Sydney radio station 2UE has failed to have set aside a jury's finding that John Laws during a radio program in August 2005 defamed journalist Ray Chesterton. It was during that broadcast Mr Chesterton was described in a defamatory manner including that Mr Chesterton was a "bombastic, beer-bellied buffoon" and was not to be taken seriously as a journalist.

The NSW Court of Appeal has dismissed the challenge by Radio 2UE Sydney Pty Ltd, which had requested for the jury's findings to be set aside and a new trial ordered.

2UE complained the trial judge erred in the directions to the jury about "business reputation".

The next step of the case will involve a judge conducting a hearing at which Radio 2UE can put forward any defences it may have and submissions on damages can be made.