The Phone Booth star took legal action against his former Playmate girlfriend Nicole Narain for allegedly planning to commercially release the raunchy 14-minute footage they made three years ago.
The video reportedly shows the movie hunk engaging in sex acts with the former model during their brief romance.
But Narain has insisted the pair never agreed to keep the tape private, and hoped to have the case dismissed in order to benefit financially by its public release.
However, in court yesterday Judge Elihu Berle quashed Narain's appeal and advised her lawyers to file a response to Farrell's suit instead.
Farrell is seeking general and compensatory damages as well as an injunction prohibiting the promotion and sale of the tape.
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