The former Harbour Quays building. Photo: RNZ / Phil Pennington
The Supreme Court has dismissed an appeal by an engineering firm trying to block a council's legal move over an earthquake-ruined building.
BNZ bank sued Wellington City Council for more than $100 million in 2019 over the Harbour Quays building, demolished after the 2016 Kaikōura quake.
The council sought to also make engineers Beca liable, too, if it came to it.
The Supreme Court's new ruling is the third and final failure for Beca.
The award-winning Wellington headquarters of the bank, owned by CentrePort, stood empty for years after 2016, before being demolished; it had also suffered damage to internal services in the 2013 Seddon quake.
BNZ had argued the council was negligent in granting the building consent, its inspections and issuing a code of compliance certificate.
The council denies liability. But in turn, it also argues Beca was negligent issuing statements in 2007 and 2008 that it relied on for consenting.
RNZ revealed in 2018 that another engineering firm claimed the council went against its advice when it approved the building on Waterloo Quay.
Beca has tried to strike out the council's claim, saying there is a 10-year time limit under the Building Act.
But the Supreme Court in a 3-2 majority decision has agreed with the lower courts - that a different timeframe applies, which gives the council two years, triggered only should it be found liable to BNZ.
Its decision noted that if it was intended that the 10-year legislation over-ride the two-year rule, it "needed to expressly make that clear", a courts media release said.
The majority of the court relied in part on "the unfairness that would arise under the interpretation advanced by Beca".
"Accordingly, the council's claim against Beca was in time."
The council said on Wednesday it intended to defend itself against the damages claim from BNZ before the High Court.