The neighbour of a Newcastle man who claims he was defending himself when he killed a fellow drug user says the victim had calmed down and was sitting next to her on a couch before he was stabbed.
Ian Matthew Conway has admitted stabbing Christopher Ward, 56 with a hunting knife at his Broadmeadow home on March 7, 2021 after inviting him over to take ice.
However, the 47-year-old has pleaded not guilty to murder, saying he had made a "poking motion" with the hunting knife towards Ward's abdomen in self-defence.
Defence barrister Dennis Stewart has told the NSW Supreme Court jury his client was defending himself and did not intend to seriously injure or kill Ward.
Neighbour Renee Lee, who was at the unit, told jurors on Wednesday she witnessed the stabbing.
She and Conway were shocked when Mr Ward lifted his shirt and they saw the extent of his injury.
"I think Ian was shocked at the gravity of it and I was very much, especially when I started to see what was coming out," Ms Lee said.
Despite being satisfied with the wine she had at home, she went to the neighbouring unit because she had been invited multiple times and was intimidated by Conway's reputation, she said.
She did not go to the unit under the impression, or with the intention she would be offered drugs, she said, and was uncomfortable with drug use taking place in the unit.
"I know what people are like on drugs and I tried to leave a few times," Ms Lee told the jury.
Mr Ward had been acting erratically, barking like a dog at the front door, taking apart a kettle, and insulting Ms Lee and Conway's wife, who was in a wheelchair.
"He appeared to be high," Ms Lee said.
But he had relaxed and was sitting with her on the couch before the stabbing occurred.
"He actually calmed down or I would have got straight up when he sat next to me," she said.
"I sat there ... until Ian lunged at old mate, reality kicked in and I got up and moved," Ms Lee said.
Conway had placed a knife down near Mr Ward and said "I'll use my hands" as he invited him to "muck around", Ms Lee said.
She denied she was not telling the truth, but said she may have made mistakes that led to differences between her testimony and an interview she gave to police days after the stabbing almost 18 months ago.
"I hadn't slept for two nights and witnessed what I witnessed," she said.
She has since tried to forget the incident occurred, Ms Lee said.
Mr Stewart suggested she had not actually seen the stabbing.
"I wish I didn't," Ms Lee said.
She is expected to continue giving evidence on Thursday.
