### Inthe Matter of: U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, DC 

# G

DocketNo. FAA-2015-0207 WORLD LOGISTICS SOLUTIONS, LLC Respondent ) ) ) ) 

### ) 

### Case No. 2014-GL-70-0263 Judge J.E. Sullivan

RESPONDENT'S REPLY TO COMPLAINANT'S SHOW CAUSE STATEMENT 

### On January 21, 2016, Respondent's counsel received the Court's Order Setting Show Cause Deadline Re Dismissal ("Order") and the Complainant's Show Cause Statement. For the following reasons, Respondent respectfully requests that the Complaint in this matter be dismissedwithprejudice. Simply put, Complainant's explanation in 

### its Show Cause Statement fails to constitute good cause and, frankly, no valid explanation exists for the Complainant, as the prosecuting party, for failing to comply with the Order. Complainant apparently forgot and forgetting to comply with the Order does not constitute good cause. To that end, Respondent believes the Court should be aware ofthe relevant history to properly evaluate Complainant's good cause claim, which will make clearthatno good cause exists. As an initial matter, Respondent shares the Court's frustration with the Complainant's lack ofresponsiveness regardingthis matter as illustrated below: On February 26, 2015, 

### Respondent's counsel requested the releasable portions ofthe Enforcement Investigative Report ("EIR") to assist with the preparation of an Answer to the Complaint. (Exhibit 1.) 

### However, Complainant's counsel did not provide a copy ofthe ElR until nearly two andhalf months later on May 14, 2015, 

### and only after a follow-up voice mail in

WASHINGTON_DC/#49577.1

### which Respondent's counsel stressed that he would be forced to follow up with Complainant's counsel's supervisor unless Complainantprovided a copy ofthe EIR. (Ex. 2.) On May 28, 2015, Respondent's counsel provided Respondent's financials to establish Respondent's inability to pay. (Ex. 2.) However, Complainant never responded until Respondent's counsel sent Complainant's counsel a follow up email on October 13, 2015. (Ex. 3.) On October 20, 2015, the same day that the Court issued its Order Setting Deadlines for Parties' Informal Case Discussion and Report, and Settling a Pre-Hearing Status Conference, Complainant's counsel replied to Respondent's counsel's email and explained that she was going
on leave in a couple ofweeks until February and that she copied her supervisor on the email "in
case we do not get this matter taken case ofbefore I leave in a couple ofweeks for maternity leave." (Ex. 3.) On December 16, 2015, 

### nearly two months later, Respondent's counsel finally received
an email fi·om Complainant's new counsel explaining that he had been assigned the case and requesting additional financial information. (Ex. 4.) On December 18, 2015, Respondent's counsel provided the requested financial information. (Ex. 5.) On January 12, 2016, 

### nearly a month later and a week before the Pre-Hearing Status Conference, Respondent's counsel followed up with Complainant's counsel regarding status 

### because Complainant

### jedled to respond to Respondent's counsel's December 18 email. (Ex. 5.) On January 21, 2016, Complainant's counsel finally responded: "Sorry for the delay. I will get back with you next week to discuss settlement." (Ex. 5). As the foregoing timeline makes clear, no good cause exists for the Court not to dismiss the Complaint with prejudice. The FAA, as the prosecuting party, had ample time and
Page 2 of3

### opportunity to comply with the Court's order and inexplicably failed to do. Absent good cause for the Complainant's actions, the Complaint shouldbe dismissed withprejudice. WHEREFORE, Respondent respectfully requests that the Complaint in this matter be dismissedwithprejudice.

David M. Hernandez, Shareholder Vedder Price P.C. 1401 I StreetNW, Suite 1100 Washington, DC 20005 T: 

### 202-312 3340 F: 

### 202-312 3322 dhemandez@vedderprice.com Counsel for WorldLogistics, LLCd/b/a Viabox



### Attachments: Exhibits 1-5 Service List

Page 3 of3

### CERTIFICATE OF SERVICE 

### I hereby certify that I have, this date, served the foregoing RESPONDENT'S REPLY TO COMPLAINANT'S SHOW CAUSE STATEMENT to the following address as indicated:

One Copy: Mr. Brian K. Khan, Esq. Enforcement Division, MidwestTeam FAA Office ofthe ChiefCounsel 2300 EastDevonAvenue Des Plaines, Illinois 60018 Fax: 847-294-7498 One Copy: Judge J.E. Sullivan U.S. Administrative Law Judge Office ofHearings, M-20 U.S. Department ofTransportation 1200 NewJersey Avenue, S.E. (E-ll-310) Washington, D.C. 20590 Fax: 202-366-7536 Original and One Copy: Federal Aviation Administration 800 Independence Avenue, S.W. Washington, D.C. 20591 Attention: Hearing Docket Clerk, AGC-430 via Fax

via Fax

via US. Mail



### Wilbur Wright Building- Suite 2Wl000

Datedthis 2ih day ofJanuary, 2016
"\!!A_**~-'** 

### Meg&rrison, Administrative Assistant Vedder Price P.C.

### EXHIBIT 1 Hernandez, David M. From: Hernandez, David M. Sent: To: Cc: Thursday, February 26, 2015 2:50 PM kate.barber@faa.gov viaddress@gmail.com Subject: FW: Viabox Request for Hearing Attachments: Envelope FAA attorney Letterjpeg; FAA attorney Letter.pdf 

### Kate, On behalfofmyclient, Viabox, please email me the applicable forms to establish financial inabilityto pay the proposedcivil penalty. Also, giventhat I haveto prepare an Answer, please forward/email methe releasable portions ofthe EIR. Please letmeknow ifyou have any questions. Thankyou, David 

# v David M. Hernandez Shareholder 

### T: +1 (202) 312 3340 

### I F: +1 (202) 312 3322 M: + 1 (202) 403 1678 dhernandez@vedderprice.com Assistant: Diane V. Myers, + 1 (202) 312 3349 1401 I Street NW Suite 1100 Washington, DC 20005 Chicago 

### I New York 

### I Washington, DC London I San Francisco 1 Los Angeles From: viaddress@qmail.com [mailto:viaddress@qmail.com] On 

### Behalf OfViabox 

### Sent: Thursday, February 26, 2015 2:38 PM To: Hernandez, David M. Cc: Myers, Diane V. 

### Subject: Re: Viabox Request for Hearing 

### Hi David, We receivedthis overnightFedexenvelope from the FAA attorney. Please let us knowhowwe shouldproceed. Bestregards, Abdel & 

### ArmelinaElhassani Abdel mobile: 858-952-9886 Armelinamobile: 858-952-6611 www.viabox.com 1 

### contact@viabox.com 1

### 25883 N ParkAve, Elkhart, Indiana, United States
Copyright© 2015 VIABOX. All Rights Reserved. This email and any files transmitted 'Nitll 1t are confidential and intended solely 'for the use ofU1e individual or entity to wilom they me addressed. If you have received this email in error please notify the system manager. This message contains contidential information and is tntended only fm ll<e tndtviclual n8med. If you .:11-e not the named addressee you should not dissemin.·ate, distrtbute or copy this e-mail. Please notify the sender immediately by c::-mail if you have received this email by mistake and delete this e-mail from your system. Ifyou are not the i11tended t·ecipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents oflhis infOIYnalion is si11ctly prohibited.

2

### EXHIBIT2 

### Hernandez, David M. From: Hernandez, David M. Sent: To: Subject: Thursday, May 28, 2015 9:37AM Kate Barber (kate.barber@faa.gov) RE: World Logistics/Viabox Financials Attachments: Viabox Tax File.pdf; Viabox Financial Statement File.pdf Importance: High 

### Kate, Attached is Viabox's completed financial disclosure andprofitand loss statements (2012-2014), which establishesthe company's inability to paytheproposed civilpenalty. As you will note, the company is barely making a modestprofit andtheproposedcivil penalty would likely force them into bankruptcy. In any event, afteryourreview, please give me a callto discuss. I'm also send you a copyviafirst class mail. Bestregards, David


### David 

### M. Hernandez Shareholder T: 

### +1 (202) 312 3340 

### I F: 

### +1 (202) 312 3322 M: 

### +1 (202) 403 1678 dhernandez@vedderorice.com Assistant: Megan Morrison, 

### +1 (202) 312 3327 1401 I Street NW Suite 1100 Washington, DC 20005 Chicago 

### I New York 

### I Washington, DC London 

### I San Francisco 

### I Los Angeles www.veddergrice.com From: Kate.Barber@faa.gov [mailto:Kate.Barber@faa.gov] 

### Sent: Thursday, May 14, 2015 10:59 AM To: Hernandez, David M. Subject: FW: World Logistics/Viabox
Dear Mr. Hernandez, I have received yourvoicemail and thankyou foryour patience. Please find attached to this email the releasable portions ofthe EIR and the financial form. Please attach the lastthree years oftax returns to the form. I will send a hard copy ofthese along with the responses to your discovery request by early nextweek. Sincerely,

1Kate Barber Attorney Great lakes Region 2300 East Devon Ave. Des Plaines, ll60018 T: 847-294-7862 Fax:847-294-7498

2

### Hernandez, David M. From: Sent: To: Cc: Subject:
David, 

### EXHIBIT3

Kate.Barber@faa.gov Tuesday, October 20, 2015 4:25 PM Hernandez, David M. james.tegtmeier@faa.gov RE: Settlement discussions

Thank you forthe email and offer. The $5,000 is substantially lowerthan the proposed fine and while I do have some financial information it is not sufficient enough to prove their inability to pay the fine. I must discuss these cases with my boss and get his approval so it may take a little longer. Any further information may help. For example, the last three years offull tax returns and any other accounting information, we only received a Schedule Cfrom 2014 and 2013. I have CC'd my boss to keep him in the loop in case we do not get this mattertaken care of before I leave in a couple 

### ofweeks for maternity leave.



### * I am going on leave until Feb. so this case may get passed to another attorney in my absence. 

### ** Sincerely, Kate Barber Attorney Office ofthe Chief Counsel, AGC-300 Enforcement Division, MidwestTeam 2300 East Devon Ave. Des Plaines, IL 60018 T: 847-294-7862 Fax: 847·294-7498

From: Hernandez, David M. [mailto:dhernandez@veddemrice.com] 

### Sent: Tuesday, October 13, 2015 8:54AM To: Barber, Kate (FAA) 

### Subject: Settlement discussions


### Kate, Giventhatthis case is stalled, I think it wouldbe worthwhileto settle this beforethe newjudgeengages. Give Viabox'sfinancial condition, they are able to pay about $5,000 in monthly installments. I can provide an affidavitfrom their accountantifyou'dlike to supporttheir inabilityto pay under SBREFA. You have all of the financials. When are you available to discuss? Bestregards, David

1David M. Hernandez Shareholder 

## E"
T: +1(202)3123340 IF: +1(202)3123322 M: +1 {202) 403 1678 dhernandez©vedderorice.com Assistant: Megan Morrison, +1 (202) 312 3327 1401 I Street NW Suite 1100 Washington, DC 20005 Chicago I New York IWashington, DC London I San Francisco I Los Angeles www.vedderprice.com 

# WINNER**~-,;:l** !, f' f'. o; 11 •r" 'r c:ll

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### CONFIDENTIALITYNOTE: This e-mail is intended only for the use ofthe individual orentityto which it is addressed andmay contain information that is privileged, confidential andexempt from disclosure under applicable law. Ifthe reader ofthis e-mail message is notthe intendedrecipient, orthe employee or agent responsible for delivery ofthe message to the intendedrecipient, you areherebynotifiedthatany dissemination, distribution or copying ofthis communication is prohibited. Ifyouhave receivedthis e-mail 

### in error, please notify us immediately bytelephone at (312) 609-5038 and also indicatethe sender's name. Thankyou. VedderPriceP.C. is affiliatedwithVedder Price LLP, which operates 

### inEngland andWales and with Vedder Price (CA), LLPwhich operates in California.

2

### Hernandez, David M. From: Sent: To: Subject: Importance:
David, 

### EXHIBIT4

Brian.K.Khan@faa.gov Wednesday, December 16, 2015 3:24 PM Hernandez, David M. Viabox/World Logistics High

I am taking overthis case while Kate is on leave. I am looking overthefinancial information forthe company and want to know ifwe could getthe attachments to the documents. For instance, Part V ofthe return underthe heading "other expenses" has instructions to "see attachment." There was no attachment provided. Also, can we get clarification on what line 11 means? It says "contract labor (see instructions)" In orderto make afair assessment ofthe financial strength ofthe company, itwould be helpful to be able to see this information. Additionally, we are supposed to "confer privately to discuss the status ofthe case and determine what (ifany) discovery disputes, motions, and/or other issues need to be addressed." The status ofthe case for me is to look at a detailed picture ofthe finances ofthe company to possibly agree upon a reduced CP, ifwarranted. With regards to any disputes, I do not believe there are any on our end at this time. Thanks, --Brian

Brian K. Khan, Esq. FAA Office ofthe Chief Counsel Enforcement Division, Midwest Team 2300 E. Devon Ave Des Plaines, IL 60018 p: (847) 294-7652 f: (847) 294-7498 This communication might contain communications between attorney and client, communicationsthat are part ofthe agency deliberative process, or attorney-work product, all ofwhich are privileged and not subjectto disclosure outside the agency orto the public. Please consultwith the Office ofChief Counsel before disclosing any information contained in this email.

1

### EXHIBIT 5 Hernandez, David M. From: Brian.K.Khan@faa.gov Sent: To: Thursday, January 21, 2016 12:36 PM Hernandez, David M. Subject: RE: Viabox/World Logistics - Request from FAA for additional information
David, Sorry forthe delay. I will get back with you next week to discuss settlement. Thanks. --Brian

Brian K. Khan, Esq. FAA Office ofthe Chief Counsel Enforcement Division, MidwestTeam 2300 E. Devon Ave Des Plaines, IL 60018 p: (847) 294-7652 f: (847) 294-7498 This communication might contain communications between attorney and client, communications that are part ofthe agency deliberative process, or attorney-work product, all ofwhich are privileged and not subject to disclosure outside the agency orto the public. Please consult with the Office ofChief Counsel before disclosing any information contained in this email.

From: Hernandez, David M. [mailto:dhernandez@vedderprice.com] Sent: Tuesday, January 12, 2016 10:00 AM To: Khan, Brian K (FAA) Subject: FW: Viabox/World Logistics - Request from FAA for additional information 

### Brian, I trustyou've had a chaseto review the additional information. Would you like to have a callregarding settlement? Bestregards, David

David M. Hernandez Shareholder T: +1 (202) 312 3340 I F: +1 (202) 312 3322 M: +1 (202) 403 1678 dhernandez@vedderorice.com Assistant: Megan Morrison, +1 (202) 312 3327 11401 I Street NW Suite 1100 Washington, DC 20005 Chicago I New York I Washington, DC London I San Francisco I Los Angeles www.vedderorice.com

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# PR David M. Hernandez Shareholder T: +1 (202) 312 3340 I F: +1 (202) 312 3322 M: +1 (202) 403 1678 dhernandez@vedderorice.com Assistant: Megan Morrison, +1 (202) 312 3327 1401 I Street NW Suite 1100 Washington, DC 20005 Olicago I New York IWashington, DC London I San Francisco I Los Angeles www.vedderorice.com 

# WINNER 1

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Aviation 100Awards- 2015 U.S. News- Equipment Finance- 2014 From: Hernandez, David M. Sent: Friday, December 18, 2015 12:02 PM To: Brian.K.Khan@faa.gov Subject: FW: Viabox/World Logistics - Request from FAA for additional information 

### Brian, Attached is the additional information that I received from Viabox. Also, apparentlyFedEx after acquiring Viabox's competition is trying crushthem, which is placing additional financial pressure onthe Viabox's financial status. Best, David

2