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' i

UNl'lt D STATE S DEPARTMEN T O F TRANSPORTATIO N ''^npfATim ' OFFIC E O F HbARrNG S - ^ ''\Pp'^(l'\oli- : WASHINGTON , D.C . ^ ' '"'"'' ' I N TH E MATTERO F SMIT H CABL E SYSTEMS , INC . FA A DOCKE T NO . CP09AL001 2 (Civi l Penall y Action ) DM S NO . FAA-2(K)9-097 6 ? 1 P 9 : 7

ADMINISTRATOR' S CLOSIN G ARGUMEN T I . Introduction . Complainan t

Federa l Aviatio n Administratio n ("Administrator") , throug h counsel , hereb y present s it s elosin g argument . I L Allegation s an dDefenses . Responden t

Smit h Cabl e Systems , Inc . ("Smit h Cable" ) violate dmimerou s regulation s b y offerin g undeclare dhazardou s material s fo r transportatio n b

y air , violation s tha

t warran t a $60,00 0 civi l penalty . A s allege di

n th e complain t

andprove n b y th e preponderanc e o f th e evidenc e a

t hearing , o n Septembe r

10 , 200 8 in Ketchikan , Alaska , employee s o f Smit h Cable , actin g withi n th e scop e an ddutie s of

thei r employment , offere do n behal f o f Smit h Cabl e alarg e shipmen t

o f good s fo r transportatio n to Fairbanks , Alask ab y passenger-carryin g aircraf t o f Ala.sk aAirlines . Conceale d withi n th e shipmen t

wer e tw o 16. 4 ounc e cylinder s of Coleman Propan e Fue l ("th e propane" ) an don e 1 2 ounc e ca

n o f Premiu mDeco r

spra y pain t ("th e spray paint") . Eac h are cla.s.sifie dS A hazardou s material s b y th e Departmen t o f Transportation' s Hazardou s Material s Regulation s (4 0 CE RPart s 171-80 ) ("HMRs") . Smit h Cabl e ("aile

d t o mee t it s obligation , as ashipper , t o ensur e th e safet

y of it s shipmen t

an d needlessl y place dpassengers , crew , carg o handlers , an dother s i n peril . I n fact , no t onl y di d Smit h Cabl e fail to declare th e hazardou s materials . Smit h Cabl e actuall y declare do n th e waybil l tha t th e shipmen t

di dno t contai n hazardou s materials . Smit h Cable' s fundamenta

l failur e t o aler t other s t o th e presenc e of

th e hazardou s material s violate dnumerou. s regulator y requirements . Smit

h Cabl e faile dt

o prepar e proper

shippin g papers , faile dt o properl y mar k o r label th e shipment , an dfaile dt o provid e a n emergenc y respons e telephon e number for Alask aAirline s to us e shoul daspil l or othe r acciden t occur , h i s o05/27/201 1 11:5 5 FAX 202493514 2 FA A .QM S @002/01 2

doing . Smit

h Cabl e denie dAlask aAirline s personne l th e opportunit y t o tak e th e precaution s necessar y t o properl y transpor

t thes e hazardou s materials . Moreover , th e propan e tha t Smit h Cabl e offere di s s o hazardou s tha t it i s absolutel y forbidde n for transpor t aboardpassenger carryin g aircraft . I

n shon . Smit

h Cable' s shipmen t

wa s dangerou s an

dwarrant s asubstantial civi l penalty . A s se t fordi i n th e complain t

an ddemonstrate da

t hearing , Smit

h Cabl e violate dth e followin g HMRs ; a ) Sectio n 171.2(e ) in tha t Smit h Cabl e offere dhazardou s material s for transportatio n i n commerc e whe n eac h material wa s iio t properl y classed , described , packaged , marked , labeled , andi n conditio n for shipmen t a s require do r

authorize db y applicabl e requirement s o f

th e HMRs , or

a n exemptio n or

special permit , approval , o r registratio n issue dunder

th e HMR s o r

Subchapter

A o f Chapter 1 of Titl e 49 , Cod e of

Federa l Regulations ; b ) Sectio n I72.2()0(a ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n withou t describin g th e material s o n th e shippin g pape r i n the manne r

require db y 4 9 CF

R 17 2 Subpar

t C ; c ) Sectio n 172.201(d ) i

n that Smit h Cabl e offere dhazardou s material s fo r transportatio n withou t includin g in shippin g paper s a n emergenc y re.spons e telephon e numbe r as prescribe db y 4 0 CFR17 2 Subpart G ; d ) Four paragraph s o

f Sectio n 172-202(a) i

n tha t Smit h Cabl e offere dhazardou s material s lo r transportatio n withou t

includin g o n th e shippin g pape r fo r eac h material i ) th e identificatio n numbe r (172.202(a)(l)) ; ii ) th e prope r

shippin g name (172.202(a)(2)) ; iii ) th e hazar dclasse s or

divisio n numbe r

(172.202(a)(.3)) ; or iv ) th e total ne t

mas s pe r packag e or

total gros s mas s pe r

package , a s applicabl e (172.202(a)(6)) ; e ) Sectio n 172.203(r) i

n tha t Smitl i Cabl e offere dhazardou s material s for transportatio n b y ai r withou t statin g o n th e shippin g pape r

tha t th e shipmen t

i s withi n th e limitation s prescribe dfo

r eithe r passenge r

an dcarg o aircraf

t or carg o aircraf

t only ; f ) Sectio n 172.204(a ) i

n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n b y air withou t certifyin g o n th e shippin g pape r tha t th e material s wer e offere dfo r transportatio n i

n accordanc e wit

h th e HMRs : g ) Tw o paragraph s o f

Sectio n 172-204(e ) in tha t Smit h Cabl e offere dhazardou s material s for transportatio n b

y air i ) withou t

providin g tw o copie s of

th e certificatio n require db y Sectio n 172.20 4 (172.204(c)(2)) ; an d il ) withou t

addin g to th e certificatio n require db y Sectio n 172.204(a) the statemen t " f declar e tha

t al l of th e applicabl e ai

r transpor t requirement s hav e bee n met. " (172.204(c)(3)) ; Smit h Cahli ! Svszenn : Inc . DM S No . FAA-2009-097 6 Adminlslraior' s CAosin

g Arautnenr

Paff

e 2:S_

_05/27/201 1 11:5 G FAX 202493514 2 FA A . DMS @003/01 2

h ) Sectio n 172.300(a ) i

n tha t Smit h Cabl e offere dhazai'dou s material s fo r transportatio n withou t markin g eac h packag e containin g th e material s i n th e manner require dby Subpar t D o f Part 17 2 of th e HMRs ; i) Sectio n 172.301(a ) i n tha t Smit h Cabl e offere dhazardou s material s i n non-bul k packagin g for

transportatio n withou t

markin g th e packag e wit

h th e prope r

shippin g nam e an didentificatio n numbe r for th e material s a s show n i n th e Hazardou s Material s Tabl e i n Sectio n 172.10 1 ("Hazardou s Material s Table" ) of th e HMRs ; j ) Sectio n 172.400(a ) ix

i thai Smit h Cabl e offere dhazardou s material s i n non-bul k packagin g fo

r transportatio n withou t

labelin g th e packagin g wit h label s specifie dfo

r th e material s in th e Hazardou s Material s Tabl e an dSubpar t E of Par t 17 2 o f th e HMRs ; k ) Sectio n 172.604(a ) i n that Smit h Cabl e offere dhazardou s material s for transportatio n withou t enterin g o

n th e shippin g paper

a n emergenc y respons e telephon e number as describe din th e section : an d I ) Sectio n I73.27(b) ( 1 ) i

n tha t Smit h Cabl e offeredhazardou s material s fo r transportatio n b y ai r aboardpassenger-carryin g aircraf t when column 9 A o

f th e Hazardou s Material s Tabl e indicate s th e material i s forbidde n fo r transportatio n aboardpassenger-curryin g aircraft . Complaint . Smit h Cabl e admit s it

mad e th e shipmen t

in question , but

defend s b y claimin g i t

di dno t .shi p any hazardou s materials . Smit h Cabl e admit s tha

t i t offere dashipmen t

t o Alask aAirlines , that

o n th e waybil l it describe dth e shipmen t

a s '"tools" , tha

t th e shipmen t

wa s no t accompanie db y a Shipper'. ? Declaratio n fo

r Dangerou s Goods , tha

t th e waybil l wa s marke dt o indicate tha t n o dangerou s good s were included , an dtha t th e propan e an

dspray paint

ar e classifie da s hazardou s material s under

th e HMRs . Answer

a t 1-2 . Nevertheles s Smit

h Cabl e denie s tha

t it s shipment include dth e propan e o r

th e spra y paint an da.ssert

s several affirmativ e defenses . Answer a t 2-3 . III . Evidence . Th e testimon y an devidenc e presente dthroug h th e followin g witnesses , rea dfairly an d completely , demonstrate s Smit h Cable' s culpabilit

y fo r eac h o f th e violation s a s alleged . A . Stephe n CamP

Stephe n Cam

p testifie db

y telephon e fro

mKetchika

n a s follows . Mr . Cam

p work s fo

r Alask a Airline s in Ketchikan . (Tr . 41 ) At th e tim e o f

th e shipment , h e hadbee n workin g fo r Al'a,.sk a Airline s a s aRam

p Servic e Agent

for ove r tw o years , workin g the ram p loadin g an dunloadin g aircraft . (Tr . 41-42 ) Mr . Cam p wa s traine dt o scree n carg o fo r hazardou s materials , (Tr . 42) . Mr . Cam p recalle ddiscoverin g acam p stov e i n th e Smit h Cabl e shipmen t

a s h e move dth e shipmen t t o th e warehouse . (Tr . 44 ) Specifically , Mr . Cam p testifie dthat , usin g asmal l forklift , h e lifte dapalle t

o f Smit h Cabl e shipmen t

piece s to th e warehouse . (Tr . 47 , 75-76 ) Alon g th e way , h e hi t

abump , causin g acam

p stov e withi n th e shipment to fall . (Tr , 48 ) Tli c fall cause dth e stov e to open . (Tr . 48 ) Tw o gree n tank s o f propan e spille dou t

o f th e stove . (Tr . 48 ) Smit h Cablt : S\sTem.s . Inc . DM S No . FAA-2009-097 6 Administrator' s Closin g Argument Pci^

e 305/27/201 1 11:5 G FAX 202493514 2 FA A .QM S ©004/01 2

Afte r discoverin g th e propan e tanks , Mr . Cam p tol dawarehous e perso n what happened . (Tr . 49 ) Togethe r the y decide dthey' dbetter "g o throug h th e whol e shipmen t an dse e i f ther e wa s anythin g els e i

n there. " (Tr . 49 ) Durin g tha t search , they opene du

p ever y bo x an dtote i

n th e shipmen t andfoun dspra

y paint . (Tr . 49-50 , 75-76 ) Mr . Cam p identifie dExhibit s C-1 , C-2 , C-3 , an dC- 4 a s photo s of

the propan e andspray pain t foundi n th e Smit

h Cabl e shipment . (Tr . 53

- 55 ) Th e shipmen t

ha dn o hazardou s material s marking s o r labels . (Tr . 52 ) Afte

r removin g th e •'restricte dstuff

fromth e shipment , th e remainde r of the shipmen. t

wa s sen t o n it s wa y t o Fairbanks . (Tr . 77 ) B

- Timoth y Cook . Timoth y Coo k

testifie dby telephon e fro

mKetchika

n a s follows . Mr . Coo k

work s a s aramp agent fo r Alask aAirline s i

n Ketchikan , loadin g an dunloadin g carg o o n passenge r

aircraft . (Tr.85-86 ) B y th e tim e of

Ui c Smit h Cabl e shipment , he' dbee n wit h Alask aAirline s fo

r roughl y 1 7 months . (Tr . 86 ) Mr . Coo k ha s receive ddangerou s good s awarenes s training . (Pr . 87 ) Mr . Coo k worke do n Septembe r

10 , 200 8 andspecificall y recall s Smit h Cable' s shipmen t

o n tha t date . (Tr . 88-89 ) Th e shipmen t containe d2 4 pieces . (Tr . 94 ) Mr . Coo k testifie dthat , o n tha

t day , Mr . Cam p reporte dto hi mthat , whil e bringin g piece s o f th e Smit h Cabl e siiipmen i bac k

t o th e warehouse , astov e fell of

f apallet , brok e open , an

dexpose dacoupl e o f

propan e cylinders . (Tr . 90,93-94 ) Mr . Coo k

describe dth e stov e foun

dwithi n th e Smit

h Cabl e shipmen t

a s agree n self

standin g barbecue . (Tr . 98 ) I t work s b y havin g abottl e of propan e screwe dinto i

t fo r fuel . (Tr . 98-99 ) Whe n Mr . Cam

p tol dhi mabou t

th e hidde n propan e h e found . Mr . Coo k decide dt o g o throug h th e entir e shipment . (Tr . 90 ) A t thi s point , Mr . Coo k

too k possessio n of

th e shipmen t

fro mMr . Camp , (Tr . 96 ) Whil e doin g tha t ful l screen , Mr . Cook

discovere dacan o

f spray pain t

in on e of th e boxe s or

crate s of th e shipment . (Tr . 90 , 94-95 ) Upo n completin g hi s ful l scree n an d removin g th e hazardou s materials , th e shipmen t cleare dan dlikel y continue don . (Tr . 96 , 100-01 ) A carg o agen t

wrote up arepor

t o f th e hazardou s material s h e an dMr . Cam p discovered . (Tr . 100 ) Mr . Cam

p identifie dExhibit s C-1 , C-2 , C-3 , an dC- 4 a s photo s of

th e propan e andspra

y pain t foun di n th e Smit

h Cabl e shipment . (Tr . 102-06 ) Th e photo s wer e take n b y Kyl e Forbes , a

n intern . (Tr . 103-06 ) Alte r discoverin g th e propan e andth e spra y paint . Mr . Coo k

obtaine dth e waybil l fo

r th e shipment . (Tr . 106-09 ) Mr . Coo k testifie dtha

t h e sougjit th e waybil l i

n orde r to determin e wh o coffere dth e shipmen t

containin g th e dangerou s goods . (Tr . 110 ) Durin g th e hearing , Mr . Coo k wa s presente dwit

h Exhibi t C-5 . (Tr . 106 ) Mr , Coo k

recalle dseein g Exhibi t

C- 5 o n th e dat e in question , Septembe r

10 , 2008 . (Tr . 107 ) H e testifie dtha t Exhibi t C- 5 wa s th e waybil l that matche dth e shipmen t

tha i th e propan e an

dspra y pain t were discovere din . (Tr . 106-09) . Mr . Coo k stale dtha t th e eight digi t number o n Exhibi t C-5 , 74712632 , matche dtli c lo t label s o n th e

Eac h phot o wa s admilie dint o evidence . (Tr

. 173-76 ) Smit h Cabl e Systdrn-K

. Inc . DM S No . t'AA-2009'097 6 Administrator' s Closin g Argumen t Paf>

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2 4 piece s o

f th e shipment

tha t containe dth e dangerou s goods , tellin g hi mtha t thi s wa s th e waybil l for

th e shipment , (Tr . 109) " C . Specia

l Agent Jeffre y Deitz. . Special Agent

Jeffre y Deit z testifie di

n perso n as follows . Agent Deit z i s aha?.ardou s material s specialist/enforcemen t

agen t fo r th e FAA . (Tr . 149 ) H e ha s hel dtha t positio n fo

r 1 3 years . (Tr . 150-51 ) H e i s atraine dinvestigator . (Tr . 153-54 ) Amon g Agen t Deitz' s responsibilitie s i s th e invcstigaiii mof

hazardou s material s offere db y shipper s t o ai r carriers . (Tr . 149-50 ) Agent Deit z firs t

learne do f th e shipmen t

a t issu e i n thi s matte r

when h e receive dafaxe d hazardou s material s discrepanc y repor t (Ex . C-6 ) fro mAlask aAirline s i n Ketchikan . (Tr . 154

- 55 ) Agent Deit z first

sa w th e repor

t on September

11 , 2008 . (Tr . 161 ) Agent Deit z contacte d Ala.sk aAirline s in Ketchikan an daske dfo r funher information , includin g th e waybil l an d photograph s o

f th e hazardou s materials . (Tr , 163 ) Agent Dcii z receive dth e waybil l an d phoUjgraph s fro

mAlask aAirlines . (Tr , 166-177-78 ) Wit h the photograph s an dth e waybill . Agent Deitz turne dto determinin g jus t wha t th e hazardou s material s were . (Tr . 179-80 ) H e obtaine dmaterial safet

y dat asheet s for

th e propan e an dth e spra

y paint . (Tr . 179-80 ) Base do n what h e learned , Agen t

Deit/ drafte daletter

o f investigatio n ("LOI") . (Ex . C-9 ) Agen t Deit z sen t th e LOT , whic h i s addresse dt o Smit h Cable , o n September

17 . 2008 . (Tr . 181 ) Agent Deit z receive daphon e cal l fro mRonal dSmit

h o f Smit h Cabl e o n Octobe r

1 , 2008 . (Tr , ! 82 ) Mr . Smit

h aske dabou t

th e LOI . tol dAgent

Deit z tJia t h e woul dinvestigat e the matter , an d ge l bac k i n touc h wit

h Agen t Deitz . (Tr . 182-83 ) However , when acoupl e week s passe dwit h n o contac t fro mSmit h Cable , Agent

Deit z calle dMr . Smit

h o n October

27 , 2008 . (Tr . 184 ) Durin g thei r brie f conversation , Mr . Smit

h tol dAgent

Deitz tha t Smit h Cabl e "di dhav e ashipmen t an d tha t the y hadagrill. " (Tr . 185 ) Mr . Smit h als o toldAgent

Deit z tha t h e woul dpu t

hi s finding s i

n writin g andsen dihc mt o Agent Deitz , bu t

Mr . Smit h neve r did . (Tr . 185 , 187) ' D . Ronal dSmith . Ronal dSmit

h testifie din perso n a s follows . Mr . Smit h i s presiden t

o f Smit h Cable , acompan y h e began i

n 1984 . (Tr . 294 ) h i th e summer o f 2008 , Smit

h Cabl e employee s Tod dLinn c an d TomFiale k

worke dcabl e project s throughou t southeas t Alaska , finishin g i

n Keichikan . (Tr . 296

- 97 , 303 ) Whe n thei r

wor k i n Ketchika

n concluded , Mr . Linn e an dMr . Fialek

wer e to fl y to Fairbanks . (Tr . 304 ) Thei r wor k tmc k wa s schedule dfo

r shipmen t b y fcn y dcpanin g o n Septembe r

15 . 2008 , five day s afte

r Mr . Linn c an dMr . Fiale k were t o fly , meanin g Septembe r 10 , 2008 , (Tr . 305-06 )

' Exhibi t C- 5 wa. s not

utcepce dinl o evidence . A n AlaskaAirline s waybil l liearin g rh e same eigh t

digit s wa. s accepte d into evidenc e A.

^ Defendant'.* , Exhibi t

B . (Tr . 3^9-401 )

• ' Agen t Deiiz' s note s o f

hi s conversation s wit

h Mr . Smit

h appea r a s F.xhibi L C-10 , Smit h Cabl e Svsti;)».<; . Inc . DM S No . FAA-2009-097 6 A dminislraw r

'. y Closin g A rgumen t

F^'g ^ S05/27/201 1 11:5 G FA X 202493514 2 FA A * DMS lglOOG/01 2

Turnin g t o th e hazardou s material s i n thi s case , Mr . Smit h wa s aske di

f it wa s uncommo n fo

r Smit h Cabl e einpioyce s 'H

o purchas e asmal l stov e when they'r e on th e road s o n busines s venture s like this? " (Tr . 307 ) Mr . Smit h responde dtha t

i t wa s "Injo t

a t al l uncommon" , that

i t peitnit s the mto prepar e aho t meal withou t

goin g t o arestaurant . (Tr . 307 ) I n fact , Mr . Smit

h aske dhi s Ketchika

n cre w whether

the y hadastov e i

n Ketchika

n andthe y tol dhi mthe y did . (Tr , 313 ) Mr . Smit

h later contradicte dthi s testimony , however , sayin g th e cre w tol dhi mthey weren' t sure i f the y ha dil i

n Ketchikan or

hadlef t it i n aprio r community , (Tr . 320 ) Mr . Smit h testifie dthat , fo

r th e jo b the y wer e performing , Mr . Linn e andMr . Fiale k woul dhav e L\ o nee dfor spray paint

(Tr . 307-08) , bu t

concede dthat

di dno t mea n tha t hi s cre w di dno t

in fact hav e aca n o f spray paint

in Ketchikan

- (Tr . 334 ) E . Anni e Afusia . Anni e Afusi atestifie db y telephon e a s follows . Ms . Afusi aworke dfo r Smit h Cabl e fo

r tw o an d ahal f year s beginnin g i n September 2006.(Tr . 389-90 ) Amon g he r dutie s wer

e makin g trave l arrangement s for

Smit h Cabl e wor

k crew s an dthei r

equipment . (Tr . 39-91 ) A s Mr . Linn e an d Mr . Fialek

conclude dthei r

wor k i n Ketchika

n i n Septembe r

2008 , Ms . Afusi aarrange dfo r the m t o shi p tw o o r

thre e pallet s of

equipmen t

an dluggag e b y ai r

fro mKetchikan vi aAlask aAirlines . (Tr . 394-95 ) Sh e als o arrange dfo r acourier " to tak e thes e item s fro mth e cre w to Ala.sk

a Airlines . Ms . Afusi ahadn o knowledg e o f apropan e stov e o r

abarbeeu e bein g shipped . (Tr . 398 ) Ms . Afusi aarrange dfor

a n Alask aAirline s waybil l for th e Ketchika

n cre w t o us e i n shippin g th e Smit h Cabl e item s K

J Fairbanks . (Ex . B ; Tr . 399-400 ) Ms . Afusi aacknowledge dtha t Smit h Cabl e expecte dtha

t som e of th e item s tha

t th e cre w woul dinclud e i

n th e shipmen t

woul db e crewmembe r

personal items . (Tr . 404-06 ) Ms . Afusi aneve r sa w th e actua

l shipment . (Tr . 406 ) F . Tod dl-inne . Tod dLinn e testifie db y telephon e a s follows , Mr . Linn e worke dcabl e project s fo r Smit h Cabl e fromApri l 200 8 t o Januar y o r Februar y 2009 . (Tr . 411 ) H e di dno t us e spray paint

a s pa n o f th e job . (Tr . 414-15 ) However , whil e workin g thi s job , he purchase dasmal l propan e stov e i n Petersburg , Alaska . (Tr , 415 ) Th e stov e wa s dar k colored , perhap s blac k

o r gra y o r green . (Tr . 430 ) I t work s b y havin g abottl e o f propan e screwe dint o i

t fo r fuel . (Tr , 415-16 ) Whe n th e crew' s wor

k truc k wa s shippe db y barg e withi n ih e villages , th e stov e woul db e o n th e truck . (Tr . 416 ) Whe n the y complete dth e jo b i n Ketchikan an dprepare dth e Alask aAirline s shipment , th e ai r shipment wa s place do

n shrink-wrappe dpallets . (Tr . 417-18 ) However , th e courie r coul dno t put th e pallet s o n th e courier' s tmck , s o Mr . Linnc . Mr . Fialek , an dth e courie r disassemble dth e palleLs an dloade deverythin g int o th e courier' s truc k b y hand . (Tr . 418-419 , 421 , 428-29 ) Mr . Linn e di dno t

recal l placin g th e stov e i n th e courier' s truck . (Tr . 419 ) //

' Th e tran.'icripi varioiwly refer s t o rh e courie r a s ""Arro w Services " o r

"Aer l Transporiuilon" . T

t likel y i s i n fact "Aer o Services" . Smit h Cabl e SvsTem.': . Inc . DM S No . FAA'2009-097 6 Administrator' s Clonn g Argument P^g ^ 605/27/201 1 11:5 G FAX 202493514 2 FA A .QM S 2)007/01 2

G . To mFialek . To mFiale k

testifie db y telephon e a s follows . Mr , Fiale k worke dwit

h Mr . Liime fo

r Smit h Cabl e durin g the summe r

an d eari y fall o

f 200 8 buildin g coaxial cabl e fo r GC I Cable . (Tr . 439 ) The y ha dn o us e fo

r spra y paint on th e job . (Tr . 440 ) The y had apropan e grill ; Mr . Fiale k recalle di t bein g black , an d tha

t th e propan e bottl e screw s int o i t t o fue l h . (Tr . 443,448 ) Mr . Fiale k an d Mr . I,inn e prepare dth e shipmen t fo r th e courier , wh o titc y expecte dt o arriv e aroun d10;() 0 a.m . or so . (Tr . 418 ) Whe n th e courier whic h Ms , Afusi aarrange darrive da t th e crew' s hote l in Ketchika n an d coul dno t

loadth e pallet s o f

Smit h Cabl e item s int o th e courier' s truck , Mr . Fialek , Mr, Linne , and th e courier loade dthe item s int

o th e courier' s tiuck . (Tr . 441-44 , 452 ) Mr . Fialek testifie dtha

t they di d no t

shi p th e propan e grill , an

d tha t i t wa s no t in rh e shipmen t

whe n h e me t i t i n Fairbanks . (Tr . 444-46 ) IV . Argument . A . Th e Shipmen t

Containe dIlaziitrdou s Materials . A s th e part

y wit h ih c burde n o

f proof , ili e Administrato r

i s oblige dl o prov e hi s cas e b y a preponderanc e o f

th e reliable , probative , and substantial evidence . 1 4 CF R13,223 . In thi s case , th e central questio n i s whether Smit h Cabl e offere dtw o propan e cylinder s an d acan o f spra y pain t fo r shipmen t b y ai r aboar dpassenger-cairyin g airciafi . I n light o f the testimon y an d evidenc e before th e administrativ e law judge , th e answer to tha t questio n i s yes . With regar dt o th e propane , bot h Mr , Fiale k

an d Mr . Linn c testifie dthat the y purchase dan

d use d adark-colored , tabletop-size dpropan e gril l durin g thei r summer journe y tlu'oughou t

Southeas t Alaska , I t wa s fueledb y screw-i n typ e propan e bottles . Whe n the jo b concluded . Smit h Cabl e arrange dfo

r it s cre w l o shi p thei r

wor k tmc k non h on aferry , an d arrange dfo r alaig e palletize d loa do f gea r an d personal effect s t o b e .shippe db y air aboar dAlask aAirline s to th e company' s nex t jo b i n Fairbanks . O n th e mornin g o f

Septembe r

10 , 2008 , a

n unname dcourie r

arrive dwit

h atmc k tha t coul dno t easil y accep t

th e palletize dshipmen t

as initiall y prepared . S o th e cre w an d th e courie r brok e th e pallet s dow n and the thre e o f themloade dth e item s piec e b y piec e into the courier'. s truck

Accordin g t o th e waybil l prepare db y Smit h Cabl e an

d date dSeptembe r

10 , 200 8 al 1:3 2 p.m. , a 2 4 piec e Smit

h Cabl e .shipmen

t weighin g 1,213. 0 pound s wa s delivere dt o Ala.sk aAirline s in Ketchikan for

shipmen t t o Fairbanks . Th e shipper' s certificatio n bear s a n unknow n signature , but relate s tha t i t wa s mad e "For ; SMIT H CABLE SYSTEM S INC" . Belo w Smit h Cable' s nam e an

d besid e th e unknow n signature , abo x i s marke dstatin g tha t "THI S SHIPMEN T DOE S NO T CONTAI N DANGEROU S GOODS" . Whil e movin g th e shipmen t wit h asmal l forklift , Mr . Cam p hi t abump , causin g acam

p stov e withi n ili c shipmen t

t o fall an d spil l its contents . Conceale dwithi n were tw o propan e cylinders . Alarme db y hi s discovery , Mr , Cam p promptl y notifie dhi s coworke r Mr . Cook . Together , the y decide dt o searc h tii c entir e shipmen t an d se c wha t els e might

b e hidde n i

n th e Smit h Cabl e shipment . Durin g tha

t search , Mr . Coo k

foun daca

n of spray paint . A

n Alask aAirline s inter

n Smit h Cabl e System.^ . Inc . DM S No . FAA-2009-097 6 Administrator' s Closin g Argumen t Pag e 705/27/201 1 11:5 7 FA X 202493514 2 FA A .QM S lg)008/01 2

photographe dth e propan e an dth e spra y paint , photograph s tha

t bot h Mr . Cam

p an dMr . Coo k recognize di

n Exhibit s C- 1 throug h C-4 . A s par t of hi s own investigation , Mr . Coo k too k not e o f th e trackin g tag s o n th e item s tha t containe dth e pnjpan c an dth e spray paint . Usin g th e tag numbers , whic h matche dth e number of the waybil l tha

t Smit h Cabl e prepare dfor

th e shipment , Mr . Coo k

determine dthat

th e item s were par t of th e Smit h Cabl e shipment . Bot h Mr . Linn e an dMr . Fiale k testifie dtha

t ihc y di dno t

includ e thei r

propan e gril l i n th e Smit

h Cabl e shipmen t

aboardAlask aAirlines . However , becaus e bot h were employe dby Smit h Cabl e andbecaus e i

t i s thei r conduc t o n behal f o f Smit h Cabl e tha

t i s in question , thei r

testimon y mus t b e discounte dt o some degre e whe n weighe dagain.st the disintereste dtestimon y of th e Alask a Airline s employees . Mr . Cam p andMr . Coo k

hadnothin g lo gai n b

y claimin g thai Smit

h Cable' s shipmen t include dhazardoti s materials . I n th e end . th e unequivocal , disintereste dtestimon y of Mr . Cam p an dMl' . Coo k

tha t propan e wa s foundi n th e Smit h Cabl e shipmeni , combine dwit h th e photographi c evidence , an dth e admission s by bot h Mr . Smith , Mr . Linne , an dMr . Fiale k that th e Ketchikan cre w ha

dapropan e gril l an dpropan e of th e sor t late r discovere dwithi n th e Smit h Cabl e shipmen i outweigh s th e denial s o f Mr . Linn c an dMr . Fialek an drequire s afindin g that the shipmen t

di dindee dcontai n forbidde n propan e a s alleged . Bot h Mr . Liime an

dMr . Fiale k

denie dthat

llic y use dan

y spra y pain t a s par t o f thei r wor k i n Southeas t Alask atha

t summer . However , neithe r o l themtestifie dtha

i tlicir equipmen t

wa s devoi do f spray paint . The y merel y testifie dtha t thei r wor k didn' t requir e spra

y paint , no t

tha t ther e wasn' t

an y spray pain t

around . Mr . Cam

p an dMr . Cook , however , testifie dthat , upo n discoverin g th e conceale dpropane , the y performe daful l searc h o f th e entir e 1,21 3 poun d shipment , foun don e conceale dca n o f spray paint , an dphotographe dit . Again , o n balance , th e disinterested , imchecke dlestitnon y o f th e tw o Alask aAirline s employee s abou t thei r discovery o f th e spra y pain t an dthei r photographi c proof

, whe n weiglic dagains t

th e relativel y intereste d testimon y of

Mr . Linn e an

dMr , Fiale k

tha t the y didn' t

nee dspra y paint for thei r wor k an dthei r failure t o testif

y thai n o spra

y paint wa s presen t

withi n all thei r

gear , gea r that shippe di n 2 4 piece s an dweighe dwel l over

ahal f ton , compel s afinding that th e shipmen i als o containe dth e spray paint

a s alleged . Durin g th e hearing , counse l fo r Smit h Cabl e routinel y aske dquestion s suggestin g tha t th e Smit h Cabl e shipmen t

ma y hav e bee n adulterate dafte r i t wa s give n t

o th e courie r

fo r deliver y to Alask a Airlines . 'Ihes e exchange s shoul db e disregarded . Non e o f th e witnesse s ever

testifie dtha

t the y observe dan

y actua l adulteration . A

t best , the y merel y lef

t ope n th e possibility , a

t tli e suggestio n of counse l for

Smit h Cable , tha

t becaus e Smit

h Cabl e use dacourier , i

t ma y hav e bee n possibl e fo r th e courie r

to hid e item s withi n th e shipmeni . Fo r tha t t o b e trti e for

th e propan e woul d requir e atremendou s coincidence , tha t th e courie r

woul dadulterate th e Smit h Cabl e shipmen t no t wit h jiis t some rando mhazardou s material , bu t b y th e additio n of

propan e cylinder s o

f atyp e an dkin dmatchin g th e one s tha t Smit h Cable' s employee s actuall y use dto fue l thei r propan e grill . Moreover , give n Mr . Conk' s testimon y tha t h e foundth e spra

y pain t withi n on e of

th e boxe s o r crate s in th e shipment , on e woul dhav e t o believ e tha t th e courie r

opene du p on e o f

th e boxe s o r crate s andhi dacan o

f spray paint

inside . Whil e Mr . Linn e andMr . Fiale k testifie dthat the y wer e force dt

o brea k dow n thei r

pallet s t o fit

th e shipmen t

wiihi n th e courier' s truck , tliey Smit h Cabl e .Wstems . Inc . DM S No . FAA-2009-097 6 Administrator' s Closin g Argument Pag e 805/27/201 1 11:5 7 FA X 202493514 2 FA A .QM S @009/01 2

di dno t testif y tha t doin g s o require dthe mto ope n an y o f th e shipment' s crate s o r

boxes . Functionally , adulteratio n i s a n affirmativ e defense , andSmit h Cabl e presente dn o testimon y or evidenc e tha

t an y adulteratio n actuall y occorrc dhere . Th e suggestiv e questionin g b y Smit h Cable' s attorne y i s no t

evidenc e an dshoul db e disregarded . B . Smit

h Cabl e Committe dSixtee n Regulator y Violations . Smit h Cabl e defens e again.s t

th e sixtee n cite dregulator y violation s ha s bee n limite dsolel y t o whether it s shipmen i containe dhazardou s materials ; Smit h Cabl e admit s it s shipmen i wa s no t accompanie dby aShipper' s Declaratio n fo r Dangerou s Good s an dthat th e waybil l wa s marke d t o indicat e tha i n o dangerou s good s wer e included . Answer

a t 1-2 . I n offerin g undeclare d hazardou s material s fo

r transportatio n b

y air , Smit

h Cabl e violate deac h o f

th e HMR s a s alleged : Smit h Cabl e mad e ili c offe

r (Sectio n 171.2(c)) , faile dt o properl y describ e th e hazardou s material s i

n th e shippin g paper s (17 2 Subpar t C) , faile dt o properl y mar k th e piece s containin g hazardoiL s material s (17 2 Subpar t D) , faile dt o properl y labe l th e piece s containin g hazardou s material s (17 2 Subpar

t F) , faile dt o provid e emergenc y respons e infonnatio n (17 2 Subpart G) , an doffere dpropane , whic h i s forbidde n for transportatio n aboardpassenger-carryin g aircraf t (173.27(b)(1)) . C . Smit

h Cabl e Shoul dB e Assesse da$60,00 0 Civi l Penalty . Th e administrativ e la

w judg e ha s take n judicia l notic e o f th e Administrator' s Hazardou s Material s Sanctio n Guidanc e (Tr . 225-26) , founda t Appendi x C t o Orde r

2150.3B . 'fh e Administrato r

ha s applie dtha

t guidanc e t

o propos e Smit

h Cable' s civi l penalt

y a s follows . Th e guidanc e provides : Althoug h th e notic e o f

propose dcivi l penalty ma y cite numerou s violation s of a particula r par t o r subpar t o f th e HMR , unles s upwarddepartur e i s justified , a singl e penalty amoun t

for eac h violatio n group i s ordinaril y use dl o reac h th e lul l sanction . Orde r 2150.3B , Appendi x C , a

t C-9 . A s note dabove , thi s cas e involve. s sixtee n violation s i n six violatio n groups : • 171.2(e ) (imprope r

offerin g of

hazardou s material) ; • 17 2 Subpai t

C (shippin g papers) ; • 17 2 Subpar

t D (marking) ; • 17 2 Subpar

t E (labeling) ; • 17 2 Subpar

t G (emergenc y response) : an d

• 173.27(b X 1 ) (forbidde n o n passenger-carryin g aircraft) . Smit h Cabl e offere dundeclare dpropan e fo r shipmen t aboar dpassenge r

aircraft . Becaus e propan e i s forbidde n aboardsuc h aircraft , tha t offens e fall s withi n Offens e Categor y III o f Figur e C- 1 of Appendi x C . Smit

h Cabl e als o offere dundeclare dspray paint , whic h i. s no t prohibite dfo

r shipmen t aboar dsuc h aircraft : tha

t material woul dhav e place dSmit h Cable' s offense s int o Smit h Cabl e ,Sv.ytem.v

. Inc . DM S No . FAA-2009'097 6 Administrator' s Closin g Argument Pag e 905/27/201 1 11:5 7 FA X 202493514 2 FA A + DM S 1^010/01 2

Offens e Category II . However , fo r purpose s o f

calculatin g sanctions , Ihe Administrato r doe s no t see k additional penaltie s fo

r th e spra y pain t an dinstea dcalculate s the entir e penall y under Offens e Categor

y HI . Smit h Cabl e i s abusines s entity . Fo r sanctio n purposes , th e Administrato r ha s no t classifie d Smit h Cabl e a s abusines s iha

i use s o r handle s hazardou s material s i n the cours e o f

it s business , o r a s abusines s tha

t regulai'l y offers , accepts , o r transport s hazardou s materials . A s aresult . Smit h Cabl e face s th e lowes t

penalty rang e applicabl e to abusines s unde r Figur e C-1 . Unde r Figur e C-1 , abusines s entit y tha t commit s Offens e Categor y II I violation s face s apenalt y o f $5,00 0 t o $16,20 0 fo

r eac h violatio n group . Here , th e Administrato r haddetermine dthat , give n th e absenc e o

f identifie daggravatin g an dmitigatin g factor s i n thi s case , th e aggregat e weight o f thi s cas e i s moderate , indicatin g that apenaU y i n ili c middl e o

f th e rang e i s appropriate . Th e midpoin t betwee n $5,00 0 l o $16,20 0 i s $10,600

- Fo r thi s ca.se , th e Administrato r

ha s rounde dthi s number

dow n to $10,00 0 pe

r violatio n group . Wit

h six violatio n group s in thi s case , then , th e appropriat e civi l penalt y t o b e impose di s $60,000 . V . ConcIuNion , Fo r th e foregt>in

g reasons , th e administrativ e law judg e shoul dente r an orde r finding th e violation s as allege di

n th e complain t

an dimpos e a$60,00 0 civi l penalty . DATED thi s I y da

y o f May , 2011 .

HOWARD L . MARTIN , JR . Regiona l Counse l / • y

• ^-.Jv ~ wr. J i>lX-i-..' ^ Crait e Wm . Blkf

c Sjtag P Attome y

Smit h Cabl e Systems . Inc . DM S No . FAA-2009-097 6 Administrator' s Closin g Argument Pag e 1 005/27/201 1 11:5 7 FA X 202493514 2 FA A DM S 1^011/01 2

CERTIFICAT E O F SERVIC E Re : Smit h Cabl e Systems , Inc

FA A Docke t

No . CP09AL001 2 DM S No . FAA-20n9-097 6 I HEREB Y CERTIF Y tha t o n thi s diti e I hav e serve dacop y o f th e foregoin g b y postage-prepaid , certifie dmail , retur n receip t requested , facsimile , an demai l to : Th e Honorabl e Richar dC Goodwi n Administrativ e La w Judg e Offic e o f Hearings . M-2 0 U.S . Dcpartmen i o f

Transportatio n 120 0 Ne w .(ersc y Avenue , S.E . Eas t Buildin g Groun dFloor , Roo mE l 2-32 0 Washington , D C 2059 0 Fax : (202 ) 366-753 6 Email : Richard.Goodwin@dol.go v I HEREB Y FURTHE RCERTIF Y tha t o n thi s dat e I hav e serve dth e origina l an dtw o copie s o f ih e foregoin g b y postage-prepaid , certifie dmail , retur n receip t requeste dan dfacsimil e to : Federa l Aviatio n Administratio n ATTN ; Docke t

Clerk , AGC-43 0 Wilbu r Wrigh t Buildin g - Suit e 2W100 0 80 0 Lidependenc e Avenue , S W Washington , D C 2059 1 FAX : (202 ) 493-502 0 1 HEREB Y FURTHE RCERTIF Y tha t o n thi s dat e I hav e serve dcopie s o f th e foregoin g b y postage-prepai dfirst-clas s mai l to ; Bren t R . Col e Marslo n & Cole , P.C . 82 1 N Streel , Suii c 20 8 Anchorage , A K

9950 1 Fax : (907 ) 277-800 2

DATED : ^<^^ ^ /- ? ^^/ / T

Federa l Aviatio n Administratio n Smit h Cabl e Systems . Inc . DM S No . FAA-2009-097 6 Administrator' s Closin g Argumen t Pag e I t05/27/201 1 11:5 7 FA X 202493514 2 FA A DM S 0012/01 2

Offic e o f Regional Counse l 22 2 Wes t 7i h Avenue , Bo x 14 , AAL- 7 Anchorage , A

K 99513-758 7

Smit h Cabl e Systems . Inc . Administrator' s CUmn g Argument DM S No . FA A 2009-097 6 Pag e 1 2