The Supreme Court of New Zealand has dismissed an appeal relating to a claim for damage from the Canterbury earthquakes.

The case hinged on whether Prattley Enterprises, which owned the three-storey Worcester Towers in Christchurch, was entitled to claim for damage caused by each quake.

The building suffered moderate damage in the earthquake of September 4 2010 and further damage in the Boxing Day event the same year. It was severely damaged in the major earthquake of February 22 2011, and demolished in September 2011.

The building was insured by Vero, with a sum insured of $NZ1.605 million ($1.54 million).

Prattley claimed on its policy and it was agreed Vero would pay $NZ1.05 million ($1.01 million) plus GST in a “full and final settlement”.

However, Prattley says the settlement was a mistake and should be set aside under the NZ Contractual Mistakes Act 1977.

It says it should have been paid the total costs of repairing the damage after the first two quakes, plus the cost of reinstatement following the third, and claimed the total entitlement, on this basis, was $NZ3.388 million ($3.24 million) plus GST.

Prattley was unsuccessful in the New Zealand High Court and Court of Appeal, and the Supreme Court unanimously dismissed this latest appeal.

The court says Prattley was not entitled to recover separately and cumulatively for each event because it would receive more than it had lost, and the indemnity principle would be breached. Prattley was ordered to pay Vero costs of $NZ25,000 ($23,931).