Greater Hume Shire is likely to face a bill above $25 million following a fire which started at Walla tip in 2009, according to a lawyer involved in a class action.
The matter, which involved 70 property owners affected by the fire, has been heard in the High Court.
The result leaves the council liable for losses caused by the blaze and for legal costs.
Maddens Lawyers class action principal Brendan Pendergast said that figure was likely to be above $25 million.
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"During that time these people have had to face significant adversity whilst they attempt to rebuild their lives and their farming businesses," he said.
"Whilst it does not completely relieve their stress, the best possible outcome has been reached for the fire victims."
For lead plaintiff Sharon Weber, who lost her Gerogery home in the fire, the decision was a relief after years of court hearings.
"There's no celebration," she said.
"I'm just happy it's over, or almost over, and hopefully we can all just put it behind us."
Ms Weber said she had been in a dark place for years after the blaze, which burnt 5200 hectares, destroyed five houses and damaged four others, and destroyed 17 outbuildings.
"It impacts your family, it impacts everyone around you," she said.
"But I'm in a better place now.
"Hopefully moving forward I can get into an even better place."
The matter has been before the courts for three years.
A finding was initially made in favour of the council, which was then overturned.
The council released a statement accepting this week's decision of the High Court to dismiss their appeal application.
"The issue of compensation to the claimants is a matter for council's insurers and lawyers," a spokesman said.
"Council acknowledges that the fire has had a significant impact on a number of residents and former residents and it is hoped that the decision handed down on Wednesday, 11 September 2019 will allow some closure for those impacted by the fire.
"Since the formation of Greater Hume Council in May 2004 the number of landfills in the shire has been reduced from seven to two."