SERVED: AUGUST 2, 2012
U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, DC 

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.... .•**r~J** L.: .) IN THE MATTER OF SCHUMAN AVIATION, LTD FAA DOCKETNO. [TO BE ASSIGNED] (Civil Penalty Action) FDMS NO. FAA-2012

- 0778

PROCEDURAL ORDER In order to expedite the hearing inthis matter, the parties shall comply with the Procedural Schedule set forth hereinbelow1• The Rules ofPractice for this proceeding are set forth in 14 C.F.R. Part 13, Subpart G, oftheFederal Aviation Regulations2

. Under FAA Order 2150.3B and the Rules governing these proceedings, the Agency attorney and the Respondent are encouraged to consider the possibility of settlement and compromise ofthismatter. 3 Compromise may be effected with or without a finding ofviolation (14 C.F.R. §13.16 (n) (1)). NOTE: This presiding Judge does notrequire "Discovery" to be served on the Judge
..Other Judges 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 onthe undersigned. Thejudge will not discuss the case with any party,4 orits representative on an ex parte basis. Ifa party has anon-substantive matter to discuss, they should contact the

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 penalty decisions, along with indexes ofthe decisions, the Rules ofPractice, as well as other materials relating to civil penalty cases, are available onthe internet at: http://www.faa.gov/ about/office-orglheadquarters-offices/ age/pol_at{judication/ agc400/civil _penalty/; see also: http://ecfr.gpoaccess.gov/cgi/t/textltext-idx?c=ecfr&tpl=lecfrbr.owse/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 information, see the Web site. 3 See LindaJoyce Goodman, FAA DocketNo. CP89WP0061, Order dated May 30, 1989. 4 "The public policy offavoring and encouraging settlement makes necessary the inadmissibility of settlement negotiations in order to 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 1judge's attorney-advisor, Mr. Ira Leibowitz at (202) 366-2139 (IraLeibowitz@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 Honolulu, HI.; 2. On or before October 12, 2012, the parties shall conclude all discovery including, butnot limited to, depositions, document production, 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 October 12, 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 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. 5. 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 presidingjudge.7

Evidence "
...prohibits the admission ofstatements made in compromise negotiations
..." (fufue Matter of Africa Air Corporation, FAA OrderNo. 99-5). "Rule 408's public 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.P.R.§ 13.221 states: "The administrative lawjudge shall give each party at least 60 days'notice of the date, time and location ofthe hearing." · 6 14 C.P.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 attOffi\lY withdraws the complaint or a party withdraws the request for a hearing and the answer, the administrative lawjudge shall dismiss the proceedings under this subpart with prejudice. 7 See: In the Matter ofLewis Drake & Associates, FAA DocketNo. CP03S00045, DMS. No. FAA-2003- 16379, "Order Terminating Proceeding", served February 26, 2005;. citing Kerry James Eldridge, FAA Docket CP89GL0458, "OrderCanceling Hearing and Terminating Proceeding", servedJanuary 16, 1991, at 1; In The 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 2

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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 by the U.S. Postal Service and/or other security agencies and may take up to four (4) weeks to be delivered. Additionally, submissions maybe "irradiated", which affects the quality ofsubmissions. The parties are encouraged, but not required, to file submissionsbyprivate delivery service, facsimile, or email. The certificate ofservice shall reflect the manner ofservice.

Attachment

- Service List

.,

.Complainant's Appeal". In The Matter ofRobert Harris, FAA DocketNo. CPOJEAOOO 1.DMS No. FAA2005-14, August 15,2005.
3FDMS No. FAA-2012-0778 (Civil Penalty Action) 

### SERVICE LIST ORIGINAL & ONE COPY Federal Aviation Administration 800 IndependenceAvenue, S.W. Washington, DC 20591 · Attention: Hearing Docket Clerk, AGC-430 Wilbur Wright Building-Suite 2W1000 1 

### ONE COPY Christopher D. Ferrara, 

### Respondent's Counsel 841 Bishop Street, Suite 1628 Honolulu, HI 96813 FAX: 808-537-4576 President Schuman Aviation, Ltd. 130 IolanaPlace Honolulu, HI 96819 DonBobertz, 

### Complainant's Counsel Attorney, Office ofthe Regional Counsel Western-Pacific Region, A WP-7 Federal Aviation Administration P.O. Box 92007 Los Angeles, CA 90009-2007 TEL: 310-725-3454 FAX: 310-725-6816 The Honorable Richard C. Goodwin,

### Administrative Law Judge Office ofHearings, M-20 · U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. (E11-310) Washington, DC20590 TEL: 202-366-2139 Attorney-Advisor. 202-366-5121 StaffAssistant FAX: 202-366-7536 .,

1 Service was by U.S. Mail. For service in person orby expedited courier, use the following address: Federal Aviation Administration, 600 Independence Avenue, S.W., WilburWrightBuilding-Suite 2Wl000, Washington, DC 20591; Attention: Hearing DocketClerk, AGC-430.