110 businesses join $400m light rail suit

The number of businesses and landlords suing the state government over the delayed Sydney light rail project has almost doubled over the past four months.

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The number of businesses and landlords suing the state government over the delayed Sydney light rail project has almost doubled over the past four months.

The light rail was originally meant to be finished in 2019 but the company building it now expects it to be completed by May 2020.

Amelia Birch outside her book shop cafe The Book Kitchen on Devonshire St in Surry Hills which closed its doors in May 2017. Picture: Toby Zerna

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Some 60 businesses along the route filed a class-action lawsuit against Transport for NSW in late August claiming they’d been adversely impacted by construction work along the route from the CBD to the eastern suburbs. But that number has now grown to 110 businesses and landlords who are seeking $400 million in compensation over what they say is the government’s poor planning.

Construction on the corner between George St and Martin Place. Picture: Flavio Brancaleone)

Lawyer Rick Mitry says claimants have suffered economic and psychological trauma.

The class action in the NSW Supreme Court includes small and large businesses some of which are claiming up to $15 million in damages.

The suit aims to hold the NSW government accountable, Mr Mitry said.

“If you’re going to unnecessarily damage people’s lives and businesses then you’ve got to be brought to account - you can’t just do these things with impunity,” he said.

City of Sydney councillor Angela Vithoulkas - who’s the former owner of Vivo Cafe on George Street on the light rail route - believes the class action has a strong chance of success because people can document the financial and mental anguish they’ve experienced.

City of Sydney Councillor and George Street business owner Angela Vithoulkas. Picture: Danny Aarons)

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“Families are in crisis over the financial impact … there will never be enough money to fix that heartache,” she said.

A Transport for NSW spokeswoman stated: “TfNSW denies the allegations made in the class action and is defending the proceedings.” “It is not appropriate for us to comment further while the matter is before the courts,” she said in a statement.

Steve Kulak, owner at TITLE books and music store on Crown street in Surry Hills, has been impacted by the construction of the Light Rail. Picture: John Feder

The department has filed cross-claims against light rail consortium ALTRAC and its Spanish subcontractor Acciona.

It notes the state government has delivered more than $117 million to 115 impacted businesses through its “small business assistance program”.

Light rail construction in George St, Sydney. Pic by James Croucher

The total cost of the light rail project has blown out from $1.6 billion to $2.1 billion.

Acciona has launched its own legal action against the government seeking an additional $1.2 billion arguing it was misled over the complexity of the project.