FAA Settlements Block Pilots from Recouping Legal Costs, GAO Report Finds

Pilots and mechanics who settle enforcement actions with the Federal Aviation Administration (FAA) are routinely required to waive their rights to recover legal fees, potentially limiting protections designed to guard against government overreach, according to a new report released by the U.S. Government Accountability Office (GAO).

The report, mandated under the 2024 FAA Reauthorization Act, reviewed agency practices from fiscal years 2019 through 2023. During that period, the FAA pursued roughly 2,200 enforcement actions resulting in certificate suspensions or revocations. About 10% of those cases ended in settlement agreements, which included clauses waiving potential attorney’s fee recovery under the Equal Access to Justice Act (EAJA). This federal law typically allows individuals to reclaim legal costs if they prevail against the government in certain cases and meet eligibility criteria.

Aviation attorneys and industry organizations interviewed by GAO warned that such waivers undermine the intended legal checks on federal enforcement. They argued the practice can discourage attorneys from taking on FAA cases due to the diminished likelihood of fee reimbursement and reduce FAA accountability by limiting opportunities to assess weaknesses in the agency’s enforcement approach.

FAA officials defended the policy, asserting that settlements generally involve FAA prevailing in the case, rendering individuals ineligible for EAJA awards even without waivers. The agency also said the waiver requirement helps conserve staff resources and ensures all claims are resolved within a single agreement. Officials from the U.S. Coast Guard and National Marine Fisheries Service reported similar practices, citing comparable reasons for requiring EAJA waivers in their own settlements.

While the practice remains legally permissible, the GAO report highlights an ongoing debate over balancing efficient government enforcement with fair access to legal recourse for those facing disciplinary action from federal agencies.

Article by multiple contributors, based upon information from a press release by the U.S. Government Accountability Office.

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