1

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

R
. Morri s FA A Offic e o f

Regiona l Counse l 160 1 Lin dAve. , S W Renton , Washingto n 9805 7 Telephone : 425/227-141 7 Facsimile : 425/227-100 7 ••••-FARTWENTO F :;:^r'^PORTATIO M

! rrr . - . r j '>
. O 1 

### 3 1 JA N 3 i 201 t



## EARIN G DOCK E ^ UNITE D STATE S O FAMERIC A FEDERA L AVIATIO N ADMINISTRATIO N

OFFIC E O F HEARING S WASHINGTON , D.C
.
I n th e Matte r

o f FEDERAL EXPRESS , INC
. FA A DOCKE T NO
. CP09NM001 0 DM S NO
. FAA-2009-072 1 FA A Cas e No
. 2007NM70015 6 COMPLAINANT' S BRIE F

PROCEDURA L SUMMAR Y O n Jul y 17 , 2009 , th e Complainan t issue da n Amende dComplain t t o whic h Responden t file datimel y Amende dAnswer
. I n it s Answer , Responden t admitte dt o Sectio n 1,11(1) ; (2) ; (3)(a) , (b) , an d(f) ; (4) ; (5) ; an d(6)
. Responden t denie dth e remainin g factual allegations , a s wel l
as , denie dth e violation s alleged , an draise dtw o affirmativ e defenses
. Durin g discovery , Responden t

admitte dt o th e factual allegatio n i n Sectio n II(3)(c ) an d(f ) o f th e Complaint
. O n Jun e 22 , 2010 , th e Administrativ e Law Judg e (ALJ ) se t th e hearin g i n thi s matte r an di t wa s hel do n Octobe r 25-26,2010
.

' See Response s t

o Reques t fo r Admission s 3,4 , 5 , an

d6
. ^ Se e Response s t

o Reques t fo r Admission s 1 an

d2
. COMPLAINANT' S BRIE F- CP09NM0010 , 2007NM0015 6 FEDERA L EXPRES S Pag e 1 o f

1 5 SCOT T R
. MORRIS , FA A ATTORNE Y TEL : 425.227.1417 ; FAX : 425.227.100 7*••'-- »

•^J
. 

### ^.Feds^y-Expres s Inc
. (FedEx ) i s one;ofll3^4|||^|:^p3)t|j o ai r carrier.opfisra^»|f

^ wit h operatin g revenue s in exces s o f $100 i^dJMmk^'^I^A^v^p

m21,2007 , aFedE}iiii|pl#e e - : • ^ acceptedtw o separat

e shipment s fro

mAstri^b|;^^pM^|4 ^ Baltimore , Maiylandfo r transpor t i n ai r commerce . Affixe

dt o each|sh|^fli^^pl^^|f^lptrat e FedE x shippin g label s v^t

h uniqu e trackin g numbers.' * Als o affixe dt o thi s shipEtien

t a * th e tim e tha t th e shipmeiat

s wer e offere dwer e th e transportatio n uniqu e marking of ORM-D. ^ Hazardou s materia l shippin g paper s di dnot accompan y thi s shipment
. Thes e shipme»|gl|?j^iscaiane da t th e sWpper'slfelilStib n by"^ * th e FodE x truc k driver , place don aFedE

x thic k andmove dto . FedE

x sorting facilit

y nea r Baltimore , Maryland
. Thes e shipment s the n fle w fissmBaltimore , Marylandto Memphis , Tennessee , wher

e the y wer e sortedagain an

dth e I^wl ^ labe l affixedt o thi s shipmenl wa s scanned&gain

, an dthereafte r place do n anothe r 4i)r«PSft « Hies * ^pment s then flew^m MemphiS j Tennessee to Portland , Oregon
. Uia(ift^'"<^fli|teiifaiy|'kb dsorting operation ^ Portland , Oregon , the FedE x shipping label affixe

dl^'^ese'tw o separat

e shipments-Wer

e scanned , then place don afeede r flight 8677-2 2 opeg^S/d'h

y Empir e Airline s destinife

dfo r Medford , Oregon. ^ All told , each o f thes e ^hipp«^-^?« ^ scimhe dby FedE x on aj t ll ^ four occasion s prioF4 atheir

.ajriva l in Medford , J ./^

- i^ : ho '



# r

^ Se e Tr
. at

67 , line s 8-11
. A Grou p I ai r carrie r un(^ r |1» | operatin g revenue s i n exces s o f $100,000,000
. Se e %blt|£ i Respondent' s coimse l concede s thi s fact
. Se e generc^ly^* ^ * Tr
. a t 40 , line s 2-10 ; Tr
. a

t 49 , lin e 2 0 - Tr
. a t

50,ilifl( s | | exaininatio n tha t

th e tw o separat e trackin g number s t|al^ ^ sep(arat e shipments
. Tr
. a

t 93 , line s 9 - 20
. 'Tr
. at31,line s 9-12
. * Th e locatio n an devent s concernin g thes e shipments ; ar e sf t generaZ/v , Tr
. a t

119-127
. ' Tr
. at 41 , line s 1 3 - 1 5 an dTr
. at 75 , lin e 1 0 - Tr
. a

t 76 , lin e COMPIAINSNT'

s BRIEF- CP09NM0010 , 2007NM0015 6 FEDERA L EXPRES S Pag e 2 o f

1 5 |saaetio n guidanc e i s aii| ^ iairie r wit h 1^1$
. 1944 8 unde r

DeiGia^^
. fWthcir , .^temen t o f FedE x coun||l) i Jli4
. Agen t

Stige r reaffinii ^ lurin g cross package s mean t

tha t tiie^' Her e tw o
i f €"2
. Se e a/j o Tr
. i t

3t^% t Se e

SCOT T R
. MORRIS ; .|yi A ATTORNE Y TEL : 425.227.1417 ; FAX : 42%."227.100 71

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

Medford , Oregon , tw o Federa l Aviatio n Administratio n Hazardou s Materia l Specia l

Q Agent s wer e conductin g inspection s a t th e airport
. A s par t

o f thi s inspection
. Agen t

Donal d Stige r gathere dfro mth e Medford , Orego n FedE x statio n th e down-lin e informatio n o n wha t wa s expecte dt o b e o n flights in-boun dt o th e Medford , Orego n airport
. H e gathere dtha t informatio n
s o h e coul dcompar e wha t ai r carrier s state dwoul db e arrivin g at th e airport , an dwher e thi s hazardou s materia l wa s locate do n th e aircraft , t o wha t was actuall y on-boar dth e aircraf t upo n arrival
. Th e down-lin e informatio n Agen t Stige r gathere dindicate dtha t

n o hazardou s materia l
wa s aboar dflight

8677-22.^ ° Onc e th e aircraf

t arrived
. Agen t

Stige r contacte dth e pilo t

t o ascertai n i f

th e down-lin e informatio n matche dth e pilo t notificatio n describin g wha t hazardou s materia l th e pilo t was
awar e wer e aboar dthei r

aircraft
. Th e Notic e t o Pilo t i n Comman d(NOPIC ) indicate dtha t ther e
wer e n o hazardou s material s aboar dflight 8677-22. " Agent s Stige r an dKerm

y the n observe d th e off-loadin g o f

flight 8677-22
. Durin g th e off-loadin g operations , th e Agent s observe dtw o package s marke dORM- D an dthi s markin g wa s locate dnex t t o (abou t a n inc h from) th e FedE x affixe dshippin g labe l durin g th e off-loadin g operation s o f thi s aircraft
. Th e ORM- D markin g i s auniqu e markin g i n th e transportatio n industry t o conve y tha t materia l inside th e shipmen t o r packag e i s hazardous.' ^ However , thi s markin g i s not authorize d fo r us e o n shipment s i n ai r

commerce.'' ' Agent s Stige r an dKeimy observe dthes e shipment s 'Tr
. at22-23
. 'Tr
. at24-25
. ' " Tr
. 25 , lin

e 1 9 - Tr
. a

t 26 , lin e 1
. " Tr
. a t 26-27
. I f hazardou s material s ar

e aboar da n aircraft, the fligh

t cre w i s requiredt

o have aNOPIC , shippin

g papers , and/o

r acombination o

f tha t whic h indicate s wha

t materia l i s aboar di t i s prope r shippin g name , quantity , an

d location o f hazardou s materia

l aboar dthe aircraft
. Tr
. a

t 28
. ' ^ Tr
. a t 35 ; Tr
. a t 44 , line s 1 0 - 1 4 an

dExhibi t C-3-1
. " Tr
. a t 29 , line s 4- 7 an

dTr
. a t 31 , line s 9-12
. ' " Tr
. a t 29 , line s 1 2 - 30 , lin

e 14
. See als o 4 9 C.F.R
. 173.27
. COMPLAINANT' S BRIE F- CP 0 9NM 0 010 , 2 0 07NM0015 6 FEDERA L EXPRES S Pag e 3 o f

1 5 SCOT T R
. MORRIS , FA A ATTORNE Y TEL : 425.227.1417 ; FAX : 425.227.100 7shipments^bein g off-loaded
. Th e Medford ,

thi s discrepanc y an dproceede dt o ope n theif r t«{iJ 5 Ketmy observe di n eac h shipmen t 24-bottle5-^' ' o n manage r ha dbcti0l^bsm dt o \'^Qe ^ opened ^ Agi^il^l^an d alfdisaaeri' ^ Agent^StiPltt&iee d tha t thes e bottle s di dno t

hav e apositiv e maJBit

f ^msifeiS^SIB-Y6qtiire dby49€.FiR|£§173.27.* ^ A s such , thi s shipmen t

coul dno t

hav e been*eefa^;^||i!a^Wl©RM-D-AI RshipmtHti ^ h i Agen t Stiger' s expert

opinion , th e classificatio n o f th e m{i$iEl(ffi3^d\ik

l hav e bee n ethanobWlc|too l solution s o r

ethanol , UN I 170 , hazar dclas s 3 , Packin g Otou p HI
. 1 8 :3:at^:t:" ' Thi s cas e boil s dov mt o whethe r th e "ORM^ii^iOiarkiag s o n th e tw o boxe s tv ^ sufficien t t o impar t

constructiv e knowledg e ton iidEilKWt&esh^ment s containe dhflEEai-dou s materia l and , i f

so , whethe r

$37,50 0 i s an aj^r<:^alfr)sa8i^n''fo r thes e yiolatitsns ^ A
. Th e markmeso n eac h bo x ggveFed|x><i^iM^jpcl^^|i!lB ^ thatlhes l containe dhazardou s materials
. Th e FA A i s entitle dt o aruUng i n itslfavo r hohox ^ th e undispute devidenc e lestablishe s :-/ " >.r-' tha t FedE x ha dconstructiv e knowledg e thatlth e boxt s costtain M hazardou s material
. A s such
. ('•

- - ^ l-Xr V FedE x "knowingly " violate d4 9 C.F.R
. § § 175. 3 (acs^tit'shipmen t whic h contain s ahazardou s maisria l tha t

i s no t prepare di n accordanc e ^ithlSilii^^^pl^iui'snateria l regulations) , l1ll'5.30(a)(2 ) ^ ' '•'•'-•''- ' , ^-.^-i^
. - ___ _ "'' ^ iit^iii££L ;

' ^ Tr
. at 3 2 an dExhibit s C-3-2 , C-3-3 , C-4 , an dC-5
. ' * Tr
. a t 33 ; Tr
. a t 4 7 lin e 1 8 - Tr
. a

t 48 , lin e 8 ; an d shotd dhave know

n tha t the iime r packagin g wa s faul i associatedwit

h the transpor

t of thi s substanc e i

n ai r " Agen t Stiger' s opinion was verifiedb y hi s convers ; 1 2 an dTV
. a t i88,Hiifrl 3 - Tr
. a

t 89 , lin e 19
. " Tr
. a t 34 , line s 8 -18 ; Tr
. a

t 5 3 line s 6 - 14 ; an

dTr, b y tht e substahce'k

Materia l Safet y Dat aShee t (MS D accepteda s a

n e:q>er t witnes s a s t

o the application s o : 5c e Tr
. a t 21
. CJOMPIAINANT'S BRIE F- CP09NM0010 , 2OO7NMO015 6 FEDERA L EXPRES S Pag e 4 o f

1 5 ,p;H|9>Jlajnan t i s not asserting t|^JF«]& c l ^ t i n determining tha

t levetMI&Ic ilj^^oo do

f aleak
. '•^r-^fy-^^ 1
. Tlie c|)M6ay|^i^^'Sted ^ " ^ at'Stige r •^W!^m^'&^d ' -'-'""'

^ '

'• • SCOT T R
. MoiiRls , Wtfi ATTORNE Y TSL : 425.227.141-7 ; FAX : *ffi«.i27.100 71

2 3 4 5 6 7 8 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 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 9 5 0 5 1 5 2 5 3 (accept s hazardou s materia l shipmen t tha t ar e not describe do n th e shippin g materials) , an d 175.30(a)(3)(accept s hazardou s materia l shipmen t tha t i s no t properl y marked)
. Unde r 4 9 U.S.C
. § 5123(a) , aperso n knowingl y violate s ahazardou s materia l regulatio n i f "(A ) th e perso n ha s actua l knowledg e o f th e fact s givin g ris e t o th e violation ; o r (B ) a reasonabl e perso n actin g i n th e circumstance s an dexercisin g reasonabl e car e woul dhav e tha t knowledge. " I n 1998 , th e Departmen t o f Transportatio n (DOT) publishe daformal interpretatio n tha t clarifie s th e abov e provision
. 6 3 F.R
. 3041 1 (1998)
. Th e DO T wrote : [a ] carrie r knowingl y violate s th e HM Rwhe n th e carrie r accept s o r

transport s ahazardou s materia l with..
. constructiv e knowledg e that apackag e contain s ahazardou s materia l whic h ha s not

bee n packaged , marked , labeled , an ddescribe do n ashippin g pape r a s require db y th e HMR
. Thi s means tha t acarrie r may no t ignor e readil y apparen t

fact s tha t indicat e that...
. ashipmen t actuall y contain s ahazardou s materia l governe db y th e HM Rdespit e th e fac t

tha t i t i s not marked , labeled , placarded , o r describe do n ashippin g pape r a s containin g ahazardou s material
. 6 3 F.R
. 3041 1 (1998)
. Th e FA A Administrato r

ha s hel dtha t

thi s statut e "require s inquiry an dtreat s aperso n a s possessin g whateve r

knowledg e inquiry woul dhav e produced. " I n th e Matte r Interstat e Chemica l Co. , FA A Orde r No
. 2002-29 , 200 2 W L 3195704 5 at * 7 citin g Contrac t

Courie r v . Research , 924F.2 d112 , 11 4 (7 * Cir
. 1991).' ^ FedE x i s n o strange r

t o th e requirement s o f

inspectin g package s an dth e consequence s o f acceptin g an dtransportin g ORM- D marke dpackage s i n ai r commerce . Se e F.A.A
. v . Federa l Express , FA A Docke t

No
. CP98GL0021 , 200 0 WL 3422911 5 (D.O.T
. 2000)
. h i th e presen t
case , th e marking s o n eac h bo x wer e sufficient t o indicat e t o areasonabl e perso n tha t th e shipment s at

issu e containe dhazardou s materia l an dmus t no t b e transporte db y air
. Th e boxe s at

' ' I n its comments regarding constructiv e knowledge , th e Departmen

t o f Transportatio n write s that , "I n th e cas e o f a n undeclare do

r hidde n shipment, all relevan

t fact s must b e consideredto determin

e whethe r o r not areasonable person acting i n the circumstance s an

dexercising reasonable car

e woul drealiz e the presenc e o

f hazardou s materials
. I

n a n enforcemen

t proceeding , thi s i s alway s aquestion o f fact, t o b e determinedby the fact-fmder. " 6 4 F.R
. 30412
. I

n

COMPLAINANT' S BRIE F- CP 0 9NM0010 , 2 0 07NM0015 6 FEDERA L EXPRES S Pag e 5 o f

1 5 SCOT T R
. MORRIS , FA A ATTORNE Y TEL : 425.227.1417 ; FAX : 425.227.100 7•••?!»,".'''<••"•" ' 

## W 

# w

issu e ha dth e word s "ORM-D " an

d"ConsuiNrji6?dl^Bi|fei^<>n tw o sides , SeeMo^sm^Bt o Complainan<! s Reques t

fo r Admission s 3-^ , Wid^i^i^vl^BS^lmB^^ ^ Agent' s statement)
. Thes e marking s wer e iinaiB)lilli^^^8|l^;« Q th e FedEx(l^l^l^ ^ Admi t #3-6 , Photos , mspecto

r affidavit. ) "4)i^*4ii|b»|*fcwWati<m^ f Material. " 4 9 C.F.R
. § 172.308
. OR M mat|Brial^thl*^«ttt-|ife^shippe dby air requires ^ designatio n "ORM-D-AIR " rathe r tha n merely ''QVi3i4:*m'4 9 C.F.R
. § 172.316(a)Cl|
. "Th e package prominently stated' ORM-D, ' whic h i s ahaaSatddn s materia l mar k - andaplainly inaccurat e one . Tha

t marking signifie s grotindititia^llliioiai^an dth e package s o f iii^|«va s i n the proces s o f

ai r shipment. " F.A.A
. v. Federal > Exp^0SS,^AADockct

No
. CP9SQ^0!^,2OO O W L 34229115 , * 3 (D.O.T
. 2000 ) (hiitia l Decisio n o^ttageKolko)
. Despit e th e maifeia

p o n bot h side s o f th e boxe s tha

t indicatedtha

t th e sWj)m<^ts<^ll^'!quirii:fyfor transpor t i n afcii M FedE x tran^wrte dth e shipments on flights |roi«®#|tedp«l4i|r5flanditoMemi* ^
an dfi-omMesmphis , Tennessee to Portland , •0«^5©8St^i«'?B'.<' > ; * r nMiy
. =

. - I f FedE x ha dexercisedreasonabl e c4reJit^i^(fe|^i!|iMin,'l(?oul dhavein(tBt#d^^ethe r the shipment s containedhazardou s material^
. The fl^ifj^^l'tt^eiMr. sufficientl y cons^SrtSc ^ eno^jg h t o al«r t FedE x tha t the boxe s contai49#|a^|||^jii^g6lMained,

- ahassafdil^j^i^al
. SiriipiyhatdSMi e markin g "ORM-D"a s aJhjsS^i^^P^^l^^S^Miat ) markiiyg^fea do f itself i s asufficien

t indication t

o mee t th e requirefmSB^^IrfjijaiS^

^ knowledge
. y&&

^ F.A.A
. v. Federa l Expr^s , FA

A Docke t No
. CP98Gl4)fi^i^^^^529115 ^ *2-* 3 (©.QlTJfOOG)
. h i it s answer , FedE

x repeatedl

y note | il^^igi|ifctofl|ie:ffORM-D " lahel4S»<#jse i t believe s tha

t th e ter m"ORM-D " doe s no t

in^^|^,|^^^^( ^ o f

hazardou s nif^teriJll

g

— , ^

H- * I^^ i tiiat ther e wer e n o sh4^pHE||p^>er

s "^al, i '•'"' ' SCOT T R
. MoRnii/fft A ATTORNE Y TEt : 425.227.1417 ; PAX : Sa^S;227.100 7 th e presen t case , tiiere i s n

o disput e regardin g th e ms^jos ^ associatedwit

h the boxes , an

dtha t th e boxe s containe dli

i COMPLAINANT' S BRIE F- CP09NM0010 , 2007NM0015 6 FEDERA L EXPRES S Pag e 6 o f

1 51

2 3 4 5 6 7 8 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 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 9 5 0 5 1 5 2 5 3 prominentl y enough
. Se e Answe r at II
. 3.c. , 4. , 5. , an d6
. FedEx' s criticis mo f th e labe l ha s bee n reviewed , an dresponde dto , b y th e DOT
. Se e 7 1 F R1458 6 at 14592-93
. Thi s i s no t

th e appropriat e foru mfo

r FedEx' s criticis mo f

thi s markin g no r

doe s it s advocac y agains t th e markin g absolv e i t

fi-omabidin g b y th e presen t hazardou s materia l regulations
. Als o i n it s Answer , FedE x claim s tha t th e shippe r

o f thes e boxes , AstraZeneca , ha dneve r previousl y offere d shipment s b y air
. (Answe r 3.c.)
. Assumin g for

purpose s o f

argumen t tha t thi s i s true , thi s woul d
no t absolv e FedE x o f

th e requiremen t

tha t i t ha dt o examin e th e boxe s an dexercisin g reasonabl e
car e whe n i t

discovere dth e "ORM-D " markings
. Respondent' s argumen t fail s becaus e th e transportatio n uniqu e markin g was literall y withi n an inc h o f th e document s tha t

it s employee s ha dt o visuall y loo k

at t o scan for

purpose s o f

trackin g th e document , adocumen t tha t it s employee s ha dt o loo k

a t o n several occasions
. FedE x ha s previousl y mad e th e argumen t tha t i t ha s n o duty t o loo k

at al l side s o f

a packag e o r

t o otherwis e discove r

th e incorrec t

markings
. Thi s argumen t was soundl y rejected
. A s tha t ALJ correctl y stated , "[t]h e risk o f har mpose db y improperl y marked , labeled , o r package dhazardou s material s i s substantial ; th e HMRs , furthermore , underscor e th e stron g publi c polic y favorin g properl y transporte dhazardou s materials
. Th e burde n o f inspection , o n th e othe r han di s relativel y small. " F.A.A
. v . Federa l Express , supra , at *4
. B
. Th e Propose dSanctio n i s Supporte db v th e Fact s an dth e Administrator' s Sanctio n Guidanc e Se t

Fort h i n FA A Order

2150.3A
. Fro mth e outset , th e Complainan t acknowledge s tha t

i t ha s th e burde n t o justif

y th e amoun t
o f civi l penalt y i t

seeks
. I n th e Matte r

o f Luxemburg , FA A Orde r

1994-1 8 (Jvm

e 22 , 1994)
. T o fiilfill thi s obligatio n th e Administrato r ha s publishe dsanctio n guideline s i n 6 4 Federa l Registe r

COMPLAINANT' S BRIE F- CP09NM0010 , 2007NM0015 6 FEDERA L EXPRES S Pag e 7 o f

1 5 SCOT T R
. MORRIS , FA A ATTORNE Y TEL : 425.227.1417 ; FAX : 425.227.100 7;""'!«»|j:w;w" "



### 1944 3 - 1945 0 (Apri l 21,1999).^ ° h i the O
a$37,500 ci'Pilpenalty
. I

n thi s case , the sanfe

i th e Administrator' s sanction guidance.^ * entitle dt o substantia

l deferenc e i n assessin g 1 ^



### iha t the Respdfiiiifii^eiKssesse

d ate bu t fiiUy^s^|;ii!^^'tmde

r 1 Ifhed^'[a] n stsdrnMsm^dsa^mc^i s ipjfepriateforaTwoiil^sofit s J regulations
. The agency' s choic e of asanctic«felB«iPif|i^^pte^Wne dtinles s iti s tJB#tePante di n la w or without justificatio n i n fact. " N

L IruhisttieSril^^lOept : d/TransportathM^f^ X B.2 d141 , 14 4 (D.C
. Cir
. 1990)
. Complainant' s sanction determinati(:|i#ll|^Mp|^l|i^flec t afixedmathti|iill6a l computatio n but

consider s amultitude of

factoK-^iilirtS^^I ^ walkedtt e AL J thiougf f ftte Administrator' s sanction guidance pointing dutildA^i^^ijritO'leH^atlhe nature , ci|icudi#nces , extent , an dgravit y o f the violation.^

^ A s to the wei^ites»dl«rt©<i^iwt h each factor

»(^ttiii tha t guidance ^ '^th e Complainan

t maintains ' relat4r^^d«iiil@|^ls^$fi3^on:in.^efem^ ^ final ag^egat e weight

in proposm

g the leve l Q^siili^^i^0^yMtH e Matter o f Wti^i^ArLuker , Jr. , FAA Docke

t No
. CP09SW0008,201 0 Yode r Grantin g Complainant' s Motion fo r ^iS ^ Theiis k categor y fo r thi s substanc e a

4 » CatiBgor y B. ^ Thi s warrants amoderat e W ( containing forty-eigh

t (48 ) bottles , an

dfortunatel

y ^^2010 ) (OrderiofCWef Judg e ;:^:
. 

### ^lUnmabi e Ikix M vi«^IUsk

> • itijb^eparat e sh^iirteVolve d dainageor ] 5n

s o r

^° I t i s iniportantt o recal l tta t th e Administrato r

creati d
. sanations
. Se « 6 4 fed
. Reg
. 19443
. Therefore , i t i s i*e | effecdy e dat e oflii s guidance
. ^ ' "^e n sanatio n i s a n issue , di e la w judg e i s expecti d^ pendt y selected , ^etilie r o r no t th e penalty i s reduce<l[.' ' th e law judge' s sanctio n decision. " I n th e Matte r ofTiiydt a 8996 6 (Sept
. 30 , 1994)(citingt o 5 U.S.C
. §557(c))
. ij-.-'lyi:! : toVovid e consist^cy?iii|^g«Qcy' s w«r e impose dii)i^ca£^^||i^^ ^ th e itioi j o f th e amquBit^ ^ civi l e Ac t xeo^^'W^^Muoi
. ^,lne. , Yk

K Orde r No
. ^tr^iA^kif L 5e « Tr
. a t 6 0 - 69
. Tr
. at 62 , line s 7 - 1 4 an dExhibi t C-10
. OOMPLAINAHT'S BRIE F- CP09NM0010 , 2007NM0015 6 ••-•*;.G;r5r;% j • v ; SCOT

T R
. MoRRiB,'fjV

A ATTORNE

Y PEMSALEXPJBS

S tEL : 425.227.1417 ; FAX : *3i.>i27.100 7 Pag e 8 o f

1 51

2 3 4 5 6 7 8 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 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 9 5 0 5 1 5 2 5 3 property.^' * Howeve r th e lac k o f damag e i s give n n o weight.^^ Th e Responden t wa s no t th e manufacturer

o f th e hazardou s material an dsomeon e othe r than Responden t

prepare dth e shipmen t fo r transportation.^ ^ However , Responden t accepte dan dtransporte dtw o shipment s that hadreadil y apparen t indication s that

the y containe dhazardou s materia l a s on e canno t transport ashipmen t

with th e ORM- D markin g i n ai r transport . Give n thi s company' s leve l o f experienc e with hazardou s material , i t

caimo t seriousl y argu e that

i t reasonabl y relie do n incorrec t informatio n fi'omanother
source . Here , ther e ar e tw o shipment s with th e wron g markin g o n eac h shipmen t an dn o shippin g papers.'^ ^ I n both instances , thi s uniqu e transportatio n markin g was o n th e sam e sid e a s th e FedE x affixe dshippin g labe l that it s persorme l ha dt o loo k

at t o scan th e statu s o f

transportatio n information
. I n fact , thi s uniqu e transportatio n markin g wa s withi n inche s o f thi s scan ba

r use dt o transport/trac k

thes e shipments
. I n Respondent' s lette r

o f response , i t

essentiall y provide dtha t it s employee s wer e merel y counsele dabou t

thi s incident
. TTii s i s no t acorrectio n actio n b y any measur e an dclearl y i s not anythin g othe r

tha n wha t

woul db e expecte do f

an ai r carrie r tha t transport s hazardou s materia l i n th e quantit y transporte db y Respondent
. "Correctiv e action s tha t justif y reductio n o f

th e

^ * Tr
. at 62 , lin e 1 5 - Tr
. at

62 , lin e 4
. Responden t

may try t o clai mtha t

i t shoul db e considere dmitigatm g tha t th e shipment s di dno t

lea k an dtha t th e hazardou s wasn' t

reall y tha t

significant
. Se e Tr
. at

79 , line s - Tr
. at

80 , lin e 11
. Th e Administrato r

ha s lon g hel dthat

goo dluc k

i s no t t o b e considere damitigatin g facto r an dspecificall y addresse s thi s i n hi s sanctio n guidance
. Se e Exhibi t C-1 0 at pag e 1944 5 (6 4 Fed
. Re g 19445)
. Further , i n thi s case , the y actuall y allowe daboar dit s aircraf t shipment s tha t

coul dno t

fl y in ai r commerc e a s packaged
. Granted , Responden t coul dno t kno w ho w thos e inne r

package s wer e prepared , bu t i t assume dth e ris k

tha t th e inne r container s di dno t compl y with th e packagin g for ai r commerc e b y acceptin g ashipmen t tha t wa s no t identifie da s bein g prepare dfo r transpor t i n ai r commerce , t o wit : th e ORM-D-Ai r marking
. A s Agen t

Stige r bes t state s "[a] n ORM- D tells yo u righ t of f th e bat , tha t

i t probabl y i s no t

qualifie dfor

ai r transportation. " Tr
. at

98 , line s 15-17
. ^^Tr
. a t 63 , line s 2-4
. ^*Tr
. at 63 , line s 7-19
. "Tr
. at 64 , line s 6-15
. Tr
. a t 58 , line s 7 - 2 0 an dExhibi t C-9
. COMPLAINANT' s BRIE F FEDERA L EXPRES S Pag e 9 o f

1 5 CP09NM0010 , 2007NM0015 6 SCOT T R
. MORRIS , FA A ATTORNE Y TEL : 425.227.1417 ; FAX : 425.227.100 7P'i
. 

## *s #

reconrniendedpenalt

y mm ^ exoec dfl>e mi.4n>ai»i4M|M»>»>.».'-' ' It lack s «mm^m ^ tha t th e coireSctiv e actio n taken b

y Respond^nf

^tH^liii^i^li^'^ilinimii mlega l t^isNi^ients
. Wha t i s mos t troubling in thi s cas e is!tite'l^ii||il||j|Ett*18^H^ ^
come s to complyin

g wit h thi s regulation
. R^spbciH^ililNSlfiJHdneofit s Of^nheimer
. Mr
. Oppenheime r i s the Respolideiil*si^afeh''lnanage r o f corporat e salb^ ' programs an

dha s oversigh

t of the Respondent' s heiiikeSiQiiiS^iMbtni i complianc e progi^.^' ^ Mr
. Oppenheimer' s testimon y embodie dthe Re^pdajattel^^ftilSted

e toward s ORM-D-shi^ments
. Despit e direct questioning , Mr
. Oppenheime f elE6if^^|||||l3i^| ^ the requireniim<ik^|[»ilven t acceptance of

improperl y marke dORM-D sWpffiedit3|ii5^^i*i^^llffin^" , tha t it requiP^ii''*'jS5arfec

t world " to catc

h thes e shipments , an

dtha t i t dlsptiliiii^pil^liilC ^ attributing tha t fa^^sl t it shoul dhave bee n "caught " b

y the shipper. ^ ^ Mos t

diSftirWilglyIftia

t *Vhe n they [Fedfe * employei^]^ ^ scannm

g th e sticke

r tha t ha s iili^i^i^gp^W^ly'sCanm h showin g thitt'the packag e i s in fac

t changin g lo^N^SJUli^J-^^Mif^ip^flheime r stfil^l^^h' t agi« e tha t tMt' s [a n ORM-D markin

g a n inc ^ £I^J^Mpii^W}bviou s indic^dor M it' s a hazardou s fniat^al.^^ Ye

t during hi s direct , ier*«Niil!^i#^!i8^Pesio n the regulati<»tli^uir e additiona l markin g an dpaperwor

k i s to hel p ftm$^^^^^^^l^^itlfyet s recognizedtha f th e shipmen t i s win g offere

das dangerou s gooda'^^Mffl l Ignore s . '"l-W
. 

### Req)6hdent' s responsibility , sa y duty , t o stopi a^hipm^ttt'^^lh e ORM- D markingi S literally •••••'
. • i i>r-r''^0,]'yW$ mP; K • • -

. f:•'^tify n ' l , • 

### inche s fromthe sca

n bar
. Mr
. Oppenheime

r fd^^^H^^^P^!^ ^ P^^?;)''^^^^ ^ ii,-'i%lim'M'-' : -i.." '
^ ' Ejdiibi t C- 9 (Administrator' s Sanction Guidanc e 6 ^ I^[i|i|M||^^t|4^H^ 0 column , 1 " M ] sentence. ' •

• - ' • I M^^mPj V 'P''' ' 'Tr.atl03,Iine8-ll
. ' Tr
. a t 128 ) liii e 1 6 - Tr
. a

t 133 , lin e 8
. ' Tr ; a t 13 3 line s 5 - 8
. 'Tr
. a t 134 , line s 12-19
. 'Tr
. a t 130 , line s 16-20
. COMPLAINANT' S BRIE F- CP09NM0010 , 2007NM0015 6 FEDERA L EXPRES S Pag e 1 0 o f

1 5 •>m^M'ir

- .,5 : ' i • , 

### n tp *

•tSt : 425.227.1417 ; FAX : 4a*;"227.100 7

SCOT T R
. MoRltt^j; ; SSM ^ ATTORNE

Y1

2 3 4 5 6 7 8 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 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 9 5 0 5 1 5 2 5 3 FedE x syste mafte

r it' s bee n initiall y accepted , ther e i s n o further dut y t o preven t

an improperl y accepte dshipmen t

frommovin g withi n it s system."' ^ A se e n o evi l approac h b y a n ai r carrie r i n transportin g hazardou s materia l i s totall y unacceptable
. FedE x als o ha s aviolatio n history
. Ove r th e thre e year s prio r

t o thi s incident , th e Responden t

ha dfiv e violation s wher e acivi l penalty ha dbee n assessed.^ ^ A prio r violatio n histor

y i s considere damatte r

i n aggravation
. On e applie s th e abov e factor s withi n th e contex t o f th e sanctio n matrix
. Responden t i s a Grou p I air

carrier.'' * Th e sanctio n rang e for aGrou p I air

carrie r fo r 175.3 0 violation s i s $5,00 0 t o $27,50 0 per

violation , i n thi s cas e ther e ar e tw o imprope r acceptance s for

hazardou s material wit

h
n o shippin g paper s an dtw o unprope r acceptance s fo

r imprope r marking s (whe n offere dfo r air transport).^ ^ I n thi s cas e ther e wer e als o tw o 4 9 CF R175. 3 violation s whic h ar e reference da s "othe r 175 " violation s i n th e sanctio n guidance
. Th e sanctio n rang e for "othe r 175 " violation s i s $5,00 0 - $15,00 0 per

violation.'* ^ Therefore,

- th e sanctio n rang e fo r th e violation s i n thi s cas e are betwee n $30,00 0 - $165,000.'* ' Th e requeste d$37,50 0 fall s o n th e lowes t en do f thi s range . Eve n i f on e wa s t o assum e that

th e violation s wer e multiphciou s for eac h o f th e tw o separat e shipments
.

" Tr
. at 135 , lin e 1 9 - Tr
. at

136 , lin e 2
. Se e als o Tr
. a t 138 , lin e 1 3 - Tr
. at

139 , lin e 6
. ' * Th e sanctio n guidanc e allow s on e t o conside r th e prio r five years . Tr
. at

66 , line s 8-1 2 an dExhibi t C-1 0 (p
. 19446)
. " Tr
. a t 66 , line s 2 - 7 an dExhibi t C-11
. O n th e other

hand , th e Administrato r

ha s tim e an dagai n opine dthat th e absenc e o f

aviolatio n histor

y i s no t ground s fo

r mitigation
. Se e ToyotaMoto r Sales , FAA Order

No
. 94-2 8 (Sept
. 30,1994 ) Se e als o FA A Orde r 2150.3B , chap
. 7 , para . 7-4h(l)[p
. 7-7 ] (" A violation-fre e history i s th e expecte dnorm , no t th e exceptio n and , therefore , i s no t

amitigatin g factor." ) Tr
. at 67 , line s 10-11
. Tr
. a t 68 , line s 3 - 1 1 an dExhibi t C-10
. •* " Tr
. at 68 , line s 1 1 - 1 7 an dExhibi t C-10
. " " Th e Administrato r

frowns o n astric t

formul aapproach
. Se e Interstat e Chemica l Company , Inc. , FA A Orde r 2002-2 9 (Dec
. 6,2002) , p . 15
. Complainan t als o recognize s that

littl e weigh t

shoul db e give n t o merel y addressin g th e maximu mpotential penalty possible
. Se e FA A v . Tran s State s Airlines , FA A Docke t No
. CP08CE0003 , 200 9 W L 104188 5 (Apri l 16 , 2009)(Initia l Decisio n o f AL J Goodwin) , a

t fii 6
. Thi s figure i s provide da s illustrativ e

COMPLAINANT' S BRIE F- CP09NM0010 , 2007NM0015 6 FEDERA L EXPRES S Pag e 1 1 o f

1 5 SCOT T R
. MORRIS , FA A ATTORNE Y TEL : 425.227.1417 ; FAX : 425.227.100 7<VJS,
- ;^-^

-

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

# W

'^'^''"'*=' « agrea

t dea l ^fl^ ^ ^teS&a i

' ^''^'P^deianc e o f

t h • ''^'''^P ^ Sanctio n f c «-^

- '^c e o f th e evidence P « ~ ' " ^ * ^"PPorte dhv « , •

I
. . , "TM^»l«&rea<w, v '*«*'•.•
. '"""^Public' s



# £=^---~"
. ...».:.,:::""' • "•'^su ; 

# I

S

-. M

## ry

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

ha s alread y concede dtha t i t ha s th e financial ability t o pay th e propose dcivi l penalty
. Th e Complainan t ha s provide dexplanatio n a s t o ho w i t arrive da t th e propose dpenalty consisten t with th e Administrator' s sanctio n guidance
. Give n Respondent' s prio r violatio n history , th e typ e o f

violation s involved , an dcandidl y Respondent' s attitud e abou t thi s particular regulation , th e $37,50 0 propose di s eminentl y reasonable
. Wha t Responden t

wishe s t o d o i s shif t al l responsibilit y t o th e shippe r an dhav e th e AL J ignor e it s ovmregulatory responsibilitie s durin g acceptanc e an dtranspor t afte r imprope r acceptanc e - essentiall y shiftin g it s quality contro l responsibilitie s fromitsel f t o another ; thi s w e canno t allow
. A s th e ultimat e guardian s o f ai r transportatio n safety , ai r

carrie r dutie s mus t

b e performe dwith th e highes t degre e o f

car e an d the y caimo t

eve n absolv e themselve s o f thi s duty simpl y becaus e the y disagre e with tha t statu s o f
acurrentl y effectiv e regulation
. T o it s credit , i t ha s take n step s t o chang e th e law , bu t tha t i s no t somethin g tha t

therefor e permit s thi s ai r carrie r fro mmeetin g it s obligation s unde r th e regulatio n stil l i n effect
. Wha t

happene dher e doe s not

warran t any further

mitigatio n othe r

tha n tha t alread y considere db y th e Agenc y i n it s analysis
. T o allo w Responden t asecon dbit e at

th e appl e for sanctio n whe n thes e factor s hav e alread y bee n considere dwoul deliminat e th e nee dfor th e Agenc y t o d o atotalit y o f th e circumstanc e analysi s an dmerel y rel y upo n th e rou t mathematica l formulatio n th e Administrato r seek s t o avoid
. Havin g demonstrate dalogica l rational e for th e requeste dsanction , th e ALJ shoul dgiv e deferenc e t o tha t sanctio n an daffirme dth e Complainant' s reques t

for th e impositio n for

a$37,50 0 penalty
. I t i s th e Agency' s positio n tha t any amoun t

lowe r tha n tha t propose dwoul dno t

provid e a sufficient deterren t for thes e type s o f

violation s for

thi s siz e o f

an ai r carrier
. Th e Agenc y i s i n th e bes t positio n t o determin e what sanctio n shoul db e impose dfor agive n violatio n an dabsen t a findin g tha t

th e Administrato r

i s actin g arbitrary o r

capricious , th e AL J shoul dgiv e deferenc e t o
COMPLAINANT' S BRIE F- CP09NM0010 , 2 0 07NM0015 6 FEDERA L EXPRES S Pag e 1 3 o f

1 5 SCOT T R
. MORRIS , FA A ATTORNE Y TEL : 425.227.1417 ; FAX : 425.227.100 7'-'-^•rf'^wffi^r

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

# w 

# w

th e sanctio n proposed , especiall y vsfhe n tli e ^**° ^ guidance.; , "Whpn th e violator i s alarg e co^i

] Administrator

ha s said , "th

e penalt y ma y neM ' deterrent effect. " Toyot

aMoto r Sales , USA,Mm:'0^ ' ^ £t t th e lowe r eti de^ii| | ii^ctio n l^smal l company,"ittil|,y ; • iiiigl y large

r tdachii^^^aj e same W<>.'94-2 8 (Septembfe#|pi4994) , p . 11
. Her e th e violato

r i s th e world' s larges t

fitei^t«8|lillteJ6iSEteis o f

ton s flown andIb^iecon d larges t i n term s of fleet size."* ^ I t i s importan

t the'j^i^'^iiL8*Mtq>resen t somethiAi pSate r

i n effec t tha n simpl y acos t of doing business
. ':•:.:)•-5¥? ' • ji i 

### RESPECTFULL

Y SUBMITTE

D thi s 24* ^ d ^ o f JaaiiiEy|201 i

,;^ttR
. Morri s FA A Attome y 1 ^ .;V?'v-'>5^ ' v'S'i'-i^^'ij b V;:: '
i ~ - • • .sJ<i^;';S-'"i S K,-\"
. 'J\ > «•,;*,:;•
. I • . ,;,ei| r

,ui> ( ••.'' • •:\:if r

: ' ' .-<- . l i ff*3;-'»..i'a* » »|f:<M$;
. '-styi-^'' - i f • •

' Se e www.wiljdpedi^org/wiki/FedE x Expres s (las t vfeited'dlSi^*!,

- COMPLAINANT'S BRIE F- CP09NM0010 , 2007NM0015 6 ^'"'•'>i'*"
. P^BRA L EXI>RES S Pag e 1 4 o f

1 5 SCOT T R
. MORRIS;'#j|pSr»JfaKiRHE Y TEL : 425.227.1417 ; PAX:'4^5'v22 ?
. 100 7 

### '' 41

2 3 4 5 6 7 8 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 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 9 5 0 5 1 5 2 5 3 CERTIFICAT E O F SERVIC E I hereb y certif

y tha t th e foregoin g Complainant' s Brief , ha s bee n serve dviaFacsimil e an d Certifie dMai l thi s date , t o th e following :

Th e Honorabl e Richar dC
. Goodvsdr i Offic e o f hearings , M-2 0 120 0 Ne w Jerse y Avenue , S.E
. Eas t Buildin g Groun dFloor , R mEl2-32 0 Washington , D.C
. 2059 0 FAX : 202.366.753 6 Attn : Hearin g Docke t

Clerk , AGC-43 0 Federa l Aviatio n Administratio n 80 0 Independenc e Av e S W Wilbu r Wrigh t Bldg
. - Suit e 2W100 0 Washington , D.C
. 2059 1 FAX : 202
. 493.514 2 Courtne y E
. Felt s Staf f Attomey , Federa l Express , Inc
. 362 0 Hack s Cros s Roa d Buildin g B , 3" ^ Floo r Memphis , TN 38125-880 0 FAX : 901.434.828 3

Date dthi s 24*

^ da y o f January , 2011
.

MOIFAI RCHI N

Offic e o f Regiona l Counse l (ANM-7 ) Federa l Aviatio n Administratio n 160 1 Lin dAve
. S W Renton , W A9805 7 TEL : 425.227.216 0 FAX : 425.227.100 7

COMPLAINANT ' s BRIE F- CP09NM0010 , 2007NM0015 6 SCOT T R
. MORRIS , FA A ATTORNE Y FEDERA L EXPRES S TEL : 425.227.1417 ; FAX : 425.227.100 7 Pag e 1 5 o f

1 5