Dublin City Council is to sue bankrupt developer Thomas McFeely and others over what it claims are "defective" apartments at the Priory Hall Complex.
The apartment complex in Donaghmede was closed last year by order of the High Court due to fire safety concerns.
More than 250 families had to leave their homes and seek alternative accommodation.
Miss Justice Elizabeth Dunne granted the council permission to bring proceedings against Mr McFeely, whom the court had previously adjudged to be bankrupt.
Denis McDonald SC for the council said it had brought an action against both Mr McFeely and several other parties over what it claims are structurally defective apartments at Priory Hall.
He the council has leased around 27 apartments at Priory Hall and Mr McFeely was the mortgagee of eight of those apartments.
Mr McDonald said despite being a bankrupt, the council wanted to include Mr McFeely in the action it intends to bring against eight others because the developer could be found liable by the court.
It could also be the case, he added, that Mr McFeely may be successful in his application to have court's decision to adjudicate him bankrupt reviewed.
That review is due to be heard next month.
Ms Justice Dunne said the council was making a "somewhat unusual" application but said she was prepared to grant it permission to bring the action.
The order was granted ex parte.
Neither Mr McFeely nor any legal representative acting on his behalf were present in court.