In state news, a NSW court has thrown out a class action brought by businesses that argued construction of the state government’s $3 billion inner Sydney light rail line caused them “unreasonable” disruption.

The ruling by the NSW Court of Appeal on Wednesday overturned an earlier win by two small businesses, that argued drawn-out construction of the light rail line connecting Sydney’s CBD and the eastern suburbs, had negatively affected them and constituted a “private nuisance”.

Hunt Leather, a luxury handbag store in the Strand Arcade, and restaurant operator Ancio, which ran eateries on Anzac Parade in Kingsford, were among hundreds of business that complained they suffered financial loss or damages due to disturbance from construction noise, dust, vibrations, heavy machinery and hoardings.

Last year, NSW Supreme Court Justice Richard Cavanagh had found Transport for NSW was liable for financial losses to the businesses as the harms caused by delays to the project were “foreseeable and, indeed, predictable”.

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“The persons who ended up bearing the costs of the prolonged construction activity ... were some of the business owners along the light rail route,” Cavanagh found.

The decision smoothed a path for businesses to claim compensation from the government; however, Transport for NSW launched an appeal, arguing any interference the businesses suffered was neither substantial nor unreasonable.

The agency also challenged a finding there was enough evidence to show the delay was caused by the discovery of unknown utilities, which had been identified as a risk.

In its decision today, the Court of Appeal upheld the state government’s challenge and found there was no evidence any pre-construction investigation to identify underground utilities would have reduced interference with the businesses’ enjoyment of their land.

“It was not established that it was possible, and if so how long it would take, and whether that too would amount to a substantial interference with the enjoyment of the plaintiffs’ land, to obtain complete knowledge of the unknown utilities,” the decision said.

Construction on the 12-kilometre tram line between Circular Quay, Randwick and Kingsford began in 2015. The final stage of the project opened a year behind schedule in 2020, frustrated by a series of cost blowouts, delays and legal battles.