Boral executives have lost a bid to throw out John Setka's damages suit against them that alleges they provided false statements to police that led to a failed blackmail case against the unionist.

The Victorian Supreme Court held the Construction, Forestry, Maritime, Mining and Energy Union's Victorian secretary's legal action against Paul Dalton and Peter Head for malicious prosecution and false improvement was arguable and should proceed to trial following the spectacular collapse of the criminal case against Mr Setka in 2018.