Light Rail, Long Delays, and Legal Limits: Lessons from Hunt Leather Pty Ltd v Transport for NSW [No 2] [2026] HCA 4

Property and business owners in Sydney understand that major infrastructure projects can cause disruption. However, the February 2026 High Court decision in Hunt Leather Pty Ltd v Transport for NSW [No 2] clarifies what level of interference is legally tolerable. Julian and Renee at Flash Conveyancing use this case to guide clients on property rights, contracts, and pre-purchase due diligence in affected areas.

The case arose when Hunt Leather and other small businesses claimed that construction of the Sydney Light Rail amounted to a private nuisance. The issue was not the project itself, but extended delays beyond the announced schedule, which resulted in prolonged noise, hoardings, and reduced foot traffic.

The High Court provided key guidance:

  • Delays matter: Temporary construction impacts are generally acceptable. However, prolonged and unreasonable disruption caused by poor staging or delays may give rise to legal remedies, including injunctions.
  • No blanket immunity: Planning approvals and statutory powers do not give government a free pass—projects must still act reasonably and not unduly interfere with neighbouring property rights.
  • Costs risk remains: Even where a claim succeeds, litigation funding and legal costs may significantly reduce any compensation recovered.

What this means for property owners and investors in 2026:

  • Contract awareness: Consider project timelines and nearby infrastructure works—delays are common, but excessive disruption may have legal consequences.
  • Right to enjoyment: Property owners are entitled to reasonable use and enjoyment of their land. Excessive interference may support a nuisance claim.
  • Cost reality: Legal action can be expensive, and compensation may not fully offset costs.

Flash Conveyancing recommends a practical due diligence approach:

  • Check project timelines: Review gazetted plans and infrastructure schedules.
  • Review easements: Identify access rights that may be affected during construction.
  • Obtain Section 10.7 Certificates: These can reveal zoning changes and future infrastructure impacts.

Flash Conveyancing Advice:

The earlier you identify infrastructure risks, the better protected you are. Before purchasing, weigh the long-term benefits of proximity to infrastructure against the short- to medium-term disruption. Informed decisions reduce the risk of future disputes.

Flash Conveyancing, led by Julian & Renee, specialise in property transactions across New South Wales. With extensive experience working with councils including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby, and Parramatta, they provide a clear and personalised approach to every settlement. Whether you’re buying or selling in Acacia Gardens, Blacktown, Kellyville Ridge, Schofields, The Ponds, Castle Hill, Rouse Hill, or across Greater Western Sydney, your transaction is handled smoothly, compliantly, and with confidence.

By Julian McLaren & Renee McLaren (Australia) – with writing support from Alberto Aldana (Colombia)

2026 Flash Conveyancing. All Rights Reserved.

Disclaimer: All content shared by Flash Conveyancing is for general informational purposes only and does not constitute legal, financial, or investment advice. Accessing this information does not create a conveyancer-client relationship. Property laws and economic conditions change rapidly; we recommend seeking professional legal advice tailored to your specific circumstances before making any property-related decisions.

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