Home unit owners whose city views would be blocked by James Packer's proposed six-star hotel at Burswood had a legal victory over the Barnett Government that gives them access to documents previously kept secret.
Supreme Court Master Craig Sanderson was satisfied the residents had a case to make the Government hand over information that would let them make an informed decision about whether to sue the State.
The residents believe the Government's process to sell 5.8ha to Crown Casino for $60 million and then give the hotel planning approval may have been improper and without a public process under usual planning law.
The Government claims Racing and Gaming Minister Terry Waldron was empowered to approve the hotel alone, without a public process, under the State Agreement Act for the casino.
Lawyer Doug Solomon, for the residents, disputes this, saying the Act contemplated only two stages, the second being the second hotel on the site, now known as Crown Promenade.
His argument was the planned hotel proposal was clearly a third stage not covered in the Act.
Mr Solomon said the ruling encouraged residents to launch action against the Government.
Master Sanderson ordered the State to hand over documents on the Government's actions regarding the land sale and Mr Waldron's purported approvals.
Master Sanderson said in his decision yesterday that the residents' proposed action had significant ramifications for them and the State.
It was in the interests of justice and the parties that the plaintiffs made a fully informed decision.
"I am satisfied the plaintiffs may have cause of action against the (State)," Master Sanderson said. "Certainly this is not a case where the plaintiffs' position is hopeless and no encouragement . . . should be given."Premier Colin Barnett said the Government would review the decision and "take whatever steps are necessary".