Jamie Fawcett Nicole Kidman Sun Herald

PAPARAZZO Jamie Fawcett has lost his court bid for compensation from a Fairfax newspaper that labelled him "Sydney's most disliked freelance photographer" and claimed he was determined to wreak havoc on Nicole Kidman's private life.

PAPARAZZO Jamie Fawcett has lost his court bid for compensation from a Fairfax newspaper that labelled him "Sydney's most disliked freelance photographer" and claimed he was determined to wreak havoc on Nicole Kidman's private life.

In 2006, a jury found Fawcett was defamed in The Sun-Herald gossip column published in January 2005.

A subsequent hearing was held last year to decide whether Fairfax could establish a defence and, if not, the amount that a damages payment to the photographer should be.

But in the NSW Supreme Court this morning, Justice Carolyn Simpson ruled that Fawcett was not entitled to any financial compensation because Fairfax Media, publisher of The Sun-Herald newspaper, had successfully defended the case.

Fairfax had argued the defamatory meanings in the case - including that Fawcett had behaved in such "an intrusive and threatening manner that he had scared'' the actress - were true.

Kidman gave evidence at the defamation hearing last year, and told the court that Fawcett had pursued her car in such a dangerous manner across Sydney that she feared for her life.

In her judgment, Justice Simpson said: "Ms Kidman was clearly afraid. He (Fawcett) was clearly motivated to obtain such a photograph and he recognised that his remaining opportunities on that evening were very limited indeed.''

Justice Simpson also found that Fawcett had placed a listening device outside Kidman's Sydney home in 2005, despite the fact that police had not laid charges against the photographer after investigating the incident.

Outside court this morning, Fawcett said he was "very disappointed'' by the judge's verdict, particularly the finding that he had planted the listening bug.

The celebrity photographer was ordered to pay the legal costs of Fairfax. On top of his own legal bills, Fawcett is likely to be several hundred thousand dollars out of pocket.

Fawcett said the verdict was a "massive economic decision'' against him and said he was "already hurting''.

He is expected to appeal the decision.