Belinda Rigg SC argued a man who claimed he drank with Lyn Dawson in the Warners Bay Hotel after her disappearance could possibly have been telling the truth.
Justice Ian Harrison dismissed Mr Cooper as “completely unreliable” at the murder trial.
Mr Cooper said at some point in 1982 he saw Lyn Simms sitting alone at a table in the hotel, which is in Newcastle.
In 2018, he saw a story about Lyn on A Current Affair and came forward to Chris Dawson’s lawyers.
At trial he gave evidence that the woman told him she had left her husband and two children because of the husband’s infidelity.
Mr Cooper told the court he believed the woman was seeking to “set up” her husband for murder.
In an earlier email to Dawson’s lawyers, Mr Cooper had written: “I was looking to pick up the lady and started drinking with her at a small table.
“After a few drinks and later in the night she told me she had left her husband and what she told me made it plain to see she was setting him up.
“I told her what I thought etc. The fact she was also leaving her kids was nothing compared to the hate she had for her husband.”
Justice Harrison said, unlike other people who claimed to have seen Lyn, Mr Cooper had never met her.
In his judgment, Justice Harrison wrote: “Mr Cooper is asserting that a woman he had never met before, whose physical features he had no reason at that time in 1982 to remember, is the same woman by chance he later sees on a television program about a missing person. Mr Cooper’s evidence is completely unreliable for this reason alone.”
In the appeal hearing on Monday, public defender Belinda Rigg SC said although she accepted some elements of Mr Cooper’s evidence were unlikely to be accurate, it was “reasonably possible” that he was telling the truth.
“It was a memorable event for Mr Cooper and it was so striking to him that he spoke about it to his family and associates about it on the night and he’s never forgotten it,” Ms Rigg said.
She said the fact he was trying to recall events from 40 years ago was not Chris Dawson’s fault – and the delay in charging Dawson had deprived him of the chance to bring Mr Cooper to court earlier, when his memory would have been more fresh.