Written by A class action, by Sydney CBD businesses disrupted by the five-year construction of the light rail, is now before the High Court of Australia, raising key questions about the limits of government immunity from nuisance claims. The plaintiffs argue that dust, noise, and a collapse in foot traffic between 2015 and 2020 caused unreasonable interference with their land use, despite the works being lawfully authorised. While the NSW Supreme Court initially awarded $4 million in damages, the Court of Appeal overturned that decision, holding that statutory authority shielded Transport for NSW from liability, even for prolonged disruption.
The High Court must now determine whether authorised public works can still amount to nuisance when their impacts on nearby businesses become excessive. Transport for NSW warns that a ruling in the businesses’ favour would unsettle infrastructure delivery, while the appellants argue that the law has long allowed nuisance claims where interference is substantial and the use is extraordinary. The decision will have national implications as light rail projects continue across major cities.