UNITED STATES OF AMERICA:

IN THE UNITED STATES DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

FEDERAL AVIATION ADMINISTRATION, COMPLAINANT, VS. CASE NO. FAA-2015-0206 NORTHEASTERN AVIATION CORPORATION, RESPONDENT.

_____________________________________________________

HEARING BEFORE THE HONORABLE J.E. SULLIVAN THURSDAY, JUNE 18, 2015 10:00 A.M. HISTORIC JORDAN SPRINGS 1160 JORDAN SPRINGS ROAD STEPHENSON, VIRGINIA 22656NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 2

1 APPEARANCES 2 ON BEHALF OF THE COMPLAINANT, 3 FEDERAL AVIATION ADMINISTRATION: 4 DANIEL P. KOHLMEYER, ESQUIRE 5 OFFICE OF THE REGIONAL COUNSEL 6 EASTERN REGION 7 1 AVIATION PLAZA 8 JAMAICA, NEW YORK 11434 9 TELEPHONE: 718.553.3266 10 FACSIMILE: 718.995.5699 11 12 ON BEHALF OF THE RESPONDENT, 13 NORTHEASTERN AVIATION CORPORATION: 14 EDWARD J. LONGOSZ, II, ESQUIRE 15 ECKERT, SEAMANS, CHERIN & MELLOT, LLC 16 1717 PENNSYLVANIA AVENUE NORTHWEST 17 SUITE 1200 18 WASHINGTON, D.C. 20006 19 TELEPHONE: 202.659.6619 20 FACSIMILE: 202.659.6699 21 22 23 24 25NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 3

1 HEARING 2 THURSDAY, JUNE 18, 2015 3 10:00 A.M. 4 THE COURT: We're on the record, in the 5 matter of Northeastern Aviation Corporation. This is 6 Docket number FAA-2015-0206. Today is Thursday, June 7 18, 2015, and the parties have convened by telephone 8 for a litigation scheduling conference. The FAA is 9 present, through its attorney, Mr. Daniel P. 10 Kohlmeyer. The Respondent, Northeastern Aviation 11 Corporation, is represented by its attorney of record, 12 Mr. Edward J. Longosz, II. Also present, sitting in 13 as an observer only, at the Office of Hearings, is 14 Spencer P. Williams, a law student judicial intern at 15 this office for the summer. Good morning to you all. 16 MR. KOHLMEYER: Good morning. 17 MR. LONGOSZ: Good morning. 18 COURT REPORTER: Good morning. 19 THE COURT: I'll simply note that on April 20 15, 2015, an order setting Rule 16, Litigation 21 Scheduling Conference and directing the parties to 22 confer and file a Rule 26F proposed discovery plan was 23 filed. Among other things, this order set a deadline 24 for filing a Rule 26 discovery plan. This also sets 25 the conference for today's date and time.NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 4

1 Subsequently, on June 2, 2015, the parties filed a 2 jointly proposed scheduling discovery plan, which the 3 Court has before it, and has already reviewed. It's 4 the day to talk about it. So let me ask a couple 5 questions, because I think you've done some excellent 6 work, and this won't take very long. Mr. Kohlmeyer, 7 I'm going to start with you. Can you identify for me, 8 how many violations is the Plaintiff actually 9 alleging? 10 MR. KOHLMEYER: One moment, Your Honor. The 11 evidence is that there were 160 individual flights 12 during that time period. 13 THE COURT: Does that mean that you're 14 alleging 160 individual violations? 15 MR. KOHLMEYER: Not exactly, Your Honor. I 16 see your point. No, it's not 160 individual 17 violations. 18 THE COURT: Well let me put it this way. 19 You have indicated on page four of your four-page 20 complaint, that the Respondent is subject to a civil 21 penalty, not to exceed $25,000, for each of the 22 violations alleged. In addition, on that same page, 23 you've indicated that based on the facts and 24 circumstances of the case, a civil penalty of $49,500 25 is appropriate. So in looking at that material, itNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 5

1 appears to me that there's more than one violation, 2 and it could be anywhere from two violations to 3 infinity, depending on how you factor in the civil 4 penalty calculation. So it's helpful for me, and it's 5 likely helpful to the responding party, to know how 6 many violations you're alleging, so that discovery can 7 be had about the civil penalty calculation, in 8 addition to the factual allegations regarding the 9 violations themselves. So would you have that 10 information at your fingertips now, or is it something 11 that you can supplement the record with soon? 12 MR. KOHLMEYER: I could supplement the 13 record soon, Your Honor. I don't have it. 14 THE COURT: When do you think you can do 15 that? 16 MR. KOHLMEYER: One week. 17 THE COURT: That would be great. So today 18 is June 18, 2015. Just to be on the safe side, let's 19 plan on having you file just a statement about how 20 many violations you're pursuing in this particular 21 action, no later than June 30th, which is the last day 22 of the month. Would that be acceptable? 23 MR. KOHLMEYER: That's fine, Your Honor. 24 THE COURT: Okay. Then my next question to 25 you, and I'll be checking in with the Respondent aboutNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 6

1 this as well, is you indicated on page three of your 2 jointly proposed scheduling and discovery plan, that 3 you would like to have a hearing in New York City. 4 Can you tell me about how many days you think that 5 hearing might last, based on your preliminary 6 discussions at this point? 7 MR. KOHLMEYER: At this point, Your Honor, I 8 would estimate three days at the most. 9 THE COURT: And is that encompassing to the 10 best of your ability, the Respondent's entire defense 11 case, or is that just for your portion of the case? 12 MR. KOHLMEYER: That would be my guess about 13 the entire case. I would ask Mr. Longosz. 14 THE COURT: Well then Mr. Longosz, let me 15 turn to you. Does that sound like a good estimate to 16 you, knowing what you know about your client's 17 position? 18 MR. LONGOSZ: It does, Judge. 19 THE COURT: Then let's talk a little bit 20 about some of the deadline dates. And I'm going to go 21 through the joint proposed schedule from page one to 22 page four. So typically what I do, is I provide a due 23 date for initial disclosures, in addition to a 24 deadline to start general discovery. And general 25 disclosures are those described in Rule 26(a)(1).NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 7

1 Typically, most people have already disclosed them by 2 the time that they appear before me at the conference. 3 But for those circumstances, where that type of 4 discovery is still being voluntarily exchanged, I set 5 a date. If you have a July 1, 2015, proposal for 6 initiating general discovery, what about setting July 7 30 ... I'm sorry, June 30, 2015, for the deadline to 8 exchange initial disclosures, if you need it at this 9 point. Mr. Kohlmeyer, would that be acceptable? 10 MR. KOHLMEYER: That's acceptable, Judge, 11 yes. 12 THE COURT: And Mr. Longosz? 13 MR. LONGOSZ: That's acceptable, Judge. 14 THE COURT: So noted. Then I'm happy to 15 accept your July 1, 2015, deadline for initiating 16 general discovery. I'm happy to accept your 17 information about the filing of motions to limit 18 discovery and motions to compel. That's also 19 contained on page one of the four-page document. I'm 20 happy to accept your September 1, 2015, date for the 21 FAA's disclosure of expert witnesses. The September 22 17, 2015, date for the Respondent's expert disclosure, 23 and the October 9, 2015, deadline date for the 24 exchange of expert rebuttal report. I'm happy to 25 accept your December 7, 2015, deadline for completingNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 8

1 general discovery, and the deadline provided for the 2 filing of dispositive motions, that being January 12, 3 2016, for the filing of any motion; February 12, 2016 4 for filing answers to such motions; February 19, 2016, 5 for filing any replies; and March 7, 2016, for oral 6 argument on dispositive motions. 7 But let's talk about when on March 7, 2016. 8 And I've been looking at my calendar, and I was 9 considering a variety of different times on that 10 Monday time. Mr. Kohlmeyer, do you have any 11 preference, when you get in on Monday, what time you'd 12 like to do a summary judgment motion. 13 MR. KOHLMEYER: I don't have any preference, 14 Your Honor. 15 THE COURT: Mr. Longosz, same question to 16 you. 17 MR. LONGOSZ: I'm available all day. If 18 you're asking for a preference, I prefer the morning, 19 10 o'clock or so, but I can be ... your schedule is 20 more important. I'm free all day. 21 THE COURT: Well, if 10 o'clock, and the 22 10'ish time period works, how about if we say 10:30 to 23 noon, just to be on the safe side. It may not take 24 that long, but that way we have the time if needed. 25 Is that acceptable, Mr. Kohlmeyer?NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 9

1 MR. KOHLMEYER: Yes, Your Honor. 2 THE COURT: And Mr. Longosz? 3 MR. LONGOSZ: Yes, Your Honor. 4 THE COURT: Then let's talk about the April 5 18, 2016, date going forward. I'm looking at giving 6 myself a little bit of cushion time to issue a summary 7 judgment decision, after March 7, 2016. And I have 8 found that sometimes I can get them out right away, 9 and sometimes it takes a little while, depending on 10 what my trial schedule is, and also, what the 11 complexity of the issues might be, in the summary 12 judgment motion. 13 So instead of April 18th, where the exchange 14 of witness lists and Exhibits, and a written 15 stipulation and agreed motion in limine, would it be 16 possible ... would the parties consider pushing that 17 out into early May? And I'm thinking, as I look at my 18 calendar, around the week, perhaps, of May 9th. And 19 if you do that, then by that time, I will have had a 20 chance to issue a summary judgment decision. You will 21 have had a chance to read it, and then decide, based 22 on that, how the case may have been narrowed or 23 changed for you, if at all. It may reduce your 24 workload, rather than having you file a list of 25 witnesses and exchange of Exhibits, potentially beforeNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 10

1 I actually issue the summary judgment decision. Mr. 2 Kohlmeyer, starting with you, would May 8th, which 3 would be approximately a month, maybe six weeks out, 4 before the actual trial reset. Would that be enough 5 time for you? 6 MR. KOHLMEYER: Yes, Your Honor. 7 THE COURT: Mr. Longosz, how about for you? 8 MR. LONGOSZ: Yes, Your Honor. 9 THE COURT: Then let's try for ... I'm 10 looking at my May calendar. Let's say ... how about 11 May 9th for both those dates, instead of April 18th. 12 And then for June 2016, let's go to our June 13 calendars, and chat a little bit about that. A three14 day trial in New York City ... I'm wondering first and 15 foremost, if it would matter to you, if it's 16 Manhattan, Islip, or just across from Manhattan, in 17 the New Jersey area. And the reason I ask is because 18 with New York cases in particular, I want to have a 19 backup location, just in case we can't find something 20 in the primary location. Because it's such a populous 21 area. Mr. Kohlmeyer, could you address that first? 22 MR. KOHLMEYER: I don't have a preference 23 between Manhattan or Islip. Those would be my top 24 two, and then third would be New Jersey. 25 THE COURT: Mr. Longosz, same question toNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 11

1 you. 2 MR. LONGOSZ: It would be the same answer, 3 as long as it's northern New Jersey, as opposed to 4 southern New Jersey. I presume Your Honor is thinking 5 northern Jersey. 6 THE COURT: Correct, correct. 7 MR. LONGOSZ: Any of the locations are fine, 8 but I would suggest the first two are better than the 9 third. But my client could do any of those. 10 THE COURT: What I'll do, is I'll start with 11 Manhattan. I'll use Islip as a backup. And if for 12 some reason, neither of those venues work, we'll go 13 into northern New Jersey. We've found, however, that 14 if we can't find something in downtown New York City, 15 Islip usually is able to accommodate us. So I don't 16 think we'd end up in New Jersey, but one never knows. 17 And it's better just to talk about it now, and make 18 sure that option is available. 19 So looking at your June calendars, and 20 starting with the week of June 12th through the 18th, 21 I have that week open. I also have the week of June 22 19th open. Do either of those weeks look good for 23 you? And I'll start with you, Mr. Kohlmeyer. 24 MR. KOHLMEYER: Either week is fine, Your 25 Honor.NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 12

1 THE COURT: Mr. Longosz, same question. 2 MR. LONGOSZ: I'm only available the first 3 week. The week starting ... I guess Monday is the 4 13th. 5 THE COURT: Correct. 6 MR. LONGOSZ: Yeah, I have another trial on 7 the week starting Monday the 20th. 8 THE COURT: Okay. 9 MR. LONGOSZ: But I can do the week of 13, 10 14, 15, or 14, 15, 16, whatever your preference is. 11 THE COURT: Well let's do it then. Let's 12 plan on setting the trial for the date of June 14, 13 which is a Tuesday; June 15, which is a Wednesday; and 14 June 16, a Thursday. That way, June 13, 2016, and 15 June 17, 2016 as travel days, for those of us who may 16 need to travel from out of town. Would that work for 17 you Mr. Kohlmeyer? 18 MR. KOHLMEYER: Yes, Your Honor. 19 THE COURT: And Mr. Longosz? 20 MR. LONGOSZ: Yes, Your Honor. 21 THE COURT: Let me just double-check, if 22 there's anything else we need to chat about. I don't 23 see anything in your materials. I will note that I'll 24 send out a litigation order. And that order will 25 include all of the dates that we've talked about. ItNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 13

1 will also include some basic procedural matters, which 2 includes talking about how to bring Exhibits to the 3 hearing, the examination process at the hearing, and 4 if an attorney such as yourself, Mr. Longosz, wishes 5 to withdraw, how you go about doing that successfully. 6 There's also some information about how to get on my 7 calendar. We currently have a dispositive motion set 8 on the calendar. If you do not file a dispositive 9 motion, plan on appearing at that date and time 10 anyway. It will be automatically converted to a 11 pretrial status conference, so that we can all meet 12 together at least once, before the actual trial, and 13 check in and see what the status is of your case. If 14 you need other time, if other motions come up, or 15 other problems, all you need to do is talk to each 16 other, figure out some mutually agreeable dates on 17 your calendar, and then contact my office, and get set 18 up on my calendar. It's a real fast, easy process. 19 If you need to then file a motion, ahead of actually 20 meeting with me, if you want to give yourself enough 21 time, when you provide those calendar dates to do 22 that. 23 So the litigation order will include that 24 kind of information and hopefully, it will all be 25 pretty self-evident. But if not, the very last entryNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 14

1 on this litigation order, above my signature, is the 2 name of the attorney and his phone number, that works 3 with me, who is available to answer any procedural 4 questions, if you have them. 5 So with that, on behalf of the FAA, Mr. 6 Kohlmeyer, is there anything else that we can take 7 care of for your client today? 8 MR. KOHLMEYER: One question, Judge ... I 9 just want to be clear. I didn't get the date for the 10 Rule 26 initial disclosures. 11 THE COURT: That would be June 30, 2015. So 12 approximately about 20 days from now, 19 days from 13 now. I'm sorry, not three weeks, two weeks. It's a 14 little less than two weeks, excuse me. 15 MR. KOHLMEYER: Right. 16 THE COURT: And Mr. Longosz, any questions 17 or comments before ... 18 MR. LONGOSZ: Only one, Judge, we have the 19 May 9 date for the exchange of list of witnesses and 20 Exhibits. The next category was written stipulations 21 and agreed motions in limine. Would that also be May 22 9? 23 THE COURT: Correct. 24 MR. LONGOSZ: Thank you. 25 THE COURT: So the proposed August 18, 2016,NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 15

1 date for both of those matters has been changed to May 2 9, 2016. Thank you for pointing that out. And then I 3 will also include in this litigation order, the June 4 30, 2015, due date for the FAA to clarify how many 5 violations it's alleging, so that discovery can be a 6 little more focused in nature, regarding, for the 7 defense, if any, regarding the proposed fine. With 8 that it appears out business is complete. I will be 9 trying to send out this order, either this afternoon 10 or at the latest, tomorrow morning. I'm going to 11 thank you both very much for your good work in 12 presenting the Rule 26 material. It made it very easy 13 and fast today, and I appreciate that. We can go off 14 the record, and I wish you all a good day. 15 (WHEREUPON, the hearing was concluded at 10:21 a.m.) 16 17 18 19 20 21 22 23 24 25NORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 16

1 STIPULATION 2 3 The foregoing matter was taken on the date, and at 4 the time and place set out on the title page hereof. 5 6 It was requested that the matter be taken by the 7 reporter and that the same be reduced to typewritten 8 form. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25NORTHEASTERN AVI ATION CORP June 18, 2015 VR # 2424-1 Page 17

1 C ERTIFICATE OF REPORTER AND SECURE ENCRYPTED 2 SI GNATURE AND DELIVERY OF CERTIFIED TRANSCRIPT 3 I , LORIE CHILDRESS , Notary Public, do hereby 4 cer tify that the forgoing matter was reported by 5 ste nographic and/or mechanical means, that same was 6 red uced to written form, that the transcript prepared 7 by me or under my direction, is a true and accurate 8 rec ord of same to the best of my knowledge and 9 abi lity; that there is no relation nor employment by 10 any attorney or counsel employed by the parties 11 her eto, nor financial or otherwise interest in the 12 act ion filed or its outcome. 13 T his transcript and certificate have been 14 dig itally signed and securely delivered through our 15 enc ryption server. 16 I N WITNESS HEREOF, I have here unto set my hand 17 this 25 th day of June , 2015. 18 19 20 21 22 23 24 /s/ LORIE CHILDRESS 25 COU RT REPORTERNORTHEASTERN AVIATION CORP June 18, 2015 VR # 2424-1 Page 18

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