The 'Keeping Up with the Kardashians' stars were investigated by the Los Angeles County Sheriff's Department over a 15-minute display they set off on a yacht in the early hours of August 26 and though the department recommended to the LA County District Attorney there should be a misdemeanour charge of disturbing the peace, the authority rejected the suggestion because the family had ''passive permission'', TMZ reports.
The Coast Guard had advised the Sheriff's Department that Kris' production company would be staging the fireworks display at the party - which was held to celebrate Khloe's boyfriend James Harden's birthday - but didn't need a permit as the boat was outside the marina.
However, angry local residents wanted them to be reprimanded for violating noise ordinances.
It is believed 12 residents of Marina del Rey, California, are still planning to press on with a small claims court case, arguing the fireworks display caused emotional distress.
One resident said her child ''freaked out'', while another claimed her multiple sclerosis had worsened since the spectacle.
Each resident is suing for $7,500 - which is the maximum amount that can be claimed in a small claims court - and want to come face-to-face with Khloe and Kris.
Khloe hosted a bash for 200 guests aboard the Fantasea yacht to mark James' 26th birthday.
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