Kelly Rutherford -- Loses Battle for Kids

Kelly Rutherford was just dealt what could be an unrecoverable blow in her battle to regain custody of her 2 children.

A judge just ruled the actress had no recourse to wage custody war in California. Her ex-husband, Daniel Giersch, has an order from a judge in Monaco -- where he lives -- giving him custody of 8-year-old Hermes and 6-year-old Helena.

The kids have been living with their dad in Monaco but Kelly won the right to get them for the summer. Today's ruling clears the way for Daniel to take them back.

Kelly has been fighting for 3 years, but it's mostly been a losing battle.