Sondland v. Pompeo Highlights the Financial Vulnerabilities of Federal Managers

Recently, news broke that former Ambassador Gordon Sondland, a key witness in the 2019 impeachment probe, is suing former Secretary of State Mike Pompeo and the U.S. government for recoupment of $1.8 million in attorney’s fees.  Sondland claims that while the Department of State declined to provide him representation in the impeachment trial, Secretary Pompeo advised him to hire outside counsel with the assurance that all legal fees would be reimbursed by the federal government.  After the trial and Sondland’s testimony, Sondland was fired from his position and he alleges the promise to reimburse him was not kept.  Sondland is now demanding to be made whole for his legal defense costs, whether by the U.S. government or by Pompeo personally.

For high-ranking federal officials such as former Ambassador Sondland and Secretary Pompeo, this lawsuit underscores the importance of having a PLI policy in place for two reasons.  First, having FEDS Protection PLI means insured members have access to legal representation in the event of a Congressional investigation or impeachment proceeding.  If someone in former Ambassador Sondland’s position was covered with FEDS, they could have been provided with legal representation through the FEDS program and would not need to retain private counsel.  For example, Ambassador Bill Taylor was represented by FEDS for his testimony during the same impeachment trial.  When the withering eye and scrutiny of Congress focuses on career federal employees, having a PLI policy such as FEDS can make all the difference in their defense.

Second, former Secretary Pompeo’s current legal battle is an example of a scary reality for federal managers in decision-making positions:  you can be sued in your personal capacity for actions taken in the scope of your federal employment and you can be held financially responsible.  Sondland’s lawsuit argues that Pompeo’s actions should not be guarded by governmental immunity because he had self-serving ulterior motives behind the promise he made.  If the court rules in Sondland’s favor, Pompeo could be held liable for nearly $2 million in damages. Even if he is ultimately vindicated and Sondland’s allegations are deemed baseless, Pompeo will likely incur hefty legal defense fees.  If Pompeo’s actions were indeed within the scope of his duties, a PLI policy would defend against and help alleviate the financial burden of personal capacity lawsuits.

You don’t want to be left to defend yourself from allegations—FEDS Protection PLI can help.  FEDS offers policies with $1 million, $2 million, or $3 million for legal defense and indemnity for personal capacity lawsuits.  Additionally, all policies include $200,000 in coverage for administrative actions and $100,000 in coverage for criminal investigations.  Annual premiums for FEDS Protection PLI start at $290, which is less than it would cost to hire a federal employment lawyer for an hour.  To learn more about how a FEDS PLI policy can protect you and your career, visit http://www.fedsprotection.com or call (866) 955-FEDS, M-F 8:30am-6pm to speak directly to a representative.

*This article is provided for informational purposes only and does not constitute legal advice.