Vedder Thinking | News David M. Hernandez Quoted in Law360 on Recent Opinion Involving CSI Aviation Services, Inc.
David M. Hernandez, Shareholder and Co-Chair of Vedder Price’s Regulatory and Business Aircraft practice group, was quoted in a recent Law360 article, “DC Circ. Slams DOT’s Shutdown of Travel Brokers.” The article discusses the recent opinion by the U.S. Court of Appeals for the District of Columbia Circuit to reject a U.S. Department of Transportation shutdown of air travel brokers that work with the federal government. These brokers include CSI Aviation Services, Inc., which is represented by Hernandez.
The DOT issued a cease-and-desist letter to CSI Aviation in 2009, four days before its contract renewal with the U.S. General Services Administration, explaining that it was, according to the article, in violation of the Federal Aviation Act by operating without a DOT certificate of authority. In its April 1, 2011 opinion, the DC Circuit rejected the DOT’s arguments, saying that the DOT failed to explain, as required under the Administrative Procedure Act, how it had the statutory authority to regulate CSI Aviation’s ability to enter into contracts with the federal government.
Hernandez commented favorably on the opinion, saying that “the GSA would not know what to do if we lost. All immigration, all deportation, all prisoner transport would have stopped overnight.” Hernandez added that common sense would dictate that CSI was not defrauding or tricking the government when it came to CSI for its services as a broker.
Source: Law360, April 1, 2011.