Jonathan Harvey, from Tamerton Foliot, was lucky to survive when he tripped over a chainlink fence and plunged over a wall seven years ago.
Mr Harvey, now 28, landed on the concrete car park of Woolwell's Tesco store in the early hours of April 18, 2003.
Although doctors saved his life, brain damage left him with difficulties walking and talking.
The physiotherapy student, who had drunk up to eight pints, was running from a taxi as part of a prank when he tripped.
He sought damages from Plymouth City Council, arguing the area was unsafe and the fence in disrepair.
A High Court judge ruled last year that, although Mr Harvey should shoulder most of the blame for the accident, the council should take 25 per cent of legal liability.
But the council challenged that ruling at the Court of Appeal, saying it placed an impossible burden on landowners and risked opening a litigation floodgate.
Top judges yesterday said they had "considerable sympathy" for Mr Harvey, but ruled the council was not even partially responsible.
The council's barrister, Edward Faulks QC, told the court Mr Harvey had been making "extraordinary and unusual use" of the wasteland.
"You can invite someone into your house, but you don't invite them to slide down the banisters," he added.
In his ruling, Lord Justice Carnwath said Mr Harvey dismissed the argument that the council owed him no legal duty as "unrealistic".
However, he said that because Mr Harvey could not meet the legal definition of a "visitor", the council's appeal must succeed.
He added: "I reach this conclusion with considerable sympathy for the claimant, whose life has been blighted by a tragic accident."
Mr Harvey, who did not travel to London for the hearing, declined to comment.
But, speaking after the ruling, he thanked his friends, family and legal team "for all their help and support" throughout his battle.
A council spokesman said: "This is a very sad case where a young man has been left with life-changing injuries.
"The council is satisfied with today's judgment in the Court of Appeal, where Lord Justice Carnwath stated the council's responsibilities do not extend to Mr Harvey's activities on the night in question. The council will be considering the full details of the judgment with its lawyers in due course.
"This was a tragic accident and the council has considerable sympathy for Mr Harvey."