Nigel Waterson said: “It is disappointing that the Court has upheld Mr Lloyd and Ms Carr’s appeal of the original Summary Judgment which stated that they had no real prospect of defending the claim for defamation brought against them.
"The three Lord Justices who heard the appeal were split in their decision, with the leading Judgment in our favour but the other two Lord Justices reaching a different conclusion.
“I will now be studying the judgment in detail with my legal team and looking at where this case goes from here.
“This has already been a lengthy and stressful process for me and my family. I would like to thank them and many good friends for their unfailing support.”
The Court of Appeal has today ruled in favour of Stephen Lloyd MP - in the libel case brought against him by former Conservative Member of Parliament for Eastbourne, Nigel Waterson.
The Appeal Court found that criticisms made about Mr Waterson’s expenses claims for his second home in Kent - which featured in Lib Dem leaflets circulated during the 2010 General Election - were expressions of opinion.
This overturned an earlier judgement of the High Court, which went against Mr Lloyd, the current MP for Eastbourne.
Stephen Lloyd said: “I welcome the appeal court ruling. From the very first day I was elected my absolute priority has always been: what can I do for Eastbourne & Willingdon? And this has never wavered for one minute.
"I care deeply for our town and have been touched by the incredible support and generosity so many people have shown me since the case started almost two years ago. It has been a long and somewhat convoluted process, but I am absolutely delighted that common sense and justice has prevailed.”
Controversial plans to change health services in Sussex have been debated in the House of Commons.
MP Stephen Lloyd is trying to overturn a decision to centralise some hospital departments, which has sparked large demonstrations.
Stroke care is to be sited at Eastbourne District Hospital with some emergency surgery at the Conquest in Hastings. We spoke to Eastbourne MP Stephen Lloyd earlier.