Insurers Regroup On Noise
Newcastle Herald
Friday October 28, 2005
THE insurers of Port Stephens Council have confirmed they will seek a High Court appeal over last month's aircraft noise decision, which has potentially left them exposed to millions of dollars worth of compensation claims.
The Court of Appeal upheld last month a 2002 District Court judgement that found the council had failed to provide adequate information about noise from the Williamtown RAAF base to buyers of holiday cabins at a Swan Bay resort.The court awarded four Fisherman's Village cabin owners about $100,000 each, including interest.At the time of that decision, a further 21 claims had already been determined in the District Court and were awaiting the outcome of the Court of Appeal hearing. All of those claims will be put on hold if the High Court allows the new appeal.The council's primary insurer, Statewide Mutual, is exposed to all of the compensation payouts, which the council fears could blow out to millions of dollars because of the court decision's "potentially significant ramifications".Council general manager Peter Gesling said yesterday the council "had always held the view that the original decision was wrong". Mr Gesling had indicated earlier that the ruling had wide ramifications for all NSW councils, particularly regarding the information councils provided to home and land buyers on notifications known as section 149 certificates. Statewide Mutual's application for an appeal in the High Court is not expected to be determined until early next year.
© 2005 Newcastle Herald