Greystar Real Estate, one of the biggest landlords in the nation, and its insurance companies are suing several builders after a hot water hiccup it says caused more than $10 million in damage at an Austin apartment complex.

The lawsuit alleges that faulty work done by San Antonio-based Bartlett Cocke General Contractors and its subcontractors Liberty-Hill based Basey Plumbing, Houston-based FCS Mechanical, Enrique Corona Ramirez and Austin-based Nichols Engineering is to blame for the damages at Urban East Apartments in East Austin.

It alleges that plumbers neglected the hot water system in Building 1, failing to install a thermostatic mixing valve that would have limited water temperatures. The system didn’t comply with plumbing code requirements, the suit says. 

As a result, when the apartment complex fired up its boilers in December 2023, the water was nearing the system’s maximum of 180 degrees at all times. Plumbing code for water in domestic installations calls for temperatures of about 120 degrees.

The continuously hot water warped a PVC pipe on the building’s fourth floor, Greystar says. That caused it to separate from a T-fitting, resulting in the leak. The resulting deluge caused damage throughout the building.

Greystar is a massive global residential company based in South Carolina with assets worth tens of billions of dollars worldwide. It’s also involved in the redevelopment of the former downtown offices of the Austin American-Statesman. Bartlett Cocke is a general contracting firm based in San Antonio that says it has $1 billion dollars in annual revenue. 

Urban East Apartments, which has 381 units near Montopolis and East Riverside, began listing rentals in 2023. It wasn’t clear from Greystar’s filing if leasing delays were caused by the damage. 

The lawsuit was filed nearly two years after the damage and after insurance companies paid $10 million for repairs. The case was moved last week to the 3rd Business Court Division in Austin. It seeks damages for negligence against Bartlett Cocke, Basey Plumbing, Corona, who was a plumbing subcontractor, Nichols engineering, and FCS Mechanical.

Each of the defendants hold some amount of responsibility for the damages, Greystar says. That ranges from oversight by Bartlett Cocke and Nichols Engineering to improper installation by Basey and Corona of the plumbing and the failure by FCS Mechanical to check and reduce the boiler temperatures. 

Allianz Underwriters in Chicago along with Steadfast Insurance Co. and Starr Surplus Lines Insurance Co. are suing to recoup some or all of its insurance payout. It isn’t clear from the petition how much they are seeking. 

Texas Business Courts were created in 2024 to take on complex business litigation in cases seeking more than $5 million in damages. 

Attorneys for Bartlett Cocke did not return calls or emails seeking comment. Other defendants couldn’t be reached or calls went unanswered.Â