 (via U.S. Express Mail) 3. PHMSA Notice ofProbable Violation dated September 1, 2011 (via U.S. Express Mail) 4. Compromise Order, PHMSA Case No. 11-0095-BAT-SO (via U.S. Express Mail) 5. Braille Battery Balance Sheet (via U.S. Exp,ess Mail)

cc: FAA Hearing Docket (w/ :;ttlachments) (viaFedEx)

#3261341 vjB7/B2/2B12 15:43 8132735093 GRAYROBINSON PA

Pml'hl\TMBNl' or**TRAliS~Olt'l'I\TIO~·** FEDI'!!V,T,**JWI;>.T~ON** ADM!IIISTRilTION ATLP.I'l'l'A, GJ;:ORGTA

Of.:l;ice- o-f ti1e R.e**g~.onal.** Counsel Federal A'ttiati.on Adm.i.nisttatiol! P r**0.~ Eo-~** **2Q·6~!S l'.tlant~,**  81\ .30320 

### r
..te.,hone; Fac.sind.l": (4041 305-5200 {404) 305-5223 011n,; June 28, 2012 PAGE B7/BS

.Iu ::CeJ?lY to your**l\lo~ice** o·f P..rop:o.sed C.1.viJ. l?enaltYr ,T. ele.ct to**pt'o·ce-~d** .;;;,..$ .ind.i.cated by my clieok ma"Jc beside ttlc n.u:uber"d**)oo~aqr.,ph(a)** be.low: l. [ ] J:**h~l:-.,b;l'** submit the amol.lnt of**t~"'** proposed aiv.l.l**p"n.~;u:y** wJ.th t..he underst.andlllg: tha.t an o-..r.de.r ae:se;ssi.Ilg a c·iV'iJ.. pQ.tHtlty w:t11 be .i$st1ed in. t:ha.t amount .rithout :Ellrtl'>eT.**noti~e.** I OND.t:RST..!<I'ID TH'AT I !1.!\VE Wll.l:VED**~·l?.J:C:lH:!r** TQ 1>,**I~tt;l£1,** 2. 

### t J :r. have pa.id tha: p;r.opm::led civJ.l pE!n4lt:Y· with**~** cred:i.t oartJ. ove.t" the: Intazne·t at**t:J·~e fo~lowd** . .ng: 1-1\ili:::J.:i..ten**http~l,/www.pay**.. gov. J: unde:;rs:t.and**th~t** an o.:cder assessin-g .a**c..:J~v:U** pen.alty wiJ.l be: l.&.s1usd in. the. amount t;Hhout. fu.rth'"' n.otice. I m:.so. Olml"!<STANil**~'ll>T** ); >!M. Wli."CV'mo: MY <>WET TO A llEAAlNG, 3. f.xl· ! hereby submit e.v-ictence. ond information,**demo~.stra:tinq** l:hat a v:i,olatio.n: Of**th~** :r,egulati.ons did not occU!: a.s a..llt::!g¢d. or that Uta**~l11.ount** of tha**pE!.n;;:~,.t** ty .is nut:**Y,a:t~anted.** by tba**cire:um,s.f:ance:~ ~**  1. tmbgRSl'J&ND**~HAT** CROOSJ;;NG THIS OZ1'PJ:WT W:tl:.L !.<[0:>! l\.li'lrJ;)CT w.t**RIG~** <W 1\ BEAB,J;NG, · 1. (XJ I he:t.7eby submit**J~n.fo,rm;r.d:ion ~.r1d**  :rec::o.:r:ds shol1'ing that I am**£inanda.U~y** unable to pay the propo<e.d ci1til """'"l.ty, OJ:' that paym<>n1: of !:he pena1ty Watlld**P:t'I'JV~nt m~**  frQln. aontin'l1it'J.g in businesF.(**~** :r. TJNDJtR.-STA-.1>1:0' 'I!liz.I..'J! CHOOSXN!l' !!!!!IS OFl'ION Wl:LL l:!O!l' :/U;'lflllGT' l-!Y ll.:CGH!ll <rQ A HEAAil'l<a. 5. [ ) . ! he.teby >;e9uest**tha.~** tll"**):)J;"opo~~d** civi;L pena.lty b" assesSed j,n t:ll;. a&ottnt: of $ and I ·•'ubmit the raMons far. the r.edu<::ticn af th.:t p:ropo$ecl**'ltn~ttnt,** 1\:!:1:"**:!1l;:QUES~** GON'S):'l'ro!!:ES W.**A~N~** X!lli!I' :ur !NilS**()~R** XS l\CCJilB!rED Ill:( !t'!IE;. J?i!J1. 1 AN OJWER l'>SS'ElSSnl'G CIVII,. P>lNl\L!!:X: IN !!:l'll!: ll!>ml!NT ;!; lll\YJJ: S,eECI':IrtlliO MAY B)l: ISSD;lill.l· w,I:!l!I:(()O'!l!**~ll:!;R** l)!O!I'X9E**!).~** I WAI.\I);J l>lr llc!GllT :J:O. A**am~.** :rF**~fY** OFJl'liU< Ill N"aT ACCHlli"l'ED, :t tnmERS.TAl:m· 

### m nrGll'l! :r!o A !Jl;;iiRJ:IlG**m~.r.** liiO!l! 

### m:**.<~Jl'EE<JTEI>.**07/02/2012 15:43

6.. a.**informaJ~** below. :t: HEAI<ING. 8132735093 GRAYRDBINSON PA PAGE 08/08

[XJ I ht3;ce.by**requ~:!lt** to discuss th.:i.s ltla:tter ip**per~m~** at f.l):l qOhf.erenc:e**w~.th** an att.c:c:ney f.:LOJ:tt yo·Ur o.ffide at the J,ocattort chet:.ked ONDE:ru;= Tl!A:E 

### csoos= :E!US OPTTOJ<r WU,t. l<O!l! JI,J;'nlCT MY IUGBT !1'0 A
Check one: [ J O;f;"fice of: the. HGgianal Co\J.nsel in Atlanta.**Geor~j-a** [XJ !flight Standard" Dist.d.ct Oftl.ce in 

### Tampi!, Flouda (Sc"' Atta.che·d**r.i~t** of a·soo Offices.) ( 1 Of:Eiue o£ the lteg;i.onal Counsel :l.n (See Attached List of R$g:l.ooal Offi"c--,e"'s,--.'"")**b~** [ ) 't hereby**:t"e~uest** ill te:teLJhon:t.o :i.nfonaal**confe.r~nce.** P.H:tase cal-1 rna at th'C' mJr.'tbeX' listed b.t->J.ow t:o ma..kE!- a.:r.r.en.qements .fo.r the**c.o-nf~r.en~e-**

____ . ____.,___**T'~Le-phon.e** numbe:t" to call :for- c:onfer.-eo.ce

., • [Xl !**her~by** reqUest "- hearing in accord"oqe witJ1 s,_,l,.,art G of P.art l3 of !:!"<" Federal Av!.ation T<egulatiotl• IH C.l!'.ll.. 13 1 Subpart G) with the Un.d:$,stendin<J tb"t. o. Compl.<dnt will b., filed. I reqoeot that the lJsaring: be haJ.d: !.n· 

### ...J:ampa, Florida

. ;t am sencliDg thi,;**>:-equ.6~t** both to. tha F.AA**~·tto.rneY** ;.ind tit! the Ha.arin9 Docket,.**F.ed~rr;:~·J.** A'i.t'iat.i.on A.cirrt.tnistr.a.i:::ian,. a·oo !rld.ependence**A_,n:~nt~er** St.V. r R.ooro 92.<.1.1\.r**~a.6l:J..:ing~.o1l.r** OC, 2059.1.r. A'tte·ntion**~ He~A;-,in.g**  l:locket Cler·k.

Signatttre: 

### Braille Battery, Inc. 6935 ).5th Street East, Suite \ l5**Sa~;asota,** PL 34243

941·312-5047



### Charles R- Fletcher, Esq. clo GrayRobinson, P.A. 201 N. fumklin Street, Suite 2200 Tampa, PL 33602