Elderly people who are terminally ill with mesothelioma will be able to remain in the community at construction giant James Hardie's expense, rather than being forced into a nursing home by the company, under a landmark court ruling.

On Wednesday, the NSW Dust Diseases Tribunal ordered James Hardie, the company behind the asbestos scandal, to pay $664,000 to Sydney man Ron Phillips, who was diagnosed with mesothelioma four decades after he was exposed to asbestos while helping a friend renovate.

James Hardie must pay for the elderly man to spend his final days in a serviced apartment at Cronulla.

Of the payout, about $152,000 will cover the cost of commercial carers so the 84-year-old can see out his final days in a serviced beachside apartment in Cronulla.

Lawyers for Amaca - the former branch of James Hardie that was being sued - argued it should only be forced to fund the cheaper option of care in a nursing home.