In July 1985, during the term of the Hawke Labor government, Murphy was initially convicted on one of two charges of attempting to pervert the course of justice, over allegations made by Clarrie Briese, the Chief Magistrate of New South Wales, that Murphy had attempted to influence a court case against Sydney lawyer Morgan Ryan, whom Murphy referred to as "my little mate". A subsequent appeal to the NSW Court of Appeals quashed Murphy's conviction on the grounds that the trial judge had misdirected the jury. A second trial was then held and, on 28 April 1986, Murphy was found not guilty of attempting to pervert the course of justice. After his acquittal, Murphy said, "Thank God for the jury system!".