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THE NSW Supreme Court has rejected a last-minute bid from Lake Macquarie City Council to broaden a damages claim for an alleged "defective" product used in roadworks across the local government area that could cost up to $128 million to rip up and replace. Login or signup to continue reading Earlier this month the court dismissed the council's attempt to cover itself for its "own loses" in relation to the use of the road base across the local government area. The Newcastle Herald first revealed the issue in 2014, following claims expanding roads were causing the emergence of dangerous speed humps, lifting median strips, cracking gutters and residential driveways being pushed into homes. A number of Hunter councils and the NSW government suspended use of the road base when issues began to emerge. In response to two lawsuits brought by multiple residents claiming damage, Lake council lodged two cross-claims against Newcastle Resources, formerly known as South Coast Equipment Resources, the supplier of Steelstone Mix 3 that was used as part of road base on dozens of construction projects. On December 12, the council attempted to broaden its indemnity claim against Newcastle Resources, but the application was denied by Justice James Stevenson. "At present, the council's claim for indemnity is under the third party indemnity and relates only to claims made against the council by six identified property owners in the council's local government area who have claimed to have suffered damage by reason of the problems with the road surface," Justice Stevenson said. "Their claims are, I am told, something in the order of $440,000." That figure is dwarfed by the council's overall claim against Newcastle Resources, which is about $128 million. "That larger claim is, as I have said, presently brought as a claim for breach of one only of the five contracts, as well as a claim for breach of alleged duty of care and for alleged misleading or deceptive conduct," Justice Stevenson said. "The proposed amendments would have the effect of a claim under all five contracts for breach of the wider indemnity that would cover not only claims by the six third parties, but also the council's "own losses"; that is, in effect, the entire $128 million." Justice Stevenson said the change was a "significant expansion of the council's case" and no explanation had been offered why it was brought so late. The court heard if the amendment was allowed Newcastle Resources would have to engage in an "extensive and potentially difficult factual inquiry". To answer the broader claim the company would need to investigate all five contracts to determine if the wider indemnity was applicable. "Mr Lloyd also submitted that Newcastle [Resources] would have to consider whether it would engage an IT expert to seek to interrogate Newcastle's electronic records to ascertain what communications took place between Newcastle and the Council, now over 10 years ago, in relation to the contracts...," Justice Stevenson said. "It would not be just, in my opinion, to impose that burden on Newcastle at this late stage." Justice Stevenson allowed the council to amend its claim to align better with the evidence provided in the case, but rejected its application in relation to broadening the claim. The matter was set down for a two-week hearing in November, but the case was adjourned after the council made an application to introduce late expert evidence. It's understood a hearing in expected to be held in June regarding the evidence and the entire case has been referred to Justice John Sackar for determination by October 1. The Herald reported in May 2022 that the legal stoush and efforts to repair defects in at least 80 sections of road across Lake Macquarie has chewed through $3.8 million. At the time, a council spokesman said the claim was for the loss and damage that it had and would incur to repair assets damaged by Mix 3, the repair costs to third party assets and to prevent further damage. DAILY Today's top stories curated by our news team. Also includes evening update. WEEKDAYS Grab a quick bite of today's latest news from around the region and the nation. WEEKLY The latest news, results & expert analysis. WEEKDAYS Catch up on the news of the day and unwind with great reading for your evening. WEEKLY Get the editor's insights: what's happening & why it matters. WEEKLY Love footy? We've got all the action covered. WEEKLY Every Saturday and Tuesday, explore destinations deals, tips & travel writing to transport you around the globe. WEEKLY Get the latest property and development news here. 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