Case Note: Hunt Leather Pty Ltd v Transport for NSW [NSWSC 840]

Description: This Supreme Court case involves a class action brought against Transport for NSW regarding the construction of the Sydney Light Rail and its impact on properties. The lead plaintiffs, Hunt Leather Pty Ltd and Ancio Investments Pty Ltd, operated luxury goods stores and a restaurant, respectively.

Summary:
In the case of Hunt Leather Pty Ltd v Transport for NSW, a class action was filed against Transport for NSW regarding the construction of the Sydney Light Rail. The lead plaintiffs, Hunt Leather Pty Ltd and Ancio Investments Pty Ltd, operated different businesses - luxury goods stores and a restaurant, respectively. The case focused on the substantial and unreasonable interference caused by the construction activities, leading to a deterioration of profitability for Hunt Leather and the eventual closure of Ancio Investments' restaurant.

The plaintiffs argued that the construction activities, including the erection of hoardings and the actual construction work, significantly disrupted their businesses and infringed upon their rights as property occupiers. They presented their case in three alternative ways, with the primary argument being that the interference with their premises constituted an actionable nuisance from the start of the construction work.

The defendant, Transport for NSW, denied liability and argued that the plaintiffs failed to establish that the interference was unreasonable or that the defendant had breached any duty of care. They also contended that other factors, such as increased competition in the luxury goods market and changes in parking restrictions, contributed to the plaintiffs' loss of profitability.

Throughout the proceedings, extensive expert evidence was presented by both parties, addressing issues such as the planning and development of the Sydney Light Rail, the utilities risk, and the impact on the plaintiffs' businesses. The court also considered the application of the Civil Liability Act and the concept of fault in determining liability.

The case involved complex legal and factual issues, with the parties presenting detailed submissions and extensive expert reports. The court acknowledged the challenges in assessing the quantum of damages and the need for further proceedings to finalize the damages for the lead plaintiffs.

In conclusion, the case of Hunt Leather Pty Ltd v Transport for NSW highlights the legal complexities surrounding nuisance claims arising from large-scale construction projects. It underscores the importance of expert evidence, the assessment of damages, and the need for a fair and comprehensive process to determine compensation for affected businesses.