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Council Hit By Compo Ruling
Newcastle Herald
Saturday March 11, 2006
PORT Stephens Council could be liable for a massive compensation claim after a High Court ruling relating to landowners affected by aircraft noise.
The council tried to appeal to the High Court yesterday against a ruling that found the organisation liable for approving a now defunct ecotourism development known as the Fisherman's Village Resort in an area at Swan Bay affected by excessive RAAF aircraft noise.But the application was denied, bringing to an end a nine-year battle for compensation by the resort's investors.The ruling means the council's insurer will have to pay four of the investors about $100,000 each, plus interest and court costs, which John Rodney the group's legal representative said were likely to be more than $2 million.Mr Rodney said the decision paved the way for 22 other investors to receive compensation, the amount of which would vary case-by-case but was likely to be "in the ballpark" of $2.2 million."The council breached its duty of care to all of them, including the developer," he said."This is not so much of a win as an affirmation of the conviction of these folks that they were done wrong and that the council was in a very strong position to properly advise and it chose not to."You'd have to question the council's reasoning about development generally. This was an ecotourism resort."Port Stephens Council general manager Peter Gesling said the claims would not affect the annual budget because they were covered by the council's professional indemnity insurance."All I can say is we acknowledge the court's decision, yes there are further claims and they would have to be dealt with individually," he said."The insurance company will be making that assessment."
© 2006 Newcastle Herald