Barry George, wrongly convicted of the murder of BBC TV presenter Jill Dando, has lost a bid for compensation.
Two High Court judges ruled he failed to meet the test which would entitle him to compensation.
Three other people whose convictions had been quashed also failed to win compensation.
But Ian Lawless, jailed for eight years for murder before being freed by the Court of Appeal in 2009, was successful and will have his case reconsidered.
Mr George, 52, who spent eight years in prison before being cleared after a retrial, was one of five test cases to decide who was now entitled to payments.
It followed a landmark decision by the Supreme Court in May 2011.
The judgement redefined the legal meaning of what amounted to a miscarriage of justice after debating when compensation should be awarded to wrongly-convicted people.
'Flawed' decisionPreviously, compensation was only awarded for a miscarriage of justice if a claimant could effectively prove they were innocent.
But the nine Supreme Court judges widened this by saying that if a person could prove that no set of circumstances could possibly lead to their conviction by a jury, they could get compensation.
At the High Court, judges Lord Justice Beatson and Mr Justice Irwin ruled that Mr George and three others had failed this test.
They said: "There was indeed a case upon which a reasonable jury properly directed could have convicted the claimant of murder."
Mr George's lawyers had argued the justice secretary's decision to deny him damages of a maximum of ÂĢ500,000 was "flawed" and "contrary to natural justice".
They indicated they would seek to appeal to the Supreme Court - a so-called "leapfrog" appeal.
Nicholas Baird, said Mr George and his family were "terribly disappointed" and wanted to "reflect" on the judgment before making any comment.
Miss Dando, 37, was shot dead on her doorstep in Fulham, west London, in April 1999.
Mr George was convicted in 2001 but an Old Bailey retrial took place in 2008 after doubt was cast on the reliability of gunshot residue evidence.