Evans, who was presenting Virgin's breakfast show at the time, found himself in an escalating conflict with the station's managers, which culminated in his not turning up for work five days in a row in June 2001. He had told his employers he was ill, but was photographed by paparazzi in a pub with his wife Billie Piper.
He had sued Virgin's owner, Scottish media company SMG, claiming he was unfairly dismissed.
It is the latest in a string of blows for Evans, who has recently seen both of the television shows he produces cancelled -- 'Boys & Girls' on Channel 4 and 'Live With Christian O'Connell' on Five.
The case was thrown out this morning and SMG said the former 'Big Breakfast' presenter could now be liable for up to 拢4m in damages and costs. Evans sold his Ginger Media Group, which included a TV production arm and Virgin Radio, to SMG in 2000 for 拢335m.
The maverick TV and radio star was not present at the judgment. Instead, he issued a statement through Amanda Phillips, his solicitor: "All will come out right at last -- have we such faith in the goodness of providence."
Giving his ruling at the High Court, Mr Justice Lightman said of Evans: "He has the temperament of a prima donna."
In a lengthy assessment of Evans' personality, the judge said: "He is given to extremes: moderation has no part to play. Drinking to excess is part of his lifestyle. He is a binge drinker. He told me with pride and no trace of embarrassment that more often than not he presented the show with a hangover. He has a reputation for laddish behaviour, including drunkenness.
"Despite his confident front, he is very insecure in himself, and as a consequence frequently (but not invariably) has recourse to any means (legitimate or otherwise) to avoid confrontation or cause for upsetting him."
SMG spokesman Callum Spreng, speaking outside the High Court following the ruling, said: "The judge has made it clear that Virgin Radio is entitled to seek damages from Chris Evans and these, along with costs, will be determined at a later hearing."
He added: "We were always confident that the court would support our position that Chris Evans repeatedly breached the terms of his contract.
"It was clear to everyone when Chris Evans walked out on us that Virgin Radio was put in an impossible situation and had no option but to take the action we took at the time."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .