Transport for NSW seeking to add ALTRAC as second defendant in class action

Transport for NSW wants to make the builder of the controversial Sydney light rail project cough up if affected businesses win their multimillion-dollar class action for compensation.

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Transport for NSW wants to make the builder of the controversial Sydney light rail project cough up if affected businesses win their multimillion-dollar class action for compensation.

The Daily Telegraph can reveal that crown solicitors will seek to add ALTRAC as a second defendant in the class action filed against the government by disgruntled business owners — meaning the consortium would share any damages the businesses win.

ALTRAC’s members include Spanish builder Acciona, which is also suing the government for $1.1 billion claiming it was “misled” into signing the light rail contract.

The Sydney light rail has been embroiled in controversy since construction started. Picture: Jonathan Ng

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In August, The Daily Telegraph revealed more than 60 business owners filed a class action for losses caused by the construction of the Sydney light rail.

Transport for NSW has given notice of its intention to cross-claim against ALTRAC, and potentially others, at a directions hearing in the NSW Supreme Court.

It can also be revealed 110 businesses have now joined the action, including hotels claiming more than $5 million each in damages.

The total amount claimed by business owners is expected to be in excess of $40 million. Businesses taking part in the action include Master Specs, Souvenir Gallery and Hunt Leather, which are all on George Street.

More than 60 business owners have filed a class action for losses caused by the construction of light rail. Picture: Toby Zerna

On top of claiming for loss of profit caused by delays in the light rail construction, business owners are also seeking compensation for the psychological damage they say they experienced as they struggled to keep their businesses afloat.

A Transport spokesman last night confirmed they wanted to add ALTRAC as a defendant.

“As required by the Court, TfNSW has given notice of its intention to cross-claim against ALTRAC and potentially others,” the spokesman said.

“However, any final decision is not required to be made until later in the Court proceedings.”

Running more than a year late and $500m over budget, the light rail has been the source of major embarrassment for the state government.

Councillor and cafe owner Angela Vithoulkas said light rail barriers, which were supposed to be removed in November, is still causing issues. Picture: AAP Image/Joel Carrett

City of Sydney councillor Angela Vithoulkas helped organise the class action and said retailers were fearful about how they will survive another year of Christmas trading with the work still reducing their customer numbers.

She said the light rail barriers, which Acciona had promised to remove in the CBD north and Surry Hills by November, were still causing big problems.

“It’s a double whammy because business’ rely uplift on Christmas trade to get them through quiet parts of the year …(the barriers) are ugly and forced people to change where they walk,” she said.