### SERVED: AUGUST 14, 2014 U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, DC

IN THE MATTER OF CEBU AIR INC., d/b/a Cebu Pacific Air, Inc. DOCKETNO. FAA 2014-0414 (Civil Penalty Action)

PROCEDURAL ORDER


### In orderto expedite the hearing in this matter, the parties shall comply with the Procedural Schedule set forth hereinbelow·1• 

### The Rules ofPractice for this proceeding are set forth in 14 C.P.R. Part 13, Subpart G, ofthe Federal Aviation Regulations2

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### Those rules provide, inter alia, that the Respondent must file a written Answer or motion within thirty (30) days after service ofthe Complaint (14 C.P.R. § 

### 13.209Ca)), that a general denial isdeemed a failure to file an Answer(§ 13.209(e)), that failure to file an Answer without good cause is deemed an admission ofeach allegation in the Complaint (§ 13.209(f)), andthat, absent agreement oftheparties, aparty 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 thatthe person is without sufficientknowledge or information to admit or deny, each numbered paragraph ofthe complaint. Any statement or allegation contained in the complaint that is not specifically denied in the answer may be deemed an admission ofthe truth of

1 Materials filed in the FAA Hearing Docket (except for materials which are sealed) also available for viewing at http://www.regulations.gov. For additional information see: http://dms.dot.gov. 2 The Administrator's civil penalty decisions, along with indexes ofthe decisions, the Rules ofPractice, as well as other materials relatingto civil penalty cases, are available on the internet at: http:1/wwwfaa.gov/ about/ office _orglheadquarters_offices/ age/pol_ adjudication! agc4001 civil _penalty/; see also: http://ecfr.gpoaccess.gov/cgilt/text/text-idx?c=ecfr&tpl=lecfrbrowse!Title14/14tab _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. 1that 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 andthe Respondent are encouragedto consider the possibility of settlement and compromise ofthis matter. 3 Compromise maybe effected with or without a finding ofviolation (14 C.F.R. §13.16 (n) (1)). 

### NOTE: This presiding Judge does not require "Discovery"·be served onthe Judge. Other Judges have different policies, but as long as this case is assigned to the undersignedpresiding Judge the parties may, but are notrequired to, serve discovery on the undersigned.
Thejudgewill not discuss the case with any party, or representative on an ex parte basis. Administrative matters may be addressed to StaffAssistant, 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 Chicago, IL.; 2. On orbeforeNovember 7, 2014, the parties shall conclude all discovery including, butnot limited to, depositions, document production, responses to productionrequests and/or interrogatories. Ifthe parties cannotresolve a discovery dispute they shall submitthe dispute to the undersigned for resolution in a timelymanner; 3. Theparties shallbe preparedto presentthis case at a hearing on or after November 7, 2014,4 subjectto the availability ofcourtroom facilities. The specific date andtime for the hearingwill be forthcoming in a separate Order. 4. Theparties 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 afterreceipt ofthe transcript; Respondent shall its brieffifteen (15) days thereafter; and any rebuttal briefby the Complainant shall be filed seven (7) days thereafter.

3 "Thepublic policy offavoring and encouraging settlement makes necessary the inadmissibility of settlementnegotiations in order to foster frank discussions". Fiberglass Insulators. Inc. v Dupuy, 856 F. 2d 652, 653 ( 4 Cir. 1988); Wright & Graham, FederalPractice andProcedure: Evidence, §5302 (1980). Rule 408 ofthe Federal Rules ofEvidence excludes from evidence all statements made in the course of settlementnegotiations. 4 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." Iftheparties can agree on tentative hearing dates, they are encouraged to provide those dates to the court and/or Ms. Matthews in order to get the dates reserved on thejudge's calendar. 2

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

### is received bythe presiding ·· judge. 6

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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 may be "irradiated", which affects the quality ofsubmissions. The parties are encouraged, but not required, to file submissions by private delivery service, facsimile, or email. The certificate ofservice shall reflect the manner ofservice. The parties are encouragedto provide email addresses to expedite service of pleadings. 7. All documents are to be submittedto the undersigned as follows: HON. Richard C. Goodwin U.S. Administrative Law Judge Office ofHearings, M-20 U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. (E11-310) Washington, D.C. 20590 Attn: Patricia Matthews (Richard.Goodwin@dot.gov) Administrative matters should be directed to PatriciaMatthews, StaffAssistant (202) 366-5121 (Patricia.Matthews@dot.gov). All othermatters should be addressed in writing/email to Judge Goodwin.

Richard C. Goodwin U.S. Administrative LawJudge Attachment

- Service List

5 14 C.F.R. § 13.:215 states: "At any time before or during a hearing, an agency attorney may withdraw a complaint or party may withdraw arequest for a hearing withoutthe 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." 6 See: In the Matter ofLewis Drake & Associates, FAA Docket No. CP03S00045, DMS. No. FAA-2003- 16379, "OrderTerminating Proceeding", served February 26, 2005; citing Kerry James Eldridge, FAA Docket CP89GL0458, "OrderCanceling Hearing and Terminating Proceeding", served January 16, 1991, at 1. · 

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### SERVICE LIST- BYU.S. 

### MAIL ORIGINAL & 

### ONE COPY 

### Federal Aviation Administration 800 Independence Avenue, S.W. Washington, DC 20591 Attention: Hearing Docket Clerk, AGC-430 Wilbur Wright Building-Suite2W1000 1

. 

### ONE COPY


### Lance Y. Gokongwei, President/CEO CEBU Air, Inc. (CEBU PACIFIC), Respondent 

### 8006 Airline Operations Center Domestic Road, Pasay City Philippines 1301 TEL: +632-854-0226 Rick Feller, President U-FREIGHT AMERICA, INC. 320 Corey Way San Francisco, CA 94080 TEL: 650-583-6527 Carey Terasaki, Complainant's Counsel 

### Office ofthe Regional Counsel, APW-7.1 Federal Aviation Administration Western-Pacific Region PO Box 92007 Los Angeles, CA 90009-2007 TEL: 310-725-7108 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. (Ell-310) Washington, DC 20590 TEL: 202-366-5121 StaffAssistant FAX: 202-366-7536 Docket No. FAA-2014-0414 (Civil Penalty Action)

1 Service was by U.S. Mail. For service in person or by expedited courier, use the following address: Federal Aviation Administration, 600 Independence Avenue, S.W., Wilbur Wright Building-Suite2W1000, Washington, DC 20591; Attention: Hearing Docket Clerk, AGC-430.

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