"We look forward to a complete victory against Mr. Nevius at trial, " he wrote.
Nevius' attorney, Lincoln Bandlow, said he would appeal the ruling to the California Supreme Court.
"She is an icon, and you don't become an icon by being weak, " Nevius said Monday.
The dissent argues that Nevius' comments were constitutionally protected speech and the case should have been dismissed.
Nevius feels the truth will come out, likely in the University of Texas lawsuit, and Nevius will be vindicated.
FORBES: Did Ryan O'Neal Steal Painting From Farrah Fawcett's Estate?
O'Neal sued in July 2011, claiming he was defamed by Nevius' comments that the actor had stolen a Fawcett portrait created by Andy Warhol.
Although Nevius initially denied he accused O'Neal of stealing the painting, he acknowledged in a later court filing that he made the claim to university investigators.
"The inferences reasonably drawn from the evidence here would support a jury's finding that Nevius harbored strong ill-feelings toward O'Neal, " the justices siding with O'Neal wrote.
Nevius' comments that O'Neal stole the artwork were made in interviews with Star magazine and "Good Morning America, " and he cooperated with UT investigators searching for the portrait.
Nevius collaborated on a documentary of Fawcett's fight with cancer but sued the actor claiming he interfered in the project and removed him from it shortly before Fawcett's death.
Nevius is a Hollywood producer.
FORBES: Did Ryan O'Neal Steal Painting From Farrah Fawcett's Estate?
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