### SERVED: 

## JUNE 11 2012 '

U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, DC

IN THE MATTER OF

·PREMIERJETS, INC. FAA DOCKETNO. [TO BEASSIGNED] (Civil Penalty Action) FDMS NO. FAA-2012- 0470

PROCEDURAL ORDER In orderto·expedite the hearing in this matter, the parties shall comply withthe Procedural Schedule set forth hereinbelow1• The Rules ofPractice for this proceeding are set forth in 14 C.F.R. Part 13, Subpart G, ofthe Federal Aviation Regulations2• Those rules provide, inter alia, that the Respondent must file a written Answer ormotion within thirty (30) days after service ofthe Complaint (14 C.F.R. § 13.209(a)), that a general denial is deemed a failure to file anAnswer(§ 13.209(e)), that failure to file an Answer without good cause is deemed an admission ofeach allegation inthe Complaint (§13.209(£)), and that, absent agreement ofthe parties, a party seeking an extension of time must file a written motionnot less than seven (7) days before the document is due, absent good cause shown(§ 13.213(a) and (b)). More specifically, 14 CFR § 13.209 (e) states: A person filing an answer shall admit, deny, or state that the person is without sufficient knowledge orinformation to admit or deny, eachnumbered paragraph ofthe complaint. Any statement or allegation contained inthe complaintthat is not specifically denied in the answermay**~e** deemed an admission 

### ofthe truth of that allegation. A general denial ofthe complaint is deemed a failure to file an answer. Under FAA Order 2150.3B and the Rules governing these proceedings, the Agency attorney and the Respondent are encouragedto considerthe possibility of

1Materials filed in the FAA Hearing Docket (except for materials filed in security cases) are also available for viewing at http://www.regulations.gov. · 2 The Administrator's civilpenalty decisions, along with indexes ofthe decisions, the Rules ofPractice, as well as othermaterials relating to civil penalty cases, are available on the internet at: http://www.faa.gov/about/office

_org/headquarters _offices/age/pol_ adjudication/ agc400/civil _penalty/; see also: http://ec.fr.gpoaccess.gov/cgi/t/text/text-idx?c=ec.fr&tpl=lec.frbrowse/Titlel4/14tab

_02.tpl. In addition, Thomson Reuters/West Publishing publishes Federal Aviation Decisions. Finally, the decisions are available through LEXIS (TRANS library) and WestLaw 9FTRAN-FAA database). For additional infomiation, see the Web site. 1settlement and compromise ofthis matter. 3 Compromise may be effected with or without a finding ofviolation (14 C.F.R. §13.16 (n) (1)). NOTE: This presiding Judge does not require "Discovery" to be served on the Judge. OtherJudges have different policies, but as long as this case is assigned to the undersigned presiding Judge the parties may, but are not required, serve discovery on the undersigned. Thejudge will not discuss the case with any party,4 or its representative on an ex parte basis. Ifa party has a non-substantive matter to discuss, they should contact the judge's attorney-advisor, Mr. Ira Leibowitz at (202) 366-2139 (lra.Leibowitz@dot.gov). Administrative matters may be addressed to thejudge's, Legal Assistant, Pat Matthews [202-366-5121] (Patricia.Matthews@dot.gov). WHEREFORE, the parties be and are hereby ORDERED to adhere to the following procedural schedule: 1. Venue shall be Portland, OR.; 2. On orbefore August 10, 2012, the parties shall conclude all discovery including, butnot limitedto, depositions, documentproduction, responses to production requests and/or interrogatories. Ifthe parties cannot resolve a discovery dispute they shall submit the dispute to the undersigned for resolution in a timely manner; 3. The parties shall be prepared to presentthis case at a hearing on or after August 10, 20125

, subjectto the availability ofcourtroom facilities. The specific date and time for the hearing will be forthcoming in a separate Order. 4. The parties will have the opportunity to file Post-Hearing briefs and arguments pursuant to a schedule to be determined at the hearing. For guidance, the following schedule is typically used: Complainant shall file its brieffifteen (15) days after receipt ofthe transcript; Respondent shall its brieffifteen (15) days thereafter; and any rebuttal briefbythe Complainant shall be filed seven (7) days thereafter.

3 See Linda Joyce Goodman, FAA DocketNo. CP89WP0061, Order dated May 30, 1989. 4 "Thepublic policy offavoring and encouraging settlementmakes necessarythe inadmissibility of settlementnegotiations in orderto foster frank discussions". (Fiberglass Insulators, Inc. v Dupuy, et al, (856 F. 2d 652, 26 Fed. R. Evid. Serv. 1225, 1988. See also Coakley & Williams Construction, Incorporated v Structural Concrete Equipment, Incorporated, 973 F.2d 349, 1992; 2 McCormick on Evid. §266 (6th ed.); Rule 68 ofthe Federal Rules ofCivil Procedure.). Rule 408 ofthe Federal Rules of Evidence "

...prohibitsthe admission ofstatements made in compromise negotiations

..." (Inthe Matter of AfricaAir Corporation, FAA Order No. 99-5). "Rule408'spublic policypurpose ofencouraging frank settlement discussions is as compelling in FAA civil penalty proceedings as it is in Federal Trials. Hence, its guidance will be followed in these proceeds." (Id.) 5 14 C.F.R. § 13.221 states: "The administrative lawjudge shall give eachparty at least 60 days notice of the date, time and location ofthe hearing." 25. Settled cases will not be removed from the hearing docket until the proper written pleading(s), consistent with the applicable rules, 6 is received by the presiding judge. 7
6. The parties are advised that submissions sent to the street address ofthe**U.s~** Department ofTransportation, Office ofHearings, may be delayed due to screening conducted bythe U.S. Postal Service and/or other security agencies and may take up to four (4) weeks to be delivered. Additionally, submissions may be "irradiated", which affects the quality ofsubmissions. The parties are encouraged, butnot required, to file submissions by private delivery service, facsimile, or email. The certificate ofservice shall reflect the manner ofservice. The parties are encouraged to provide email addresses to expedite service of. pleadings.

m U.S. Administrative Law Judge Attachment

- ServiceList

6 14 C.F.R. § 13.215 states: At any time before or during a hearing, an agency attorney may withdraw a complaint orparty may withdraw a request for a hearing without the consent ofthe administrative law judge. Ifan agency attorney withdraws the complaintor a party withdraws the request for a hearing and the answer, the administrative lawjudge shall dismiss the proceedings underthis subpart withprejudice. 7 See: In the Matter ofLewis Drake & Associates, FAA DocketNo. CP03S00045, DMS. No. FAA-2003- 16379, "OrderTerminating Proceeding", served February 26, 2005; citing Kerry James Eldridge, FAA Docket CP89GL0458, "Order Canceling Hearing and Terminating Proceeding", served January 16, 1991, at 1; InThe Matter ofRobert Harris FAA DocketNo. CP03EA0001. DMS No. FAA-2002-14236., Orders dated October 18,2004 and October 27,2004. USAIR, Inc., FAA Docket CP90NE0359, Trans World Airlines, Inc

.. FAA Dockets CP90GL0085, CP90CE0110, CP90CE0114, CP90CE0134, Order of Administrative Law Judge Burton S. Kolko, served April 8, 1992, p. 2. See "Order Dismissing Complainant's Appeal". In The Matter ofRobert Harris, FAA DocketNo. CP03EA0001. DMS No. FAA2005-14, August 15,2005.


### 3SERVICE LIST ORIGINAL & ONE COPY 

### Federal Aviation Administration 800 Independence Avenue, S.W. Washington, DC 20591 Attention: Hearing Docket Clerk, AGC-430 Wilbur Wright Building-Suite 2W1000 1



### Roger B. 

### Kelsay, President Premiere Jets, Inc., Respondent P. 0. Box 91430 2140 N.E. 25th Avenue Hillsboro, OR 97124 TEL: 503-640-2927 FAX: 503-681-3064 ONE COPY



### Michael F. McKinley, Complainant's Counsel Senior Attorney, Enforcement Division, AGC-300 Office ofthe ChiefCounsel Federal Aviation Administration 800 Independence Avenue, S.W. Washington, DC 20591 TEL: 202-267-7100 FAX: 202-267-5106 The Honorable Richard C. Q()odwin, Administrative**~aw** 

### Judge Office ofHearings, M-20 U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. (Ell-310) Washington, DC 20590 TEL: 202-366-2139 Attorney-Advisor 202-366-5121 StaffAssistant FAX: 202-366-7536 FDMS No. FAA-2012-0470 (Civil Penalty Action)

1 Service was by U.S. Mail. For service inperson orby expedited courier, use the following address: Federal Aviation Administration, 600 Independence Avenue, S.W., WilburWright Building-Suite 2Wl000, Washington, DC 20591, Attention: HearingDocket Clerk, AGC-430.