Insurance provider IAG says council-owned lines company Orion is to blame for the Port Hills fire in Christchurch which destroyed homes and caused millions of dollars in damages.
The company is taking legal action against Orion over claims an electrical fault sparked the blaze in February, something the lines company denies.
IAG is also taking the Christchurch Adventure Park to court, saying the decision to keep the chairlift running helped spread the fire.
The Fire Service investigation into the cause of the blaze is still ongoing.
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