Kieren Fallon will not ride in Saturday's Epsom Derby after the owners of horse Native Khan obtained an injunction to prevent him.
Owner Ibrahim Araci said three-time winner Fallon had reneged on a deal to ride for him but Fallon said it was an "innocent misunderstanding".
On Friday a judge refused Mr Araci an injunction but on raceday two Court of Appeal judges reversed the ruling.
Fallon's ride on his preferred mount, Recital, now goes to Pat Smullen.
Mr Araci's solicitor Mehmet Ali Erdogan said his client was "thrilled" by the verdict.
"My client entered into a contract with Kieren Fallon, and Mr Fallon promised to do two things - to ride Native Khan, or if not asked to do so, not to ride a competing horse in a race where Native Khan is racing," he told the BBC News Channel.
"The court decided he promised these two things and he broke his promise. The court decided he should keep his promise."
He confirmed that there was a signed document agreeing the arrangement between Fallon and Mr Araci, but it had now been rendered meaningless.
"There is a written contract which Kieren Fallon signed for a year starting from last April, a contract to ride Native Khan whenever asked to do so for a period of one year.
"As far as I know there has been no discussion (between the pair). It (Fallon's decision) came to our client as an utter shock - they had a fantastic relationship before he called and tried to cancel his commitment to our client.
"The contract effectively is not enforceable any more as mutual trust is not there."
Epsom Derby entries (form, horse, owner, trainer)
21-1 CARLTON HOUSE (USA) Sir Michael Stoute
0560-5 CASTLEMORRIS KING Michael Attwater
1-6 MARHABA MALYOON (Ire) David Simcock
16-51 MASKED MARVEL John Gosden
5(1)-2 MEMPHIS TENNESSEE (Ire) Aidan O'Brien (Ire)
114-13 NATIVE KHAN (Fra) Ed Dunlop
5-11 OCEAN WAR Mahmood Al Zarooni
0(1)120-3 PISCO SOUR (USA) Hughie Morrison
01-31 POUR MOI (Ire) Andre Fabre (Fra)
11-31 RECITAL (Fra) Aidan O'Brien (Ire)
212-2 SEVILLE (Ger) Aidan O'Brien (Ire)
21123-1 TREASURE BEACH Aidan O'Brien (Ire)
61-13 VADAMAR (Fra) Alain de Royer Dupre (Fra)
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