Residents and business owners take Transport for NSW to court over light rail

By ERIN MODARO

Concerned business owners, residents and locals impacted by the construction of Sydney’s Light Rail network are heading to court in a class-action lawsuit against Transport for NSW. Plaintiffs allege their businesses and livelihoods were negatively impacted by the construction of the light rail, with insufficient mitigation attempts made by the government to reduce these impacts.

The case will begin in the NSW Supreme Court on Monday November 7. 

Founder of the Small Business Party and small business owner Angela Vithoulkas said that participants in the class action “want to be heard” on how their businesses and lives were affected by the transport overhaul. 

“Any and all levels of governments need to know that some decisions that are made can have massive long term and often irreversible impacts financially on businesses and residents,”  Vithoulkas said. 

Mitry Lawyers, who is representing the class action group members, states that residents have “suffered significant psychological impacts” from construction on the CBD and South East line.

“The impact of this construction on businesses along the route of the project has been widespread and devastating” their website says.

A statement of claim was originally filed in 2018 with first plaintiff Rosa Colagrossi, but was amended to include information from a Parliamentary Inquiry into the impact of the light rail on residents and businesses. The inquiry found that the damage to businesses and residents was significant.

The current statement has the first plaintiff as Hunt Leather Pty Ltd, a family owned leather goods store that operated since about 1975.  Second plaintiff Sophie Hunt has been the CEO of Hunt Leather, which has leased space in the Strand on George Street, since 2013.

Rick Mitry from Mitry Lawyers, says that those involved are simply “relieved the case is going to begin”.

“It will be a relief to them that the matter is going to finally be concluded,” Mitry said.  

Light rail construction fraught with delays and legal battles

After construction on the light rail began in 2015, deadlines for completion were repeatedly pushed back by the NSW government. Large swaths of Sydney’s CBD and eastern suburbs were transformed into construction zones for years at a time.

Gladys Berejiklian, who was Minister for Transport in 2012 when the project was first announced, predicted the final cost of light rail construction as just half of the $2.9 billion it ended up costing.

Large delays to the completion of the light rail network meant businesses lining the construction zones along George Street and into Randwick suffered huge decreases in foot traffic, accessibility issues, and difficulty meeting rent requirements.

“Businesses lost 50% – 70% of trade for years through no fault of their own. They increased their debt just to keep the doors open, losing money on a daily basis – for years” Vithoulkas said. 

Also previously embroiled in the controversy was a legal dispute between the NSW government and Spanish subcontractor Acciona, who settled for a $576 million payout in 2019 after delays and “misconduct” caused them to push for a court actioned $1.2 billion. A Swiss watch retailer also took legal action against Transport for NSW over negative impacts to business, and settled for an undisclosed amount in 2019.

The legal battles threatened to extend the delays that already plagued the light rail construction. 

Court date pushed back

The date for the class action to begin has been delayed several times, and this week was pushed back further after last minute amendments were put forward by the lead applicant, Lawyerly reports. 

As for what the plaintiffs are seeking, Mitry Lawyers write that at this time it is “difficult to assess the size of the potential claim”.

“Speaking generally and not specifically about anyone person or member of the class, we have always maintained that we want fair financial compensation and justice,” Vithoulkas said.

“We can’t get back our financial losses and forget our pain that went on for all the years of Light Rail Construction.”