Coalition Senator Jacinta Nampijinpa Price says there is "substantial truth" in a media release her office issued last year which called for the dismissal of a land council chief executive, court documents reveal.

Central Land Council (CLC) chief executive Lesley Turner is suing the opposition spokesperson for Indigenous affairs, claiming the release in July last year defamed him, arguing it falsely argued a no-confidence motion had been moved against him by members of the land council in a general meeting.

The release quoted then-CLC chair Matthew Palmer, who argued the "majority of Central Land Council members showed their support for the dismissal of the CEO due to unprofessional conduct".

The CLC denied this motion had taken place.

In a subsequent release, Senator Price quoted Mr Palmer, claiming there was a "majority support for change of direction and leadership" in the CLC.

The story was published in the NT News, who later removed two articles and issued an apology to Mr Turner.

In the statement of claim, Mr Turner said Senator Price had defamed him by implying he "behaved so unprofessionally that it warranted his dismissal" and was "unfit to continue to occupy the role of CEO".

"By reason of the publication of the [media release], the applicant has been seriously injured in his character and in his personal and professional reputation and has suffered and will continue to suffer hurt and embarrassment and loss and damage."

It added Senator Price "intended that the [press release] be republished in the mass media in order to hurt [Mr Turner] and damage his reputation".

Whilst Senator Price has removed the media release from her website, she has not issued a retraction or apology, despite "being told unequivocally on 22 July 2024 by the CLC that her claims were false".

In documents filed with the federal court late last year, Senator Price said there was "substantial truth" to the media release, highlighting findings by the Australian National Audit Office (ANAO) which found a 2021 CLC fraud policy signed by Mr Turner was "not fully effective," as well as stating he had failed to ensure a fraud risk assessment was conducted by the CLC in the two years after it was first implemented.

The Northern Territory Senator is also relying on defences of qualified privilege and honest opinion.

She argues Mr Turner "conducted himself in an unprofessional way" by failing to consult properly with Indigenous constituents living in the region to "ascertain and express their wishes and opinions and protect their interests".

Senator Price also alleged Mr Turner stopped consulting with Mr Palmer whilst he was still the CLC chair, gave presentations on governance matters regarding Mr Palmer for which there wasn't any "legitimate or proper basis," and travelled for meetings about the land council without notifying Mr Palmer in advance.

Mr Turner, who is being represented by high profile barrister Sue Chrysanthou SC, argued Senator Price was motivated by "malice" when she released the media statement to 1591 email addresses for "the improper purpose of harming Mr Turner and/or his reputation".

It was further alleged Senator Price couldn't rely on information provided by Mr Palmer since she would have known he had already been removed as CLC chair.

In October last year, Federal Court justice Michael Wheelahan ordered Senator Price to pay $1,500 after her legal team failed to file her defence in time.

Senator Price, who has long called for an audit for all land councils, has been highly critical of the CLC.

During the land council's 50th anniversary in October, Senator Price and a group of local Arrernte Elders met in Alice Springs to call for an inquiry into the land council.

"If an organisation has not delivered or fulfilled its purpose for its people, then the number of years it has existed is irrelevant," she said.

In the same month, National Indigenous Times revealed she moved a motion in the Senate to have the minutes of a CLC meeting in Tennant Creek on September 17 be submitted to parliament in full. It was criticised by Labor senators as improper due to the ongoing legal case.

Senator Price denied the imputation her move was political, arguing she was holding the government to account.

The case returns to court in March for a management hearing.