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[Claim for Attorney's Fees Incident to Settlement of Unexpired Lease]

B-215206 Oct 24, 1984
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Highlights

A decision was requested regarding the entitlement of a Fish and Wildlife Service employee to reimbursement for legal fees and court costs he incurred incident to the settlement of his unexpired lease when he was transferred. The employee's landlord filed suit to settle the lease, but sold the property and settled for a lesser amount. GAO held that the employee was entitled to reimbursement because: (1) his lease provided that he was liable for legal fees and court costs in the event of default; (2) he acted reasonably in retaining an attorney in the face of a threatened lawsuit; and (3) the legal fees and court costs were reasonable in proportion to the magnitude of the potential damages. Accordingly, the claim was allowed.

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