A resident's view of Luna Park.
The operators of Luna Park have pledged to "aggressively defend" the fun park against legal action by some of its neighbours, who want compensation and a permanent ban on "thrill rides".
In the NSW Supreme Court, seven residents, and millionaire property developers Stanley and John Roth, are suing Luna Park Sydney Pty Ltd and Metro Edgley, claiming misleading and deceptive conduct under the Trade Practices Act.
Their solicitor, Peter Wise, said his clients did not oppose Luna Park's existence, nor the children's playground situated below their properties in Glen Street, Milsons Point.
"Our case is there were assurances there'd be a children's playground to the north of Coney Island. No one objected, people thought it would be a great idea. They bought properties on that basis and developed on that basis - and when Luna Park [re]opened they got a big fright," he said outside court.
Instead, he said, loud rides including the Ranger and the Spider, with screaming patrons, were relocated to the area, and other "thrill rides" were brought in for the school holidays.
The residents' barrister, Todd Alexis, SC, told the court one couple had rented out their unit and moved elsewhere to escape the noise.
Justice Paul Brereton, who is hearing the case, was briefed on the last time residents objected to noise - the "Big Dipper" case brought by a property developer and residents, including architect Harry Seidler.
In recent years the State Government legislated to stop noise nuisance cases being bought against the park as long as it operates within its development consent conditions.
"Since 1935 and its opening, the rides have always operated from the location to the south of Coney Island, except for the brief Big Dipper period where the tail circled to the north," Mr Alexis said.
"The Seidler litigation substantially reduced the Dipper's hours of operation and ultimately ... led to Luna Park's demise [in February 1996]," he said.
Luna Park reopened in April 2004.
The court heard that, prior to the Multiplex-owned Metro Edgely winning the tender for the site, architect George Revay, a business partner with the Roth brothers, organised a meeting with Metro Edgley directors.
The three men had been negotiating to buy Yellow Pages House in Glen Street, and redevelop it as residential units.
Mr Alexis said director Peter Hearne told Mr Revay: "We want to be good neighbours and not make mistakes like the last time Luna Park operated."
However the Roth family - who made BRW's rich list last year with a family fortune of $180 million - say their company Glen Eight's sales are being hampered because of the noise.
The hearing continues.