The Court of Appeal has found the Wellington City Council erred in its decision-making process to change the carparks on Thorndon Quay.
But while the court has found the council didn't comply with its obligations under law, it has not ordered the ongoing roadworks be halted, or the carpark changes undone.
In June 2021, following public consultation, the council converted the street's angled parks to parallel parks, in the name of improving cyclist safety, which reduced the number of parks significantly.
A number of local businesses, concerned it would affect access for their customers, formed the Thorndon Quay Collective and filed a judicial review in the High Court challenging the council's decision-making process.
The court sided with the council and dismissed it - but now, the Court of Appeal has ruled the judge in that High Court case erred in some of their findings.
Namely, section 77(1) of the Local Government Act required the council to identify "all reasonably practicable options" - but in this case, there was only one option, put together by council staff, presented to councillors on the Planning and Environment Committee.
But while the Court of Appeal found the decision-making process was flawed, "it was not appropriate to quash the decision or direct that the angled parking on Thorndon Quay be restored".
"Matters have moved on since the decision was made in 2021, and it appears that the decision has largely been superseded by subsequent events and decisions that would have required the removal of the angled parking in any event.
"Further (and importantly), the evidence before the court from road safety experts is that the road configuration prior to the decision was unsafe and that the current configuration provides a greater degree of safety for cyclists," the judgment read.
Rather, it ruled that the appropriate outcome was "a declaration that the council's decision-making processes did not comply with its obligations" and it has ordered the council must pay the costs for a standard appeal, and take the findings into account for future decisions.
The council said that, since the Court of Appeal had not quashed the decision or ordered the angled parks be reinstated, there would be no changes to the current roadworks along Thorndon Quay.
"We're considering the findings closely and take on board the court's guidance for future decision-making," it said.