. UNITED STATES OF AMERICA 

U.S. DEPARTMENT OF TRANSPORTATION 

UNITED STATES COAST GUARD 

UNITED STATES COAST GUARD 

Complainant 

vs 

HECTOR W. PAGAN 

Respondent. 

Docket Number CG S&R 02-0319 

CG Case No. 1621630 

ORDER DENYING MOTION FOR APPROVAL OF SETTLEMENT AGREEMENT AND 

ENTRY OF CONSENT ORDER 

Issued: September 10, 2002 

Issued by: Edwin M. Bladen, Administrative Law Judge 

This- case is now before this administrative law judge (ALJ) on a joint Motion for 

Approval of a Settlement Agreement and Entry of a Consent Order to be approved as a 

settlement of the case under 33 CPR § 20.502 (2002). For reasons below, the parties' joint 

motion is DENIED. 

The Coast Guard initiated this administrative action seeking revocation of Merchant 

Mariner credentials (License Number 919993 and Document Number 584-07-4745) issued to 

respondent Hector W. Pagan by filing a complaint dated May 30, 2002. The complaint alleges 

respondent violated 46 USC 7703 and 46 CPR Part 5 by committing acts of negligence, 

misconduct, violation of law or regulation and incompetence. The charges of negligence, 

misconduct, and violation of law or regulation all stem from a collision that occurred on 

Order- 1 
February 5, 2002 between the vessel Indutech Environmental Service and the R/V Chapman. 

The Coast Guard alleges that the respondent, while serving as master aboard the R/V Chapman, 

was negligent by committing an act or failing to perform an act that contributed to the 

aforementioned collision. The Coast Guard also alleges that the Respondent committed 

misconduct and violation of law or regulation by failing to notify the Coast Guard as soon as 

possible of the marine casualty. The incompetence charge relates to the Respondent's alleged 

failure to satisfy the requirements for the issuance of an Able Seaman-Unlimited Merchant 

Mariner's Document and failure to satisfy the qualifications for issuance of a Merchant 

Mariner's License as a Master of 1600 Gross Tons. 

On August 30, 2002, the parties entered into a written settlement agreement in states in 

pertinent part: 

(1) Respondent agreed to execute a Voluntary Surrender of Merchant Mariner's License 

License No. 919993 and retain the issued Merchant Mariner's Document as an 

Ordinary Seaman, which has already been revalidated by the Regional Exam Center 

in Miami; 

(2) The Coast Guard agreed to revalidate the Respondent's Merchant Mariner Document 

for an Ordinary Seaman [Wiper/Steward Dept (FH)]; 

(3) The Coast Guard agreed to waive the one (1) year waiting period required for 

voluntary surrenders and afford the Respondent the opportunity to immediately reapply for the issuance of any merchant mariner's license for which the appropriate 

qualifications and credentials have been obtained; 

( 4) The Coast Guard agreed not to seek a suspension period against the respondent, but 

the parties agreed to a one (1) year probation imposed against the Respondent 

following acceptance of the Settlement Agreement; and 

(5) The Coast Guard agreed to withdraw, with prejudice, all remain charges against the 

respondent, except theN egligence, which would be subject to adjudication on the 

merits. 

The settlement agreement was accompanied by an amended complaint dated August 30, 2002 

retaining only the Negligence charge. 

Order- 2 
In these proceedings, settlement agreements are subject to the approval of the presiding 

ALJ. See generally 33 CFR 20.502. Although there exists a strong judicial policy favoring 

settlement of disputes, an ALJ should not approve a settlement agreement that is not in 

accordance with law. See Appeal Decision 2623 (LOVE). 

In this case, the parties proposed settlement agreement is defective because the settlement 

agreement calls for a "voluntary surrender." A "voluntary surrender" is a device available to a 

respondent in order to completely avoid going to a hearing. See generally 46 CFR § 5.203. A 

voluntary surrender involves the permanent relinquishment of all rights to a license/document in 

lieu of a hearing. !d. A voluntary surrender is equivalent to a revocation. 46 CFR § 5 .205( d). 

The only means for a mariner to have a license/document restored following voluntary surrender 

is through the administrative clemency process. 46 CFR § 5.901. See also COMDTINST 

Ml6000, Marine Safety Manual (MSM), Vol. 2. The right to return merchant mariner 

credentials following a voluntary surrender is solely reserved by the Commandant. !d. 

Accordingly, a Marine Safety Office is without authority to waive the waiting period for 

issuance for a new license following a voluntary surrender. 

ORDER 

IT IS HEREBY ORDERED that the parties joint Motion for Approval of a Settlement 

Agreement and Entry of a Consent Order is DENIED. 

DATED: September 10,2002. 

Order- 3 

~~ EDWIN M. BLADEN 

Administrative Law Judge 

Seattle, Washington