After winning in the High Court, but then losing in the Court of Appeal, lodge owners Charterhall Trustees Ltd were yesterday told by the Supreme Court they could mount another appeal.
They are claiming $304,000 in fire damage and two weeks' lost business from the Queenstown Lakes District Council and Arrowtown architects Blair and Co.
Lodge general manager Phillip Jenkins said he would not comment because the appeal was being led by the insurance company.
Counsel Ian Hunt declined to name the insurance company he represents.
He said the insurers alleged the chimney was badly designed and constructed and the council should have detected this during the resource consent process or building inspections.
The council failed to have the claim struck out by the High Court but won in the Court of Appeal.
Mr Hunt then lodged an application to appeal in the Supreme Court, which yesterday granted leave to appeal.
He said the question was whether local bodies had a duty of care to the owners of commercial properties.
The council told the Court of Appeal the duty of care applied to residential owners, not commercial, and Charterhall should have protected itself rather than rely on the council.
The Court of Appeal agreed, saying Charterhall should look to its own experts, not the council, to recover its losses.
The Supreme Court decision says the appeal ground was whether the council "owed a duty of care to Charterhall to exercise reasonable skill and care in the performance of its functions and responsibilities under the Building Act 1991".
No date has been set for the Supreme Court hearing but Mr Hunt expected it to be "some time next year".
