Residents flooded out of 33 Tehama high-rise in SF sue landlord, claim theft by contractors

SAN FRANCISCO -- Residents displaced from a San Francisco luxury high-rise after a massive flood cascaded through multiple floors filed a lawsuit accusing the landlord of not maintaining the property and botching the cleanup and compensation to residents. 

Separately, residents claimed contractors hired by the landlord burglarized vacated units and illegally used their residents' names to procure hotel rooms that they never used.

ALSO READ: Angry tenants demand answers from management after high-rise flood makes building uninhabitable

On June 3, a faulty sprinkler system on the top floor of the 35-story building at 33 Tehama St. sent a torrent of water through the apartment tower in the city's Transbay district, displacing some 400 residents. Another burst pipe flooded the building again on August 10.

About 50 of the residents have sued Texas-based management firm Hines for negligence, accusing it of failing to maintain and properly address repairs at the building in violation of building codes and of breaching lease contracts.

Tenants say Hines acted in bad faith by failing to provide promised relocation and other expenses, failing to ensure safety in securing units and tenants' property during the repairs, and caused stress and discomfort to residents displaced by the leaks they say rendered the building uninhabitable.  

The lawsuit, brought by Peninsula law firm Cotchett, Pitre & McCarthy LLP, did not specify damages.

ALSO READ: 'Catastrophic' flooding at San Francisco high rise may keep tenants out until early 2023

Representatives of Hines said Monday they've paid approximately $13 million in expenses for tenants since the problems began, including accommodations, parking, per diem, and other expenses. They say they've put more than 100 workers on the job.

"Since the water intrusion incident in June, our staff has worked around the clock to assist the displaced residents with emergency and permanent relocation options," Hines said in a statement to KPIX. "We have provided our residents with temporary housing and funds for personal expenses. We have also worked tirelessly to repair the building, engaging leading experts to identify and address the building's mechanical problems. We deny the allegations pled in this complaint and we believe that during the course of pretrial discovery, the court and the public will understand the true extent of our efforts to help those that had to leave their homes during these unfortunate and unforeseen events."

In a press conference Monday, one resident said after he and his wife no longer had their hotel stays compensated by Hines, the hotel alerted them their names were still being used to reserve rooms at the hotel.

"What made us come here and sue Hines was actually the incompetency and utter lack of respect for the residents and also unethical behavior that we caught Hines' team and property management doing," said the resident. "We found out from Hilton .... that they were using our names at two different hotels and having their own people stay at these places."

Another resident told reporters, that in addition to being displaced for weeks from their damaged unit, while contractors were making repairs in her unit she had jewelry go missing and blank checks stolen from her nightstand. 

"Two fraudulent checks were cashed," said Stephanie Sunwoo. "So now I kind of have this impending fear of identity theft and my bank information is out there on the loose. And so, if you compound that kind of insecurity with the instability that we've been provided and us kind of being uprooted from our lives, it's just been really tough."

Supervisor Matt Dorsey, who represents the South of Market area where 33 Tehama is located, said in a statement a lawsuit was appropriate for Hines's mishandling of remediation efforts.

"The flooding incident at 33 Tehama in June was only the start of a cascading fiasco that continues to cause hardships and uncertainty for residents," said Dorsey. "I think civil litigation is the appropriate next step to right the wrongs that emerged from this debacle, and I'm confident the San Francisco Superior Court will ensure that justice is done."  

In an August letter to Hines, Dorsey demanded the company take steps to address the reports of theft by contractors, at least one incident which was recorded on security camera video. 

"I am aware that you reportedly took disciplinary action with at least one of your contractors, who "was terminated immediately" after a security camera captured video of him 'taking items from the unit,'" said Dorsey. "I am asking for confirmation that Hines took steps to file a police report about this incident or others, or, failing that, to provide information to the resident or residents about how to file police reports so that these alleged crimes may be thoroughly investigated by the San Francisco Police Department. Failing either, I would ask that Hines take steps now to do so."

Dorsey also called on Hines to confirm it has submitted as required by building codes a detailed action plan documenting the full extent of the damages, the description of the necessary repairs, and the contact information of the contractors.