Faruk Orman, who was jailed for the 2002 murder of underworld figure Victor Peirce, has walked free from a Melbourne court after his conviction was quashed in the wake of the Lawyer X scandal.

Key points: The Court of Appeal ruled there had been a substantial miscarriage of justice in Mr Orman's case

The Court of Appeal ruled there had been a substantial miscarriage of justice in Mr Orman's case It is the first gangland conviction quashed since the Lawyer X scandal was publicly exposed

It is the first gangland conviction quashed since the Lawyer X scandal was publicly exposed Mr Orman walked free from court after the ruling

He is the first person to get out of jail as a result of Victoria Police's use of underworld lawyer Nicola Gobbo — also known as Lawyer X or Informant 3838.

Mr Orman sat crying and wiping his eyes as his conviction was thrown out by the full bench of the Victorian Court of Appeal this morning.

He was found guilty by a Supreme Court jury of being the getaway driver in the killing of Peirce, who was shot dead as he sat in his car in Port Melbourne in 2002.

Mr Orman has always professed his innocence, and appealed against his conviction all the way to the High Court.

Faruk Orman thanked his legal team as he walked out of court. (AAP: David Crosling)

The case against him was thrown into doubt after it was revealed Ms Gobbo, who was Mr Orman's lawyer, was also a police informer.

The Court of Appeal heard while acting for Orman, she encouraged the key witness against him to give evidence at his trial.

The President of the Court of Appeal, Chris Maxwell, said Ms Gobbo's actions were a fundamental breach of her legal obligations to her client and to the court.

"On the facts conceded, Ms Gobbo's conduct subverted Mr Orman's right to a fair trial and went to the very foundation of the system of criminal trial," he said.

"There was, accordingly, a substantial miscarriage of justice. The appeal must therefore be allowed."

The Director of Public Prosecutions, Kerri Judd QC, told the court that when she looked at the case she found material that contradicted the allegations against Mr Orman.

"There may be some substance to the allegations [against Orman], there may be not," she said.

But she said once she had established beyond doubt that Ms Gobbo's actions had caused a substantial miscarriage of justice, there was no need to look at the evidence any further.

Given Mr Orman had already served 12 years of a 20-year sentence, she conceded it would be unjust to order a retrial.

Tears, smiles in court

Victor Peirce was shot dead as he sat in his car in Bay Street, Port Melbourne in May 2002. (ABC News)

Friends and family, many of whom were in tears, hugged Mr Orman as he leaned over the glass of the dock after the hearing ended, while others lined up to get into court to see him.

Earlier, he had stood smiling and waving after being brought into court.

Last month, the State Government was forced to intervene and grant Mr Orman the right to make a bid for freedom, saying there was evidence he may have suffered a miscarriage of justice due to Ms Gobbo's involvement.

Victoria's Attorney-General Jill Hennessy granted Mr Orman a petition of mercy, ordering his case be reheard before the Court of Appeal.

'I have been lucky'

In a statement released via his lawyers, Mr Orman thanked his family, friends and legal team, singling out his partner, who he said had not missed a week of visits during his time in prison.

"You have had to serve this sentence with me and our lives have been on hold. We have our time now and I look forward to our future together," he said.

"After serving 12 years for a crime that I did not commit, I am looking forward to getting on with my life as a private citizen.

"I think that many people will think that I have come out of prison bitter and angry. I haven't.

"I have been lucky enough to have people who have supported me and fought for me."

He said he would be "eternally grateful" to Ms Hennessy for her "bravery" in granting him a petition of mercy.

Nicola Gobbo represented Mr Orman while she was providing information to police. (ABC News)

Lawyer X advised police about witness

The witness against Mr Orman, referred to as Witness Q, was a former client of Ms Gobbo's.

He told police Mr Orman had confessed to being the getaway driver when Andrew 'Benji' Veniamin shot Peirce.

While working as a defence lawyer for Mr Orman in November 2007, Ms Gobbo heard Witness Q wanted to withdraw his evidence.

She contacted her police handlers and encouraged them to visit the witness to "put him straight".

They did so, and Witness Q's evidence was crucial in Mr Orman's conviction.

Mokbel and others consider their options

Ms Gobbo was a lawyer for many underworld figures and claimed she helped Victoria Police convict many high-profile criminals, including drug kingpin Tony Mokbel and convicted drug dealer Rob Karam.

They and others are hoping to have their convictions overturned on the basis police relied on tainted information from Ms Gobbo.

That could lead to massive compensation payouts, which would ultimately be met by taxpayers.

Lawyers for Mokbel have also indicated they may apply to the State Government for a petition of mercy.

The High Court found by ratting on her clients Ms Gobbo had committed "appalling breaches" of her obligations as a lawyer.

It found Victoria Police was guilty of "reprehensible conduct" for knowingly encouraging her to do so.

A royal commission is now examining the extent of Ms Gobbo's informing and who authorised it.

Sorry, this video has expired Nicola Gobbo acted for many underworld figures while also providing information to police.

Faruk Orman's full statement:

Today I am most grateful to have been released after over 12 years in custody. It has been an overwhelming experience for me and those close to me. After pleading not guilty at Trial and using every appeal avenue I had available to me, it was only through the bravery of the Attorney General's decision that I was able to have my matter referred back for an Appeal. To the Honourable Jill Hennessy I am eternally grateful. I have been so lucky, throughout this experience, to have people who believed in me and fought for me. I would really like to thank Ruth Parker, my solicitor, and the whole team at Galbally Rolfe. Ruth has lived this case with me for over a decade. She fought my appeals with me after my conviction and has been reviewing my case ever since. Even in 2015, she was still pursuing our avenues even though we kept coming up against blocked paths. And a special thanks for the counselling also! I would like to thank Carly Lloyd and Paul Smallwood, my barristers, for their tireless work and support. I was lucky enough to have Carly with me when I was charged with this crime. Today I was just as lucky to have her there when I was acquitted. Ruth, Carly and Paul all jumped on board and supported me at a time when no one knew the extent of the damage that had been done by Nicola Gobbo and the Victoria Police. I want to thank my lawyers' families for the sacrifices that they have made so that Ruth, Carly and Paul could work on my case. I know that you have all made financial and personal sacrifices in order to help me and I am so grateful to you all, including the kids who have had to put up with their mothers being on the phone to me a lot! To Bret Walker SC and Ruth Shann, thank you for agreeing to become involved in my matter if required. Your willingness to do so meant the world to me. I also want to acknowledge and express my gratitude to the late Mr. Shirrefs SC, whose diligence and passion has assisted me to this day, as well as the team who supported him. I would like to thank my parents, immediate family, my very close friends (you know who you are) and everyone who has supported me throughout the years, in a variety of ways. I will be eternally grateful for your relentless support over the years. To my beautiful partner, who has loved me and supported me, who hasn't missed a week of visits, I cannot put into words how much you mean to me. You have had to serve this sentence with me and our lives have been on hold. We have our time now and I look forward to our future together. I understand that there is a victim in this matter and his family. To the Peirce family, I am sorry for your loss. I hope that you get the appropriate support and care that you need, because I understand that this process will have been just as traumatic for you as it was for me. After serving 12 years for a crime that I did not commit, I am looking forward to getting on with my life as a private citizen. I am sure that there will be more revelations from the Royal Commission, which may give all of us affected some answers, even though we may never know the full truth about what's actually happened. A lot has been said about me, which I had no control over. I think that many people will think that I have come out of prison bitter and angry. I haven't. I have been lucky enough to have people who have supported me and fought for me. Right now, I just want some privacy to be with my partner and my family. Thank you to everyone who has shown an interest in my case. Any further queries can be directed to Ruth Parker at Galbally Rolfe. Sincerely yours, Faruk Orman

Statement from the court: