NSW government tipped to settle light rail lawsuit for $500 million

Business owners crippled or shut down due to the bungled city light rail construction are set to get half a billion dollars — or more — in compensation.

The bungled city light rail is set to cost taxpayers an extra half a billion dollars — or more — in compensation for businesses and residents.

Some of the more than 2000 businesses owners crippled or closed because of the ridiculous construction delays for the CBD and South East Light Rail are set to get back at least part of their estimated hundreds of millions of lost takings.

But, no matter how much compensation they will get, nothing can restore the Hunt family’s leather business, or give them back years of torment.

Sophie Hunt, with mother Elizabeth and brother Sam, runs her family business which was ruined by the light rail construction. Picture: Sam Ruttyn

When the jackhammers started smashing concrete outside their George St leather business in early 2016, the Hunt family was told it would all be over in four months.

But, four years after barricades were first erected in November 2015, Hunt Leather proprietors Sophie, Sam and Elizabeth Hunt have been forced to sell their family home and watch millions of dollars in revenue turn to dust.

“We’ve lost so much — time with my own young family, sleepless nights, terrible stress, opportunities lost where we had thought we were building a bigger business, not a much smaller one,” company CEO Sophie Hunt said.

“We had one of our team develop nosebleeds from the dust and another would have terrible asthma after two days in the city store.”

The amount of money taxpayers will have to fork out to businesses is expected to increase “exponentially”.

The Sunday Telegraph understands a mediation on Wednesday between lawyers representing Transport for NSW and Sydney businesses will likely end in some sort of payout.

There are more than 2000 businesses along the route, the majority of whom would be eligible for compensation.

Since September, when more businesses were invited to join the class action, the number of entities involved has increased from 250 to about 400.

The seemingly endless George St light rail construction mess.

Residents along the route are also part of the proceedings.

This potentially increases the claim to well in excess of the $300 million originally sought when legal proceedings began in August 2018.

“A large number of business owners required psychological and psychiatric assistance and there have been suicides,” lawyer Rick Mitry said.

“Young couples lost all of their life savings and inheritances, leading to relationship breakdown.

“Some families lost their homes and had to move in with other relatives. Children of some families moved out due to the stress and trauma in the home.”

The project was set to cost $1.6 billion when it was announced in 2012.

Delays, cost blowouts, the discovery of human remains and a Supreme Court stoush between the government and a subcontractor mean the total cost was $3.147 billion, according to the NSW Auditor General.

Hunt Leather proprietors Sophie, Sam and Elizabeth Hunt have watched millions of dollars in revenue turn to dust. Picture: Sam Ruttyn

Businesses argue the government unnecessarily erected barricades along the entirety of the route rather than in 31 separate zones as promised, failed to take reasonable precautions to minimise or reduce avoidable disruptions to group members and undertook construction works at a snail’s pace.

Mr Mitry is calling on the government to legislate a requirement of having funds put aside to assist impacted businesses.

“Financial support must be built into the planning of future government infrastructure projects,” he said.

“There will otherwise be an abdication of responsibility. The new legislation should require contracts with contractors to impose penalties for interruptions to local businesses, and bonuses if business is enabled.”

A Transport for NSW spokesman said it is “involved in class action proceedings in relation to the Sydney Light Rail project”.

“It is not appropriate to comment further while the matter is the subject of court proceedings,” he said.

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