The Earthquake Commission (EQC) has failed in its bid to force three property owners to pay court costs after they decided to drop their legal action against it.
The three property owners went to court after EQC decided it could repair their homes for less than $100,000.
They dropped their legal action after EQC changed its mind and decided it would not be able to repair them and their cases would need to be handed on to their private insurers.
The EQC was claiming legal costs on the basis its decision had nothing to do with the threat of legal action but the Court of Appeal rejected its argument.