United States Second Circuit

In an action arising out of the refusal by defendant, the United States Department of Housing and Urban Development (HUD) to authorize reimbursement of the defense costs of plaintiff, who in 2004 was Corporation Counsel for the City of Middletown, and incurred these costs successfully defending criminal charges stemming from a series of transactions that involved Middletown's use of funds it received from HUD, the district court's order affirming HUD's refusal is reversed and HUD is ordered to authorize reimbursement where: 1) HUD acted arbitrarily and capriciously by incorrectly determining that plaintiff's legal fees were a result of plaintiff's acting solely as the mayor's private counsel; and 2) the legal fees and expenses incurred by plaintiff in successfully defending the criminal charges are legal expenses required in the administration of federal programs under the OMB Circular.

Appellate Information

• Decided 02/26/2014
• Published 02/26/2014

Judges

• WALKER

Court

• United States Second Circuit

Counsel