Newcastle light rail class action momentum after Supreme Court decision

A finding was handed down on July 19 that Transport would need to pay damages to two businesses affected by the Sydney light rail construction, which was completed a year later than planned.

"We're very excited about that decision," Frontline Hobbies owner Colin Scott said. "We thought it was dead in the water.

"We went through the same thing and the government of the day did not want to know.

"There were businesses that lost hundreds of thousands of dollars. It destroyed a lot of lives."

Mr Scott moved his Hunter Street toy store to Broadmeadow amid the light rail work in 2018. He was involved in a push that year to start a class action seeking compensation for track disruptions.

"We would have gone broke if we would have stayed in Hunter Street," he said.

Former City of Sydney councillor Angela Vithoulkas came up to Newcastle to meet with businesses interested in the class action.

She said after the Supreme Court decision that more businesses were needed to progress a lawsuit in Newcastle, but was optimistic the result would be a catalyst.

Mitry Lawyers led the Sydney class action, and lawyer Richard Mitry also attended the Newcastle meeting to garner interest in a Hunter case.

Mr Mitry said the Sydney victory provided "added impetus" to the Newcastle case.

"Some discussions have already happened since the decision," he said.

"Much of the difficulty with Newcastle is getting funding. A success with the Sydney light rail could be very beneficial.

"The issues are identical even though the circumstances are different."

Another business involved in the Newcastle action was Reserve Wine Bar, which closed its Hunter Street doors in 2019.

Owner Tim Bohlson said the Sydney result was pleasing, and was hopeful it would reinvigorate interest locally.

"It gives us a glimmer of hope," he said.

"It's good news for the people in Sydney, but we now need to find out how does it translate to Newcastle."

Mr Bohlson kept his business open until after the light rail was complete, but said customers did not come back to the levels before the track work started.

"Reserve hung in there until it was finished," he said. "It was a very, very draining two years.

"But six to nine months after, trade was still low.

"Once Sydney was finished the CBD was a lot better for it. In Newcastle, the end result didn't bring things back."

Business Hunter acting CEO Sheena Martin said businesses who weathered the disruption of the light rail construction were just starting to exhale when COVID hit.

"During light rail construction, the city's heart was barely beating and we expressed our support for a state government-funded relief scheme for businesses affected by the light rail, which unfortunately did not materialise," she said.

"Subsequent challenges of rising interest rates and rising energy costs continue to layer yet more pressure on businesses that have now endured several incredibly challenging years.

"The question now is how do we continue to attract people back to the CBD to support these businesses to ensure they're able to keep the doors open?"

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