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Sydney Businesses Launch Light Rail Lawsuit

Dozens of businesses and landlords will file a class action lawsuit against the NSW Government over the embattled Sydney light rail project.

Transport for NSW will be accused of undertaking the light rail project in Sydney's CBD in a way that caused "substantial" loss and damages, Mitry Lawyers said in a statement on Tuesday.

The class action, which is expected be filed on behalf of 60 clients in the NSW Supreme Court on Tuesday morning, will seek compensation from the government over "poor" planning decisions.

Angela Vithoulkas, late last week, announced she had been forced to close her business, Cafe Vivo, after 16 years of trade.

"If we can't make it on the corner of what is supposed to be the CBD's busiest street, how do the other businesses cope," the cafe owner and independent city councillor told reporters on Friday.

On Tuesday she invited others to join her in the Mitry class action.

The lawsuit is the latest in a string of legal actions hanging over the rail project.

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Spanish sub-contractor Acciona is seeking an extra $1.2 billion saying it was misled over the complexity of the project.

Queensland-based contractor VAC Group, in May, announced it was seeking $4 million plus damages from the government because of alleged misleading and deceptive conduct.

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Despite the issues NSW Premier Gladys Berejiklian, earlier this month, pledged to bring the light rail completion date forward a year to 2019.

AAP

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