The council's annual report says it relates to a school ``in the Queenstown Lakes district''.
A council spokeswoman would not confirm if the claim related to Arrowtown School, where issues with weathertightness were first discovered by the Ministry of Education in 2012.
In its 2016-17 annual report, the council says the ministry earlier initiated High Court proceedings against CHH, a building supplies company owned by billionaire Graeme Hart, alleging ``inherent defects'' in the cladding sheets and cladding systems it manufactured and prepared, which were used in schools across New Zealand.
In December last year, CHH commenced third-party proceedings against 48 councils, including QLDC.
The claim alleges a ``breach of duty'' in the processing of building consents, undertaking building inspections, and issuing code compliance certificates.
``The councils have applied for orders setting aside and striking out CHH's claims against them,'' the annual report said.
``The MoE's claim against CHH is for 833 school buildings, one of which is located within the Queenstown Lakes district.
``At present, there is insufficient information to conclude on potential liability and claim quantum, if any.''
The report shows $3.8 million under ``other liabilities'' which represented the estimated losses for claims against the council, where it had been joined as a party in the claims.
All related to alleged weathertightness building defects.
Claims received after June 30, 2009 were not covered by insurance.
CHH, meanwhile, has unsuccessfully applied to the High Court, Court of Appeal and Supreme Court to have four of the five causes of action it faces struck out.
The Supreme Court decision, issued last July, said the ministry claimed CHH was negligent in the way it sold Shadowclad, a type of plywood cladding, installed in the schools.
It claimed 833 of those buildings had been affected by weathertightness issues.
Allegations included the problems arose because the ``inherent defects'' in the cladding sheets and systems supplied by CHH caused damage to the buildings on which they were installed.
Further, they provided an environment in which fungal spores could grow, which can be harmful when inhaled.
In August 2014, then-principal at Arrowtown School Robin Harris informed parents of the issues with seven of its nine blocks, but the ministry had assured the school board there were no immediate health and safety issues.
At the time, the Otago Daily Times reported the ministry's 2012 national schools weathertightness survey predicted a total repair cost of $1.4 billion, affecting an estimated 2097 buildings constructed after 1994.
In a 2009 report prepared for the Ministry of Building and Housing, consultant PricewaterhouseCoopers estimated New Zealand's leaky building issues would cost $11.3 billion in financial lability.
Last year, the government announced the weathertightness issues at Arrowtown School - opened in 1997 - would be addressed in a three-year, $11million redevelopment, which would increase the school's capacity by almost 20%, to 700 pupils.
