[Code of Federal Regulations]
[Title 49, Volume 5]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR386.14]

[Page 263-264]
 
                        TITLE 49--TRANSPORTATION
 
                      DEPARTMENT OF TRANSPORTATION
 
PART 386_RULES OF PRACTICE FOR MOTOR CARRIER, BROKER, FREIGHT FORWARDER, 
AND HAZARDOUS MATERIALS PROCEEDINGS--Table of Contents
 
            Subpart B_Commencement of Proceedings, Pleadings
 
Sec.  386.14  Reply.

    (a) Time for reply to the Notice of Claim. Respondent must serve a 
reply to the Notice of Claim in writing within 30 days following service 
of the Notice of Claim. The reply is to be served in accordance with 
Sec.  386.6 upon the Service Center indicated in the Notice of Claim.
    (b) Options for reply. The respondent must reply to the Notice of 
Claim within the time allotted by choosing one of the following:
    (1) Paying the full amount asserted in the Notice of Claim in 
accordance with Sec.  386.18 of this part;
    (2) Contesting the claim by requesting administrative adjudication 
pursuant to paragraph (d) of this section; or
    (3) Seeking binding arbitration in accordance with the Agency's 
program. Although the amount of the proposed penalty may be disputed, 
referral to binding arbitration is contingent upon an admission of 
liability that the violations occurred.
    (c) Failure to answer the Notice of Claim. (1) Respondent's failure 
to answer the Notice of Claim in accordance with paragraph (a) may 
result in the issuance of a Notice of Default and Final Agency Order by 
the Field Administrator. The Notice of Default and Final Agency Order 
will declare respondent to be in default and further declare the Notice 
of Claim, including the civil penalty proposed in the Notice of Claim, 
to be the Final Agency Order in the proceeding. The Final Agency Order 
will be effective five days following service of the Notice of Default 
and Final Agency Order.
    (2) The default constitutes an admission of all facts alleged in the 
Notice of Claim and a waiver of respondent's opportunity to contest the 
claim. The default will be reviewed by the Assistant Administrator in 
accordance with Sec.  386.64(b), and the Final Agency Order may be 
vacated where a respondent demonstrates excusable neglect, a meritorious 
defense, or due diligence in seeking relief.
    (3) Failure to pay the civil penalty as directed in a Final Agency 
Order constitutes a violation of that order, subjecting the respondent 
to an additional penalty as prescribed in Subpart G of this part.
    (d) Request for administrative adjudication. The respondent may 
contest the claim and request administrative adjudication pursuant to 
paragraph (b)(2) of this section. An administrative adjudication is a 
process to resolve contested claims before the Assistant Administrator, 
Administrative Law Judge, or Hearing Officer. Once an administrative 
adjudication option is elected, it is binding on the respondent.
    (1) Contents. In addition to the general requirements of this 
section, the

[[Page 264]]

reply must be in writing and state the grounds for contesting the claim 
and must raise any affirmative defenses the respondent intends to 
assert. Specifically, the reply:
    (i) Must admit or deny each separately stated and numbered 
allegation of violation in the claim. A statement that the person is 
without sufficient knowledge or information to admit or deny will have 
the effect of a denial. Any allegation in the claim not specifically 
denied in the reply is deemed admitted. A mere general denial of the 
claim is insufficient and may result in a default being entered by the 
Agency decisionmaker upon motion by the Field Administrator.
    (ii) Must include all known affirmative defenses, including those 
relating to jurisdiction, limitations, and procedure.
    (iii) Must state which one of the following options respondent 
seeks:
    (A) To submit written evidence without hearing; or
    (B) An informal hearing; or
    (C) A formal hearing.
    (2) [Reserved]

[70 FR 28481, May 18, 2005]