Wellington, Nov 25 NZPA - The owners of a Central Otago luxury lodge badly damaged by fire six years ago can mount an appeal to recover $304,000 from Queenstown Lakes District Council and an Arrowtown architecture firm, the Supreme Court says.

Charterhall Trustees Ltd, the owner of the Blanket Bay lodge in Glenorchy, is claiming the cash for damage and two weeks' lost business, blaming the fire on a badly designed and constructed chimney.

Charterhall said the council should have detected the faults during the resource consent process or building inspections, The Southland Times reported.

The lodge owners won a High Court case, but lost in the Court of Appeal.

The Supreme Court yesterday granted them leave to appeal on the ground of 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.

A date for the appeal had not been set.

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