A case involving the Streets of Buckhead project, now called Buckhead Altanta, and damage to a neighboring property, is heading to the Georgia Supreme Court.

The case, Royal Capital Development v. Maryland Casualty Co., stems from damage to the Capital Building on East Paces Ferry Road suffered during construction of an adjacent parking deck in the Streets of Buckhead, a mixed-use project.

The owner of the Capital Building submitted a $2.7 million claim to Maryland Casualty, which paid $1.13 million for repairs, but wouldn’t cover the lost property value as a result of the physical damage.

The building owner, Royal Capital, sued the insurance company, saying it should cover the lost property value as well.

A federal judge in Atlanta ruled against the building owner who appealed to the United States Court of Appeals for the Eleventh Circuit. That court has decided it needs the Georgia Supreme Court to decide on a question of state law before the federal appeals court can make its decision.

The question is whether an insurance policy that has the option of covering repairs and the reduced value of a building due to the stigma of having been damaged can elect to pay for one set of damages, but not the other.

If the supreme court requests oral arguments, they would be scheduled in January.