United States Court of Appeals
For the First Circuit
No. 23-2094
LUIS F. BONNET and CARLOS R. BENÍTEZ MALDONADO,
Petitioners,
v.
MICHAEL GORDON WHITAKER, Administrator of the Federal Aviation
Administration, and FEDERAL AVIATION ADMINISTRATION,
Respondents.
PETITION FOR REVIEW OF AN ORDER OF
THE NATIONAL TRANSPORTATION SAFETY BOARD
Before
Kayatta, Selya, and Aframe,
Circuit Judges.
Carlos A. Mercado-Rivera, with whom Mercado-Rivera Law
Offices was on brief, for petitioners.
Brett D. Weingold, Manager, Appellate Practice, Aviation
Litigation Division, Office of the Chief Counsel, Federal Aviation
Administration, for respondents.
September 25, 2024
SELYA, Circuit Judge. The anthem of the United States
Air Force famously describes the sky as "the wild blue yonder."
Robert MacArthur Crawford, The U.S. Air Force (1947). In fact,
though, the skies over which the United States has jurisdiction
are heavily regulated, and pilots must conform their conduct to
those regulations or suffer the consequences.
Commercial flights are no exception. They are subject
to a web of regulations administered by the Federal Aviation
Administration (FAA). Here, two pilots — petitioners Luis F.
Bonnet and Carlos R. Benítez Maldonado — challenge an order of the
National Transportation Safety Board (NTSB or the Board), which
upheld a 270-day suspension of each pilot's license by the FAA for
piloting flights as air carriers or commercial operators without
the required certificates. See 14 C.F.R. § 119.1;
id. Part 135
(Part 135). Concluding, as we do, that the FAA appropriately
characterized the flights in question and imposed reasonable
sanctions, we deny the petition for review.
I
We briefly rehearse the relevant facts (many of which
have been stipulated by the parties) and then chronicle the travel
of the case.
A
These proceedings implicate a number of flights that
took place in April and May of 2019. Both of the petitioners were
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pilots employed by Benítez Aviation, Inc. (BAI), which was the
parent company of Blue Aviation, LLC, a company licensed to conduct
commercial helicopter operations. Benítez did double duty,
serving not only as a pilot but also as the president of BAI. Each
petitioner held Airline Transport Pilot (ATP) certificates, which
is the highest level of pilot certification issued by the FAA.
At the time of the flights in question, BAI managed a
Cessna model 650, registration number N51JV (N51JV), that was owned
by Sky Global, LLC. N51JV required two crewmembers to operate the
aircraft, had a passenger-seat configuration of up to twenty seats,
and had a payload capacity of 6,000 pounds or less.
Bonnet acted as pilot-in-command (PIC) of N51JV on an
April 17 flight from San Juan to Simpson Bay, Sint Maarten and an
April 22 flight from Simpson Bay to San Juan (collectively, the
April flights). Rudy Ghazal — also a BAI employee — was Bonnet's
second-in-command (SIC) on these flights. In addition, Bonnet
acted as PIC for a May 23 flight from San Juan to Cozumel, Mexico,
and then on to Veracruz, Mexico and a May 24 flight from Veracruz
to Santo Domingo, Dominican Republic (collectively, the May
flights). Benítez served as Bonnet's SIC for the May flights.
Each petitioner received his regular salary — but no incremental
compensation — for the time periods that encompassed these flights.
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B
On September 27, 2019, the FAA notified the petitioners
through a Notice of Proposed Certificate Action that the FAA
proposed to suspend their ATP certificates for 270 days. The FAA
alleged that the petitioners operated the April and May flights
either as direct air carriers or as commercial operators, carrying
at least one passenger for compensation or hire on each flight
without the proper training or certificates for that type of
flight. On July 30, 2020, the FAA issued orders of suspension for
violations of 14 C.F.R. §§ 91.13(a), 119.5(g), 119.33(a)(2),
119.33(a)(3), 119.33(b)(2), 119.33(b)(3), 135.293(a), 135.293(b),
and 135.299(a).1
The petitioners appealed the proposed suspensions to the
NTSB, see 49 U.S.C. §§ 1133(a)(1), 44709(d), and a hearing was
held before an administrative law judge (ALJ). The parties called
witnesses, and a sheaf of documents was introduced into evidence
on motion of the FAA Administrator (the Administrator). The
Administrator also called witnesses, including — among others —
Belkys Perez (Benítez's wife and a corporate officer of BAI), Fred
Gallo (who booked the April flights), Shamil Sandoval Colón (who
booked the May flights), and Rafael Muñiz (a passenger on the May
1 The text of these regulations appears in Appendix A, infra.
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flights). The petitioners themselves testified and called Ghazal
and Perez as witnesses.
The documents admitted at the hearing disclose that
Gallo purchased the April flights for $10,500 and paid for them in
advance. The invoice for those flights indicates that the amounts
billed were for "Airplane Operational Cost." The record further
shows that Muñiz procured the May flights on behalf of GSR
Management, LLC (GSR) for $36,500 and paid for those flights in
advance. The invoice for the May flights indicates that the
amounts billed were for "Airplane Transportation." Each of the
flights had eight passengers on board.
Perez testified as to her general knowledge of BAI's
operations. She stated that she handled administrative matters
for the company, including flight bookings. According to her
testimony, she and Benítez never discussed BAI's business at home.
Finally, she admitted that in "emergencies" — a term that she never
attempted to define — BAI provided flights to "friend[s]
or . . . friend[s] of a friend," but she suggested that the company
typically attempted to refer these callers to firms licensed to
conduct commercial passenger flights. The ALJ found that Perez's
testimony was not credible, as it was inconsistent and
non-responsive.
With respect to the April flights, Gallo credibly
testified that he received the telephone number of BAI from a
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"client and friend." The parties stipulated that this individual
was Farhad Ghaffar. Gallo said that he had never flown with BAI
before. When he received the telephone number from Ghaffar, he
called the office and told BAI what he wanted. BAI quoted him a
price. Gallo did not testify that he mentioned his friendship
with Ghaffar in his exchanges with BAI. For her part, Perez
insisted that Ghaffar was close friends with Benítez and herself.
She acknowledged, though, that this friendship started through
their aviation business, admitting that Ghaffar was first a
"client, a customer, for the helicopters."
As for the May flights, Sandoval Colón testified that
she was an administrative assistant for Prolat Entertainment,
which provided services to GSR. She recounted that she was
discussing the difficulty that she had in finding a flight for GSR
when an acquaintance — who did not work at Prolat Entertainment
but was visiting the Prolat Entertainment facility — overheard her
conversation and referred her to BAI. Relatedly, Muñiz testified
that, as the owner of Prolat Entertainment, he instructed Sandoval
Colón to book the flights upon this recommendation. Sandoval Colón
reached out to Benítez, who referred her to Perez for the booking.
As matters turned out, Muñiz was one of the passengers on the May
flights — but he did not speak to the pilots or any other
representative of BAI prior to the flights. The ALJ found both
Muñiz and Sandoval Colón to be credible.
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After mulling this evidence, the ALJ upheld the FAA's
suspension order. The petitioners appealed the ALJ's order to the
Board, which affirmed. See Whitaker v. Bonnet, NTSB Ord. No.
EA-5962 (Oct. 27, 2023). The NTSB held that the flights were
subject to the requirements for air carriers or commercial
operators because BAI was acting as a common carrier; that the ALJ
appropriately found a residual violation of 14 C.F.R. § 91.13(a);2
that the ALJ did not exhibit bias; and that the sanction — a
270-day suspension — was supportable.
This timely petition for judicial review followed.
II
We begin our analysis by offering a decurtate summary of
the applicable regulations. "Under the Federal Aviation Act, the
FAA Administrator holds responsibility for flight safety in civil
air commerce." Rochna v. NTSB, 929 F.2d 13, 14 (1st Cir. 1991).
The FAA requires pilots providing commercial flight services to
the public to satisfy certain regulatory criteria. See Decruz v.
Elwell,
751 F. App'x 1, 2 (D.C. Cir. 2018). The stringency of the
criteria applied varies depending upon the type of flight.
14 C.F.R. Part 91 (Part 91) describes the general minimum
operating and flight rules that must be followed. Under 14 C.F.R.
2 A residual violation is one that is "predicated on
violations of other regulations." GoJet Airlines, LLC v. FAA, 743
F.3d 1168, 1172 (8th Cir. 2014).
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§ 119.1, persons operating or intending to operate civil aircraft
as "an air carrier or commercial operator" must adhere to
additional requirements — the ones applicable here being those
described in Part 135.
An "air carrier" is defined as "a person who undertakes
directly by lease, or other arrangement, to engage in air
transportation." 14 C.F.R. § 1.1. In turn, "[a]ir transportation"
is defined as "interstate, overseas, or foreign air transportation
or the transportation of mail by aircraft."
Id. "Foreign air
transportation" is defined as "the carriage by aircraft of
persons . . . as a common carrier for compensation or
hire . . . in commerce between a place in the United States and
any place outside of the United States, whether that commerce moves
wholly by aircraft or partly by aircraft and partly by other forms
of transportation."
Id.
A "commercial operator" is "a person who, for
compensation or hire, engages in the carriage by aircraft in air
commerce of persons or property, other than as an air carrier."
Id. When common carriage is not involved (that is, when a flight
is operated by a "commercial operator" rather than an "air
carrier"), the flight is not subject to the rules under Part 135
as long as it qualifies for one of the exceptions listed in
14
C.F.R. § 91.501(b). See Appendix A, infra.
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III
The NTSB "possesses jurisdiction to review certain [FAA]
orders, including . . . order[s] of suspension [of pilot
certificates]." See Moshea v. NTSB, 570 F.3d 349, 351 (D.C. Cir.
2009). The Federal Aviation Act authorizes review of orders issued
by the FAA and reviewed by the NTSB in "the court of appeals of
the United States for the circuit in which [the petitioners]
reside[] or ha[ve] [their] principal place of business."
49 U.S.C.
§ 46110(a). Because the petitioners reside in Puerto Rico, this
court has jurisdiction over the instant petition.
As a reviewing court, our role is tightly circumscribed.
"Under our very narrow standard of review, we must uphold the
Board's decision if it is not 'arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law.'" Hite v.
NTSB, 991 F.2d 17, 20 (1st Cir. 1993) (quoting
5 U.S.C.
§ 706(2)(A)).
"The Federal Aviation Act provides that for purposes of
review by the courts of appeals '[t]he findings of fact by the
[NTSB], . . . if supported by substantial evidence, shall be
conclusive.'" Twomey v. NTSB, 821 F.2d 63, 67 n.5 (1st Cir. 1987)
(first alteration in original)(quoting
49 U.S.C. § 1486(e)).
Substantial evidence is "such relevant evidence as a reasonable
mind might accept as adequate to support a conclusion." Penobscot
Air Servs., Ltd. v. FAA,
164 F.3d 713, 718 (1st Cir. 1999) (quoting
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Universal Camera Corp. v. NLRB, 340 U.S. 474, 477 (1951)); accord
Quinn v. Hinson,
107 F.3d 1 (Table), at *3 (1st Cir. 1996). Under
the substantial evidence test, "we simply determine whether the
agency could fairly and reasonably find the facts as it did."
Hite,
991 F.2d at 18 n.1 (quoting Chritton v. NTSB,
888 F.2d 854,
856 (D.C. Cir. 1989)). "[S]ubstantial evidence to support an
agency finding may exist 'even though suggested alternative
conclusions may be equally or even more reasonable and
persuasive.'" Removatron Int'l Corp. v. FTC,
884 F.2d 1489, 1496
(1st Cir. 1989) (alteration in original) (quoting Montgomery Ward
& Co. v. FTC,
691 F.2d 1322, 1327 (9th Cir. 1982)); accord Quinn,
107 F.3d 1 (Table), at *3. When there is conflicting testimony,
"[i]ssues of credibility and the drawing of permissible inference
from evidentiary facts are the prime responsibility of the [ALJ]."
Rodriguez v. Sec'y of Health & Hum. Servs.,
647 F.2d 218, 222 (1st
Cir. 1981) (first alteration in original) (quoting Rodriguez v.
Celebrezze,
349 F.2d 494, 496 (1st Cir. 1965)).
IV
The NTSB's decision hinges on the FAA's determination
that the petitioners piloted the April and May flights without
possessing the certifications required under Part 135. The
petitioners posit that the NTSB's analysis was misguided because
the flights should have been governed by the requirements of Part
91 (not Part 135). They are foraging in an empty cupboard.
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The FAA argues persuasively that the petitioners were
acting as "air carriers," a term which — as discussed above —
imputes the subject's status as a "common carrier." See Flytenow,
Inc. v. FAA, 808 F.3d 882, 886 (D.C. Cir. 2015). Even though the
statute does not define "common carrier," it is a "well-known term
that comes . . . from the common law." CSI Aviation Servs., Inc.
v. U.S. Dep't of Transp.,
637 F.3d 408, 415 (D.C. Cir. 2011).
The FAA relies on a definition of "common carrier" that
is provided in a 1986 Advisory Circular. See Flytenow, Inc., 808
F.3d at 886 (citing FAA, Advisory Circular 120-12A, Private
Carriage Versus Common Carriage of Persons or Property (1986)(FAA
Advisory Circular)). The elements of "common carriage" as defined
in the FAA Advisory Circular are "(1) a holding out of a
willingness to (2) transport persons or property (3) from place to
place (4) for compensation."
Id. at 886-87.
The FAA Advisory Circular is not binding on this court.
Regardless, we hold that the FAA's definition largely comports
with our historical understanding of the term. We have interpreted
the term "common carrier," in pertinent part, as describing an
entity that "provides its services indiscriminately to any[one]
who wants them." Fayard v. Ne. Vehicle Servs., LLC, 533 F.3d 42,
46 (1st Cir. 2008). Other courts of appeals have read the term as
encompassing a "commercial transportation enterprise that 'holds
itself out to the public'" as willing to transport persons or
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property for compensation. CSI Aviation Servs., 637 F.3d at 415
(quoting Common Carrier, Black's Law Dictionary (8th ed. 2004));
see N.Y. Susquehanna & W. Ry. Corp. v. Jackson,
500 F.3d 238, 251
(3d Cir. 2007) ("Susquehanna holds itself out . . . [and] does, in
fact, haul waste for multiple customers; and there is no evidence
of it turning away a customer."). Notwithstanding the differences
in wording, our definition of "common carrier" accords with the
definitions employed by our sister circuits. And our sister
circuits have similarly held — as do we — that the FAA Advisory
Circular's definition is consistent. See Woolsey v. NTSB, 993
F.2d 516, 523 (5th Cir. 1993) (concluding that FAA Advisory
Circular definition of "common carrier" is "in relevant respect
the same as that found at common law").
In the case at hand, the record makes manifest that the
April and May flights transported persons from place to place, and
these two elements are not disputed by any party. The two pivotal
questions, then, are whether there was a "holding out" and whether
the flights were "for compensation." If substantial evidence
supports a conclusion that both of these criteria are satisfied,
then the NTSB appropriately found that the flights were operated
by a common carrier. We turn next to those questions.
A
We start with the question of whether the FAA proved by
substantial evidence a "holding out." Neither the statute nor any
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regulation defines "holding out." To fill this void, the FAA
relies on the common law meaning of this term. Flytenow, Inc.,
808 F.3d at 892. Thus, the holding out may be "either by
advertising or by actually engaging in the business of carriage
for hire." Arrow Aviation, Inc. v. Moore,
266 F.2d 488, 490 (8th
Cir. 1959); see Riegelsberger v. Air Evac EMS, Inc.,
970 F.3d 1061,
1065 (8th Cir. 2020); United States v. Jones,
712 F.2d 1316, 1322
(9th Cir. 1983). The petitioners do not dispute the FAA's reliance
on the common law meaning of "holding out."
Importantly, "[a] carrier need not solicit" paying
passengers in order to be found to be "holding out." United States
v. Stephen Bros. Line, 384 F.2d 118, 123 n.14 (5th Cir. 1967). To
constitute holding out, "it is sufficient that the carrier 'became
known generally'" as available to carry passengers for hire.
Id.
(quoting Transp. by Mendez & Co., Between U.S. and Puerto Rico, 2
U.S.M.C. 717, 720 (1944)). Put another way, "[c]arriers are held
to be common if they have 'held out, by a course of
conduct . . . .'"
Id. (quoting Transp. by Se. Terminal & S.S.
Co., 2 U.S.M.C. 795, 796 (1946)).
Both the ALJ and the Board found that the elements of
"holding out" were present with respect to the April and May
flights. They noted that different individuals on different
occasions referred the passengers on the flights to BAI as an
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enterprise that would be willing to provide them with
transportation services. We agree.
The petitioners demur, emphasizing two points that they
insist are fatal to a finding of "holding out." First, they claim
that the passengers on the flights were "families and friends and
relatives" of the aircraft's owners. But this testimony was deemed
not credible by the ALJ, and the record makes manifest that it
rests on an inaccurate view of the facts. In short, what the
petitioners claim and what the record reveals are quite different.
Both petitioners testified that they had never flown
with any of the passengers prior to the flights in question. So,
too, when Perez — the person who completed the bookings — was
questioned about whether she asked potential customers calling for
a quote if they were the aircraft owners' family, friends, or
friends of friends, she replied that she "do[es] not need to do
that." This evidence, coupled with the testimony of Gallo,
Sandoval Colón, and Muñiz indicating that they did not have a
pre-existing relationship with BAI or the aircraft owners, makes
pellucid that it was reasonable to find that BAI went well beyond
transporting family and friends and held itself out as available
to the public.
The petitioners' second riposte is no more persuasive.
They point out that BAI did not advertise itself as operating
commercial flights and that, therefore, the holding out
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requirement was not satisfied. The fact that they did not
advertise seems to be borne out by the record — but it does not
take the petitioners very far. As the FAA has consistently stated,
"[p]hysically holding out without advertising where a reputation
to serve all is gained is sufficient to constitute an offer to
carry all customers. . . . [T]he expression of willingness to all
customers with whom contact is made that the operator can and will
perform the requested service is sufficient." FAA Advisory
Circular.
This is such a case: the finding that BAI had such a
reputation was supported by substantial evidence. For example,
with respect to the May flights, the witness who booked the flights
on behalf of the passengers testified that she was referred to BAI
through "a casual conversation from an acquaintance at the office"
who "overheard [the witness] discussing looking for a quote for a
flight from San Juan to Veracruz and Veracruz to DR." The
acquaintance added that she should "just give Carlos Benítez,
Benítez Aviation a call." Accordingly, we conclude that
substantial evidence supports the finding that there was a "holding
out."
B
This brings us to the question of whether the FAA proved
by substantial evidence the "compensation" element of the "common
carrier" test. The petitioners contend that the passengers were
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billed solely for "operational costs" rather than for any profit
to BAI. The record, however, contains substantial evidence to the
contrary. For example, the invoice for the May flights does not
indicate a breakdown in costs but simply lists charges for
"Airplane Transportation." What is more, the flight invoices were
paid in advance. Although Perez testified that she researched the
costs before preparing the bills and that there was no profit, the
ALJ supportably found that this testimony was not credible.
Moreover, these invoices — as the ALJ again supportably found —
could not have reflected the actual costs incurred. For instance,
the actual costs for fuel could be determined only after the fuel
was consumed.
In all events, a bill for operational costs is sufficient
to establish the "for hire" element of the common carrier
construct. "[T]here can be compensation where the payment covers
only costs and no actual profit is shown." Administrator v.
Rountree, 2 NTSB 1712, 1713-14 (1975). Consequently, even
supposing that the amounts paid by the passengers were solely for
costs and that BAI made no profit, these flights would still be
deemed to have been operated for hire (and, thus, by a common
carrier).
C
We add a coda. Even if BAI did not "hold itself out"
and, therefore, the flights were not operations by an air carrier,
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that would not defeat the FAA's order. Part 135 applies to both
air carriers and commercial operators. The "holding out"
requirement does not pertain to commercial operators. The only
criteria that need be met are that the flights be operated "for
compensation or hire," 14 C.F.R. § 1.1, and not be subject to one
of the exceptions in
14 C.F.R. § 91.501(b). The flights at issue
here were manifestly operated for hire, and none of the exceptions
(limned in Appendix A, infra) apply to them. It follows that the
flights were at least flown by commercial operators and, thus,
were subject to the requirements of Part 135. See Manin v. NTSB,
627 F.3d 1239, 1243 n.1 (D.C. Cir. 2011) ("[W]hen 'there is not
the slightest uncertainty as to the outcome of a proceeding' on
remand, courts can affirm an agency decision on grounds other than
those provided in the agency decision." (quoting Envirocare of
Utah, Inc. v. Nuclear Regul. Comm'n, 194 F.3d 72, 79 (D.C. Cir.
1999))).
V
Of course, as the petitioners point out, it is their
licenses that are at risk here. BAI is not a party to this
proceeding. With this in mind, the petitioners argue that BAI's
role supersedes any claim of liability against them: they contend
that BAI's absence as a party is fatal to the case; that they
lacked knowledge that the flights were Part 91 flights because BAI
was in charge of the bookings and the petitioners were merely line
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pilots; and that they did not receive compensation personally for
the flights and, therefore, fall outside the ambit of Part 135.
These contentions encounter strong headwinds.
A
The petitioners first argue that the NTSB lacked
jurisdiction to issue the order from which they appeal because
that order necessarily involved drawing factual conclusions
regarding BAI — an entity that had neither been joined as a party
nor subpoenaed to appear. This argument need not detain us.
As we already have made clear, see supra Part III, the
NTSB has jurisdiction to review pilot-suspension orders issued by
the FAA. See Moshea, 570 F.3d at 351. Although the general rule
is that a tribunal lacks the power to make a binding adjudication
of the rights of litigants not before it, see Hansberry v. Lee,
311 U.S. 32, 40 (1940), the NTSB has not offended that general
rule in this instance. Even though certain factual findings made
in this proceeding concern BAI, those findings do not bind BAI.
Indeed, BAI has entered into a separate settlement with the FAA.
See Nat'l Ass'n of Chain Drug Stores v. New Eng. Carpenters Health
Benefits Fund,
582 F.3d 30, 42 (1st Cir. 2009) ("Due process
'obviously does not mean . . . that a court may never issue a
judgment that, in practice, affects a nonparty.'" (alteration in
original) (quoting Provident Tradesmens Bank & Tr. Co. v.
Patterson, 390 U.S. 102, 110 (1968))).
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If more were needed — and we doubt that it is — this
claim appears, at bottom, to be a claim that BAI's due process
rights have been infringed. BAI is not a party to this proceeding,
and the petitioners have not alleged any facts sufficient to show
that they have any right to assert third-party standing. See,
e.g., Freeman v. Town of Hudson, 714 F.3d 29, 39 (1st Cir. 2013)
(explaining that third-party standing requires hindrance to third
party's ability to protect his or her own interests).
To the extent that the petitioners are arguing that there
was a fatal failure to join BAI, that argument is untenable.
Federal Rule of Civil Procedure 19(a)(1)(A) requires that a person
be joined as a party only if, "in that person's absence, the court
cannot accord complete relief among existing parties." Here, there
is no reason why complete relief cannot be afforded in the absence
of BAI. Not surprisingly, then, this type of case is routinely
prosecuted and decided with just the pilots as the responding
parties. See, e.g., Woolsey, 993 F.2d 516; Moshea,
570 F.3d 349.
B
BAI's role in orchestrating these flights — and the
petitioners' claimed lack of knowledge of BAI's actions — does not
aid the petitioners. The petitioners submit that BAI (through
Perez) handled all administrative matters. Consequently, the
petitioners say that they did not know whether the flights were
being operated improperly. But pilots have a responsibility to
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adhere affirmatively to the governing regulations. Under 14 C.F.R.
§ 91.3, a PIC of an aircraft is "directly responsible for, and is
the final authority as to, the operation of that aircraft." The
petitioners should have taken steps to learn what type of flight
they were flying. See Cappello v. Duncan Aircraft Sales of Fla.,
Inc.,
79 F.3d 1465, 1468 (6th Cir. 1996); Davis v. United States,
824 F.2d 549, 551 (7th Cir. 1987) ("The pilot . . . must be aware
of those facts which are material to [the aircraft's] operation.")
(quoting Redhead v. United States, 686 F.2d 178, 182 (3d Cir.
1982)).
Taking a struthious approach is not an effective
defense. The petitioners cannot avoid these requirements by
sticking their heads in the sand.
The record is replete with substantial evidence that the
petitioners shirked this responsibility. For example, Bonnet
stated to an FAA investigator that he did not "ask too many
questions" about the passengers on the flights because he worked
for "rich people." As for Benítez, the record demonstrates conduct
well beyond a simple failure to inquire; it strongly suggests that
he in fact knew the flights were not Part 91 flights. Perez
admitted that she and Benítez were married, and the ALJ supportably
found that her testimony that they did not discuss any
administrative matters regarding Benítez's own company at home was
not credible. And when Sandoval Colón reached out to BAI
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initially, she spoke with Benítez. He then referred her to Perez
to complete her booking. At a bare minimum, Benítez knew that
callers were contacting BAI to book these types of flights and he
facilitated that conduct.
C
Relatedly, the petitioners posit that — because it was
BAI that was paid for the flights — they were not operating the
flights for compensation or hire. Thus, they suggest that the
Part 135 requirements are not applicable to them.
We do not agree. As the FAA persuasively argues, once
it has been shown that the flight was operated by a common carrier,
the issue of whether the pilots themselves were directly
compensated is not dispositive.
In all events, it is luminously clear that the pilots
were compensated. To begin, Benítez was — at all relevant times
— the president of BAI. It is self-evident that through this
direct stake he was compensated for the flights. And at any rate,
for a pilot, the payment of his salary is sufficient to establish
compensation. See Las Vegas Hacienda, Inc. v. Civ. Aeronautics
Bd., 298 F.2d 430, 440 (9th Cir. 1962) (rejecting argument that
employee petitioner, acting as "salaried employee," should not
have been subject to cease-and-desist order against corporate
petitioner and holding that he was subject to Federal Aviation Act
if he was engaged in air transportation). Even though the
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petitioners, qua pilots, were not paid extra, they were plainly
conducting these flights in the ordinary course of their
employment, for which they were paid. And the record establishes
that the pilots were reimbursed for the costs incurred in
conducting the flights, such as hotel stays. As we have said,
such reimbursement, in and of itself, is sufficient to establish
compensation. See Rountree, 2 NTSB at 1713-14. On this record,
then, there was substantial evidence that both of the petitioners
were compensated for the flights. The petitioners cannot hide
behind BAI to escape the consequences of their own actions.
VI
We turn to the remaining issues raised by the
petitioners.
A
The petitioners' argument that the NTSB erroneously
found a residual violation of 14 C.F.R. § 91.13(a) is groundless.
They argue that the FAA did not independently establish that the
challenged conduct was careless or reckless. The agency responds
that no such showing is necessary: a residual or derivative
violation is inherently shown when pilots fail to comply with FAA
operational regulations. Precedent staunchly supports the FAA's
position. See Jackson v. NTSB,
114 F.3d 283, 287-88 (D.C. Cir.
1997); GoJet Airlines, LLC v. FAA,
743 F.3d 1168, 1172 (8th Cir.
2014); Administrator v. Clark, 7 NTSB 434, 436 (1990). We
- 22 -
therefore uphold the NTSB's ruling that the petitioners violated
14 C.F.R. § 91.13(a).3
B
The petitioners have another shot in their sling. They
contend that the ALJ engaged in inappropriate conduct that
demonstrated bias and affected the outcome of the appeal. We do
not agree.
We first confront a threshold issue. The FAA argues
that any objections to the ALJ's conduct are waived because they
were not raised during the hearing. See 49 U.S.C. § 46110(d)
(stating that courts of appeal "may consider an objection to the
order of the [FAA] . . . only if the objection was made in the
proceeding conducted . . . or if there was a reasonable ground for
not making the objection in the proceeding"). The petitioners
offer no reasonable explanation for this failure and, therefore,
their objections are waived. See Gorman v. NTSB,
558 F.3d 580,
3 In passing, the petitioners suggest that the FAA's
allegation does not specify whether they were "careless" or
"reckless," with the result that the "unprecise allegation"
violates due process. It is not readily apparent how an allegation
can violate due process. But we need not linger long over this
query: a due process challenge to the NTSB's holding that the
petitioners violated section 91.13(a) is plainly futile. Due
process demands that the parties have "fair notice" of what is
required by the applicable regulation. Draper v. Healey, 827 F.3d
1, 3-4 (1st Cir. 2016). In this instance, the petitioners had
fair notice of what was required of them, which was simply to
comply with the clear text of the other regulations cited by the
FAA.
- 23 -
591 (D.C. Cir. 2009) ("Because Gorman failed to raise this
objection before the NTSB, and offers no reasonable ground for
this failure, we conclude that he has waived the objection.").
Even were we disposed to excuse the petitioners' waiver
— and we are not — they have not carried their burden of showing
bias. "An impartial decisionmaker is, of course, a fundamental
component of due process." Beauchamp v. De Abadia, 779 F.2d 773,
776 (1st Cir. 1985). But "[a]bsent some showing of abuse, the ALJ
is presumed free from bias," Soule Glass and Glazing Co. v. NLRB,
652 F.2d 1055, 1112 (1st Cir. 1981), because of the "presumption
that [adjudicators] are '[people of] . . . conscience and
intellectual discipline, capable of judging a particular
controversy fairly on the basis of its own circumstances,'"
Bettencourt v. Bd. of Registration in Med.,
904 F.2d 772, 780 n.10
(1st Cir. 1990) (quoting Withrow v. Larkin,
421 U.S. 35, 55 (1975))
(internal quotation marks omitted). See Valley v. Rapides Par.
Sch. Bd.,
118 F.3d 1047, 1052-53 (5th Cir. 1997) (holding that, to
show bias, petitioners must overcome both "the presumption of
honesty and integrity of the adjudicators" and "the presumption
that those making decisions affecting the public are doing so in
the public interest").
A charge of bias is not lightly to be embraced, and a
showing of bias requires something more than merely showing that
the adjudicator has not accorded the parties kid-glove treatment.
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"'[R]emarks during the course of trial that are critical or
disapproving of, or even hostile to, counsel, the parties, or their
cases' are usually insufficient to prove bias [, and t]he same is
true of a court's 'expressions of impatience, dissatisfaction,
annoyance, and even anger.'" United States v. Caramadre, 807 F.3d
359, 375 (1st Cir. 2015) (quoting Liteky v. United States,
510
U.S. 540, 555-56 (1994)). ALJs, in particular, must be allowed
substantial latitude in conducting hearings and examining
witnesses. See
49 C.F.R. § 821.35(b)(1), (8). Bias cannot be
established merely by showing that "the ALJ interrupted the
questioning and posed his own questions" when there is no evidence
that "bias or prejudice stemmed from an 'extrajudicial source.'"
Lackey v. FAA,
386 F. App'x 689, 694, 696 (9th Cir. 2010).
To show bias, then, the proponent must put some meat on
the bones. Examples of when decisionmakers are "constitutionally
unacceptable" by reason of bias include when they have a "direct,
personal, and substantial pecuniary interest in the outcome of a
case," N.Y. State Dairy Foods, Inc. v. Ne. Dairy Compact Comm'n,
198 F.3d 1, 13 (1st Cir. 1999), or when they have "been the target
of personal abuse or criticism from the party before [them],"
United States v. Pina,
844 F.2d 1, 13 (1st Cir. 1988) (quoting
Withrow,
421 U.S. at 47).
In the case at hand, the petitioners accuse the ALJ of
"assum[ing the] role of advocate for the FAA's case," thus
- 25 -
"revealing his bias." But the record belies this accusation: the
petitioners point to no facts suggesting that the ALJ had a
personal or pecuniary interest in the case. Nor do they identify
any facts tending to show that he was the target of personal abuse
or criticism by any of the parties. At bottom, they suggest no
"extrajudicial source" influencing his conduct but, rather, simply
recount instances in which he questioned witnesses to clarify the
record. And in the instances identified by the petitioners, the
ALJ gave both parties the opportunity to continue questioning and
to rehabilitate the witnesses.
That ends this aspect of the matter. The ALJ's
even-handed course of conduct was well within the proper sphere of
his authority.4 The allegation of bias is, therefore, wholly
unsupported, and the petitioners' claim is dead on arrival.
C
The petitioners' final plaint focuses on the sanction
imposed. The ALJ ordered that the pilot's license of each
petitioner be suspended for 270 days, and the NTSB affirmed that
sanction. The petitioners complain that there was insufficient
evidence of aggravating factors to justify so lengthy a sanction.
4 This is especially true in administrative cases where the
ALJ is the only adjudicator. Many of the authorities relied on by
the petitioners, including United States v. Koerber, 10 F.4th 1083
(10th Cir. 2021), discuss criminal trials, with emphasis on the
impact of the judge's conduct on the jury.
- 26 -
We reject this complaint and hold that the FAA's imposition of
sanctions was appropriate.
Both the NTSB and this court must adhere to the FAA's
remedy unless it is "unwarranted in law or is without justification
in fact." Pham v. NTSB, 33 F.4th 576, 583 (D.C. Cir. 2022) (quoting
Am. Power & Light Co. v. SEC,
329 U.S. 90, 112-13 (1946)). The
FAA typically relies on the publicly available FAA Order 2150.3C
for selecting sanctions. Aggravating and mitigating factors
listed in FAA Order 2150.3C include: the degree of hazard,
violation history, level of certificate and experience, compliance
disposition of the violator, whether the violation is isolated or
repeated, subsequent corrective action, inadvertence of the
violation, voluntary reporting of violations, and prior criminal
convictions for similar conduct.
Viewed against this backdrop, the petitioners' complaint
that the agency did not present sufficient evidence of aggravating
factors to justify the 270-day suspension rings hollow. The record
leaves no doubt that aggravating factors were present. These
include that the April and May flights were transporting
passengers, that the petitioners had ATP certificates, that they
knew or should have known that the flights were undertaken without
the appropriate certificates in place, and that the petitioners
each flew multiple flights. Each of these facts was either
included in the parties' stipulations or conclusively demonstrated
- 27 -
in the documentary record. The petitioners cannot now claim that
there is insufficient evidence supporting these aggravating
factors when they themselves agreed to the truth of these
allegations before the NTSB.
The short of it is that the sanctions are not only
compliant with FAA Order 2150.3C but also within the universe of
reasonable sanctions for the petitioners' regulatory violations.
After all, "[i]mplicit in the issuance of an [ATP] rating and
certificate is [the FAA's] finding that the holder thereof
possesses the degree of judgment required of a [PIC]." Specht v.
Civ. Aeronautics Bd., 254 F.2d 905, 916 (8th Cir. 1958). When —
as in this case — a pilot violates safety regulations without
justification, a suspension is typically thought to be a condign
remedy. See Rochna,
929 F.2d at 15 (expounding upon FAA's long
history of using suspensions as "deterrence" for "violation[s] of
[federal aviation regulations]" (quoting Pangburn v. Civ.
Aeronautics Bd.,
311 F.2d 349, 354 (1st Cir. 1962), then Hill v.
NTSB,
886 F.2d 1275, 1281 (10th Cir. 1989)).
Here, moreover, the petitioners had the highest level of
pilot certification, which implicitly comes with the highest level
of responsibility. So, too, flying passengers, rather than cargo,
comes with heightened expectations because of the risk to human
life. The petitioners shirked these responsibilities on several
occasions, each time failing to ensure that the flights that they
- 28 -
were conducting were consistent with the FAA's safety regulations.
And — as the ALJ observed — revocation, rather than suspension, is
a common sanction in these circumstances. Thus, we cannot say
that the sanctions imposed are unwarranted at law or without
justification in fact.
VII
We need go no further. For the reasons elucidated above,
the petition for review is
Denied.
- 29 -
Appendix A
Text of Code of Federal Regulations
14 C.F.R. § 91.13(a): "No person may operate an aircraft in a
careless or reckless manner so as to endanger the life or property
of another."
14 C.F.R. § 119.5(g): "No person may operate as a direct air
carrier or as a commercial operator without, or in violation of,
an appropriate certificate and appropriate operations
specifications. No person may operate as a direct air carrier or
as a commercial operator in violation of any deviation or exemption
authority, if issued to that person or that person's
representative."
14 C.F.R. § 119.33(a)(2): "A person may not operate as a direct
air carrier unless that person . . . [o]btains an Air Carrier
Certificate."
14 C.F.R. § 119.33(a)(3): "A person may not operate as a direct
air carrier unless that person . . . [o]btains operations
specifications that prescribe the authorizations, limitations, and
procedures under which each kind of operation must be conducted."
14 C.F.R. § 119.33(b)(2): "A person other than a direct air
carrier may not conduct any commercial passenger or cargo aircraft
operation for compensation or hire under part 121 or part 135 of
this chapter unless that person . . . [o]btains an Operating
Certificate."
14 C.F.R. § 119.33(b)(3): "A person other than a direct air
carrier may not conduct any commercial passenger or cargo aircraft
operation for compensation or hire under part 121 or part 135 of
this chapter unless that person . . . [o]btains operations
specifications that prescribe the authorizations, limitations, and
procedures under which each kind of operation must be conducted."
14 C.F.R. § 135.293(a): "No certificate holder may use a pilot,
nor may any person serve as a pilot, unless, since the beginning
of the 12th calendar month before that service, that pilot has
passed a written or oral test, given by the Administrator or an
authorized check pilot, on that pilot's knowledge [on specified
subjects]."
14 C.F.R § 135.293(b): "No certificate holder may use a pilot,
nor may any person serve as a pilot, in any aircraft unless, since
- 30 -
the beginning of the 12th calendar month before that service, that
pilot has passed a competency check given by the Administrator or
an authorized check pilot in that class [or type] of aircraft."
14 C.F.R. § 135.299(a): "No certificate holder may use a pilot,
nor may any person serve, as a pilot in command of a flight unless,
since the beginning of the 12th calendar month before that service,
that pilot has passed a flight check in one of the types of aircraft
which that pilot is to fly."
14 C.F.R. § 91.501(b): "Operations that may be conducted under
the rules in this subpart instead of those in parts 121, 129, 135,
and 137 of this chapter when common carriage is not involved,
include — . . .
(3) Flights for the demonstration of an airplane to
prospective customers when no charge is made except for
those specified in paragraph (d) of this section;
(4) Flights conducted by the operator of an airplane for
his personal transportation, or the transportation of
his guests when no charge, assessment, or fee is made
for the transportation;
(5) Carriage of officials, employees, guests, and
property of a company on an airplane operated by that
company, or the parent or a subsidiary of the company or
a subsidiary of the parent, when the carriage is within
the scope of, and incidental to, the business of the
company (other than transportation by air) and no
charge, assessment or fee is made for the carriage in
excess of the cost of owning, operating, and maintaining
the airplane, except that no charge of any kind may be
made for the carriage of a guest of a company, when the
carriage is not within the scope of, and incidental to,
the business of that company;
(6) The carriage of company officials, employees, and
guests of the company on an airplane operated under a
time sharing, interchange, or joint ownership agreement
as defined in paragraph (c) of this section; . . .
(9) The carriage of persons on an airplane operated by
a person in the furtherance of a business other than
transportation by air for the purpose of selling them
land, goods, or property, including franchises or
distributorships, when the carriage is within the scope
- 31 -
of, and incidental to, that business and no charge,
assessment, or fee is made for that carriage."
- 32 -
