[Claim for Reimbursement of Attorney Fees]

The Department of the Interior requested a decision concerning an employee's entitlement to reimbursement for attorney fees incurred in connection with a permanent change of station. The agency disallowed the entire claim based upon regulations and GAO decisions that specifically prohibit costs of litigation. GAO has held that, except for litigation fees and costs, necessary and reasonable legal fees and costs incurred by reason of the purchase or sale of a residence incident to a permanent change of station may be reimbursed provided that the costs are within the customary range of charges for such services within the locality of the residence transaction. GAO found that: (1) the legal services were for review of the purchase contract, contacts with representatives of the seller, and conferences with the employee; and (2) the attorney fees were necessary and reasonable. Accordingly, the attorney fees may be reimbursed to the extent that they do not exceed the rates normally charged in the area for the services rendered.