Class action lawsuit on the table for up to 100 businesses and residents affected by light rail project
UP to 100 businesses and residents affected by the ongoing disruption caused by the light rail are considering a class-action lawsuit amid claims they have been given false promises of support and compensation by Transport for NSW.
Central Sydney
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A CLASS-ACTION lawsuit could be considered by up to 100 businesses and residents who have been affected by the state government’s light rail project.
Three years into construction for the $2.1 billion CBD and South East light rail, a campaign has been launched to evaluate whether there is a case for class action suit against the department following claims from locals that they have been given false promises of support and compensation.
Last year, Central Sydney revealed the state government had agreed to award compensation to those who have suffered due to the construction following a campaign led by independent City of Sydney councillor and George St cafe owner Angela Vithoulkas.
Cr Vithoulkas said 28 businesses in the CBD and Surry Hills had shut up shop or gone into bankruptcy that she know, chalked up to the impacts of light rail.
These include the Book Kitchen on Devonshire St and iconic camera store Paxtons on George St.
‘It’s meant to be completed in 2019 but I cant see how that’s possible’
Transport for NSW engaged an independent accounting firm Ernst and Young and an adviser former federal Treasury deputy secretary Tim Spencer to assess the financial loss faced by businesses.
The department has knocked back a third of the businesses which have applied for the compensation. 44 business have been granted rent relief since the scheme was announced in August.
Cr Vithoulkas said businesses had been rejected because they had been forced into liquidation, employed too many staff, owned a second shop elsewhere or the business was located on the second floor of a building.
Another reason was due to businesses being on streets directly adjacent to the light rail route.
Businesses are also only eligible if they are located in a zone where construction is delayed.
A Transport for NSW spokesman said businesses must employ fewer than 20 full-time equivalent employees, be located along the alignment in proximity to and impacted by construction and in a zone where this is taking longer than initially advised to be eligible, she said.
Now Sydney Light Rail Class Action has been formed, a campaign calling for businesses and residents who have been adversely affected by the project to come forward.
The organiser, a local business owner who spoke to Central Sydney on condition of anonymity, said despite assurances from Transport Minister Andrew Constance and Premier Gladys Berejiklian that support and assistance was available, many people were being knocked back from receiving or applying for compensation.
“If the government is not going to take responsibility for their actions then as a group, together as small businesses and individuals we need to hold them to account,” the owner said.
“The concern is that still don’t know when project will be finished — it’s meant to be completed in 2019 but I cant see how that’s possible,” he said.
The cost of the project has already blown out from $1.6 billion to $2.1 billion and last year it was reported ALTRAC was seeking $340 million more.
‘They are tired of being ignored and being given false information and being lied to’ George St cafe owner, Cr Angela Vithoulkas
Sydney Light Rail Class Action is calling for small business owners who have been rejected, refused or did not meet the criteria for rental assistance or have declared bankruptcy as a result of the construction, and residents who have had their properties damaged or who have been declined alternate accommodation during out-of-hours construction to come forward.
Based on the data collected the group will then be able to determine whether there are grounds for a class-action suit against Transport for NSW.
Cr Vithoulkas said from the amount of people she had spoken to she believed close to 100 businesses and residents would be interested in being involved in the suit.
“They are tired of being ignored and being given false information and being lied to. We deserve better after three long years, and I don’t know how much longer this catastrophe will be served upon us and that’s the problem,” Cr Vithoulkas said.
“I commend them for taking up this difficult path, but they have no choice but to take on the state government. They are brave and they are determined but this would’t have happened if Transport for NSW had been open to a conversation and an acknowledgment of these residents situation and had been genuine in the financial assistance they were offering,” she said.
Since November 2017, Transport for NSW has made 1250 offers to residences for accommodation respite when high noise work is occurring and on a case-by-case basis.
“Supporting small businesses is a priority as we want to ensure that businesses who have experienced disruption while we build the light rail can experience the benefits once services start,” the spokesman said.
In order to be assessed for back dated rent relief, businesses that meet the above criteria need to provide signed financial statements prior to the beginning of Light Rail construction, and for the period since construction began and any additional information requested by Transport for NSW that shows how the Light Rail construction has impacted the business.