Air Trek Incurred Attorney Fees And Expenses Challenging
Certificate Revocation
In a decision issued March 4, the
NTSB denied the FAA's appeal challenging a decision by an
Administrative Law Judge (ALJ) to pay Air Trek, Inc., a
Florida-based air ambulance operator, attorney fees and expenses in
the amount of $120,169.35 pursuant to the Equal Access to Justice
Act ("EAJA") 49 C.F.R., Section 826.1 et. seq. (NTSB Order No.
EA-5510).
The EAJA permits an award of attorney's fees and costs that a
prevailing party incurs, unless the government shows that it was
substantially justified in pursuing its complaint. The Supreme
Court has defined the term "substantially justified" to mean that
the government's position was reasonable in fact and law.
On June 10, 2008, the FAA issued an emergency order revoking
Air Trek's air carrier certificate. Following a nine-day hearing,
the ALJ modified the sanction from revocation to suspension. The
revocation order initially contained 38 factual allegations and 14
regulatory violations. By the fourth day of the hearing, the FAA
attorney withdrew half of the charges without explanation.
Accordingly, the ALJ found that Air Trek was the "prevailing
party" as to the portions of the complaint and alleged regulatory
violations that were voluntarily withdrawn. The ALJ also found that
the FAA was "inadequately prepared to proceed on the allegations
that were withdrawn, had not investigated them thoroughly, and
lacked the evidence" to sustain its burden of proof. Accordingly,
he found that the FAA proceeded "without substantial
justification." On appeal, the NTSB agreed with the ALJ's
findings.
Air Trek also appealed the ALJ's decision seeking additional
attorneys' fees. The NTSB granted additional fees required to
respond to the FAA's appeal. The total EAJA award was
$121,991.34.
The NTSB stated that the FAA
Administrator "should not have proceeded to a hearing on
allegations of wrongdoing that he was not prepared to prove, and
that the Administrator did not have a reasonable basis for
proceeding on the alleged regulatory violations that he voluntarily
dismissed during the hearing." The NTSB also found that the FAA
refused to withdraw elements of the complaint until it "became
painfully clear that the Administrator did not have sufficient
evidence to establish its case as to most of the allegations." As a
result of the revocation, Air Trek was grounded for nearly fifteen
months. On August 20, 2009, the FAA returned Air Trek's original
air carrier certificate.
According to Dana Carr, Air Trek's co-owner and Director of
Operations, "the company was grounded for more than a year and has
lost millions of dollars. However, now that Air Trek is back in
full operation and the NTSB has affirmed the award of attorneys'
fees, we feel somewhat vindicated from this horrible nightmare.
Prior to the revocation order, Air Trek had been in operation for
30 years with no violation history." Air Trek provides on-demand
air ambulance and executive charter services worldwide.