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# MANNBST

G ^MARDE R KASS , ELLROD , RAMIRE Z U P

ATTORNEY S A T LA W 1.5'I" H I^LOO RA T 80 1 TOWf. K 80 1 SOUT

H pi<:;ui"RO

A SMU:E T LO S ANGr.I.F.S , CALIh'ORNI A 9001 7 Tnt.Rl^'HONE : (111 ) ^24-6yu O l-ACSIMII.r. : (7 1 J) 62'l-6y9 9 wE b srrt : VV\VW.MMKTR,CO M

Junes , 201 0 Vi aCertified/Retur n Receip t Requeste d Federa l Aviatio n Administratio n 80 0 Independenc e Avcmic , S W Washington , D C 2059 1 Attn : Hearin g Docke t

Clerk , AGC-43 0 Wilbu r Wrigh t Buildin g - Suit e 2W100 0 Re : I n th e Matte r

o f S/P Resources , Inc . Cas e No. : 2009WP70001 7 VK.KJ H ftocM A bWANj . I'lft N •iMOMrtS rLUa.l U JOsMU A li . liriA'TNi : LADLLLll . Mu m [-vcn v .M.-Mii f I I lli;M.K0i-ri7. ' Iuii ^ P t\K:Kii i l-TlTkC.Curti.^'.Dii i M.M3tJNS- > A . HliftMA N PAULllANM/ N K i s;wrTu ^

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## i G DOCKE T 

# Cp/ i l^Pms-/<^o/6' - 63/ f Enclose dpleas e tln d th e original s an d i t cop y o f S/P Resources , Inc.' s Answe r t o Coniplain t

a]i | Notic e o f Represcnlatio n wit h respec t t o th e above-mentione d matter . " " Ver y trul y yours , MANNJIS G & MARDE R KASS , ELLROD , RAMIRE Z LL P P 3 . C 3 Dictate dbu t

no t rea d Christophe r

D . Nissa n Enclosure s cc ; Couitne y Adolp h - Regiona l Counsel , Western-Pacifi c Regio n

l'.J&UIJMJl.'^^llllJ^n^-(1^1ll ^ ]'hul« . lillil ) 1 in.ivn W IIIINI T «.I>[ 1 • liHii'- . '' A "261 2 1.1 V ('»J' M 'l'--l.r,'t' M .Sn N l-'HANCIKty i •nriMiiMJ i \ ^ ^. , i-2IH > • Si.vll*iLlv,.v' . /iS2: jOG/15/201 0 15:3 2 FA X 202493514 2 FA A * DM S 1^1002/00 9



# ORIGli a Christophe r

D . Nissen , Esq . State Ba

r No . 20203 4 MANNIN G & MARDE R KASS , ELLROD , RAMIRE Z LL P 15t h Floo r a t 80 1 Towe r 80 1 Sout h Figuero aStree t Lo s Angeles , C A 9001 7 lelephone : (213 ) 624-690 0 Attorney s fo

r Respondent , S/

P Resources , Inc . U.S . DEPARTMEN T O F TRANSPORTATIO N

REGIONA L COUNSE L FEDERA L AVIATIO N ADMINISTRATIO N I n th e Matter

of : S/ P Resources , Inc. , Respondent . ) FA A DOCKE T ) ) FAA CAS E NO. : 2009WP70'001 7 ) ) S/ P RESOURCES , INC.' S ) ANSWE RT O CO M PLAI K T ANSWE R Th e Respondent , S/

P Resources , Inc. , ("SP" ) answer s th e complain t herei n i n accordanc e wit h 1 4 C.F.R . 9 13.20 9 andrespecttill y state s a s follows : I . S P admit s tha

t on Apri l 22 , 2010 , b y aFina l Ac t o f Propose dCivi l Penalty , S P wa s advise dthat

th e FA A propose dt o asses s acivi l penalt y i n th e amount

or$35,796.00 . On Apri l 9 , 2010 , Responden t provide dawritte n reques t fo r ahearin g i

n thi s matter . II . i . I n respons e to paragrap h 1 o f th e complaint , S P denie s th e averment s o f pai-agrap h 1 . S P admit s tha

t o n or before October

15 , 2008 , S P presenre dt o Air/Se aFomarders ,OG/15/201 0 15:3 2 FAX 202493514 2 FA A + DMS @1003/00 9

Inc. , atjp e o f

produc t havin g th e nam e "Envieoat " hereinafter referre dto a s th e "Product " or a 'typ e o f th e Product, " in abo x o r

container fo r shipment . However , S P respectllill y denie s tha t S P provide dAir/Se aForwarders , Inc. , wit h an y authorizatio n t

o plac e th e Produc t

into th e stream o f commerc e withou t

prio r transfer o f th e ownershi p (an drisk) o f th e Produc t

t o th e purchasin g agent/owner . S/

P furthe r respectfull y denie s "knowingly " o r "intentional ly"placin g th e Produc t into th e strea

mo f commerc e or

attemptin g t

o shi p "hay.drdou s materials " a s allege di n th e complaint . 2 . S P admit s th e averment s o f paragrap h 2 i

n tha t th e Produc t

in tha t S P di dallo w th e Produc t

to b e maintaine dth e warehous e o f Air/Se aForwarders ; howeve r S P denie s tha t th e Produc t

wa s offeredon aAir-Se aForwarder s Warehous e O n HandNotic e No . 31046 3 andidentifie da s "no t restricted , non-hazardous" . 3 . S P denie s tha

t th e Produc t

i s properl y categorize db y th e FAA i n thei r complaint . Th e complain t

identifie s th e Produc t

a s "flammabl e liquid , N.O.S . (Dimethycarbinol) , Identificatio n No . UNI993 , Hazar dClas s # , Packin g Grou p II. " S P admit s tha t th e Produc t properi y categorized : a s "U N 1993 " carrie s adesignatio n o f "Packin g Grou p 1" , no t

Packin g Grou p il . Further , th e designatio n "U N 1993 " doe s no t

contai n th e descripto r "Dimethycarbinol" . Tha t wa s adde db y Responden t fo r descriptiv e purpose s only . 4 . S P denie s tha

t i t offeredth e Produc t

fo r ai r transportatio n i

n commerc e whe n it wa s no t properl y classified , described , packaged , marked , labele dandi n conditio n fo

r shipment . S P furthe r allege s th e Air-Se aForwarder s wa s neve r provide dauthorizatio n t

o shi p th e Product . Air-Se aForwarders , a

t all relevan t

times , wa s charge dsolel y wit h storin g th e Product , pendin g furthe r authorizatio n an

dclassificatio n fo

r .shipment .OG/15/201 0 15:3 2 FA X 202493514 2 FA A + DM S 0004/00 9

4 . (a) . Wit h respec t t o th e typ e o f

ih e Produc t

offeredfo

r shipment , S P i s withou t sufficient informatio n t o admi t

o r den y th e averment s o f

paragrap h 4(a ) o f

th e complaint . However , S P respectfull y aver s o n infomiatio n an dbelie f that th e Produc t

i s no t properl y classifie da s "hazardou s material. "

4 , (b) . Wit

h respec t to th e typ e o f

th e Produc t

allegedl y offeredfo

r shipment , S P i s withou t sufficient infonnatio n t

o admi t o r den y th e averment s o f

paragrap h 4(b ) o f

th e complaint . However , S P respectfully aver s o n informatio n an dbelie f tha t th e Produc t

i s no t properl y classifie da s "hazardou s material. "

4 . (c) . Wit h respec t t o th e typ e o f

th e Produc t

offeredfo

r shipment , S P i s withou t sufficient infonnatio n t o admi t

or den y th e avennent s o f

paragrap h 4(c ) o f

th e complaint . However , S P respectflill y aver s o n informatio n an dbelie f tha t th e Produc t

i. s no t properl y classifie da s "hazardou s material. "

4 . (d) . Wit

h respec t t o th e typ e o f

th e Produc t

offeredfo

r shipment , S P i s withou t sufficient informatio n t o admi t

or den y th e avennent s o f

paragrap h 4(d ) o f

th e complaint . However , S P respectfull y aver s on informatio n an dbelie f tha t th e Produc t

i s no t properl y classifie da s "hazardou s material. " 5 . S P denie s th e averment s o f paragrap h 5 o f

th e complaint . 6 . S P denie s tha

t Jame s Trat o i s aHazmat

Employe e or

that S P i s aHazmat Employer , a s define db y 4 9 CF R171.8 , Further , S P denie s tha t Jame s Trat o di dno t

hav e genera

l awareness/familiarization , fiinction-specifie, securit y awareness , safety , etc. , trainin g i n accordanc e wit

h subpar t H o f 4 9 CF R172 .OG/15/201 0 15:3 3 FA X 202493514 2 FA A * DMS 0005/00 9

I n furthe r respons e t o th e averment s i n paragraph s I throug h 6 o f th e complaint , whic h contai n legal conclusion s a s t o whic h i t i s believe dn o answer

i s required , S P respectfull y denie s tha t it knowingl y or

intentionall y offeredany "hazardou s material " fo r shipment . I n furthe r respons e to th e complaint , S P respectfull y aver s o n informatio n andbelie f

tha t th e FA A regulation. s cite darc no t applicabl e t o th e Produc t

an dthat , fiirthemiore, al l o f th e cite d regulation s relat e to on e allege dshipment . S P di dno t knowingl y o r

intentionall y violat e any o f sai dFA A regulations , AFFIRMATIV E DEFENSE S Pursuan t t o 1 4 C.F.R . 13.20 9 (d) , S P set s fort h it s Affirmativ e Defense s bu t rescTve s th e right to amendit s Answer

an dAffimiativ c Defense s durin g th e cours e o f th e proceedings . Firs t Affirmativ e Defens e Th e complain t

fail s t o stat e sufticicnt

fact s upo n whic h aclai mfor relie f may b e granted . Secon dAffirmativ e Defens e Th e complain t

i s uncertai n i

n that th e civi l penalty sough t

i s uncertain . At

page s 1 an d6 o f th e complaint , petitione r

seek s acivi l penalt

y o f $35,796.00 ; however , a

t pag e 5 o f th e complaint , pefitioner

seek s adifferen

t civi l penalty o f

$39,756-00 . Accordingly , responden t i s uncertai n a s t

o th e amount

sought by petitione r

i n thi s complaint . Thir dAffirmativ e Defens e Th e complain t

i s uncertai n i n tha

t th e Produc t

tha t i s th e subjec t

o f thi s complain t

i s no t properl y classifie da s ahazardou s material o r flammable liqui dunder

relevan t CF RRegulations . Specitically , th e complain t identifie s th e Produc t

a s "flammabl e liquid , N.O.S . (Dimethycarbinol) , Identificatio n No . UN1993 , Hai^ar dClas s # , Packin g Group II. " N o suc hOG/15/201 0 15:3 3 FAX 202493514 2 FA A ^ DMS 0006/00 9

specifi c designatio n exists . Also , th e FAA designatio n "UN I 993 " doe s no t contai n th e descripto r

^'Dimethycarbinol" . Fourt h Affirmativ e Defens e Th e complain t

i s barre do r

recover y shoul db e reduce dbecaus e an y injurie s or

damage s wer e proximatel y cause db y th e negligenc e andothe r lega l faul t o f person s o r

entitie s other

than thi s an.swering respondent . Fifth Affirmativ e Defens e Assuming , arguendo , tha

t there wa s an

y violatio n o f

an y KA A regulatio n i

n regar dto th e shipmen t allege din th e complaint , S P di dno t knowingl y or

intentionall y attemp t

t o violat e any sai dFA A regulation . Sixt h Affirmativ e Defens e On informatio n andbelief , andassuming , arguendo , tha t any FAA regulatio n applie d t o th e shipmen t

a s allege di

n th e complaint , there wa s adequate o r sufficient indicatio n on th e Produc t t o wa mause r o f th e Produc t

tha t it wa s "hazardou s material " and/o r tha t it s shipmen t require dcomplianc e wit

h on e o r mor e FA A regulation s cite di n th e complaint . Sevent h Affirmativ e Defens e O n bein g contacte db y th e FAA' s representativ e (an dlate r b y FA A Nofice ) S P promptl y andfully cooperate dwith th e FAA' s investigatio n int o th e allege dshipment , S P provide dcopie s o f requeste ddocument s an dpresente dJame s Trat o fo r infonnal meeting s wit

h th e FAA . Withou t admittin g any infi-aetio

n o f any FAA regulatio n a s allege di n th e complaint , S P ha s implemente dadditional procedures . Amon g other things , S P nov

v require s al l document s to b e signe db y it s up-to-dat e safet y inspecto r

before deliver

y t o th e carrier . S P no w delive:ig th eOG/15/201 0 15:3 3 FA X 202493514 2 FA A * DM S 0007/00 9

carg o andall document s regardin g tha t carg o a t th e same time . SP' s employee s ar e traine di n accordanc e wit

h f AT A dangerou s good s regulations .

Eight h Affirmativ e Defens e SP' s cooperatio n durin g th e FAA' s investigatio n andSP' s implementafio n o f ne w procedures , regardles s o f

whethe r S P committe dan

y violatio n a s alleged , th e penalty sought t o b e impose di s excessiv e and/o r unreasonable . Moreover , th e complaint , regardles s o f the outcom e herein , i s th e first allegatio n o f

an y violatio n b y SP . S P di

dno t attemp t t o concea l in an y wa y th e identity o f

th e Produc t

allegedl y offeredfo

r shipmen t andcooperate dtlill y wit

h th e FAA' s representativ e a

t all times . Ther e shoul db e n o paiali y assesse dherein , bu t i f any penalt

y i s assesse di t

shoul db e fo

r n o mor e tha

n th e minimu mamoun t

authorize db y law . Nint h Affirmativ e Defens e Respondent' s liability fo

r non-economi c damages , i f any , i s limite dt

o tha t percentag e o f thos e damage s whic h i n direc t proportio n to Respondent' s percentag e o f fault , i f any . Tent h Affirmativ e Defens e Th e injurie s or

damage s set

fort h i n th e complaint , occurred , i f a t all , becaus e o f

th e negligenc e an dothe r

lega l faul t o f person s or

entifie s other

than Respondent . Elevent h Affirmativ e Defens e Th e injurie s or

damage s set

fo r i n th e complain t

were proximatel y cause db y th e acts , omissions , negligence , frau dand/o r breac h o f obligation s b y person s othe r than Respondent , an

d beyon dRespondent' s supervisio n an dcontrol . Twelft h Affirmativ e Defens e Th e complaint , andan

y recover y therefi-om , shoul db e diminishe dbecaus e o f a n intervenin g and/o r

supercedin g cause .OG/15/201 0 15:3 3 FA X 202493514 2 FA A * DM S 0008/00 9

Thirteent h Affirmativ e Defens e Th e complain t

i s barre do r

recover y shoul db e diminishe dbecaus e Responden t faile dto receiv e timel y notic e o f

th e injurie s or

damage s an d wa s no t

provide da

n opportunity to cute . Fourteent h Affirmativ e Defens e Th e complain t

i s barre dor

recovery shoul db e diminishe dbecaus e Respondent' s performanc e o f

an y duty o r obligatio n wa s excused . REOUES T FO RRELIE F S P respectflill y request s th e followin g relief: 1 . That

th e complain t

b e dismissed , and th e petitione r take nothing ; or , i

n th e alternative , 2 . Tha

t th e allege dpenalt

y b e reduce dt

o th e minimu mamount

allowe db y la

w fo r on e allege dviolatio n o r

a s permitte din th e interes t o f justice . Dated : Jun e 8 , 201 0 MANNIN G & MARDE R KASS , ELLROE/RAMIRE Z LL P Christtphe r

D . Nisse n Attorney^lo r

Respondent , S/

P Resources , Inc .OG/15/201 0 15:3 3 FA X 202493514 2 FA A * DMS 0009/00 9

PROO F O F SERVIC E I a memploye di n th e Coimt

y o f Lo s Angeles , Stat e o f

California . I amove r

th e ag e o f

1 8 an dno t aparty t o th e withi n action ; m y busines s addres s i s 80 1 S . Figuero aStreet , 15t h Floor , LO S Angeles , Californi a90017 . O n Jun e 8 , 2010 , I serve dth e document describe da s S/

P RESOURCES , INC.' S ANSWE RT O COMPLAIN T o n al l intereste dpartie s i n thi s actio n b y placin g tru e copie s thereo f enclose di n scale denvelope s addresse da s follows : Federal Aviatio n Administratio n 80 0 Independenc e Avenue , S W Washington , D C 2059 1 Attn : Hearin g Docke t

Clerk , AGC-43 0 Wilbu r Wright Buildin g - Suite 2WI00 0 Facsimile : (202)493-502 0 Courtne y Adolp h Offic e o f th e Regional Counse l AWP-7.4 , Federal Aviatio n Administratio n We.stem-Pacifi c Regio n P.O . Bo x 9200 7 Lo s Angeles , C A 90009-200 7 Telephone : (310)725-712 8 Facsimile : (310)725-681 9 S I (B Y CERTIFIE D MAIL ) 1 place dsuc h envelop e fo r collectio n t

o b e maile dwit

h postag e thereo n prepai di n th e Unite dState s mai l a t Lo s Angeles , California . 1 a m "readil y familiar " wit

h th e firm's practic e o f

collectio n andprocessin g correspondenc e fo r mailing . Unde r

tha t practic e it

woul db e deposite dwit

h th e U.S . posta l servic e on tha t same da y wit h postag e thereo n fiilly prepai da t Lo s Angeles , Californi ai n th e ordinar

y cours e o f business . 1 a

maware tha

t on motio n o f

th e party served , servic e i s presume d invali di f postal cancellatio n date o r postag e mete r

dat e i s more than on e da

y afte r dat e o f deposi t fo r mailin g i n affidavit . S I (B Y FACSIMILE ) I telecopie dsuc h documen t to th e Offic e o f

th e Regional Counse l a

t (310)725-681 6 andto th e Federal Aviatio n Administratio n a t (202)493-5020 . Execute don Jun e 8 , 2010 , a t Lo s Angeles , California .