The Oscar-winning actor and his wife Rita Wilson had been seeking $3 million in damages from the firm after claiming there were "serious defects" in the property Storey Construction Inc. had built for them in popular ski resort Sun Valley, Idaho, a decade ago.
However, last Saturday (21.05.11), the Blaine County District Court failed to award the couple any compensation, and ordered that they must pay all the legal costs connected to the case.
The court battle first began when the Hanks family refused to pay Storey Construction the final $2 million of the cost of erecting the property, which resulted in owner Gary Storey putting a lien on the compound.
While the 54-year-old star eventually paid for the construction of the property, he went on to file an arbitration claim against the company after allegedly discovering defects in the home.
Following the 10-day hearing, Mr. Storey`s attorney, R. Miles Stanislaw, said: "The way Tom Hanks and Rita Wilson treated Gary Storey was totally unfair and completely unwarranted.
"Storey was falsely accused by people with deep pockets in a losing effort to destroy Storey."
However, Tom and Rita are standing by their claims, saying they have "experienced a number of serious problems" associated with the design and build of the property.
In a statement to RadarOnline.com, they said: "Over the years, we have experienced a number of serious problems with how our home was designed and built. We have previously resolved our claims against the architect.
"For various legal reasons, including the passage of time, the arbitrators did not share our view of the contractor`s portion of responsibility. While we disagree with the outcome, we are pleased that the contractor`s counterclaims were rejected."