NSW Court of Appeal dismisses class action on behalf of small businesses related to the construction of Sydney’s $3 billion light rail network

The New South Wales Court of Appeal has dismissed a class action on behalf of small businesses related to the construction of Sydney’s $3 billion light rail network.

The Court upheld the primary judge’s finding that litigation funding costs were not recoverable as a head of damages, finding that the loss was not caused by any alleged nuisance but rather by the decision, made freely and willingly, to enter into a litigation funding agreement.

The Court stated: “It is to be borne steadily in mind that litigation funders are not altruistic organisations dedicated to enhancing access to justice; they are self-interested investors, seeking to profit by involving themselves in litigation. The fact that litigation may be funded of itself provides no good reason to alter the rules of compensable loss for tort.”

Read the decision here.