The mining magnate had been attempting to take the Western Australian government to court over losses he estimated at $30 billion because of decisions relating to his Balmoral South iron ore project in the Pilbara.
Today, the High Court unanimously ruled the emergency law was valid.
Mr Palmer represented himself in the court action, and argued the law discriminated against him as a Queenslander and undermined the independence of the courts. However, these arguments were dismissed.
“This is a monumental victory for all Western Australians,” Premier Mark McGowan said, reacting to the decision.
The $30 billion Mr Palmer was seeking in damages would have left the state bankrupt, Mr McGowan said.