$ 55k bid knocked back Harbour payout rejected

A GROUP of disgruntled residents from Hinchinbrook Harbour has rejected a $ 55,000 payout from Passage Holdings.

The Australian company, which is overseeing the $ 450 million redevelopment of the former Port Hinchinbrook, was required to pay 14 landholders $ 55,000 in legal fees.

The legal fees followed an outcome to a dispute regarding easements.

The respondent sought to enforce its claim for legal fees but was met with a counterclaim for longstanding disputes regarding residential sewerage levies.

Passage Holdings decided to put the court case to rest by paying the $ 55,000 in order to “move on” with repairing the development after Cyclone Yasi smashed Cardwell.

However the landholders rejected the payment in what was considered to be a protest.

It is understood the court commented that it would be wise for the respondent to re- think the strategy of rejecting the $ 55,000 which would settle debts.

In an affidavit attained through the Federal Court, the respondent’s lawyer, Clive Scott of Connolly Suthers Lawyers, said to Passage Holdings’ lawyer Emanate Legal that “Your client has offered to pay $ 55,000 to our clients in this matter ‘ in full and final satisfaction of any or all issues regarding the action.’

“Please note we are instructed to reject the above offer.

“We have no instructions to make any counter offer, should it become necessary our client will seek to have the application dismissed in due course.”

It follows reports by the Townsville Bulletin earlier this year that residents were unhappy with the performance of Passage Holdings, which has ties to US businessmen.

The Bulletin revealed that residents were facing sewerage costs that had risen from a sixmonthly $ 500 to $ 1047.

The case has been adjourned for hearing in the Federal Court in Sydney on August 9.