Private investigator Glenn Mulcaire has won his High Court action against News Group Newspapers over his legal fees.
Mr Mulcaire, who was jailed for intercepting messages on royal aides’ phones, had sued News International subsidiary NGN for breach of contract.
He said he could not fund his legal defence or pay costs or damages incurred in the civil hacking litigation - due to start in February - and asked for a declaration that NGN had no right to terminate an alleged June 2010 indemnity.
NGN argued that Mr Mulcaire’s demand for £750,000 in return for his co-operation over the proceedings negated the offer.
Mr Mulcaire was not in court in London for the ruling.
Judge Andrew Morritt ruled that Mr Mulcaire had a binding contract with the company to have his fees and potential damages paid in exchange for his co-operation.
Mr Mulcaire was jailed for six months in 2007 for illegally listening to telephone voice messages, along with Clive Goodman, the former royal reporter at the News of the World tabloid. Mr Mulcaire now faces scores of civil actions brought by hacking victims.
Until early this year, News International maintained Mr Goodman was a "rogue reporter" acting alone with Mr Mulcaire's help. The company has since acknowledged that the practice of hacking went much wider at the News of the World and shut the paper down.
A statement released on behalf of Mr Mulcaire by his lawyer said: "As he always said, he was acting on the instruction of News Group Newspapers and he clearly needs legal representation to deal with the numerous cases."
News Group's parent company News International had no immediate comment on the ruling.
Agencies