Gunns Ltd has failed to appeal a Supreme Court decision in Hobart

Former timber giant Gunns Ltd has failed to successfully appeal a ruling that the company should not be granted damages for a water license application that took about six years to be addressed.

The company’s receiver applied to construct and fill a $750,000 dam at Tamar Ridge Wines, near Evandale, in 2005.

Construction of a 295 megalitre dam began but the company was notified in 2011 that, under the Water Management Act, only 16.6 megalitres of water would be allocated.

In 2015 Gunns Ltd unsuccessfully argued the minister in charge of administering the water license had a duty of care to approve or deny the license within a reasonable time.

Gunns attempted to sue the State for $645,260 in damages. An appeal to overturn the trial ruling was lodged earlier this year.

Chief Justice Alan Blow ruled on Wednesday that no duty of care existed and the former company’s attempt to sue the state had no grounds for appeal.

In the grounds for appeal Gunns argued that, historically, the former company had never been refused a water license in instances where a permit to construct a dam had been approved.

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Examiner