A driver launched a battle against a council's parking policy by challenging a parking ticket in court.
Campaigner Peter Nichols, however, ended up paying £500 in costs after the High Court in London decided there was no case to answer.
Mr Nichols hoped to win a review of Brighton and Hove City Council's parking regulations.
After his case was rejected by the High Court yesterday, at a hearing which lasted a few minutes, he said the decision would allow the council to treat parking fines as a stealth tax.
Mr Nichols said parking for people who live in central Brighton was more difficult than anywhere else in Britain.
He said residents were being penalised by the council.
He said: "The council can now do what it wants and that is an awesome prospect."
Mr Nichols, 56, of Montpelier Street, Brighton, said people living in his area only had a 47 per cent chance of finding somewhere to park, even with a permit.
He said people living in the Kensington and Chelsea, often cited as being the most notorious residents' parking scheme anywhere, had a 63 per cent chance of finding a spot.
He said the council had a duty to take residents' interests into consideration under the 1984 Road Traffic Act.
Dick Davey-Thomas, the council's parking manager, said he was pleased the High Court had decided there was no case to answer.
The council had tried to be fair since the parking restrictions were introduced and there had been a low number of appeals against fines.
Mr Justice Hooper told Mr Nichols he was using a parking ticket to attack council policy, which could not be right.
He said Mr Nichols would face difficulties if he decided to pursue the case and the courts were reluctant to intervene in decisions that were for councillors to take.
Mr Nichols's one-man battle against the parking regulations has cost him between £3,000 and £4,000 in legal bills, fines and tickets.
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