Jeffrey A. Tobin, B-182276
| Decision Date | 10 April 1975 |
| Docket Number | B-182276 |
| Court | Comptroller General of the United States |
| Parties | JEFFREY A. TOBIN - RELOCATION EXPENSES - UNEXPIRED LEASE |
1. Where employee signed 23-month lease as one of two co-tenants, and later released, in writing, other co-tenant so that when he was transferred he was the sole occupant of apartment, and, actually paid all termination expenses, for purposes of reimbursement of expenses of settling unexpired lease, he May be considered to be sole tenant, since he would ultimately have to bear full legal responsibility for remaining rent. 2. Where employee was transferred from New York with 11 months remaining on lease, and made reasonable efforts to sublease apartment, he May be reimbursed for full cost of lease settlement ($1, 340 out of total possible rent of $2, 250) since, under New York law, landlord had no duty to mitigate damages. No interest is payable on this settlement.
This matter is before us based upon a request for reconsideration of certificate of settlement z-2541731, issued August 20 1974, by our transportation and claims division, partially disallowing Mr. Jeffrey A. Tobin's claim for reimbursement of expenses incurred in settling an unexpired lease at the time of his transfer of permanent station.
Under the authority of travel authorization oio 74-11, dated September 10, 1973, Mr. Tobin, an employee of the internal revenue service, was transferred from New York, New York, to Washington, D.C. According to the record before us, Mr. Tobin was advised by a letter dated August 28, 1973, that he would be transferred, and that he was to report to his new duty station on October 1, 1973. However, he did not see this letter until September 8, 1973, when he returned from a trip outside the country. His lease permitted subletting only with the landlord's consent. Mr. Tobin placed a newspaper advertisement in an attempt to sublease. Additionally, the building superintendent showed the apartment to prospective tenants, but Mr. Tobin met with no success, at least partially because the apartment was a "4th floor walk up." During the early negotiations to terminate the lease, the landlord insisted that all of the rent to the end of the lease be paid. The term of the lease was to run until July 31, 1974, at a rental of $225 per month.
Finally Mr. Tobin obtained an agreement with the landlord to pay $1 340 to be released from the lease. This amount was to be made up of a $900 cash payment and the retention by the landlord of the $440 security deposit. By mutual releases signed October 22, 1973, by the landlord and Mr. Tobin and his former co-tenant, all parties were relieved of all further liability with regard to the lease.
The lease was originally executed on July 22, 1972, to run from September 1, 1972, to July 31, 1974, at a rental of $215 per month for the first year and $225 per month for the last 11 months. The lease was executed by jeffrey tobin and MARC friedman as co-tenants. They remained in that status until April 22, 1973, when Mr. Friedman moved out and Mr. Tobin released Mr. Friedman from all further liability to him under the lease in exchange for $600. The release was written signed by both parties, and witnessed, although the original lease with both signatures was never amended. Mr. Friedman paid $400 of the $600 called for in the release, but he refused to pay the final $200 contending that he and Mr. Tobin had agreed to divide the security deposit equally when it was returned at the end of the lease. He stated that since Mr. Tobin had agreed to forfeit the entire security deposit, he had given away Mr. Friedman's share, therefore Mr. Friedman would recoup by not paying the final $200.
Following his transfer, Mr. Tobin submitted a claim for reimbursement of the entire $1, 340 he paid to settle his unexpired lease. Our transportation and claims division allowed only $670 on the grounds that since he shared responsibility under the lease with...
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