Catherine, Michael Lose Legal Round

By Stephen M. Silverman

01/28/2003 at 01:00 PM EST

Michael Douglas and Catherine Zeta-Jones have suffered a setback in their legal battle over unauthorized wedding photos. The star couple on Monday failed to prevent Britain's Hello! magazine from defending itself against their $3.27 million damages claim in London's High Court, reports Reuters.

The decision, by senior judge Sir Andrew Morritt, means that the celebrity trial will move ahead, though its starting date is expected to be the subject of further argument in court Tuesday.

The Douglases -- who are expected to appear in court -- are suing Hello! over what they claim are the unauthorized publication of photos of their wedding at New York's Plaza Hotel in November 2000.

During Monday's hearing, judge Andrew Morritt criticized Hello! but said the defense should be heard at a trial, which at this point is still due to begin next Monday.

Douglas, 58, and Zeta-Jones, 33, will argue that the magazine breached their right to privacy by printing the pictures. The couple sold the rights for their official wedding photos to OK! magazine (Hello!'s chief competition and another slick, photo-heavy publication) for a reported $1.6 million.

Hello! published its own photos of the wedding three days before OK!, prompting Zeta-Jones to say she felt "heartbroken."

On the bright side, Zeta-Jones was nominated Monday for a British Academy Film Award for best supporting actress for her role in "Chicago." She is expecting the couple's second child within weeks.