Mr Fabriczy's lawyer Jack Pappas told the court the jail had breached the ACT's Human Rights Act by keeping him with sentenced prisoners, when he is still on remand awaiting trial.
Chief Justice Lucy McCallum agreed, noting there was evidence from another recent case that part of the Act had not been complied with since Canberra's jail opened in 2008.
Justice McCallum found the breach cleared the way for Mr Fabriczy to apply for bail, because it was a "special and exceptional circumstance".
Mr Pappas said Mr Fabriczy would be prepared to abide by strict bail conditions, including wearing a security ankle bracelet, keeping to a tight curfew overnight, and offering $50,000 surety, while living in his Melbourne home.