An Ontario man who spent 31 years in jail after being convicted of a 1967 murder said he never doubted he would receive a second chance to prove his innocence.

Romeo Phillion said his "dreams came true" Thursday when Ontario's top court ordered a new trial into the case, striking down his murder conviction.

Phillion, who has been free on bail since 2003 pending his appeal hearing, became emotional during a press conference Thursday morning, an hour after the decision was rendered.

"I had a great lawyer working on my case who wouldn't give up until it was done," he said.

Phillion, 69, spent more than three decades incarcerated in an Ontario prison for the stabbing death of Ottawa firefighter Leopold Roy.

In 1972, five years after Roy was stabbed to death, Phillion boasted to police that he committed the murder. Although he recanted his confession almost immediately, he was convicted of murder and sent to jail.

Defence lawyers said Phillion confessed to impress his gay lover.

Questionable alibi

The court heard that investigators verified Phillion's alibi but that it was then discredited for reasons that were never documented.

It was revealed that prosecutors knew about the alibi but did not disclose that police had verified it when they presented their case during the 1972 trial. The alibi was an important component of the confession.

Appeal Court Justice Mike Moldaver said in his 103-page ruling that the jury sitting on the trial back then may have come to a different conclusion had evidence of the alibi been presented.

The justice wrote that he was displeased with the police detective investigating the case at the time, saying Det. John McCombie had been "less than forthcoming and hardly enlightening" during the preliminary inquiry.

While Moldaver's decision was supported by Justice John Laskin, it was opposed by Justice James MacPherson who opined that police discredited the alibi after initially verifying it.

However, Moldaver was adamant that the fresh evidence does not prove Phillion's innocence and that in fact, the man's confession had details that only the killer could have known.

"I have no hesitation in concluding that this is not a case in which a verdict of acquittal should be substituted," Moldaver wrote in the report. "Rather it is one that calls for an order for a new trial."

Moldaver said he couldn't decide whether the alibi was disproved but that it should have been presented to the jury because of its importance.

"That is the stuff that reasonable doubt is made of," he said.

Phillion never sought parole during his incarceration, saying it would amount to an admission that he killed Roy. Phillion was released finally in 2003 on bail, pending the appeal hearing.

Hoping for an acquittal

Now, it's up to the Ontario attorney general to decide if the case will go back to court. Chris Bentley has the task of deciding whether to stay or withdraw the proceedings against Phillion.

A spokesperson for Bentley's office said the attorney general would review the case over the weekend before making a decision on how to proceed.

Phillion and his lawyer James Lockyer said they're hoping for an acquittal rather than a dismissal of the charges. The prosecution also has the option to arraign Phillion one more time and then offer no evidence. Doing so would mean Phillion would be automatically acquitted.

Both the Crown and defence agreed that a new trial would be fruitless because the murder took place more than 40 years ago.

During his time in prison, Phillion made countless bids to appeal his conviction. His appeal was denied by the Ontario Court of Appeal in 1974 and by the Supreme Court of Canada in 1977.