The style icon's neighbours, Karim and Tini Samii, claimed their home at the former Stanhope Hotel in the Big Apple was left severely damaged after Guinness' contractors initially flooded the apartment during renovations.
They went on to accuse the Brit of causing further damage after her bath allegedly overflowed three times, and filed a $1 million (£625,000) lawsuit for "emotional distress".
A New York judge rejected the amount on Wednesday (26Sep12), but ordered Guinness to pay damages to cover the repairs, which will be decided at a further hearing.
Guinness tells New York Post gossip column Page Six, "All I have ever wanted is to make amends and make this right. I've always been happy to pay for their damage, and have already been doing so.
"I would never intentionally flood their apartment. I by no means want to be a bad neighbor. I have totally waterproofed the place and now it is the safest apartment in New York."