08/16/201 1 16:0 9 FAX 202493514 2 FA A - QM S @]001/01 5

U.S . DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FHEARING S WASHINGTON , D C

FEDERA L AVIATIO N ADMINISTRATION ,

Complainant , vs . TEXA S ARM^ ' NATIONA L GAIJRD .

Respondent . 

### ^^^ 1 HI S 

## ^ P/;> : 

## ^ J t

FA A Docke t

No . FA A Cas e No . 96SO76010 4

COMPLAINANT' S REPL Y BRIE F Pursuan t t o th e Rule s o f

Practic e i n FA A Civi l Penalt y Actions . 1 4 C.F.R . §13.233(c) , andl 4 C.F.R . §I3.2ll(e ) Complainant , th e Federa l Aviatio n Administratio n ("FAA " o r

"Complainant") , hereb y tile s it s repl y t o Appellant' s Appea l Brief , date dJul y 8 , 2011 , file di n respons e t o th e Initia l Decisio n ("ID" ) b y Administrativ e La w Judg e ("AUr' ) Richar dC . Goodwin , serve dMa y 20 , 2011 . 1 . PROCEDURA L BACKGROUN D O n Novembe r

25 , 2009 . Complainan t file dit s Complain t

i n thi s matte r

allegin g tha t Responden t

violate dnumerou s provision s o f th e hazardou s material s regulation s (HMR) , Titl e 4 9 o f

th e Cod e o f

Federa l Regulation s (4 9 CFR) , specificall y regulation s unde r part s 172-173 , arisin g froman undeclare dshipmen t consistin g o f

abo x containin g four gallon s o f

flammabl e pain t

tha t Responden t

offere dt o Unite dParce l Servic e08/18/201 1 16:0 3 FA X 202493514 2 FA A - DM S (2)002/01 5

("UPS" ) fo r

transportatio n b y ai r

o n o r abou t Jul y 2 , 2008. ' Th e FA A sough t a$30,00 0 civi l penalt y fo r

th e violations . Responden t file dit s "Origina l Answe r an dAffirmativ e Defense s o n Decembe r

22 . 2009 . I

n thi s Answer , Responden t aske dt o b e referre dt o a s th e "Texa s Arm y Nationa l Guard " instea do f th e Executiv e Offic e o f th e Stat e o f

Texa s a s th e cas e wa s originall y captioned . Responden t admitte dal l o f

th e othe r

factua l an d regulator y violations . Respondent' s affirmativ e defense s consiste do f challenge s t o th e amoun t o f th e civi l penalt y propose di n th e complaint . Complainan t

file da n Amendmen t

t o th e Complain t

o n Apri l 10 , 2010 . \v

\thi s filin g Complainan t

amende dth e Complain t t o chang e th e nam e o f

th e Responden t

t o "Texa s Arm y Nationa l Guard" , I n doin g so , th e Complainan t specificall y explaine dtha t i l wa s doin g s o "withou t an y inten t

t o chang e lega l responsibilit y fo r th e allege d regulator y violations.'' ^ O n Jun e 14 , 2010 . Complainan t filedit s "Motio n Fo r Decision. " O n Jun e 29 , 2010,Responden t file di t Respons e t o th e Motio n fo r Decision . I n thi s filing, Responden t state dtha t

it "ha s neve r

conteste dliabilit y i

n thi s controversy. " O n Jul y 8 , 2010 , th e Administrativ e La w Judg e (ALJ ) issue da n Orde r Grantin g i n Par t an dDenyin g I n Par t

Motio n fo r

Decision. " Th e AL J foun dtha t Respondent' s answe r acknowledge dliabilit y an dtha t th e substantiv e allegation s o f th e Complain t

wer e admitted . H e allowe dahearin g t o determin e th e amoun t o f th e civi l penalty . A hearin g wa s hel do n thi s matte r

o n Januar y 4 , 201 1 i n Austin , Texas . A n Initia l Decisio n (ID )

A s th e iDitia l Decisio n state s a t th . 1 , thi s case wa

s origiraily captione

d"Fxecutive Offic

e o f th e Stat e o f Texas. " * This Amendmen

t l o Complain

t also anache

dexhibit s consistin g o f photograph s an

dpapcnvor k provin g tha t th e .shipmen t wa s offere db y th e Texa s Adjutan t General' s Depanment ; an

dtha t thi s departmen

t commtindi i ih u Tcxa aMilitar y Force? , whic

h i n tur n consists o

f th e Texa s Arm y Nationa l Guard , Texa

s A n Nationa l Guard , an dth e Texa s Star e Guard . Th

e exhibit s showe dtha t th e Adjutan t Genera l i.< i .subordinat

e 1 0 ih e Govcmo i o f Texas .08/18/201 1 16.0 9 FAX 2021935U 2 FA A " OMS (2|003/01 5 

### 3

wa s issue do n Ma y 20 , 2011 . Th e A U foun dtha t Responden t

\iolatc dal l th e allege d fact s an dregulator y violation s cite di n th e complaint . Th e AL J als o foun dthat , considerin g al l th e fact s an dcircumstances , a530,00 0 ovi l penalt y wa s warrante dfo r th e violations . O n Jun e 6 , 2001 , Responden t file daNotic e o f

Appeal . Responden t

file dit s brie f perfectin g it s Appea l o n Jul y 8 , 2011 .

• r I I FACT S Th e FAA' s Complaint , a s amende dcontaine dth e followin g factua l allegations : 1 . Oi

l n r abovi t iu K 2 , 200 9 the Texa s Arm

y Nationu l Guard{hcreiuafte v 'Texas" ) knowingl y offeredt

o Umtc dParce l Sen.ic e (UPS ) aone-piec e shipment consistin g o f

afibcrboar

dbo x containin g hazardou s material s fo r rrausporratio n b y air . 2 . Th

e abnve-mentionc dshipment wa s assigne dUP S Next

Da y Air traclcing ntimbcr/air waybill numhei IZ

, Kl' 2 ?6 0 2 3 103 2 1440 . The shipment wa s offeredb y Adjuun i General' s DcpartmeiiT , 220 0 W . 35'' ' St. , y/34-114 . Austin . T X 78703 , fu

r iraasportatio n t

o the consignee , Lynette Pattetson . SSG . 310 1 SW S YounfiDrive,Kil)een , Texa s 76.S42 . 3 . A

t all time." ; mentione dherein , th e above-mentione dshipmeni was no t accompanie db

y a Shifiper'^ Certificatio n or

Declaratio n o f

Dangerou s Goods . 4 . O

n o r abou t Jul y 3 , 2009 , the above-mentione dshipmen t wa s flown o n arcyularl y schedule dUP S carg o Hight i n ai r transp.inatio n t o th e UP S sor t facility ' i n LouisviJlc . Kentucky . 5 . O

n or abou t July 3 , 2009 , grouiid-handlin g personne l a t the UP S .so

n facilir y discovere d the abovc-meniione dshipment leaking . 6 . Th

e above-mentione dfiberboar dbo x containe dfou

r l-gatlo n can s o f

"Durant Dui^aple x 800 Exterio r

Alky dFlat " pain

t (wit h meta l lids) . 7 . The :ibove-describe dcan s wer e marke da s havin g aflashpoint o f 103 degrees . ? . Further

investigatin n showe drha

t approximatel y on e gallo n o f point hadleake dinto and tluoug h rlie fibeiboardcontainer 9 . (a

) "Durant

Duraplei : 80 0 Exterio r

Alky dFlat " p:iint " pain t

i s classitle da s a hazardou s material under

th e Departmen t

o f Transportatio n Hazdrdou.' i Material s Regulation s (HMR ) (4 ? C.F. R§ 172.101) .

(b ) The proper

shippin g name o f

the maieria

l i. s Paint , t t i s i n Hazar dClas s 3 (Flaftinubl e Liquid) , Packin g Grou p DI . andha s a n a.'isigne didentificatio n number

o f IJN1263 . The proper labe l I S FLAMMABLE LIQUID .

' Th e Motio n For

Decisio n specifically cite dFA A v . Louisian aNationa l Guard . FA A Order No . 20U2-2 3 (2002 ) i n siippo n o f

the motion .08/18/201 1 160 9 FAX 202493514 2 FA A - QM S 2i004/01 5

10 . Tuxa s offere dth e above-describe dshipmen t o f hazaidou s materia l fo r nansportaiioi i b y ai r withou t shippin g paper s tha t

Included ; (a ) th e prope r

shippin £nam e prescribe dfo r eac h material ; (b ) th e hazar dclas s prescribe dfor eac h material ; (c ) th e a.isigne didentificatio n numbe r prescribe dfor

eac h material ; (d) the packin g grou

p prescribe dfo

r eac h material ; and (c ) th e tota l quantir y n f eac h ha?a.rdou s material , 11 . lexa s offere dth e above-describe dshipmen t o f hazardou s materia l fo r transportatio n b y ai r an dfaile dto ' (a ) certif y tha t th e material s wer e i n accordanc e wit h th e HM R(4 9 CFR . § § 171 , « seg. ) b y prinnn g o n th e shippin g paper s th e certificatio n se t forth i n § 172.204(a ) o r § 172.204(c)(l } o f th e HMR ; (b ) prepar e th e require dcertification s mduplicfltc ; an d

(c ) ad dth e followin g statemen t t o th e cerrificarion : Thi s shipmen t

i s withi n th e limitation s prescribe dfo r passenge r

aircraft/cargo-onl y aircraf t (delet e no n applicable) . 12 . Texa s offere dth e abovcdescribe dshipmen t o f hazardou s material s fo r transportatio n b y ai l when : (a ) th e Oute r conlaine r

was no l marke dwith thcpmpc r shippin g nam e o f

eac h hazardou s muleria l eontume dtherein ;

(b ) th e oute r

containe r

wa s no t marke dwit h th e assigne didenrificatio n numbe r o f eac h hazardou s materia ] containe dtherein ;

(c ) th e oute r

containe r

wa s not marke dwit h standar dorientatio n marking s (a s prescribe di n 4 9 C.F.R . ! i 172.312(a) ) o n tw o opposit e vertica l side s o f th e packag e wii b th e arrow s pointin g i n th e correc t

uprigh t direction ; an d (d ) a"FLAMMABL ELIQUID " labe l wa s no t affixe dt o th e ouie r

container . 13 . Texa s oft'erc dth e above-describe dshipmen t o f hazardou s matcna l fo r transportatio n b y ai r an dfaile dt o mak e emergenc y respons e informatio n availabl e fo r us e a t al l time.- ; th e hazardou s materia l wa s present .

14 . Texa s offere dth e above-describe dshipmen t o f hazardou s materia l fo r transportatio n b y ai r an dfaile dt o mak e an emergenc y respons e telephon e numbe r immediatel y availabl e t o th e appropriat e officia l perso n designate dt

o respon dt o a

n mcideni involvin g ahazardou s material , or wJi o wa s conductin g a n investigatio n involvin g ahazardou s maierial .08/19/201 1 16:0 9 FAX 202493514 2 FA A - OM S @|005/01 5

15 . Te^a s olfere d± c above-describe dshipmen t o f hazardou s materia l fo r rranspoiTatio n b y ai r an dfaile dt o ensur e tha t eac h o f it s liaznu t

employee s wa s traine di n accordanc e wit h th e prescribe d requirement s a s se t

forth i n Sectio n 172.704 . 10 . Texa s offere dth e above-describe dshipmen i o f ha'^nrdou s materia l fo r transportatio n b y ai r an dfaile dl o kee p aprope r recor do f

iiaininL : fo

r eac h o f IL S haj.ma t employee s i n accordanc e wit h th e prescribe drequircmcnu ; a s se t fort h i n Sectio n 172.704(d) . 17 . Texa s offere dth e above-describe dshipmen t o f hazardou s materia l for transportatio n b y ai r whe n th e packagin g wa s no t designed , consuuctcd , maintained , filled , it s content s s o limited , an d closed , s o tha t

unde r condition s normall y inciden t t o transportation , ther e woul db e n o identifiabl e releas e o f hazardou s materia l t o th e environmen t 16 . Texa s offere dth e above-describe dshipmc mfo r transportatio n b y ai r

an dfaile dt o us e stoppers , corkj , o r

othe r suc h friction-type closure s tha t wer e hel di n plac e securely , tightl y an deffectivel y b y positiv e means .

19 . Te\a. s offere dth e above-describe dshipmen t o f liqui dhazardou s material s fo r transportatio n b y ii i an dfaile dt o us e a n authorize dcombinatio n packagin g fo r it s cransportation . B y reaso n o f

ih c above , Texa s violate dth e followin g Departmen t o f Transportatio n Hazardou s Material s Regulation s (Titl e 4 9 o f th e Cod e o f

Federa l Regulations) : 1 . Sectio n 171.2(e ) i n tha t lexa s oflere do r

transporte dahazardou s materia l fo r transportatio n i n commerc e whe n th e hazardou s materia l wa s not properl y classed , described , packaged , marked , labeled , an di n conditio n for shipmen i a s require do r authorise db y applicabl e requirement s o f thi s Subcliapter , o r

an exemption , approval , o r rcgiatratio n issue dunde r thi s subchapte r

o r unde r subchapte r

A o f thi s chapter . 2 . Section s 172.200(a ) an d172.202(a)(1 ) i n thatTcxa s offere dahazardou. ^ materia l fo r Transporiaiio n an dfaile dt o describ e th e hazardou s materia l o n shippinj j paper s includin g th e irienrificatio n numbe r prcseribe dfur

th e maieria l a s .show n i n Colum n 4 o f th e § 172.10 1 Table , i n th e manne r require d b y ihib subpart . 3 . Section s 172.200(a ) an d172.202(a)(2 ) i n tha t Texa s offere dahazardou s materia l for tranaportfltio n an dfaile dt o describ e th e hazardou s materia l o n shippin g paper s includin g th e prope r shippin g nam e prescribe dfo r th e materia l a s show n i n Colum n 2 o f th e § 172.10 1 Tabic . 4 . Section s 172.200(a ) an d172.202ia)(3 l i n dia t Texa s offere dahazardou s maieria l fo r n-anspoitatio n an dfaile dt o describ e th e hazaidou s inateria ! o n shipping ' paper s includini ^ th e hjzar ddas.- ; o r divisio n nuinbc r

prcicribe dfu r

ih c materia l a s show n i n Colum n 3 o f th e § 172.10 1 Table . 5 . Section s 172.200(a ) an d172.202(a)(4 ) i n tha t Texa s oifere dahazardou s materia l to r transportatio n an dfaile dt o describ e th e hazardou s materia ] o n shippin g paper s includin g th e packin g grou p i n Roma n numerals. , a s designate dfo r th e hazardou s materia l i n Colum n 5 o f th e § 172.10 1 Table . 6 . Section s 172.200(a ) an d172.202(al(6 ) i n tha t Texa s offere dahazaidou s materia l fo r transportatio n b y aircraf t an dfaile dt o describ e di e hazardou s materia l o n shippin g paper s showin g th e tota l mas s pe r package , unles s agros s mas s i s indicate di n Column s (9A ) o r (9B ) o f th e § 172.10 1 Tabl e i

n whic h cas e th e lutu l gros s mas s pe r packag e mus t

b e shown ; or , fo r

Clas s 7 materials , th e quantit y o f radiOiicliv e mus t

b e .i^how

n b y acti^nty .08/18/201 1 1 6 0 9 FA X 202493514 2 FA A- DM S 1^006/01 5

7 . Section s 172.200(a ) an d172.20213X^ ) mtha t Texa s ofleie dahazardou s materia l fo r transportatio n an dfaile dt o describ e th e hazardou s materia l o n shippin g paper s indicatin g th e numbe r an d typ e o f package s (fo r

example , "1 2 drums") . 8 . Section s 172.204(a ) o r (c)(1 ) i n tha t Texa s offere dahazardou s nrateria l fo i transporiatio n an dfaile dt o certif

y tha t ih e maieria l was offere dfor transportatio n i n aecurdane e wii h thi s subchapte r b y printin g o n ih c shippjny ; pape r coniainin y th e require dshippin g descriptio n on e o f th e certification s se t fort h i n thi.< ; part . 9 . Sectio n 172.204(c)(2 ) i n tha t Texa s offere dahazardou s materia l t o a n aircraf t operato r (o r transporiatio n b y ai r

an dfaile dt o provid e tw o copie s o f ih e cenilicalio n require dmthi s section . 10 . Sectio n 172.204(c)(3 ) i n tha t Texa s offere dfor

transportatio n b y ai r

aha7.ardou s macena l authorize dfor

ai r transponario n an dfaile dT O ad dt o th e cettificatio n require di n thi s sectio n th e followin g staicment :

" I declar e tha t al l o f th e applicabl e ai r

iranspo n requirement s hav e bee- n met. " 11 . Sectio n 172.30Ua" ) i n tha t Texa s offere dfo r

transportatio n aha7.ardou s materia l i n anon bul k packagin g an dfaile dt o mar k th e packag e wit h th e prope r shippin g nam e an didemificatio n numbe r (precede db y UN' ' or"NA" . a s appropriate ) fo r ih c maieria l a s ihov mi n th e §172.10 1 tabl e 12 . Section s 1 72.300(a ) an d172.312(a)(2 ) i n tha t Teva s offere dliqui dharardou s materia l fo v transportatio n an dfaile dt o legibl y mar k th e packag e wit h packag e orientatio n marking. ? tha t confor m pictoriall y t o IS O Standar d780-1895 . o n rw o opposit e vertica l side s o f th e packag e wit h th e arrow s poiniin g i n th e correc t

uprigh t du-ection.

- 13 . Sectio n 172.400(a ) i n rha t Texa s offere dfo r

transportatio n ahazardou s maieria l i n on e o f ih e package s o r

containmen t

device s bstc di n thi s subpar t an dfaile dt o labe l th e packag e o r containmen t devic e wirh th e label s specifie dfor tli e materia l i n Ui

e $172,10 1 Tabl e an di n tlii s subpart . 14 . Sccno n 172.600(c)(1 ) i n tha t Texa s offere dfo

r transportatio n ahazardou s materia l an d faile dT O mak e th e emergenc y respons e InformaTior i immediatel y availabl e fo r us e a t al l time s th e hazardou s materia l wa

^ presenL . 15 . Sectio n 172.60(Xc)(2 ) i n tha t Texa s oftcre dfo r

transportatio n ahazardou s materia l an d faile dT O mak e suc h information , includin g a n emergenc y respons e telephon e number , immediatel y availabl e t o an y governmen t agenc y respondm g t o an inciden t involvin g hazardou s material s o r conductin g a n investigatio n whic h involve s ahazardou s material .

16 . Sectio n ]72.702(.i ) i n tha t Texa s offere dahazardou s materia l fo r transponario n an d t'aile dt o en.-iur

e tha t eac h o f iis . har.ma t

eniployee.* ; wa s traine di n accordanc e wit h th e requiremenr s prescribe di n thi s subpart .

17 . Sectio n 173.24rb)(l ) i n tha t Texa s faile dt o us e apackag e whic h wa s designed j constructed , mainiaiued , filled , it s content s s o limited , an dclosed , s o rha t unde r condition s normall y inciden t t o transportation , ther e woul db e n o identifiabl e releas e o f hazardou s materia l t o th e environment . 1« . Sectio n 173.27(d ) i n tha i Texa s offere dapackag e fo r transportatio n b y ai r

faile dt o ensur e stoppers , cork s o r othe r suc h friction-typ e closure s wer e hel dsecurely , tightl y an deffectivel y i n plac e b y positiv e means , an dtha t eac h bercw-iyp c closur e o n an y packagin g wa s secure dt o preven t closur e fro mloosenin g du e t o vibrario n o r .substantia l chang e i n temperature .08/18/201 1 18:0 9 FA X 202493514 2 FA A- DM S 13007/01 5

19 . Sectio

n 173.17 3 mtha

t Texa s offere dfo r transportatio

n apackage containin

g pain t whe n th e ( ) 172.10 1 Tabi

c specil'ie dtha t i t be package

da s prescribe dunde r §173.20 2 o f thi s pa n i f i t i s aPackin

g Grou p 1 1 materia

l o r ^17 3 20 3 o f thi s pa n i f i t i s aPackin

g Grou p II I material . TTI . A??ELI,AN'f' S APPEA L O FTH E INITIA L DECISIO N Appellant' s appea l ofth c inilia l decisio n submit s tha t th e FA A doe s no t

hav e jvinsdictio n t o lev y acivi l penalt y agains t th e Nationa l Guard . Alternatively , i l assert s tha t th e civi l penalt y wa s no t correctl y determined .

IV . FAA' S RESPONS E I . Th e FA A Ha s Jarisdictio n Ove r th e Texa s Arm y Nationa l Guar dI n Thi s Matter . Complainan t

brough t thi s cas e unde r

authorit y o f

4 9 U.S.C . t

i 5I23('a') . th e provisio n i n th e federa l hazardou s material s law tha t provide s tha t

a"perso n that knowingl y violate s thi s chapte r o r aregulatio n prescribe do r orde r issue dunde r

thi s chapte r i s liabl e t o th e Unite dState s Governmen t fo r acivi l penalty.' ' I n 4 9 U.S. C ^ 5102(9) . th e ter m'"person" : (A ) include s agovcnuncn t .. . o r authorit y o f

agovernmen t

, . . offerin g ha^r.ardou s materia l fo r

transportatio n i n commerc e o r transportin g hazardou s materia l t o furlhe r acommercia l enterprise ; bu t (& ) doe s no t

includ e - (t) . . . (ii ) mseclio n 512 3 . . . o f thi s title , adepartment , agency , o r instrumentalit y o f

th e [Federal ] Government . Th e FA A Administrato r ha s clearl y an ddeJlnilivel y rule dtha t astate' s Nationa l Guar di s subjec t

t o th e Ha;'.ardou s Material s Regulations . FA. 4 v . Louisian aNationa l Guard , FA A Orde r

No . 2002-2 3 (2002) . Hay.ardou s material s shipment s mad e b y Nationa l Guar demployee s suc h a s technician s unde r Th e Nationa l Guar dFedera l Teclinician s Ac t

attac h liability ' t o th e Nationa l Guar dfor violation s o f

th e Hazardou s08/18/201 1 1B:1 0 FA X 202493514 2 FA A- DM S 1^008/01 5

Material s Regulations . Id. , a t 2 . Stat e nationa l guard s ar e onl y apotentia l par t o f th e U.S . military . Id . Unti l activate dfo r federa l service , the y ar e basicall y slat e entitie s with th e stal e governo r

a s thei r commande r

i n chie f Id . Ih e Louisian aNadoni dGuar ddecisio n cite s numerou s supportin g federa l decision s including , hu t no t limite dt o th e following : Perpic h V

. Dep' l o f Defense , 49 6 U.S . 334 , 34 5 (1990) ; Gilber t v . Unite dStates , 16 5 F.3 d 47 0 (6l h Cir . 1999) ; Jone s v A'ei v Yor k Stat e Div . o f

Military'an dNava l Affairs , 16 6 F.3 d 45,47(2ndCir . 1998) ; LfntiedSlate s v . Hutchings , I27F.3 d1255 , 1258(10thCir . 1997) ; Knutso n v . Wisconsi n Ai r Nat' l Guard , 99 5 K.2

d70 5 (7i h Cir . 1993) , cert , denied , 51 0 U.S . 93 3 (1933) ; MacFarlan e v . Grasso , 69 6 F.2 d217 , 22 6 n. 4 (2n dCir . 1982) ; William s V . Unite dStares , 18 9 F.2 d607 , 60 8 (10t h Cir . 1951) ; Holme s v . Californi aArm y Nat' l Civarrf , 92 0 F . Supp . 1510 , 152 2 (N.D . Cal . ]996 l rev' do n othe r grounds , \2 4 ¥.i d112 6 (9t h Cir . 1997) , reh'i ; an dreh' g en ban c denied , 15 5 F.3 d104 9 (9t h Cir . 1998) , cen . denied , 52 5 U.S . 106 7 (1999) ; Mel av . Callaway , 37 8 F . Supp . 25 , 2 8 (S.D.N.Y . 1974) ; Chapma n v . Helde n Corp. , 41 4 So . 2 d1283 , 128 7 (La . Ct . App . 3r dCir . 1982) , re\'' di n par t o n othe r grounds , 42 8 So . 2 d39 6 (La . 1983) : William s v . Superio r Cour t o f Arizona , 49 4 P.2 d26 , 3 0 (Ariz . 1972) . Finally , th e case s Appellan t cites , Lipscom b an dNeSmith , d o no t conirol , o r

relat e t o th e applicatio n o f th e HM Rt o th e Nationa l Guar dunde r th e circumstance s o f

thi s case , lliereforc , Appellant' s argumen t tha t th e hazma t

sianit e doe s no t confe r jurisdictio n ove r

th e Texa.* ; Nationa l Guar di s no t supporte dby preceden t

an dtherefor e mus t

fai l

n . Appellan t

Faile dT o Promptl y Rais e A n Issu e o f Persona l Jurisdictio n An d Therefor e Waive dTh e Issue .08/18/201 1 18:1 0 FAX 202493514 2 FA A ^ DM S ^009/01 5



### Until the present

appeal . Appellan t

neve r raise dthe issu e ofth c DOT' s jurisdictio n ove r the Texa s Arm

y National Guard . A defens e o f lack o f persona l jurisdictio n mus t b e promptl y raise dsince , unlik e subjec t mailer jurisdiction , personal jurisdictio n ca n b e waived . A defendant

wh o fail s lo timel y rais e th e defens e i s deeme dto hav e acquiesce d to the couri'sjurisdictio n andma y not subsequentl y see

k dismissal o n jurisdictiona l grounds . See . Hamilto n v . Atla s Turner , Inc . 19 7 F.3 d58 , 6 2 (C.A. 2 (N.Y.),(1999 ) rTn sum , Atla s parlicipale di n pretrial proceeding s bu t neve r movedto dismis s fo

r lac k o f persona l jurisdictio n despit e severa l clea r opportunitie s to d o s o durin g th e four-yea r inter\'al afte

r filin g it s answer . Thes e circumstance s establis h aforfeiture.") ; See , Neirb o Co . V . Bethlehe mShipbuildin g Corp. , 30 8 U.S . 165 , 168 , 6 0 S,Ct . 153 , 8 4 L.Ed . 16 7 (1939 ) (personal jurisdictio n defens e "may b e los t b y failure t o assert

i t seasonably") ; Continental Bank, N.A. . 1 0 F.3 da l 129 7 (personal jurisdiclio n defens e los t where defendant s "participate di

n lengthy discovery , filedvariou s motion s an doppose da numbe r o f motions' * and"fully participate di n litigatio n o f

the merit s fo

r over tv,'0-and-a

hal f year s withou t

activel y contestin g personal jurisdiction') ; See . e.g . Mullin s v. Te-stamerica, Inc. , 56 4 F.3 d386 , 39 5 (5' ^ Cir. ) (2009 ) (Defendajit promptl y move dto dismis s fo r lack o f personal jurisdiclion) . Similariy , Appellant , eve n afler been mad e awar e o f Ih e Louisian aNationa l Guar dcas e i n th e Complainanl' s Motio n Fo r Decision , di dno t rais e th e issu e o f

personal jurisdictio n over the national guard . Therefore , eve n i f Appellant a t on e time hadviabl e argument , i t wa s waived . TIT . Th e Civi l Penalt

y I s Appropriate . The entir e purpos e o f

the hearin g wa s to determin e th e prope r civi l penalt

y tha t Respondent

shoul dpay . The initia

l decisio n discussed , a

t length , th e reason s fo

r the08/18/201 1 161 0 FAX 202493514 2 FA A - ^ QM S (2)010/01 5



### 1 0

assessment

ofth c $30,00 0 penalty propose db y th e FAA . ID , pp . 2-6 . Complainan t provide dcomprehensiv e argument s an devidenc e i n suppor t o f th e penalt y a

t th e hearing . Transcrip t 42-54 , 60-62 . Befor

e the hearing , Coinplainant explicitl y describe dth e reason s fo r th e penalty i

n hi s Molio n For

Decision . Under th e regulatory authority , the FA A coul dseek

amaximu mcivi l penall y of $50,00 0 mulliphe db y eac h an dever y distinc t regulatio n cite di

n th e Complaint . 1 4 C.F.R . §13.305(d) . Tabl e 3 . Th e FA A sought apenalt y o f $30,00 0 i n thi s case . Thi s amoun t wa s decrease dfromth e origina l amount o f 533,95 0 l o giv e consideratio n l o Respondent' s attemp t

a t correctiv e actio n - even though th e trainin g an dtrainin g record s

. sen t t o the FA A a s correctiv e di dno t

meet th e requirement s o f

th e regulations . I

D a t 4 , Th e FA A originall y publishe d"Th e [FAA ] Polic y o n F.nforeemcn

l o f the Hazardou s Material s Regulations : Penalt y Guidelini; s o

n Apri l 21 , 1999 . Th e polic y wa s originall y publishe di

n th e Federa

l Registe r a t 64 Fed . Reg . 19443 . I

t i s no w incorporate da s Appendi x C t o FA

A Order 2150.3B . Unde

r thi s policy , acivi l penalty i s determine db y analyzin g the statutory factor s present i n the Federa

l Hazardou s Material s Transportatio n Sututc , 4 9 U.S.C . 5213(a ) incliidin g th e namre , circumstances , extent , andgravit y o f th e violation , the degre e o f

culpability o f

th e violator , an

y histor y o f pas t violations , ih e abilit y to pay , an

y effect o n the ability to continu e to do business , an dothe r matter s a s justic e ma

y require . Th e siamtor

y factor s are then give n aspecifi c weight to determin e the aggregate weight

ofth c case . Finally , amatri x i s use dt o furthe r narro w the penalt

y rang e a s follows : a . Under

th e eurren i policy , the first categor y o f factor s (nature , circumstances , extent , andgravit y o f the violation ) analyze s Ihe natur e o f th e material itsel f an dthe potential danger s i

t presented . Respondent' s shipment involve dflammable Uquid , or Clas s 3 hazardou s materials . Unde r th e current

policy , thi s material i s08/18/201 1 16:1 0 FA X 202493514 2 TA A - DM S 1^011/01 5 1 1 classifie da s a"Cattrgor y B " maieria l caayin g a"moderate " final aggregat e weight . b . Next , th e polic y require s th e FA A t o conside r th e violator' s degre e o f culpability . Ther e wer e n o mitigatin g o r aggravatin g factor s i n thi s category . Th e sanctio n guidanc e slate s tha t arespondent' s lac k

o f aviolatio n histor y ma y b e . aggravatin g bu t

no t mitigating . A violatio n fi"ec histor y i s expecte dt o b e th e norm . I n th e Maile r o f TC I Corporation , FA A Orde r No . 92-7 7 (1992) . c . Th e final aggregat e weigh t o f th e cas e wa s moderate . d . Afic f

assignin g a

n aggregat e weigh t

o f moderat e t o th e case , th e nex t ste p i s l o refe r l o th e Penalt)

- Matrix . Becaus e thi s shipmen t containe da n "undeclare d shipmen t withi n hazma t

quantit y limitations" , thi s cas e fel l int o Offens e Categor y II . Thi s determinatio n woul db e mad e b y fmdin g th e prope r shippin g nam e o f

th e hazardou s materia l ('i

n thi s cas e "Paint" ) an dth e correspondin g column s 9 A an d9 B o f th e 4 9 C.F.R . §172.10 1 (Hazardou s Materia l Table) . Responden t

wa s no t a n "individual " a s define db y th e sanctio n guidance . Therefor e th e offens e woul dfal l unde r a l leas t Colum n B o f

th e Matri x ("Busines s emit}'") , whic h i s usuall y use dfo r entitie s tha t

don' t nonnall y offe r

hazardou s materials . Categor y I L Colum n B o f th e matri x carrie s arang e o f penaltie s fromSl,50 0 for minimu mweigh t

ca>e s t o S8.20 0 fo r

maximu mweigh t

case s fo r

eac h violatio n group . Th e moderat e rang e o f

th e Matri x range s fro mapproximatel y S3,73 3 t o approximatel y $5,966 . Th e media n o f

th e rang e i s S4850 . Th e origina l $33,95 0 propose dcivi l penalt y woul dhav e bee n suppone db y assignin g a$4,85 0 penalt y t o eac h violatio n group . Th e FA A woul dhav e bee n justifie di n choosin g an y penalt y i n th e moderat e rang e fo r seve n violatio n group s (shippin g papers , labels , marking , packaging , training , release , an d emergenc y respons e information) . I n thi s case , i t chos e th e median , whic h produce dIh c tota l amoun t

o f S33.950 . Eve n thoug h th e evidenc e indicate dtha t Respondent' s correctiv e actio n didn' t mee t Ih e requirement s o f

th e regulation , a s agoo dfait h an offe r

o f settlement , th e FA A mitigate dth e civi l penalt y fro mth e justifie dorigina l amount . Th e document s Responden t

provide ddi dno t

mee t th e applicabl e trainin g requirement s o f 4 9 C.F.R .08/18/201 1 18:1 0 FAX 202493514 2 FA A - OM S @]012/01 5

1 2 §172 . 70 0 et . seq . I D a

t 4 ; See , Exhibi t

R-1 , an dR-2 . Fo r

example , th e document s containe dn o documentatio n o f an y o f th e type s o f

trainin g require db y 4 9 C.F.R . § 172 . 704(a) . Th e evidenc e o f trainin g wa s no l timely , di dno t sho w complete dtraining , o r wa s prospective . Nevertheless , th e FAA , a s agoo dfaith offer o f sctllement , reduce dth e propose dcivi l penalt y t o $30,000 . N o othe r mitigatin g factor s ar c present . Eve n i f th e correctiv e actio n Appellan t submitte dwa s legall y sufficien t accordin g t o th e HMRs . th e kin do f correctiv e actio n Appellan t

presente dca n b e considere dneithe r timel y no r

comprehensive . See , TC I Corporation . Orde r

No . 92-77 . p.21 . (Decembe r 22 , 1992) . (" A carrier' s .swif t actio n designe dt o bette r

insur e futur e complianc e ma y warran t suc h areduction.") . N o credi t shoul db e give n fo r

trainin g iha i i s legall y require dfo r Respondent' s employee s an d agents . Phillip s Buildin g Supply , FA A Orde r No . 2000-2 0 (Augus t

11 , 2000) , a l 1 0 ("Large r adjustment s ar e reserve dfo r correctiv e measure s tha t ar c mor e thorough , immediate , o r

both.") . Respondent' s abilit y t o pa y i s no t i n disput e i n thi s case . Res-pondcn t ha s no t allege dtha t

i t doe s no l hav e th e abilit y lopa y th e propose dcivi l penalt y o f 530,000 . Althoug h abilit y t o pa y i s on e o f th e statutor y factors , thi s facto r canno t accuratel y b e considere dunti l Responden t raise s th e issue . I t

i s i n th e natur e o f

an affinnativ e defense , whic h mus t

b e proNe db y respondent . See , I n th e Matte r o f Dominio n Concepts . Inc. , FA A Orde r

No . 2005-4 , (Marc h 10,2005) , a t 10 , n . 16) . Abilit y t o pa y mus l b e specificall y pleade di n th e Answer , Th e Administrato r doe s no t requir e th e prosecuto r

a t ahazardou s materia l cas e hearin g l o offe r evidenc e o n eac h o f

th e specifie d considerations. " I n th e Matte r o f Northwes t

Airlines . Inc. , FA A Orde r No . 90-37 , a

t 1 4 49 C. FR. §172 . 70

4 di;scribe s th

e iuformatio

n al l trainin g lecord s "shal

l include" .08/18/201 1 16:1 0 FAX 202^33514 2 FA A - OM S @i013/01 5



### 1 3 (November

7 , 1990) . Fo r

example , i f

Respondent

doe s no t rais e th e issu e of'"othe r matter s a s justic e ma

y require" , whic h coul dinclud e many factor s tha t Complainant canno t anticipate . Complainan t

canno t present evidenc e o n tha

t statutory factor . Complainant

therefore , i s no l require dt o present evidenc e o n Respondent' s ability l o pay , especiall y whe

n Respondent

di dnot rais e tha t issu e a s a n affirmativ e defense . Th e transportatio n o f

hazardou s material s i s inherentl y dangerous . A hay.ardou s material i s define di

n th e HMR s a s " asubstanc e or material tha

t the Secretar

y o f Transportatio n ha s determine di s capabl e o f posin g a n unreasonabl e risk

t o health , safely , an dpropert y whe n transporte di

n commerce'' , andha s been s o designated . 4 9 C.F.R . §171.S . Therefore , offeror s o f inherentl y dangerou s material s such a s flaiimaablc liquid s hav e aver y hig h duty o f

care . In additio n lo th e inherent danger of thi s material , ihi s particula r shipment wa s undeclare d- meanin g there wa s n o paperwork , tl^er e were n o marking s or

label s t o le i Ih

e carrier , the pilot , or

anyon e els e kno w the danger s in.-iid e th e outer

conlainer . An undeclare dshipmeni destroy s the entire regulator y scheme set

u p to preven t

suc h package s frombein g transported . There wa s no emergenc y respons e informatio n o r telephon e number

o n th e shippin g paper s wit

h the shipment

t o le t th e pilo t kno w ho w to properl y segregate th e material or to le t first respondcr s reac t

properl y i f

ther e wa s aspil l o f thi s material a s ther e wa s i n thi s case . A s explaine di

n detai l above . Respondent ha dth e knowledge , or

if i t exercise d reasonabl e care , woul dhav e ha dknowledg e tha

t thi s shipmen i containe dhazardou s materials . Under

th e circumstances , th e propose dcivi l penalty i s supporte db y statute , regulation , policy , an dcas e law . I n contrast , Appellant

cite dthe wron g sanctio n08/18/201 1 IGl l FA X 202493514 2 FA A_^ DM S [^014/01 5

guidanc e i n hi s brie f

I t cite s sanctio n guidanc e i n 4 9 CF RPar t 107 . App . A , whic h contain s guideline s fo r

th e Pipelin e an dHazardou s Material s Safel y Administration , no t th e FAA . A s explaine dabove , th e FAA' s Sanctio n Guidanc e i s publishe di n FA A Orde r 2150.3B . Th e FAA , unde r delegate dauthority , enforce s th e Federa l hazardou s materia l transporiatio n la w an dth e HMR , wit h particula r emphasi s o n shipmen i o f hazma t b y air . 4 9 C.F.R . § I -47(1) . Section s levie di n othe r cases , whic h ma y weig h slalutor y factor s differentl y an dma y hsiv e differen t evidence , d o nothin g t o decreas e th e legitimac y o f th e penalt y supporte db y th e recor di n thi s case , whic h applie s t o Appellant' s particula r circumstances . CONCLUSIO N Accordingly , Complainan t respectfull y submit s tha t th e fuUy-devclope drecor di n thi s cas e clearl y support s th e ALJ' s initia l decisio n an dth e 530,00 0 penalt y i t as.<;essed . Complainan t

respectfull y request s tha t th e Administrato r

affirmth e ALJ' s initia l decision . Respectfull y submitte dthi s 12t h da y o f August , 2011 . Pete r J . Lync h Assistan t Chie f Counse l Enforcemen t

Divisio n Federa l Aviatio n Administratio n BY : GERAL D A . ELLI S Artome y Offic e o f th e Regiona l Counse l08/18/20 1 1 18.1 1 FA X 202493514 2 FA A ^ DM S a015/01 5 1 5 CERTIFICAT E O FSFRVIC L I hereb y certify ' tha t

th e foregoin g Complainant' s Repl y Brie f ha. ^ bee n maile db

y I'EDERA L EXPRES S t o th e following : I'cdcra l Aviatio n Administratio n 60 0 Independenc e Ave. , SV V Wilbu r Wiigh i Buildin g - Suit e 2W100 0 Washington , D C 2059 1 Aim ; Hearin g Docke t

Clerk , AGC-4J O (Origina l - ^ I copy )

Michae l C . Crowley . As.-^islan t Attorne y Genera ! Offic e o f th e Aiujme y Genera l o f Texa s Environmenta l Protectio n an d.Adininiilraliv e La w Divisio n 30 0 W . ! 5'''Street , 1 0 Fluo r -Austin , r x 7R70 1

Regiona l Counse l 

# m i \m r Date d