Owners of Alexandra's Criterion Hotel have been given a seven-day liquor licence suspension by the Liquor Licensing Authority, five months after their last suspension.
General managers Corranne (64) and Tony Flannery (67) appeared in the Queenstown District Court in front of Judge John Hole and Ms Judith Moorhead, of the authority, after incidents involving intoxicated patrons on the premises in August and September.
Mrs Flannery was ordered to resign as the hotel director and cancel her general manager's certificate, and was to have no role in sales during liquor licensing hours, with the exception of cooking meals.
The pair have owned the Criterion for more than 14 years.
Alexandra lawyer Kieran Tohill said the couple had had only four incidents involving police in this time.
Police prosecutor Constable Gordon Brett Pay, of Alexandra, said that on two separate incidents last year he and another constable had found several intoxicated people at the hotel, and proposed a 21-day suspension for the couple's liquor licence.
On August 20, Constable Pay noted the bar, which is known for hosting shearers in the area, had a "general vibe" that was "anti and trouble seemed imminent".
The two police officers arrived to a pub brawl, which had overflowed to the garden bar.
When he had approached Mrs Flannery about one particularly drunk male shearer, she dismissed the behaviour, he said.
"She repeated 99% of shearers are good people who work hard and play hard and she thought it was better to do that in a controlled environment."
Two weeks later, on September 3, the same officers visited the Criterion on Saturday night and found no security at the door and Mrs Flannery taking the general manager role as well as serving drinks.
He said there were three males directly in front of the bar "showing signs of extreme intoxication".
Constable Pay asked one bar patron what signs she would look for before refusing service to a patron and she replied "falling over. slurring, yelling or arguing".
He notified Mrs Flannery of one male who had been falling asleep at the bar and she stated: "I put him on water. He's waiting for the others. What am I meant to do, put him on the street?" Constable Pay's evidence read.
The hotel had received a breach warning as far back as 2007 and last year had been given a 48-day suspension, and had both manager's certificates suspended, after minors had been served alcohol on their premises.
The incident occurred in September 2010.