85 

Federal Aviation Administration, DOT 

§ 14.11 

not substantially justified. Unless the 
applicant is an individual, the applica-
tion shall also state the number of em-
ployees of the applicant and describe 
briefly the type and purpose of its or-
ganization or business. 

(b) The application shall also include 

a statement that the applicant’s net 
worth does not exceed $2 million (if an 
individual) or $7 million (for all other 
applicants, including their affiliates) 
at the time the adversary adjudication 
was initiated. However, an applicant 
may omit this statement if: 

(1) It attaches a copy of a ruling by 

the Internal Revenue Service that it 
qualifies as an organization described 
in section 501(c)(3) of the Internal Rev-
enue Code (26 U.S.C. 501(c)(3)), or in the 
case of a tax-exempt organization not 
required to obtain a ruling from the In-
ternal Revenue Service on its exempt 
status, a statement that describes the 
basis for the applicant’s belief that it 
qualifies under such section; or 

(2) It states that it is a cooperative 

association as defined in section 15(a) 
of the Agricultural Marketing Act (12 
U.S.C. 1141j(a)). 

(c) The application shall state the 

amount of fees and expenses for which 
an award is sought. 

(d) The application may also include 

any other matters that the applicant 
wishes this agency to consider in deter-
mining whether and in what amount an 
award should be made. 

(e) The application shall be signed by 

the applicant or an authorized officer 
or attorney for the applicant. It shall 
also contain or be accompanied by a 
written verification under oath or 
under penalty of perjury that the infor-
mation provided in the application is 
true and correct. 

(f) If the applicant is a partnership, 

corporation, association, organization, 
or sole owner of an unincorporated 
business, the application shall state 
that the applicant did not have more 
than 500 employees at the time the ad-
versary adjudication was initiated, giv-
ing the number of its employees and 
describing briefly the type and purpose 
of its organization or business. 

§ 14.11

Net worth exhibit. 

(a) Each applicant except a qualified 

tax-exempt organization or cooperative 

association must provide with its ap-
plication a detailed exhibit showing 
the net worth of the applicant and any 
affiliates when the proceeding was ini-
tiated. If any individual, corporation, 
or other entity directly or indirectly 
controls or owns a majority of the vot-
ing shares or other interest of the ap-
plicant, or if the applicant directly or 
indirectly owns or controls a majority 
of the voting shares or other interest of 
any corporation or other entity, the 
exhibit must include a showing of the 
net worth of all such affiliates or of the 
applicant including the affiliates. The 
exhibit may be in any form convenient 
to the applicant that provides full dis-
closure of the applicant’s and its affili-
ates’ assets and liabilities and is suffi-
cient to determine whether the appli-
cant qualifies under the standards in 
this part. The administrative law judge 
may require an applicant to file addi-
tional information to determine the 
eligibility for an award. 

(b) The net worth exhibit shall de-

scribe any transfers of assets from, or 
obligations incurred by, the applicant 
or any affiliate, occurring in the one- 
year period prior to the date on which 
the proceeding was initiated, that re-
duced the net worth of the applicant 
and its affiliates below the applicable 
net worth ceiling. If there were no such 
transactions, the applicant shall so 
state. 

(c) Ordinarily, the net worth exhibit 

will be included in the public record of 
the proceeding. However, an applicant 
that objects to public disclosure of the 
net worth exhibit, or any part of it, 
may submit that portion of the exhibit 
directly to the ALJ or adjudicative of-
ficer in a sealed envelope labeled 
‘‘Confidential Financial Information,’’ 
accompanied by a motion to withhold 
the information. 

(1) The motion shall describe the in-

formation sought to be withheld and 
explain, in detail, why it should be ex-
empt under applicable law or regula-
tion, why public disclosure would ad-
versely affect the applicant, and why 
disclosure is not required in the public 
interest. 

(2) The net worth exhibit shall be 

served on the FAA counsel, but need 
not be served on any other party to the 
proceeding. 

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