"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," he said.
Justice Eady also said there was "no evidence" to support the newspaper's claim that there was a Nazi element to his party with five prostitutes.
"I see no genuine basis at all for the suggestion that the participants mocked the victims of the Holocaust," he added, explaining there was "no public interest" for the News of the World's expose.
Mosley was awarded 60,000 British pounds ($120,000) in damages, compensating Mosley's "injury to feelings, the embarrassment and distress caused", Eady said.
He did not award punitive damages.
A statement issued by Mosley's lawyers said the 68-year-old is "delighted" by the ruling.
"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," the FIA president added, reinforcing his promise to donate the money to the FIA Foundation.
Original: Before attending the notorious military-themed orgy with five prostitutes, FIA president Max Mosley was reportedly warned at least three times that his enemies were out to destroy him.
Dean Attew, a London based business intelligence consultant who was also friends and a former colleague of F1 chief executive Bernie Ecclestone, told The Times newspaper that he personally warned Mosley.
Attew said he was contacted in late January - two months before the News of the World expose - by someone who was hatching a plot to discredit the FIA chief.
"We had a meeting and I was approached and told there was an open budget to effectively go out and source material that would bring Max to his knees and, more importantly, remove him from office and discredit him publicly," said Attew, co-founder of the corporate intelligence company Titon International.
He added: "They then went back and they came back a little while later and said, 'We are not going to pursue it for the time being'."
Attew, who told Ecclestone of the meeting, said the unnamed discreditors contacted him to test his loyalty to Mosley.
"Bernie then told Max -- I know this because Max later confirmed this to me.
"Because of the relationship I have with both of them, and Max knowing who I was, I assumed that the warning would be taken seriously," he said, adding that Mosley was also warned "by someone else" as well.
Despite Ecclestone's warning to Mosley, Attew said Bernie doubted the FIA president would be discredited in this way because "he's Mr Boring".
Attew worked for Ecclestone's Formula One Group for four years until 2004. (GMM)