Withdrawal and settlement procedures

A complainant may withdraw a SPA complaint at any time prior to objections by notifying the Assistant Secretary orally or in writing. The Assistant Secretary will then confirm the complainant's desire to withdraw in writing and decide whether to approve the withdrawal, and will notify the parties (and their counsel) if approved Under 1986.111(a).

• If the withdrawal is because of a settlement, that settlement must be submitted for approval under paragraph (d) Under 1986.111(d).
• A complainant cannot withdraw after objections to the Assistant Secretary's findings and/or preliminary order have been filed Under 1986.111(a).

A complainant can withdraw the complaint either orally or in writing before objections are filed. The Assistant Secretary will then confirm the withdrawal in writing and decide whether to approve it Under 1986.111(a).

• Even if the initial notice is oral, expect the Assistant Secretary to provide written confirmation of the withdrawal decision.

A complainant may not withdraw his or her complaint after objections to the Assistant Secretary's findings and/or preliminary order have been filed. The right to withdraw as described in 1986.111(a) ends once objections are filed Under 1986.111(a).

• If objections have been filed, settlement or withdrawal would proceed under the adjudicatory settlement rules in 1986.111(d)(2) and require approval by the ALJ or ARB as applicable Under 1986.111(d)(2).

The Assistant Secretary may withdraw the findings and/or preliminary order and substitute new findings and/or a new preliminary order at any time before the 30-day objection period expires, provided no objection has yet been filed Under 1986.111(b).

• The substituted findings or order restart a new 30-day objection period beginning on the date the substituted document is received See 1986.106 regarding the objection period.

Substituted findings or a substituted preliminary order restart the 30-day objection period, giving parties a fresh opportunity to object to the new document. The date of receipt of the substituted findings or order begins the new 30-day objection period Under 1986.111(b) and see 1986.106 for the objection period rules.

• Practically, parties should watch for substituted documents because they extend the pre-final timeline and re-open the objection window.

A party may withdraw objections to the Assistant Secretary's findings or preliminary order at any time before the findings become final by filing a written withdrawal with the Administrative Law Judge (ALJ). The ALJ will decide whether to approve the withdrawal Under 1986.111(c).

• If the ALJ approves the withdrawal and there are no other pending objections, the Assistant Secretary's findings or order becomes the final order of the Secretary Under 1986.111(c).

If the case is on review with the Administrative Review Board (ARB), a party may withdraw a petition for review at any time before the ALJ's decision becomes final by filing a written withdrawal with the ARB; the ARB will decide whether to approve the withdrawal Under 1986.111(c).

• If the ARB approves the withdrawal and there are no other pending petitions, the ALJ's decision becomes the final order of the Secretary Under 1986.111(c).

An investigative settlement is a settlement agreed to by the Assistant Secretary, the complainant, and the respondent after a SPA complaint has been filed but before objections are filed or the findings become final; it can occur at any time in that window if all three agree Under 1986.111(d)(1).

• Assistant Secretary approval of such a settlement demonstrates the consent of all three parties and ends the case as an agreed resolution Under 1986.111(d)(1).

An adjudicatory settlement is a settlement reached after objections to the Assistant Secretary's findings and/or order have been filed; it must be approved by the ALJ if the case is before the ALJ or by the ARB if the ARB has accepted the case for review Under 1986.111(d)(2).

• A copy of the settlement must be filed with the ALJ or the ARB as appropriate Under 1986.111(d)(2).

If objections or a petition for review are withdrawn because of settlement, the settlement must be submitted for approval in accordance with paragraph (d) — either as an investigative settlement approved by the Assistant Secretary or as an adjudicatory settlement approved by the ALJ or ARB Under 1986.111(d).

• Do not assume withdrawal equals final resolution until the required authority (Assistant Secretary, ALJ, or ARB) approves the settlement Under 1986.111(d).

Any settlement approved by the Assistant Secretary, the ALJ, or the ARB becomes the final order of the Secretary and may be enforced in a United States district court under 49 U.S.C. 31105(e), as incorporated by 46 U.S.C. 2114(b) Under 1986.111(e).

• In practice, that means a party can seek district court enforcement if a settlement's terms are not followed Under 1986.111(e).

If a withdrawal is approved, the Assistant Secretary will notify the parties and each party's legal counsel if they are represented by counsel Under 1986.111(a).

• Expect written notification from the Assistant Secretary confirming the approval of the withdrawal.

No—an investigative settlement approved by the Assistant Secretary demonstrates the consent of all three parties (Assistant Secretary, complainant, respondent) and does not require filing with the ALJ or ARB because it resolves the case during the investigative stage Under 1986.111(d)(1).

• If objections are already filed, however, the settlement becomes adjudicatory and must be filed with the ALJ or ARB and approved under 1986.111(d)(2) Under 1986.111(d)(2).

Parties should prepare a written settlement agreement and file a copy with the ALJ if the case is before the ALJ, or with the ARB if the ARB has accepted the case for review; the judge or ARB will then decide whether to approve the settlement Under 1986.111(d)(2).

• Make sure the settlement explicitly states the agreed terms and that all participating parties sign it before submission for approval.

If the ALJ approves a request to withdraw objections and there are other pending objections, the Assistant Secretary's findings and/or order do not automatically become final; they become final only when there are no other pending objections Under 1986.111(c).

• The ALJ will evaluate the motion to withdraw but the presence of remaining objections prevents immediate finality of the Assistant Secretary's findings.

Yes—settlements can be reached at multiple points: during the investigative phase (before objections are filed) as investigative settlements requiring Assistant Secretary approval, and after objections are filed as adjudicatory settlements requiring ALJ or ARB approval Under 1986.111(d)(1) and 1986.111(d)(2).

• Always submit the settlement for the proper approval depending on whether objections have been filed See 1986.111(d).

Parties should promptly review the substituted findings or order and note that the receipt date of the substituted document starts a new 30-day objection period, so they must act within that renewed window if they intend to file objections Under 1986.111(b) and see 1986.106 for the objection period rules.

• Missing the new 30-day period can foreclose an opportunity to object to the substituted findings.

If a settlement approved by the Assistant Secretary, ALJ, or ARB is breached, the settlement is a final order of the Secretary and may be enforced in a United States district court pursuant to 49 U.S.C. 31105(e), as incorporated by 46 U.S.C. 2114(b) Under 1986.111(e).

• Practically, that means the non-breaching party can pursue federal-court enforcement of the settlement terms.

No—if a withdrawal occurs because of settlement, the settlement must still be submitted for approval under paragraph (d) and approved by the Assistant Secretary (investigative) or by the ALJ/ARB (adjudicatory) before the case is finally resolved Under 1986.111(a) and 1986.111(d).

• Do not assume that a signed agreement among parties is sufficient; obtain the required approval to make it a final order.

If the ARB approves a request to withdraw a petition for review and there are no other pending petitions for that ALJ decision, the ALJ's decision becomes the final order of the Secretary Under 1986.111(c).

• This converts the ALJ's decision into a final agency order when review petitions are withdrawn with ARB approval.

An investigative settlement requires agreement by the Assistant Secretary, the complainant, and the respondent, and the Assistant Secretary's approval demonstrates the consent of all three parties and resolves the case Under 1986.111(d)(1).

• Without the Assistant Secretary's approval, the investigative settlement is not effective as the final order of the Secretary.