The Federal Court has dismissed an application to hear a case concerning the Perth Hills bushfire of February 2011, ruling it does not have jurisdiction.

A group of property owners represented by Christopher and Rebecca Buckee sued the Commonwealth, QBE and Robert Stevens over the fire, which they allege was started by Mr Stevens using an angle grinder at his home.

They say he was insured by the Commonwealth under the Defence Service Homes Insurance Scheme and had a contents policy underwritten by the Commonwealth and/or QBE.

The court notes Mr Stevens’ liability is disputed.

The Buckees asked for a declaration that the Commonwealth and QBE are liable to indemnify Mr Stevens against them and other group members.

Justice Michael Barker says the proceeding “may be seen effectively as a dispute between insurers of those whose property was damaged and Mr Stevens’ insurers”.

He agrees with the Commonwealth and QBE that the Federal Court does not have jurisdiction to hear the matter, and does not need to consider whether it should be transferred to the WA Supreme Court.

About 70 homes were destroyed in the Perth Hills fire. A number of class actions are under way over bushfires in WA.