10/31/201 1 15:15 FAX 2024935142 FAA + DMS @1001/015 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS "> 'l: 2'; 

-Tl 

IN THE MATTER OF: 

DRYTAC CORPORATION Docket No.: 

CPFAA-2011-0480 

,__J J 

Wednesday, 

October 5, 2011 

The above-entitled matter came on 

for hearing via teleconference, pursuant to 

notice, at 10:00 a.m. 

BEFORE: 

THE HONORABLE J.E. SULLIVAN, 

Administrative Law Judge 

RECEIVED 

OCT2ii2M 

HEARING DOCKET 

(202) 234-4433 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W. 

WASHINGTON. D.C. 20005-3701 www.nealrgross.com 
10/31/2011 15:15 FAX 2024935142 FAA + DMS 0002/01 5 

APPEARANCES: 

On Behalf of the Respondent: 

MEREDITH L. YODER, ESQ. 

of: Parker, Pollard, Wilton & 

Peaden, PC 

6802 Paragon Place 

Suite 300 

Richmond, VA 2323 0 

(804) 262-3600 

On Behalf of the Complainant: 

GERALD A. ELLIS, ESQ. 

Attorney, Office of the 

Regional Counsel, ASO-7 

Southern Region 

of: Federal Aviation Administration 

P.O. Box 20636 

Atlanta, GA 30320 

(404) 305-5200 

Also Present 

MARC OOSTERHUIS, President, 

Drytac Group 

TIM RADER, Vice President of Finance 

Drytac Group 

(202) 234-4433 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVt., N.W. 

WASHINGTON. D,C. 20005-3701 vwww.nealrfiross.com 
10/31/2011 15:15 FAX 2024935142 FAA + DMS 21003/015 

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P-R-0-C-E-E-D-I-N-G-S 

9:56 a.m. 

ADMIN- JUDGE SULLIVAN: We're on 

the record in the matter of Drytac 

Corporation. This is SDMS No. FAA-2011-0480 . 

Today is Wednesday, October 5, 2 011 and the 

parties have convened by telephone for a 

litigation scheduling conference. 

The FAA is represented by Attorney 

Gerald Ellis. Is that correct? 

MR. ELLIS: That's correct, Your 

Honor. 

ADMIN. JUDGE SULLIVAN: Okay. And 

the counsel for Drytac is? And, sir, could 

you say youx' name again for me, please? 

MR. YODER: Yes, ma'am. It is 

Meredith Yoder. 

ADMIN. JUDGE SULLIVAN: Okay. 

Thank you. And also present with Mr. Yoder is 

Marc Oosterhuis, the President of the Drytac 

Corporation, 

(202) 23A-4433 

And is there someone else on the 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W. 

WASHINGTON, D.C 20005-3701 www.nealrgrofis.com 
10/31/2011 15:15 FAX 2024935142 FAA + DMS 21004/015 

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line on behalf of the respondent, Mr. Yoder? 

MR. YODER: There is. Tim Rader, 

who is Vice President of Finance. He is a 

Vice President of Finance for Drytac. 

ADMIN. JUDGE SULLIVAN: Okay. Mr. 

Yoder, is there anyone else on the phone with 

you for this conference today? 

MR. YODER: There is not. 

ADMIN- JUDGE SULLIVAN: Okay. 

Thank you very much. 

Folks, we have convened for the 

purpose of setting litigation. Let me start 

with you, Mr. Ellis. 

Do you have any particular 

agreements regarding litigation dates or times 

that you have discussed with Mr. Yoder 

already? 

MR. ELLIS: We have filed 

litigation, which is due 30 days from the date 

we filed it. 

ADMIN. JUDGE SULLIVAN: I'm sorry, 

you have what? 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W. 

(202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 
10/31/2011 15:15 FAX 2024935142 FAA •>• DM S 0005/015 

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MR. ELLIS: We have -- sorry, I 

didn't -- I said the wrong thing. We have 

filed discovery, which is due 3 0 days from the 

date we filed it. 

ADMIN. JUDGE SULLIVAN: Okay. I 

don't know anything about that. What I'm 

asking you is if you have reached any 

particular agreements with Mr. Yoder about the 

litigation process? 

For example, have you reached 

agreements with him in talking about when you 

want to file stipulations to narrow the 

issues? 

MR. ELLIS: No. 

ADMIN- JUDGE SULLIVAN: Or if you 

would like to have a motion for summary 

judgment if you think that's applicable, those 

kinds of things. 

MR. ELLIS: No, Your Honor. 

ADMIN. JUDGE SULLIVAN: Okay. 

Well, then let me start with you. Knowing 

what you know about this case, and based on 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W. 

(202) 234-4433 WASHINGTON, D.C. 20005-3701 www.ncalrgros5.com 
10/31/2011 15:15 FAX 2024935142 FAA + DMS 21006/015 

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the answers that were filed by Drytac, it 

appears, to me, that there may be some 

stipulations that might be forthcoming, since 

there are admissions to some of the factual 

allegations. 

When do you usually, in your 

practice, work with the opposing counsel to 

put together factual stipulations, so that you 

can narrow your discovery issues and focus in 

on what is in dispute? 

Do you generally have a time frame 

for doing that? 

MR. ELLIS: After discovery is 

answered. 

ADMIN. JUDGE SULLIVAN; Okay. So 

even though you have some admissions to 

factual allegations, you want to have a full 

discovery process, including those admissions? 

MR. ELLIS: In this particular 

case, and it is a case-by-case process by 

which we make that determination, but in this 

particular case, it really boils down to the 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE.. N.W. 

(202) 234-U33 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 
10/31/2011 15:1G FAX 2024935142 FAA + QMS 2)007/015 

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sanctions from what I can tell from the 

answers they provided. 

ADMIN. JUDGE SULLIVAN: Okay. 

Well, let me ask you this. Based on your 

review of the case, how much time do you need 

for full discovery to be completed? And that 

would include taking any and all depositions. 

What's your time frame for that? 

MR. ELLIS: I think we are going 

to settle the case. Your Honor, so I don't 

think we are going to need much more, except 

time by which to report whether we settle it 

or not to you. 

ADMIN. JUDGE SULLIVAN: Well, 

that's wonderful, but I found that on occasion 

the best settlement plans go awry. 

MR. ELLIS: They do. 

ADMIN. JUDGE SULLIVAN: Yes. And 

so are you thinking about settling this case 

within the next two weeks, for example? 

MR. ELLIS: Yes. 

ADMIN. JUDGE SULLIVAN: Okay. 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W. 

(202) 2-34-4433 WASHINGTON, D.C. 20005-3701 www.riAalrgross.curti 
10/31/2011 15:1G FAX 2024935142 FAA + DMS @i008/015 

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MR. ELLIS: I did -- I do need to 

-- Mr. Yoder and I had a conversation within 

the last two days. There is just some 

information we need to review before we can 

make a final decision on that, but after we 

have done that review, we will be able to 

determine whether we can settle the matter or 

not -

So two weeks is plenty of time to 

make that decision. 

ADMIN. JUDGE SULLIVAN: Mr. Yoder, 

is that your understanding as well? 

MR. YODER: I concur, Your Honor. 

ADMIN. JUDGE SULLIVAN: Okay. 

Then probably what would make the most sense 

in terms of your time and your client's time 

is for us to continue this litigation 

scheduling conference, one, so that you have 

time to work on your settlement discussion 

before we start setting up a full litigation 

calendar. 

So why don't I take a look at my 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE.. N.W, 

(202) 2.^U-4433 WASHINGTON, U.C. 20005-3701 www.r^ealrtiro.ss.com 
10/31/2011 15:16 FAX 2024935142 FAA •» DMS 21009/015 

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calendar and ask counsel to pull your 

calendars out as well? 

Today is October 5, 2 011- How 

about, if you have the time available, we 

reset this three weeks from today, which would 

be Wednesday, October 26, 2011? 

Starting with you, Mr. Ellis, do 

you have time free on that date for a second 

litigation scheduling conference? 

MR. ELLIS: October 26'^^'? 

ADMIN. JUDGE SULLIVAN: Correct. 

MR- ELLIS: Yes, I have time. 

ADMIN. JUDGE SULLIVAN: And, Mr . 

Yoder, looking at your calendar, would you 

have time available on that date as well? 

MR. YODER: I do. 

ADMIN. JUDGE SULLIVAN: Do either 

of you, and I start with Mr. Ellis, have a ' 

preference in terms of a morning or afternoon 

time? 

MR. ELLIS: I prefer the morning. 

ADMIN, JUDGE SULLIVAN: Okay. Mr. 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W. 

(202) 234-4433 WASHINGTON, O.C. 20005-3701 www.iieali-gross.com 
10/31/2011 15:16 FAX 2024935142 FAA * DMS iOIO/015 

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Yoder? 

morning. 

MR. YODER: Likewise, I prefer the 

ADMIN. JUDGE SULLIVAN: Okay. 

Would just setting it for the same time we had 

today work for both of you? And I'll start 

with you, Mr. Ellis? 

MR. ELLIS: Yes, it would. Your 

Honor. 

Yoder? 

ADMIN. JUDGE SULLIVAN: And, Mr 

MR. YODER: Yes, ma'am. 

ADMIN. JUDGE SULLIVAN: Okay. 

Let's plan on reconvening on Wednesday, 

October 23, 2011 at 10:00 a.m., eastern 

standard timeCounsel, if you do reach a 

settlement/ please, feel free to file whatever 

documents you want prior to October 23"^^. If 

I receive them, I will be happy to cancel the 

conference. 

If you have not reached a 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE,, N.W. 

(202) 234-4433 WASHINGTON. D.C. 20005-3701 www.nealrgross.com 
10/31/2011 15:16 FAX 2024935142 FAA + DMS 21011/015 

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settlement by that time, then we can begin our 

discussion again about setting up litigation, 

so that you have a litigation schedule while 

you continue your settlement negotiations. 

MR. ELLIS: Judge, you said prior 

to October 23^^. Did you mean the 26"'? 

ADMIN. JUDGE SQLLIVAN: You are 

correct. Thank you so much for correcting me. 

Prior to Wednesday, October 26, 2011 at 10:00 

a.m., if you reach an agreement, please, let 

me know and then I would be happy to cancel 

the litigation scheduling conference. 

With that, Mr. Ellis, starting 

with you, is there anything else that we can 

address on behalf of your client, today? 

MR. ELLIS: I don't think so. I 

think if we have a little bit of time to work 

on it, we can probably work someth-ing out. 

ADMIN- JUDGE SULLIVAN: Okay. Mr. 

Yoder, on behalf of your client, anything else 

we can address for you today? 

MR. YODER: No, ma'am. I believe 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE,, N.W. 

(202) 234-4^33 WASHINGTON, D.C. 20005-3701 www.naalrgross.wjin 
10/31/2011 15:16 FAX 2024935142 FAA + DMS 21012/015 

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we have done what we can here. 

ADMIN- JUDGE SULLIVAN: Okay. 

Thank you both very much for your presence 

today. It appears our business is complete. 

I wish you good luck in your 

private negotiations. We can go off the 

record and I wish you all a good day. 

MR. ELLIS: Thank you. Judge. 

ADMIN. JUDGE SULLIVAN: Thank you. 

MR. YODER: Thank you. 

ADMIN- JUDGE SULLIVAN: Okay. 

Thank you. 

(Whereupon, the teleconference was 

concluded at 10:04 a.m.] 

(202) 234-4433 

NEAL R. GROSS 

COURT REPORTERS AND TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W, 

WASHINGTON, D,C. 20005-3701 www .ncalrgross, cpm 
10/31/2011 15:18 FAX 2024935142 FAA DMS 21013/015 

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202-234-443 3 

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10/31/2011 15:16 FAX 2024935142 FAA DMS i014/01 5 

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10/31/2011 15:17 FAX 2024935142 FAA + DMS 21015/015 

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CERTIFICAT E 

This is t o certif y thai, che forsgoing transcrip t 

In the matte r of; Drytac Corporation 

Before; DOT 

Date: lo-05-l i 

Place ; teleconferenc e 

wa.s duly recorded and accuratel y transcribe d under 

my direction ; further, tha t said Lranscrip t is a 

tru e and accurat e record of the proceedings. 

Court Reporte r 

{20?)2.V)-i(433 

NEAL R. GROSS 

COURT REPORTERS AMD TRANSCRIBERS 

1323 RHODE ISLAND AVE., N.W, 

WASHINGTON. D.C, 200O5-3/01 www.realtgross com