Cala drops claim in pounds 2m oak battle.
Cala Homes had claimed it was forced to revise plans for a development of detached homes at Four Acres, Dorridge, Solihull, after the council invoked tree preservation order.
No reason was given for the withdrawal but it followed evidence from Mr David Whitehurst, senior landscape architect for the council.
It had been alleged he met Mrs Anne Smith, a buyer for Cala Homes, at the site and told her the tree could come down.
However, Mr Whitehurst told the High Court in London he only met her in offices. He did not have the final say and had told Mrs Smith to get confirmation from the tree preservation officer.
Ordering costs against the firm, Mrs Justice Smith said Mr Whitehurst's evidence was so manifestly true that it put the lid on the case.