Sickened Employees at Kimley-Horn Lead to Multimillion Dollar Rent Dispute
Last month Kimley-Horn employees returned to their customary desks in a Reston, Va. office building, certain now that the indoor air pollutants they believe had sickened about half of them had fallen back to safe levels. What’s left of the health scare and temporary relocation of more than 200 employees is a multimillion dollar lawsuit in federal court between the company and its landlord.
The conflict pits an engineer and consultant that provides environmental services against one of the area’s major office owners. It denies that a health hazard existed.
Which side will prevail in the nasty, multmillion dollar lawsuit is far from certain.
Headquartered in Raleigh, N.C., Kimley-Horn has 19 offices and employs around 8,000 people. About 220 work on three floors of a Reston, Va., building—11400 Commerce Park Drive—owned by CRS Commerce Center, where the lease extends to 2033.
According to a photo on the developer’s website, Kimley-Horn’s name is on the exterior of the building, near the roof. “This Commerce District property has recently been renovated,” the website states.
The legal battle is taking place in an Alexandria, Va., court, with CRS Commerce Center suing Kimley-Horn for rent withheld and Kimley-Horn countersuing for breach of contract. On Aug. 25th Kimley-Horn filed a fresh pleading to back up its request for a partial verdict from the judge without a full jury trial.
A tenant since 2011, Kimley-Horn eventually rented three office suites encompassing about 78,000 sq ft.
In Nov. 2023, Kimley-Horn employees started getting sick, according to the company’s court complaint, with symptoms that suggested exposure to volatile organic compounds (VOCs). About half the staff were affected by headaches, dizziness, nausea, eye irritation and respiratory issues, according to court documents.
At higher levels, VOCs may lead to more severe symptoms like confusion, memory impairment or damage to the liver and kidneys. Three employees experienced seizures, Kimley-Horn reported, although the seizures happened outside the offices and several months after being relocated.
Exactly where the dangerous compounds came from is something of a mystery, noted a Virginia publication at the time.
Construction or renovation work was apparently taking part in sections of the broader development owned by Comstock Holding Companies, an affiliate of the landlord, whose building is near the Silver Line Metro station in Reston.
In Aug. 2024. Kimley-Horn’s consultant performed VOC tests that found levels approximately four to five times the safe threshold, prompting the decision to vacate the space., court documents show. Kimley-Horn continued to monitor the air quality even after it evacuated, citing levels significantly above the safe levels of trichloroethene, benzene, ethylbenzene, methylene chloride and tetrachloroethene.
Did Unsafe Pollutants Persist?
Tests showed the levels remained high, at 17,000 to 18,000 ng/L on the fourth floor, 26,000 ng/L on the fifth floor, and 19,000 ng/L on the sixth floor. High levels of TVOC were also found on the daycare center’s floor where many Kimley-Horn’s employees’ children were enrolled.
When Kimley-Horn moved out, it was paying a yearly $973,000 a year in rent, according to the lease document in the court filings.
A year ago CRS delivered a notice of default that Kimley-Horn had not met its rent obligation by failing to pay rent and related charges. The developer asked the court to enforce the lease terms and for accelerated rent and damages exceeding $75,000. The complaint emphasizes Kimley-Horn’s ongoing obligations under the lease, which has been in effect since 2011.
Kimley-Horn claims it was forced to leave the offices by the health hazard and that CRS defaulted under the lease by allowing the air pollution, violating express lease terms and breaching the covenant of quiet enjoyment. The engineer also alleged a breach of the implied duty of good faith and fair dealing under Virginia law, arguing that CRS failed to maintain a safe environment, and a failure to warn about potential hazards.
Kimley-Horn “seeks reimbursement for temporary office spaces for its employees, air scrubbers that it never used inside the premises, and other costs.”
From there the allegations get very specific in the now year-long litigation.
In it, Kimley-Horn claimed CRS had its own report on the VOC levels showing the hazard.
CRS, for its part, did not address that claim specifically but  countered that an evaluation of levels by the Environmental Protection Agency “do not” indicate an unsafe condition.
Last November, Comstock Partners, LC announced the initiation of “collection proceedings” against Kimley-Horn for approximately $25 million in total damages, including unpaid rent.
No other building other tenants reported problems, said CRS.
A Kimley-Horm representative declined to comment due to the ongoing legal proceedings. CRS did not reply to a request for comment.
According to Kimley-Horn’s counterclaim, “most workers reported that their symptoms had “dissipate” after leaving the building in in Aug. 2024, suggesting short-term exposure effects had resolved for most workers affected once they had changed work location. However, “some of them are still struggling with health issues related to their exposure to the VOCs,” implying that for some there are longer term issues, claimed Kimley-Horn.
After Kimley-Horn filed the motion for a partial summary judgement. CRS countered by asserting that genuine issues of material fact—such as the validity of Kimley-Horn’s VOC-level assumptions—remained and that Kimley-Horn’s claims are legally unfounded.
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