RABY Bay Ratepayers Association president Chris Reeves says they have advised their members and supporters to reject class action against council over a special levy collected for dredging, maintenance and repairs on canal and lake estates.
Shine Lawyers will hold meetings at Cleveland on Tuesday, June 5, to gauge ratepayers’ interest in legal action.
Last year council found that due to a technical glitch the special charge was not compliant with state legislation. Council decided to return collected monies that had not been spent.
It is understood that in November about 94 per cent of refunds were processed.
Mr Reeves said canal levies paid by each ratepayer since 2011-12 were about $10,800 and the refund about $6800.
“The association cannot understand why anyone would really want to get caught up in a long running legal fight against Redland City Council for the sake of $4000 and most likely substantially less with Shine Lawyers’ costs deducted,” he said.
“The proposed class action would be strongly contested by council and may involve paying an upfront fee which has not been quantified by Shine Lawyers.
“There is also high risk of a substantial cost award against participants if the action fails.”
Mr Reeves said council had acted on the advice of prominent external lawyers and accountants to determine the amount to be refunded to ratepayers.
“Redland City Council refunded all unspent funds plus interest at a fairly generous rate,” he said.
“Council also took over payments of a substantial loan and completed all unfinished works.”
Mr Reeves said the timing of the action was unfortunate.
“We are greatly concerned it may influence the outcome of the potentially positive results of the recent community consultation process currently being considered by council.”
Mr Reeves said the association’s policy was to support payment of a fair and equitable levy for maintenance and repairs of the canals and to work with council around the management of the canal estates.
Property owner Brian McDonald said the class action would not be positive for Redlands.
He said he was concerned by a potential divide among ratepayers who would have to foot the bill for defending legal action.
Shine Lawyers will hold two one-hour meetings at the Redlands Boat Club, 1 William Street, Cleveland at 3pm and 6pm on Tuesday, June 5.
