Jackson's reputation has taken a battering in recent months

Promoter Marcel Avram had been seeking $21.2m (�13.2m) compensation for Jackson pulling out of millennium gigs.

Mr Avram said Jackson cancelled his appearances after he had already paid out $11.2m (�7m) to Jackson.

But Jackson testified, during a bizarre court appearance, that it was Mr Avram that cancelled the dates.

However, the jury at Santa Maria court in California sided with the promoter, setting damages at $5.3m.

"It's a big win," said Shawn Sachs, a representative of Mr Avram.

The cancelled millennium concerts were due to be held in Sydney and Honolulu - two sides of the international dateline.

Mr Avram said Jackson pulled out after two earlier charity concerts in Munich and Seoul suffered "dismal" ticket sales.

His lawsuit stated he was left "left to explain Michael Jackson's erratic behaviour - and to pay all his bills."

Disney

Jackson's court appearance turned into a media circus.

On his first day in court he arrived on crutches after saying he had been bitten by a spider.

He told the court that it was Mr Avram who cancelled the dates, fearing they would not be profitable.

But he often told the jury that he could not remember administrative issues from that far back, comparing himself to Walt Disney because he was an entertainer not a promoter.

Losing the court battle is the latest setback for the singer who has endured massive media attention in recent months.

Journalist Martin Bashir's documentary on Jackson caused a storm of controversy and rekindled child sex abuse allegations which had hit him in 1993.