The High Court of Australia’s decision in Hunt Leather Pty Ltd v Transport for NSW is reshaping how nuisance risk is understood across major construction and infrastructure projects.
The ruling confirms that prolonged construction impacts may constitute actionable private nuisance - even where works are authorised, socially beneficial, and carried out with reasonable care.
For project owners, principals, contractors, developers and insurers, this represents a meaningful shift in how project risk, stakeholder impacts and insurance exposures should be assessed and managed.
Why this matters?
Construction activity in dense urban environments increasingly intersects with commercial operations, neighbouring businesses and community expectations. The Hunt Leather decision highlights that disruption alone is no longer viewed purely as an unavoidable consequence of development.
The Court reinforced several key principles:
Duration matters
Mitigation is critical
Economic loss exposure is real
Control drives liability
This means that project participants may face nuisance-related exposure not only because of what is being built, but how projects are planned, managed and delivered.
What the High Court clarified
The decision narrows reliance on statutory authority protections and reinforces that reasonable care is not necessarily a complete defence to nuisance claims.
Key clarifications include:
Statutory authority protections apply only where interference is an inevitable consequence of exercising statutory power
Prolonged disruption linked to planning, sequencing or execution may fall outside this protection
Claims may arise from how works are carried out, not merely from the existence of statutory authority
Construction impacts may still create liability even where works are non-negligent
The ruling has important implications for:
Construction and infrastructure owners
Government entities and PPP participants
Contractors and developers
Legal advisers and insurers
Claims and risk professionals
Insurance implications
Public & Products Liability
Contract Works / Delay in Start-Up (DSU)
Principal-Controlled Programs
The decision reinforces the importance of proactive risk management, particularly across complex urban infrastructure environments where disruption, duration and stakeholder impacts are increasingly under scrutiny.
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Read our Private Nuisance Reimagined White Paper to learn more about the legal, commercial and insurance implications of this significant High Court decision.
Contents of this publication are provided for general information only. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. Lockton arranges the insurance and is not the insurer. Any insurance cover is subject to the terms, conditions and exclusions of the policy. For full details refer to the specific policy wordings and/or Product Disclosure Statements available from Lockton on request.