A New Zealand company’s bid to sue an Australian insurer for damages has been thrown out by the country’s Supreme Court.

Ludgate Holdings claims a faulty florescent light bulb supplied by former Australian manufacturer Atco caused $267,738 in fire damage in February 2006. Atco, which went into liquidation five months later, was insured for product liability claims by Gerling Australia Insurance.

Ludgate won the right to seek damages against Gerling in the NZ High Court, lost on appeal and appealed to the Supreme Court.

The Supreme Court ruled last week that Gerling – which is no longer active in the market – was beyond its jurisdictional reach and dismissed the appeal.

“A NZ court should not make an order with regard to the payment of the Australian debt,” the court said.

“It certainly should not direct the making of the payment in a manner which would not be consistent with the applicable Australian law.”

Ludgate has been forced to pay Gerling $15,000 in costs.