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Wanaka Medical Centre Ltd is being taken to court by Northlake Investments Ltd.
Northlake Investments is the developer of the 1500-house subdivision on the northern outskirts of Wanaka, which features in its advertising plans for a "healthcare centre including medical practice, pharmacy, physio and dentist''.
Wanaka Medical director Dr Julian Pettit acknowledged this week Northlake had lodged a claim against the medical company in the High Court at Invercargill.
He said the directors of Wanaka Medical "regard the claim as being entirely without merit'' and it would be "vigorously defended''.
He referred further inquiries to Auckland lawyer Michael Morrison.
Wanaka Medical Centre's shareholders are Dr Pettit, the Drowned Camel Trust (Dr Andrew McLeod and Karen McLeod), Dr Mark Feeney, Dr Jo Millis and Linda Jolly.
A spokeswoman for Northlake, Sonya Fynmore, said it was not appropriate for the company to comment because the matter was before the courts.