The Sensible Sentencing Trust has lost its chance to sue the Police and the Corrections Department over their handling of the Graeme Burton case.
Burton murdered Karl Kuchenbecker while on parole in 2007.
The Trust, acting for Mr Kuchenbecker's family, laid a complaint following the release of an Independent Police Conduct Authority report a year after the killing.
The report was critical of both Corrections and Police management of Graeme Burton while he was on parole.
However, the Trust failed to file its complaint within the legally specified time.
In a District Court decision, an application for an extension by the Trust has been disallowed.
Sensible Sentencing says it will appeal against that decision.