Two judges have rejected Barry George's claim that the Justice Secretary unfairly and unlawfully decided he was "not innocent enough to be compensated".
Lord Justice Beatson and Mr Justice Irwin ruled that the Secretary of State was "entirely justified in the conclusion he reached."
Ian Lawless, who spent eight years behind bars for murder before being freed by the Court of Appeal in 2009, won a similar legal challenge.
More top news
On Assignment meets the fishermen risking their lives every day to harvest goose barnacles which are almost worth their weight in gold.
The London Fire Brigade say they agree with Mary Berry that no households should have a deep fat fryer.
Building officials reportedly ordered occupants to evacuate after the fire broke out.