Lynn Tran, owner of the tree house has heard back from the District Court of Appeals, which denied Angeleno's Sea Lodge's request to keep the tree house where it stands.
The battle has been going on now since 2011, and Tran says, it has cost her almost $100,000 in legal fees.
There is still hope for the tree house, since Tran and her husband have filed a motion for a hearing, and the Court has 10 days to respond. If the issue still isn't resolved, the case could go all the way to the Florida Supreme Court.
Holmes Beach, Florida -- In the battle of a tree house of epic proportions and the City: a small victory for it's owners Wednesday.
What stands outside Richard Hazen and Lynn Tran's home on Holmes Beach can only be described as a Swiss Family Robinson fantasy tree house, complete with 360-degree windows make of hurricane proof glass.
PHOTOS: Holmes Beach tree house
For nearly a year, the couple has been battling the city, to keep the tree house where it is, after the city claimed it wasn't built up to code, and 10 feet too close to the water.
Hazen and Tran say they were told no permit was needed for a structure of this nature.
After everything was built, city officials ordered the family to tear the tree house down or face a $100 a day fine.
A district court judge from Manatee County ruled today, the City needs to reverse the fine, and that code enforcement overstepped it's boundaries. The City now needs to reverse the fine, which had been accumulating to over $15,000.
To the owners, this is a small step in the bigger picture.
"'I'm very relieved. It's justice at work and I believe in it…it's a relief knowing I won't be penalized when we didn't get justice [the first time around]," says Tran with a smile.
As to what's next, the couple will wait for that judge to review the case once again, and take things one step at a time.