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B-168476, JUN. 12, 1970

B-168476 Jun 12, 1970
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THE CLAIM WAS DISALLOWED BY OUR DECISION OF JANUARY 19. BECAUSE THE FEE INVOLVED APPEARED TO BE FOR ADVISORY SERVICES WHICH ARE NOT REIMBURSABLE. HOEFER HAS FURNISHED A LETTER FROM THE ATTORNEY WHO REPRESENTED HIM IN THE TRANSACTION WHICH READS IN PART AS FOLLOWS: "THIS CLOSING FEE IS FOR THE TIME INVOLVED IN THE CLOSING OF YOUR PURCHASE OF THE HOUSE AND FOR THE CLOSING OF THE LOAN BY THE ROUTT COUNTY FEDERAL SAVINGS AND LOAN ASSOCIATION. MY USUAL AND CUSTOMARY FEE FOR CLOSING OF THE LOAN IS $35.00. THE ADDITIONAL $15.00 WAS FOR THE CLOSING OF THE SALE WITH THE SELLERS. AS YOU WILL REALIZE. THE TIME WAS MAINLY SPENT IN RE-DRAFTING OF DOCUMENTS AND NEGOTIATIONS BETWEEN YOURSELF AND THE SELLER.

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B-168476, JUN. 12, 1970

TO MR. WILLIAM H. MCCRUM:

THIS REFERS TO YOUR LETTER OF MAY 7, 1970, REFERENCE 6540, REQUESTING AN ADVANCE DECISION AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT THE RECLAIM VOUCHER OF MR. DAVID R. W. HOEFER COVERING REIMBURSEMENT OF CERTAIN ATTORNEY FEES PAID BY HIM.

THE CLAIM AROSE INCIDENT TO A PURCHASE OF A RESIDENCE UPON TRANSFER OF THE EMPLOYEE'S DUTY STATION. THE CLAIM WAS DISALLOWED BY OUR DECISION OF JANUARY 19, 1970, B-168476, BECAUSE THE FEE INVOLVED APPEARED TO BE FOR ADVISORY SERVICES WHICH ARE NOT REIMBURSABLE.

IN SUPPORT OF HIS CLAIM MR. HOEFER HAS FURNISHED A LETTER FROM THE ATTORNEY WHO REPRESENTED HIM IN THE TRANSACTION WHICH READS IN PART AS FOLLOWS:

"THIS CLOSING FEE IS FOR THE TIME INVOLVED IN THE CLOSING OF YOUR PURCHASE OF THE HOUSE AND FOR THE CLOSING OF THE LOAN BY THE ROUTT COUNTY FEDERAL SAVINGS AND LOAN ASSOCIATION. MY USUAL AND CUSTOMARY FEE FOR CLOSING OF THE LOAN IS $35.00. THE ADDITIONAL $15.00 WAS FOR THE CLOSING OF THE SALE WITH THE SELLERS. AS YOU WILL REALIZE, WE SPENT OVER FOUR HOURS IN CONSUMMATING THE SALE AND AGREEMENTS. THE TIME WAS MAINLY SPENT IN RE-DRAFTING OF DOCUMENTS AND NEGOTIATIONS BETWEEN YOURSELF AND THE SELLER. AS YOU WELL REALIZE, THIS WAS A TIME CONSUMING CLOSING, THE SELLERS MINUTELY EXAMINING EVERY DOCUMENT AND ENTRY ON THE CLOSING STATEMENT AND DEED WHICH THEY WERE ASKED TO EXECUTE. AS I RECALL, NONE OF THIS TIME WAS INVOLVED IN ADVISING YOU OR ON A CONSULTING BASIS WITH YOU. THE TIME WAS SPENT WITH THE SELLERS, YOURSELF AND ME, IN AN ATTEMPT TO COMPLETE THE PURCHASE OF THE PREMISES AND THE RELATED EXECUTION OF THE INSTRUMENTS."

SECTION 4.2C OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966, PROVIDES THAT TO THE EXTENT SUCH COSTS HAVE NOT BEEN INCLUDED IN THE BROKERS' OR SIMILAR SERVICES FOR WHICH REIMBURSEMENT IS CLAIMED UNDER OTHER CATEGORIES, CUSTOMARY COSTS OF SEARCHING TITLE, PREPARING CONVEYANCES AND OTHER INSTRUMENTS, AND PREPARING CONTRACTS, RELATED NOTARY FEES, RECORDING FEES, MAKING SURVEYS, PREPARING DRAWINGS OR PLATS WHEN REQUIRED FOR LEGAL OR FINANCING PURPOSES, AND SIMILAR EXPENSES, MAY BE REIMBURSED EITHER WITH RESPECT TO SALE OF THE RESIDENCE AT THE OLD OFFICIAL STATION OR PURCHASE OF A DWELLING AT THE NEW OFFICIAL STATION, BUT THE SAME TYPES OF COSTS SHALL NOT BE PAID AT BOTH LOCATIONS.

IN OUR DECISION OF DECEMBER 5, 1967, B-162858 (COPY ENCLOSED), WE POINTED OUT THAT SECTION 4.2C DOES NOT PURPORT TO AUTHORIZE REIMBURSEMENT OF FEES OF ATTORNEYS RETAINED BY EMPLOYEES TO REPRESENT AND COUNSEL THEM IN REAL ESTATE TRANSACTIONS. SEE ALSO ENCLOSED COPIES OF B-163203, MARCH 1, 1968, AND OF B-163690, MARCH 29, 1968, WHEREIN WE POINTED OUT, IN EFFECT, THAT A FEE FOR ATTENDANCE AT A CLOSING IS NOT REIMBURSABLE.

IN HIS LETTER OF MARCH 16, 1970, THE ATTORNEY REFERS TO REDRAFTING OF LEGAL DOCUMENTS. HOWEVER, HE DOES NOT IDENTIFY THEM NOR THE AMOUNT ALLOCABLE FOR PREPARING THOSE ITEMS. THE FILE SHOWS THAT SPECIFIC FEES WERE CHARGED FOR DRAWING THE AGREEMENT, THE NOTE, AND THE TRUST DEED AND WERE LISTED AS SEPARATE ITEMS OF COST. THE REGULATION MAKES NO PROVISION FOR PAYMENT OF AN ALL INCLUSIVE SERVICE "LEGAL FEES."

THEREFORE, UNLESS AND UNTIL THERE IS FURNISHED ACCEPTABLE EVIDENCE WHICH MEETS THE REQUIREMENTS OF SECTION 4.2C CONCERNING LEGAL EXPENSES AND RELATED COSTS, NO PART OF THE $50 CLAIMED IS ALLOWABLE.

THE VOUCHER, RETURNED HEREWITH, MAY NOT BE CERTIFIED FOR PAYMENT.

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