Transport for NSW v Hunt Leather Pty Ltd; Hunt Leather Pty Ltd v Transport for NSW [2024] NSWCA 227

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Transport for NSW v Hunt Leather Pty Ltd; Hunt Leather Pty Ltd v Transport for NSW [2024] NSWCA 227 Hearing dates: 1, 2, 3 July 2024; last written submissions 26 August 2024 Decision date: 18 September 2024 Before: Bell CJ; Leeming JA; Mitchelmore JA Decision: 1. Appeal allowed. 2. Cross-appeal dismissed. 3. Set aside each of (i) order 1 made in the Common Law Division on 3 August 2023, (ii) the judgment in favour of Hunt Leather Pty Ltd entered on 15 December 2023, (iii) the judgment in favour of Ancio Investments Pty Ltd entered on 8 February 2024, and in lieu thereof, order that (i) the proceedings be dismissed and (ii) the plaintiffs are to pay the defendant's costs. 4. Order the respondents/cross-appellants to pay the appellant's/cross-respondent's costs of the appeal and cross-appeal. Catchwords: TORTS – nuisance – private nuisance – plaintiffs claimed their properties were affected by construction of Sydney Light Rail – whether interference with enjoyment of plaintiffs' property substantial and unreasonable – whether failure by plaintiffs to establish a failure to take reasonable care determinative – whether defendant bore onus of establishing that it took reasonable care – whether defendant failed to take reasonable care – significance to cause of action in nuisance of taking reasonable care – whether use of road for construction purposes exceptional – whether interference with plaintiffs' enjoyment inevitable – whether delay in construction attributable to discovery of unknown utilities – whether damages should include a "recovery period" – whether s 43A of Civil Liability Act 2002 (NSW) applicable DAMAGES – pure economic loss – funded litigation – funding agreement included commission to funder – whether commission recoverable as component of damages Legislation Cited: Civil Liability Act 2002 (NSW), ss 5B, 5C, 40, 43A Civil Procedure Act 2005 (NSW), Pt 10 Environmental Planning and Assessment Act 1979 (NSW), s 4.2 Supreme Court Act 1970 (NSW), s 101 Transport Administration Act 1988 (NSW), ss 3C, 104L, 104N, 104O Uniform Civil Procedure Rules 2005 (NSW), r 36.16 Cases Cited: Anderson v Bowles (1951) 84 CLR 310; [1951] HCA 61 Anderson v Canaccord Genuity Financial Ltd (No 2) [2024] NSWCA 161 Andreae v Selfridge & Co [1938] 1 Ch 1 Bamford v Turnley (1860) 3 B & S 62; 122 ER 25 Berry v British Transport Commission [1962] 1 QB 306 Broder v Saillard (1876) 2 Ch D 692 Brodie v Singleton Shire Council (2001) 206 CLR 512; [2001] HCA 29 Buckle v Bayswater Road Board (1936) 57 CLR 259; [1936] HCA 65 Burnie Port Authority v General Jones Pty Ltd (1994) 179 CLR 520; [1994] HCA 13 Computer Edge Pty Ltd v Apple Computer Inc [1984] HCA 47; 54 ALR 767 Curtis v Harden Shire Council (2014) 88 NSWLR 10; [2014] NSWCA 314 Della Franca v Lorenzato; Burwood Council v Lorenzato [2021] NSWCA 321 Dennis v Ministry of Defence [2003] EWHC 793; [2003] EGLR 121 Don Brass Foundry Pty Ltd v Stead (1948) 48 SR (NSW) 482 Elston v Dore (1982) 149 CLR 480; [1982] HCA 71 Fearn v Board of Trustees of the Tate Gallery [2024] AC 1; [2023] UKSC 4 Gales Holdings Pty Ltd v Tweed Shire Council (2013) 85 NSWLR 514; [2013] NSWCA 382 Gartner v Kidman (1962) 108 CLR 12; [1962] HCA 27 Gray v Sirtex Medical Ltd (2011) 193 FCR 1; [2011] FCAFC 40 Hargrave v Goldman (1963) 110 CLR 40; [1963] HCA 56 Hazelwood v Webber (1934) 52 CLR 268; [1934] HCA 62 Henderson v Merrett Syndicates Ltd [1995] 2 AC 145 Hole v Barlow (1858) 4 CB NS 334; 140 ER 1113 Housman v Camuglia (2021) 104 NSWLR 615; [2021] NSWCA 106 Hunt Leather Pty Ltd v Transport for NSW [2023] NSWSC 840 Hunt Leather Pty Ltd v Transport for NSW (No 3) [2023] NSWSC 1598 Hunt Leather Pty Ltd v Transport for NSW (No 4) [2024] NSWSC 140 Hunt Leather Pty Ltd v Transport for NSW (No 5) [2024] NSWSC 776 Landoro (Qld) Pty Ltd v Jensen International Pty Ltd [1999] QCA 318 Manchester Corporation v Farnsworth [1930] AC 171 Mann v Paterson Constructions Pty Ltd (2019) 267 CLR 560; [2019] HCA 32 Munro v Southern Dairies Ltd [1955] VLR 332 Narellan Franchise Pty Ltd v RBME Pty Ltd [2023] NSWCA 139 Overseas Tankship (UK) Ltd v The Miller Steamship Co Pty Ltd [1967] 1 AC 617 Painter v Reed [1930] SASR 295 Perera v Genworth Financial Mortgage Insurance Pty Ltd (2017) 94 NSWLR 83; [2017] NSWCA 19 PPK Willoughby Pty Ltd v Baird [2021] NSWCA 312 Precision Products (NSW) Pty Ltd v Hawkesbury City Council (2008) 74 NSWLR 102; [2008] NSWCA 278 Pwllbach Colliery Co Ltd v Woodman [1915] AC 634 Queensland Bulk Water Supply Authority t/as Seqwater v Rodriguez & Sons Pty Ltd [2021] NSWCA 206; 393 ALR 162 Rapier v London Tramways Co [1893] 2 Ch 588 Read v J Lyons & Co Ltd [1947] AC 156 Roads & Traffic Authority of NSW v Refrigerated Roadways Pty Ltd (2009) 77 NSWLR 360; [2009] NSWCA 263 Rylands v Fletcher (1868) LR 3 HL 330 Sedleigh Denfield v O'Callaghan [1940] AC 880 Shinetec (Australia) Pty Ltd v The Gosford Pty Ltd [2024] NSWCA 174 Southern Properties (WA) Pty Ltd v Executive Director of the Department of Conservation and Land Management (2012) 42 WAR 287; [2012] WASCA 79 Southwark London Borough Council v Tanner [2001] 1 AC 1; [1999] UKHL 40 The Manchester Ship Canal Company Ltd v United Utilities Water Ltd (No 2) [2024] UKSC 22 Thomas (as liquidator of Anne Lewis Pty Ltd (in liq)) v Arthur Hughes Pty Ltd [2016] NSWSC 1861 Torette House Pty Ltd v Berkman (1939) 39 SR (NSW) 156 Torette House Pty Ltd v Berkman (1940) 62 CLR 637; [1940] HCA 1 Waterhouse v Contractors Bonding Ltd [2014] 1 NZLR 91; [2013] NZSC 89 Weber v Greater Hume Shire Council (2019) 100 NSWLR 1; [2019] NSWCA 74 Woolworths Ltd v Pallas Newco Pty Ltd (2004) 61 NSWLR 707; [2004] NSWCA 422 Wyong Shire Council v Shirt (1980) 146 CLR 40; [1980] HCA 12 Texts Cited: D Nolan and A Robertson (eds) Rights and Private Law (Hart Publishing, 2011) E Garrett, The Law of Nuisances (William Clowes & Sons, 1890). E Garrett, The Law of Nuisances (William Clowes & Sons, 2nd ed 1897) E Garrett, The Law of Nuisances (William Clowes & Sons, 3rd ed 1908) J Murphy, The Law of Nuisance (Oxford University Press, 2010) J Salmond, Law of Torts (Stevens & Haynes, 3rd ed 1912) Category: Principal judgment Parties: Transport for NSW (Appellant; Cross-Respondent) Hunt Leather Pty Ltd (First Respondent; First Cross-Appellant) Sophie Irene Hunt (Second Respondent) Ancio Investments Pty Ltd (Third Respondent; Second Cross-Appellant) Nicholas Zisti (Fourth Respondent) Representation: Counsel: N Owens SC, N Simpson, E Bathurst, L Moretti (Transport for NSW in the appeal) D McLure SC, N Simpson (Transport for NSW in the cross-appeal) A Bannon SC, L Shipway, A Hochroth, M Pulsford (Respondents and Cross-Appellants)