Facts

In 2009, HKS Inc. struck a deal with U.S. General Service Administration to provide architectural services on a federal building renovation. While the agency favored a "green building" concept, it stressed that the budget might not allow it. Despite the doubts, two firms that HKS hired as consultants felt pressured to accommodate this design vision. They devoted time to trying to meet unrealistic project deadlines and to meet a design that did not realistically fit into the stated budget.

HKS then notified the firms in 2010 that the GSA had decided to go with another team of architects and designers and terminated their employment.

The firms filed a federal complaint, arguing that the termination for cause lacked legal and factual basis. They also argued that HKS failed to pay them for their work until the date of termination.

HKS filed counterclaims arguing that the firms violated the constraints of the budget, scope and schedule, and that they failed to appreciate design requirements in their agreements and directives.

Result

The Court dismissed the counterclaims against the consultant firms.