Francis Rice’s family was in court and applauded when the judgment was delivered.
Speaking outside court, his mother, Theresa, said: “I’m glad that justice has been done.”
“50 years we have waited for this to get cleared up,” she said.
“We knew they were guilty. We knew what they had done, but they kept bringing it up all the time.”
Solicitor Kevin Winters said it was “a massive, massive relief” for Ms Rice and her family.
“This has been a massive battle for Theresa Rice and her family after 50 years to come to court today to get a judgment after all this time,” he said.
Eric Cullen, the only surviving member of the Castlewellan Three, was also in court when the ruling was made.
His solicitor Michael Madden said Mr Cullen was “disappointed” at the outcome and the full judgement would be considered to “see what other options are available”.