The U.S. State Department has agreed to pay $1.1 million to settle a lawsuit filed by Gordon Sondland, the former U.S. ambassador to the European Union, over unpaid legal fees tied to his role in the first impeachment of former President Donald Trump.
Sondland, a hotel magnate and Republican donor, testified in 2019 about Trump’s interactions with Ukraine—testimony that placed him at the center of the impeachment inquiry. He was dismissed from his post in 2020 and later claimed that the State Department broke an oral promise to cover his legal costs, which totaled $1.8 million.
In his 2021 lawsuit, Sondland accused the government of breaching that promise. Although former Secretary of State Mike Pompeo denied ever agreeing to pay the fees, Sondland maintained that senior State Department officials had made clear commitments.
The case proceeded to a bench trial in January at the U.S. Court of Federal Claims, but the two sides reached a settlement before the court issued a final ruling. Federal records show the $1.1 million payment was made on March 31.
“Ambassador Sondland simply sought to hold the government accountable for the clear and unequivocal commitments made to him,” said his lawyer, Mark Barondess. He described the outcome as “a rare example of the government being bound to an oral agreement,” something courts typically enforce only under highly specific circumstances.
Sondland was represented during the impeachment by a team from the law firm Paul Hastings, including high-profile litigators Robert Luskin and Kwame Manley. At trial, Manley—now the firm’s global head of litigation—testified that the firm’s work for Sondland was intense, fast-paced, and crucial. He noted that his billing rate was around $1,900 per hour and emphasized the urgency of navigating high-level congressional investigations.
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