### SERVED: AUGUST 27, 2012

U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, DC

IN THE MATTER OF
LEADING EDGE AVIATION, INC.
FAA DOCKETNO. [TO BE ASSIGNED] (Civil Penalty Action)
FDMS NO. FAA-2012- 0783

PROCEDURAL ORDER 

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In orderto expeditethe hearing in this matter, the parties shall comply With the Procedural Schedule set forth hereinbelow 1• 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 afailure to file an Answer(§ 13.209(e)), that failure to file an Answer without good cause is deemed an admission ofeach allegation in the Complaint (§ 13.209(f)), and that, absent agreement ofthe parties, a party seeking an extension of time must file a written motion not 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 sufficientknowledge orinformation to admit or deny, each numbered paragraph ofthe complaint. Any statement or allegation contained inthe complaintthat is not specifically**deni~d** in the answer may be deemed an admission·offhe 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 encouraged to considerthe possibility of

1 Materials 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 civil penaltydecisions, along with indexes ofthe decisions, the Rules ofPractice, as well as other materials relating to civil penalty cases, are available on the internet at: http://www.faa.gov/ about/office_org/headquarters _offices/ agc/pol_aqjudicationl agc400/civil _penalty/; see also: http:II ecfr.gpoaccess.gov/ cgi!tltextltext-idx?c=ecfr&tpl=I ecfrbrowse!Title14/ 14tab

_02.tpl. In addition, Thomson Reuters/West Publishing publishes Federal Aviation Decisions. Finally, the decisions are available through LEXIS (TRANS library) an:d WestLaw 9FTRAN-FAA database). For additional information, 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. I Judge. OtherJudges have different policies, but as long as this case is assigned to the I undersigned presiding Judge the parties may, but are not required, serve discovery on**t~e** undersigned.
Thejudgewill not discuss the case with any party,4 or its representative on

### an~ parte basis. Ifa party has a non-substantive matter to discuss, they should contact Mr. · Ira Leibowitz at (202) 366-2139 (Ira.Leibowitz@dot.gov). Administrative matters**rna~** be addressed to StaffAssistant, 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 Eugene, OR.;
2. On orbefore November 9, 2012, the parties shall conclude all discovery including, butnot limited to, depositions, document production, responses to productionrequests and/or interrogatories. Ifthe parties cannot resolve a , discovery dispute they shall submit the dispute to the undersigned for resolutiort in a timely manner; 3. The parties shall be prepared to present this case at a hearing on or after November 9, 20125

, subject to the availability ofcourtroom facilities. The specific date and time for the hearing will be forthcoming in a separate'Order.
4. The parties will havethe 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 of the transcript; Respondent shall its brieffifteentl'5)days thereafter; and any rebuttal briefbythe Complainant shall be filed seven (7) days thereafter.

3 See LindaJoyce Goodman, FAA DocketNo. CP89WP0061, Order dated May 30, 1989. 4 "The public policy offavoring andencouraging settlement makes necessary theinadmissibility of settlement negotiations in orderto foster frank discussions". (Fiberglass Insulators, Inc. v Dupuy, et al, (856 F. 2d652, 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 oftheFederal Rules ofCivil Procedure.). Rule 408 ofthe Federal Rules of Evidence "

...prohibits the admission ofstatements made in compromise negotiations

..." (In the Matter of Africa Air Corporation, FAA OrderNo. 99-5). "Rule 408'spublic policy purpose ofencouraging frank settlement discussions is as compelling in FAA civil penalty proceedings as it is inFederal Trials. Hence, its guidance will be followed in these proceeds." (ld.) 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 withthe 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 byprivate 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.

U.S. Administrative LawJudge Attachment

- Service.List

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 withoutthe consent ofthe administrative law judge. Ifan agency attorneywithdraws the complaint or a party withdraws the request for a hearing and the answer, the administrative lawjudge shall dismiss the proceedings underthis subpart with prejudice. 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, "OrderCariceling Hearing and Terminating Proceeding", servedJanuary 16, 1991, at.1; InThe Matter ofRobert Harris FAA Docket No. 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 "OrderDismissing Complainant's Appeal". In The Matter ofRobert Harris, FAA Docket No. CP03EA0001. DMS No. FAA2005-14, August 15, 2005. ··
3

### SERVICE LIST
ORIGINAL & 

### ONE COPY
Federal Aviation Administration 800 Independence Avenue, S.W. Washington, DC 20591 Attention: Hearing Docket Clerk, AGC-430 Wilbur Wright Building-Suite2W1000 1

Fred C. Begy, 

### Respondent's Counsel Chuhak &Tecson, Attorneys at Law 30 South Wacker Drive, Suite 2600 Chicago, IL 60606 TEL:**312-~5-5442** FAX: 312-444-9027 

### ONE COPY

Jeffrey M. Harper, 

### Complainant's Counsel Attorney, Office ofRegional Counsel Northwest Mountain Region, ANM-7 Federal Aviation Administration 1601 Lind Avenue, S.W. Renton, WA 98057 TEL: 425-227-2161 FAX: 425-227-1007

·The Honorable Richard C. Goodwin,

### Administrative LawJudge Office ofHearings, M-20 U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. (E11-310) Washington, DC 20590 TEL: 202-366-2139 Attorney-Advisor 202-366-5121 StaffAssistant FAX: 202-366-7536 FDMS No. FAA-2012-0783 (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 2W1000, Washington, DC 20591; Attention: Hearing Docket Clerk, AGC-430.