But Justice Toogood has also found that Mr Craig was guilty of moderately serious sexual harassment of his former press secretary Rachel MacGregor, on multiple occasions from early 2012 to 2014.
Justice Toogood has just released his 250-page judgment in the defamation case, 18 months after the trial was held.
It was one of a number of legal proceedings launched in relation to the fallout from the 2014 election campaign, and Ms MacGregor's sudden resignation.
Mr Craig sued Mr Slater for posts he made on his Whale Oil blog about Mr Craig and his relationship with Ms MacGregor.
Mr Slater counter-sued Mr Craig for statements he made in a leaflet sent out to 1.6 million households around the country in 2015.
Justice Toogood has found that Mr Slater did defame Mr Craig, by making untrue statements about him.
But not all of Mr Craig's defamation claims were successful.
Justice Toogood dismissed Mr Slater's counter-claim.
Damages weren't awarded, because Justice Toogood said any reputational damage Mr Craig suffered resulted almost entirely from his own actions.
"To the extent, if any, that his reputation suffered further damage because of the two defamatory statements for which I have held the defendants to be liable, I am more than satisfied that the declarations that he was defamed in that way provide adequate vindication.
"I conclude, therefore, that Mr Craig is not entitled to an award of general damages to compensate him further for such damage. Mr Craig's remaining causes of action and his claims for damages in defamation are dismissed," Justice Toogood said.
In a statement, Mr Craig said he was pleased, but not surprised, by the outcome.
"Mr Slater and others made a number of false allegations and I expected to be successful in my claim," he said.
Mr Craig said he was considering an appeal, because not all of his defamation claims were successful.
"In my view there are still issues, including some teething problems with the new 'Public Interest' defence and how it has been applied," he said.
"I will make a decision on whether to appeal after consultation with my legal advisors."
Craig guilty of "moderately serious sexual harassment"
Justice Toogood has found that Mr Craig was guilty of "moderately serious sexual harassment of Ms MacGregor", on multiple occasions from early 2012 to 2014.
Mr Craig did that by "telling her that he remained romantically inclined and sexually attracted to her, and that those expressions of his views were not welcomed by Ms MacGregor at the time they were communicated", Justice Toogood said.
Ms MacGregor chose not to complain about the harassment because of her concern about the effect of a complaint on her employment, he said.
Following her resignation two days before the 2014 election, Ms MacGregor laid a sexual harassment complaint with the Human Rights Commission.
A confidential settlement was reached about that complaint.
Ms MacGregor was subpoenaed to give evidence in the case involving Mr Craig and Mr Slater.
The Rachel MacGregor Trust has welcomed Justice Toogood's finding.
"Mr Craig did not demonstrate, at any point in his evidence in this proceeding, any understanding of the difficulties created for an employee by an employer's expression of intense feelings of emotional engagement and sexual longing," Justice Toogood said.
"He never acknowledged the possibility that Ms MacGregor may have felt she could not protest about, and was obliged to tolerate, sexually charged language and conduct for fear of losing her employment or failing to meet her employer's expectations."
Last month, Mr Craig's defamation case against Ms MacGregor went to trial in the High Court in Auckland.
Justice Hinton has reserved her decision in that proceeding.
Mr Craig's defamation case involving the founder of the Taxpayers' Union, Jordan Williams, has made it all the way to the Supreme Court.
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