v 

### SERVED: APRIL 30, 2012 U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, DC

IN THE MATTER OF 

### KEYSTONE LABORATORIES FAA DOCKETNO. [TO BEASSIGNED] (Civil Penalty Action) FDMS NO. FAA-2012- 0203



### PROCEDURAL ORDER 

### Zu!Z U\Y -I ;::> 

### 1: 3l

In orderto 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, 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 a failure to file an Answer(§ 13.209(e)), that failure to file an Answer without good cause is deemed an admission ofeach allegation inthe Complaint (§ 13.209(±)), 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 sufficient knowledge or informationto admit or deny, each numberedparagraph ofthe complaint. Any statement or allegation contained inthe complaintthat is not specifically denied inthe answer maybe deemed an admission ofthe 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 consider the 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 penalty decisions, 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:1/www faa.gov/ about/ office_ org/headquarters _offices/ age/pol_ acljudicationl agc400/ civil _penalty!; see also: http://ecfr.gpoaccess.govlcgi/t/textltext-idx?c=ecfr&tpl=!ecfrbrowse/Titlel4114tab

_02. tpl. In addition, Thomson Reuters/West Publishingpublishes Federal Aviation Decisions. Finally, the decisions are available through LEXIS (TRANS library) and WestLaw 9FTRAN-FAA database). For additional information, see the Web site. 1

### s~ttlement and compromise ofthis matter.3 Compromise may be effected with 0 wtthout a finding ofviolation (14 C.P.R. §13.16 (n) (1)). r 

### NOTE: This presiding Judge does notrequire "Discovery" to be served on the Judge
.. Other

### Ju~g~s have differentpolicies, but as long as this case is assigned to the

### unders~gned presidingJudge the parties may, but are notrequired, serve discovery on the undersigned. Thejudge will not discuss the case with any party,4 orits representative on an ex parte basis. Ifa party has a non-substantive matterto discuss, they should contact the

- judge's attorney-advisor, Mr. Ira Leibowitz at (202) 366-2139 (Ira.Leibowitz@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 Kansas City, MO.; 2. On orbefore July 1, 2012, the parties shall conclude all discovery including, but not limited to, depositions, document production, responses to production requests and/or interrogatories. Ifthe parties cannotresolve 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 afterJuly 1, 20125
, subject to the availability ofcourtroom facilities. The specific date and time for the hearing will be forthcoming in a separate Order. 4. Theparties will have the opportunity to file Post-Hearing briefs and arguments pursuantto 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.

3 See Linda Joyce Goodman, FAA DocketNo. CP89WP0061, Order dated May 30, 1989. 4 "Thepublic policy offavoring and encouraging settlementmakes necessary the inadmissibility of settlement negotiations in orderto foster frank discussions". (Fiberglass Insulators, Inc. v Dupuy, et al, (856 F. 2d 652, 26Fed. 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 Evidence "
...prohibitsthe admission ofstatements made in compromise negotiations
..." (In the Matter of Africa Air Corporation, FAA OrderNo. 99-5). "Rule 408'spublic policypurpose ofencouraging frank settlement discussions is as compelling inFAA civil penalty proceedings as it is in Federal Trials. Hence, its guidance will be followed in these proceeds." (Id.)
. . . 5 14 C.F.R. § 13.221 states: "The administrative lawjudge shall giVe each party at least 60 days notice of the date, time and location ofthe hearing." 2 •.
'fv


### 5. Settled cases will not be removed from the hearing docket until the proper written pleading(s), consistent withthe applicable rules, 6 

### is received bythe 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 by private 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.

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 without the consent ofthe administrative law judge. Ifan agency attorney 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: Inthe 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, "Order Canceling Hearing and Terminating Proceeding", served January 16, 1991, at 1; In The Matter ofRobe1tHarris FAA DocketNo. CP03EAOOOI. 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 DocketNo. CP03EAOOOI. 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-Suite 2W1000 1



### Adam D. Otto, Respondent's Counsel Otto Law Office P.O. Box 1356 303 South Second Avenue West Newton, IA 50208 TEL: 641-792-7000 FPC(: 641-792-7001 ONE COPY



### Gayle E. Townsend, Complainant's Counsel Attorney, Office ofRegional Counsel Central Region, ACE7 Federal Aviation Administration Room 506, DOT Building 901 Locust Kansas City, MO 64106-2641 TEL: 816-329-3766
. FPC(: 816-329-3771



### -. The Honorable Richard C. Goodwin,AdministrativeLawJudge Office ofHearings, M-20 U.S. Department ofTransportation 1200 NewJersey Avenue, S.E. (E11-310) Washington, DC 20590 TEL: 202-366-2139 Attorney-Advisor 202-366-5121 StaffAssistant FPC(: 202-366-7536 FDMS No. FAA-2012-0203 (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., Wilbur Wright Building-Suite 2Wl000, Washington, DC 20591, Attention: HearingDocket Clerk, AGC-430.