Multifamily Landlord Sues Austin-Area Builders For Burst Pipe Damage In 2023

The winter storm system that passed through Central Texas over the weekend may have led to some burst pipes and other headaches for landlords, but it wasn’t the culprit behind a new lawsuit involving a very expensive burst pipe in an East Austin apartment complex.

Greystar Real Estate, one of the largest landlords in the U.S., along with its insurance companies, has filed suit against several builders after a burst pipe caused more than $10M in damage at an apartment complex in East Austin in 2023, according to The Austin American Statesman.

Work on the building was conducted by San Antonio-based Bartlett Cocke General Contractors and its subcontractors. 

South Carolina-based Greystar alleges in its suit that the builders hold the blame for the damage at Urban East Apartments, which has 381 units near Montopolis and East Riverside.

Plumbers allegedly improperly installed the hot water system in one of the complex’s buildings, failing to install a thermostatic mixing valve that would have limited water temperatures, the lawsuit states.

When the apartment complex turned on its boilers in December 2023, the water temperature reached the system’s maximum of 180 degrees. The intensity of the heat allegedly caused a PVC pipe on the building’s fourth floor to separate from the piping system. The pipe began to leak, and damage spread throughout the property.

Greystar filed the lawsuit nearly two years after the damage was done and after insurance companies paid $10M for repairs. The case moved this month to the Texas Business Court, Third Division in Austin.

The plaintiffs now seek damages for negligence against Bartlett Cocke as well as subcontractors Liberty-Hill based Basey Plumbing, Houston-based FCS Mechanical, plumber Enrique Corona Ramirez and Austin-based Nichols Engineering. 

Greystar alleges that each defendant holds some blame, pointing out instances of poor oversight, improper installation and failure to review and reduce temperatures.

Allianz Underwriters, Steadfast Insurance Co. and Starr Surplus Lines Insurance Co. are also suing in an attempt to get back insurance payouts.