Two coastal erosion litigation cases against Byron Shire Council have been resolved, leaving an insurer to cover a $2.75 million payout.

The cases, which have dragged on for a decade, were instigated by two groups of Belongil property-owners.

The first group claimed to have suffered significant financial loss due to council work to protect the town’s main beach and car park. They argued this work had caused a realignment of the beach and erosion of their properties.

The second group claimed to have incurred significant financial loss as a result of the council’s acts or omissions during a 2009 storm.

The NSW Supreme Court ordered that the council cannot remove existing rock walls protecting the residents’ properties, and that the residents can apply for permission to improve them.

It also ordered the council to pay the plaintiffs $2.75 million, including costs.

Both proceedings were defended on behalf of the council by its insurer, JLT-administered Statewide Mutual, which will cover the settlement.

JLT told insuranceNEWS.com.au the insurer is “fully reinsured” and there will be no detrimental impact on the Statewide Mutual scheme.

Byron Shire Council Legal Services Co-ordinator Ralph James says there had been many attempts to resolve the matter.

“The resolution agreement does not… suggest any liability on the part of council for the financial losses claimed by the property-owners,” he said.

“It merely affords the property-owners the necessary time to allow them to take steps to apply for lawful protective works, the same as any other coastal ratepayer.

“The agreement reached to resolve the proceedings has no impact on council’s planning controls regarding planned retreat.

“The resolution also ends what could be many more years of defending the matter and consuming council’s resources.

Mr James says the council “had the benefit of insurance cover in respect of the claims pleaded against it’, but admits the litigation “was a significant strain on council resources”.