Lodge owner Charterhall Trustees alleged the fire, in December 2003, was because of negligence of the architect in the lodge design and the Queenstown Lakes District Council in issuing a building consent and code of compliance certificate, despite the design defect.
After winning in the High Court, but then losing in the Court of Appeal, Charterhall Trustees was granted leave to mount another appeal in the Supreme Court in November.
However, in a decision released this week, the Supreme Court revoked leave to appeal after Charterhall withdrew.
The owner was claiming $304,000 in fire damage and two weeks' lost business from the Queenstown Lakes District Council and Arrowtown architects Blair and Co.
Counsel Ian Hunt said the question was whether local bodies had a duty of care to the owners of commercial properties.
The Supreme Court unanimously decided the council could not be held liable to the owner and the architect could not seek a contribution from the council towards any liability of the design.
The leave to appeal granted to the architect was also revoked.
The architect was ordered to pay the council $7500 and "reasonable disbursements".
