Motor racing boss Max Mosley has won his legal battle against the News of the World over claims he took part in a Nazi orgy.

The newspaper, which had accused the 68-year-old son of the 1930s Fascist leader Sir Oswald Mosley of taking part in a "sick Nazi orgy" with five prostitutes, must now pay him a record £60,000 compensation.

Commenting afterwards, Mr Mosley said: "I would like to say I am delighted with a judgment which is devastating for the News of the World.

"This judgment has nailed the Nazi lie upon which the News of the World sought to justify their disgraceful intrusion into my private life.

"By law we are all entitled to have our privacy respected. The News of the World invaded my privacy, dreamt up the most offensive headline possible, and decided that I should not be contacted before publication to prevent me asking the Court for the injunction I would have been entitled to.

"They and their lawyers have then conducted this case so as to cause maximum embarrassment in the hope that I would be discouraged from continuing."

He continued: "I needed a strong judgment to make it absolutely clear that what the News of the World did was wrong.

"Obtaining that in the full glare of the media has been extremely difficult but I am delighted that we have achieved what we set out to do.

"I hope my case will help deter newspapers in the UK from pursuing this type of invasive and salacious journalism.

"I have learnt first-hand how devastating an invasion of privacy can be and how readily papers like the News of the World will destroy lives in the knowledge that few of their victims will dare sue them. I want to encourage a change in that practice.

"As I promised at the outset, the damages will go to the FIA Foundation to further their work for road safety and the environment.

"Finally, I would like to thank all those who have supported me during this difficult period."

Mr Justice Eady did not make an additional award - which would have been unprecedented in invasion of privacy cases - of punitive exemplary damages.

The judge said: "I decided that the claimant had a reasonable expectation of privacy in relation to sexual activities - albeit unconventional - carried on between consenting adults on private property.

"I found that there was no evidence that the gathering on 28 March 2008 was intended to be an enactment of Nazi behaviour or adoption of any of its attitudes. Nor was it in fact.

"I see no genuine basis at all for the suggestion that the participants mocked the victims of the Holocaust.

"There was bondage, beating and domination which seem to be typical of S and M behaviour.

"But there was no public interest or other justification for the clandestine recording, for the publication of the resulting information and still photographs, or for the placing of the video extracts on the News of the World website - all of this on a massive scale.

"Of course, I accept that such behaviour is viewed by some people with distaste and moral disapproval, but in the light of modern rights-based jurisprudence that does not provide any justification for the intrusion on the personal privacy of the claimant."

News of the World editor Colin Myler said outside court that the newspaper was pleased the judge did not award exemplary damages but commented that "our press is less free today after another judgment based on privacy laws emanating from Europe".

© Independent Television News Limited 2008. All rights reserved.