NT Labor leader's future in doubt

The concerted strategy by the Northern Territory's opposition leader to discredit an inquiry has left "a bad taste in the mouth" of democracy, the chief minister says.

Adam Giles said several Northern Territory Labor MPs, including leader Delia Lawrie and her deputy will be referred to the privileges committee for misleading parliament.

A judgment handed down in the Darwin Supreme Court on Wednesday found that Ms Lawrie colluded with her lawyers to discredit the commissioner of an inquiry that found she had acted improperly and with bias by handing an historic Darwin site to Unions NT.

The then-Labor government bypassed the usual tender process to hand them the Stella Maris site on a 10-year lease for zero rent the day before entering caretaker mode for the August 2012 election.

There is no statutory definition of corrupt conduct in the NT, but Commissioner John Lawler found Ms Lawrie's actions were improper and unfair, and that the actions of current deputy Gerry McCarthy - then Minister for Lands and Planning - were not accountable, responsible or in the public interest.

She challenged Mr Lawler's findings, alleging he had denied her procedural fairness.

But Justice Stephen Southwood found that Ms Lawrie had colluded with her lawyer, NT Bar Association President Alistair Wyvill, to "ignore, disengage and discredit" the inquiry when they realised it was not going their way.

Mr Wyvill counselled her to say the inquiry was unfairly conducted from the beginning and to falsely claim she was not expecting an adverse finding, he said.

He said they falsely accused Mr Lawler of prejudging the matter, and publicly disparaged him in order to make political use of the on-the-record comments.

"It leaves a bad taste in the mouth of not only Territorians but democracy itself," Chief Minister Adam Giles told reporters.

He said it was too soon to talk about referring the matter to police, but said he expected there would be referrals "for a number of opposition members" to the privileges committee during April sittings.

The committee could find members in contempt of parliament, which can carry a six-month jail term.

"I know the Labor Party will be very quick to get rid of the leader of the opposition, but this runs through the veins of the Labor Party," Mr Giles said.

"It has been about personal attacks, public slurs on individuals; this is coming from within the Labor Party and extends into parts of the justice fraternity."

The NT Law Society said it was considering the judgment and had not yet determined how to proceed with an investigation of Mr Wyvill.

Ms Lawrie will consider the verdict overnight and comment on Thursday.