Stewart Milne Group said it would consider its next steps
The Stewart Milne property firm could have to pay Aberdeen City Council £1.7m following a dispute over a land deal.
The company bought the 11-acre site in the west of the city for £365,000.
The contract allowed the city council to claim a share of the profits when it was resold in 2006 for almost £500,000, but the council got nothing.
The case was taken to the Court of Session, and it was ruled that the true market value of the site was more than £5.5m, on which a claim could be made.
If there is a dispute about the exact market value the two sides will have to return to court.
A spokesperson for Stewart Milne group said: "The case was brought to court to discuss a technical point relating to the contract on which our interpretation differed from that of the council.
"We will now be considering our next steps."